Hainan Province is the only
provincial-level special economic zone in China. Since 1980 Hainan has been one
of the five special economic zones as well as the largest in terms of area. Its
GDP spiked after the opening up policy and reached RMB370.3 billion nominal GDP
in 2015, ranking 28th in mainland China. The real GDP growth rate in Hainan
Province was 7.8% in 2015. The island is rich in natural resources. Its
inland and offshore deposits of oil and natural gas rank one of the highest in
China. Hainan has gas reserves of 99.6 billion cubic meters in the main
sea basins including the Yingge Sea. Hainan is rich in certain mineral
resources. Its reserve of Titanium is about 70% of the national total. It is
also China’s major sea salt production base. The Yinggehai Salt Field, one of
the top salt fields in China, is located in the province. Fishery is an
important contributor to the agricultural sector. Hainan has an abundance of
tropical cash crops like coconuts, pepper, coffee, tea and rubber. It is
the most important tropical fruit production base and seeds-breeding base in
China. Major fruits include pineapple, lychee and longan. Hainan is
one of the largest banana producers in China. The province is also a production
base for herbal medicine. It produces more than 2,500 kinds of herbal
medicines. In recent years, sectors such as fishery and fruits developed
rapidly. Hainan’s manufacturing sector is relatively small. Processing of
petroleum accounted for more tha 30% of the gross industrial output in 2014.
Besides transport equipment, other major industries are relating to the natural
resources. Rubber, foodstuffs and other light industries used to be the major
traditional industries of Hainan. Over the past decade, the province has
expanded its industrial base to include metallurgy, petrochemicals, chemicals,
pharmaceuticals, automobiles, food processing, tobacco, textiles, building
materials, machinery and electronics. Hainan is the largest rubber production
base in China. A wide range of rubber products such as tyres, conveyor
belts and latex gloves are produced. Electronics is an emerging industry
in Hainan. Industries related to food processing and beverages are also growing
strongly. “Yeshu” Brand Natural Coconut Juice is one of the
best-known brands in China. According to the Statistics from People’s
government of Hainan Province issued by Hainan provincial government in 2016,
the waterways freight traffic achieved 115.8 million tonnes in 2015, a drop of
1.5% compared to 2014. In 2015, the port cargo throughput achieved an increase
of 9.0% compared with 2014, achieving 130.5 million tonnes.
Value of trading import vs. exports,
Hainan Province, 2010-2015
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
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