In terms of the business operation for companies and organizations, some of the types of business are only available in the nationally forerunning Shanghai Pilot Free Trade Zone (SHFTZ), Also, there are some types of business that could be operated wholly in the SHFTZ, but only partially outside the zone.

The SHFTZ has advantages in five aspects.

SHFTZ's first advantage is regarding negative list filing management. It is only SHFTZ that has consistent control over domestic and foreign capital off the negative list being implemented. In another word, when it comes to the registration of foreign-invested companies and projects, they can simply quickly and efficiently apply in the SHFTZ, while in other places they should undergo examination and approval on a case-on-case basis, which can be a long and arduous process.

The second advantage is the openness of its service and manufacturing industries. Since its establishment, the zone has issued 54 opening-up measures in two batches, involving the service industry and some fields in the manufacturing industry. All these opening-up measures are only being piloted in the zone.

SHFTZ implements filing management over foreign investment. Previously, foreign investment had to be examined and approved by the authorities, and it used to take three to six months for the procedures. Now foreign investment of less than $300 million only needs to be filed in the zone, and it can be completed in three workdays.

A new trade facilitation mode is also one of the zone's advantages. The special customs supervision areas in the zone are piloting a mode that allows ease of control on the first line, effective and efficient control on the second line and free trade within the zone.

The zone has developed a series of institutional arrangements for trade facilitation involving customs clearance, inspection and quarantine and selective tax, and promoted the rapid development of a series of new types of business, ranging from single window for international trade to the regulation of goods and status classification.

SHFTZ also boasts financial innovation as an advantage. Financial openness and innovation are the highlights of the zone's reforms. At present, SHFTZ is the only pilot zone of free trade account-based separate accounting and cross-border RMB and foreign currency financing. Some types of business such as the two-way cross-border RMB cash pool are well received by the zone's companies and have been promoted and copied throughout the country. However, it is still simpler and more convenient to handle such business in the zone.