It has been open for more than a month. Thousands of business owners have flocked to the zone to register their companies. But not all investors are clear of what lies ahead.

Thousands of business owners have flocked to the zone to register their companies.

It's not easy queuing in the early morning, as the weather starts to get cold, but the long line in front of the service center of the Shanghai Free Trade Zone has become a common scene.

Lunch boxes have been sold out at the grocery shop next door. Sales of cooked food have surged three times, since the opening of the Free Trade Zone.

The service center of the Shanghai Free Trade Zone has seen thousands of people flow in since its opening. People believe that it is always better to take a preemptive move than being late.

8 windows are open for company registration and consultation.

"It has been busy every day since the 1st of October. Our staff work really hard, they can't go home until all the registration and consulting services have been done. It is always so between 6.30 and 7pm," said Fu Chengyu from Dept. of Foreign Capital in Shanghai Admin. for Industry & Commerce.

The authorities have to limit the number of companies registering to 200 a day. 229 companies have been set up in the zone in the first month, including 19 foreign companies.

"Among these companies, 130 companies are doing trading, 41 companies are capital investment companies, while 14 companies are doing transportation business. Shanghai is developing its service industry, so the companies registering fit in the development orientation of the Free Trade Zone," Fu Chengyu said.

But not all investors come here with a clear business plan.

"Although the preferential policy for domestic companies hasn't come out yet, it is always better to register first then see the next step. Actually many people here don't know what business they can do in the Zone," an investor said.

But experts say not all types of companies are suitable to register in the zone.

"The preferential policy is to encourage certain industries, such as high-tech companies and cultural creative companies. If you are doing this type of business both in the domestic market and abroad, you may benefit from registering in the Free Trade Zone. If you are just doing domestic trading, you may be disappointed," said Wang Weiqing from China Int'l Taxation Research Inst.

Experts also say that the principle of the Shanghai Free Trade Zone is to explore new development modules rather than simply applying preferential policies.