Sunday, January 20, 2019

Brief Introduction Hainan Province, Incorporate Business Corporate Formation In Hainan China

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Hainan Province is called “Qiong” for short and acclaimed as “Hot Island” and “Coconut Island”, located at the South Sea, China.

Hainan Province is the solely tropical island province of China, administrating Hainan main island, the islets and reefs of Xisha, Nansha, Zhongsha and their surrounding waters. Hainan Province lies in the central part of Asian Pacific Economic Circle, facing Leizhou Peninsula of Guangdong over the Qiongzhou Strait. The west of the island borders the Gulf of Tongkin, with Vietnam visible in the distance. The east of the island is near to Hong Kong and Taiwan, and the Philippines is in southeast. The South Sea in south of the island adjoins to Malaysia, Indonesia, Brunei and Singapore. Haikou City, the capital of Hainan Province, is away from Hong Kong for 50 minutes by air and 2-3 hours from above foreign countries and regions.

Hainan Island is the second largest island of China, taking up a land area of 34,000 square kilometers with a population of more than 7,600,000 in 1999. Many nationalities live in Hainan Island, maily including Han, Li, Miao and Hui nationalities. In China, Li nationality live in the middle and south of Hainan Island only. The total population of Li nationality is of 1,280,000 in 1999.

Hainan Island has monsmoon tropical climate with annual average temperature 22-26 and annual rainfall 1,500-1,600mm. More than 300 days of a year are sunny days. Hainan is a good place of escaping cold, relieving summer heat, having holidays and traveling due to the above-mentioned climate.

It was historically a desolate and backward island to which lots of demoted ministers of past dynasties had been sent. One of them was Su Dongpo, and eminent writer of the Northern Song Dynasty. He composed a beautiful poet here, which is “if I die in Hainan for nine times I won't regret, for all my life traveling in this wonderful land is the happiest.”

Hainan Island lies between the tropical and subtropics with rich natural resources as well as natural landscape of tropical island, natural flavor, geothermal hot spring, cultural relics and rare animals and plants. According to the preliminary investigation, the available tourist resources of Hainan Island are of 241 spots of 11 kinds totally. All the domestic and foreign exports and tourists are enchanted by the blue sky, white clouds, bright sunshine, long coastline and many bays, white sandy beaches, coconut scenery and charming sea of Hainan Island. A.E.Saviqnac, the former secretary general of World Tourist Organization, well commended on Hainan during his visit, “Hainan is a beautiful peal of China and the whole human beings, possessing the most precious resources of China. The status of Hainan to China is just like the Mediterranean to Europe and the Hawaii or Florida to America.” Francesco Frangialli, the Secretary General of World Tourist Organization, also set a high value on the tourism of Hainan during his visit. He said that he would help Hainan to go globewide and to become a Holiday paradise to all tourists from home and abroad.

The province is cultivating 12 pillar industries: tourism, tropical agriculture, the internet, medicine, healthcare, financial service, exhibition, modern logistics, oil and gas, low-carbon manufacturing, education and real estate.

Hainan company registration is also referred to as Hainan corporate formation, Hainan business setup, Hainan company incorporation. Hainan is the smallest and southernmost province of the People's Republic of China, consisting of various islands in the South China Sea. Being China’s largest Special Economic Zone, nominal GDP of Hainan province has been increasing steadily. In simple words, Hainan provides many opportunities for foreign businesses.

To facilitate people who want to invest and set up business in Hainan, here is an introduction of Types of business presence in China:

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise (WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

WhollyForeign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

RepresentativeOffice (RO) is a Liaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

JointVenture (JV) is a Limited liability company formed between Chinese investor andForeign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

SinceMarch 1, 2010: Measures of Establishment of Foreign Invested PartnershipEnterprises (FIPE) in China is taking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

HongKong Company usually been used as a Special Purpose vehicle (SPV) to investMainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (MainlandChina and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

After China's entry to WTO, most industries in China welcome foreign investment, WFOEsetting up in China becomes the first option of foreign investment's entitystructures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

Business set-up in Hainan is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Haikou, Sanya Hainan China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Hainan China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Hainan China. We offer a range of company formation services including helping you to set up:
-Wholly Foreign Owned Enterprises (WFOE )
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)


Contact Tom Lee for company registration in Hainan

1 comment:

  1. Hi,

    I really like your Blog and its sounds great.

    This is Robert Bailey from Hong Kong.

    Hong Kong is a global financial hub and every business organization wants to establish its branch in this city. Though it might sound like an easy thing to do, it may consume a lot of time and money. Eventually, you might drop the idea of establishing a company in Hong Kong Incorporate HK company.
    What if you could get everything ready and start trading with your new company in Hong Kong? Yes, establishing a new company in Hong Kong can be as simple as that if you check the ready made HK companies list and pick one to establish your business in this fast growing city.

    Why a ready made company?
    There are a number of reasons to choose a ready made company. The main reason to prefer this option is the time it takes to open a new company. It may certainly take weeks to complete official procedures. You will encounter a number of legal barriers that will eventually affect your decision of forming a new company in Hong Kong.

    Thank you

    ReplyDelete