Hainan Investment environment,Company Registration Set Up Business In Hainan China

Situated at the southernmost tip of China, Hainan overlooks Guangdong across the Qiongzhou Strait to the north, Vietnam across the Beibu Bay to the west. It is at the center of the Asia Pacific economic circle with ready access to international shipping routes of the South China Sea. 

It covers a land area of 35,400 square kilometers and administers neighboring Xisha, Nansha and Zhongsha islands, as well as their waters. The central Hainan Island is dome-mountain shaped and surrounded by lower flat land. Mountains, hills, tablelands and plains form the annular and laminar landform with obvious cascade terrain structure.

A pleasant tropical maritime climate makes Hainan Island an ideal habitat, especially for seniors or those seeking health benefits. The island knows no winter and has an annual sunshine duration of 1,750 to 2,650 hours, a yearly average temperature of 23 C to 26 C, and an average annual rainfall of above 1,600 mm.

The total population is approximately 9.25 million and consists of diverse ethnic groups, including Han, Li, Zhuang, Miao and Hui. Approximately 23 out of every 100,000 people in Hainan live to a grand old age of over 100.

Hainan boasts rich biological resources and enjoys the reputation of a "green treasure island". With a wide range of tropical plants, flowers, fruits and herbs, Hainan is the largest tropical gene bank of China. It also has rich oil, natural gas, ferrous metals, non-ferrous metals, sea salt and soil resources.

Economic Overview

Hainan Island, part of the southernmost province of China, is not only the largest special economic zone in the country but also a key link on the 21st Century Maritime Silk Road. With its dynamic and vibrant economic developments, especially the gradual exploration of establishing the China (Hainan) Pilot Free Trade Zone and a free trade port with Chinese characteristics, Hainan has attracted investors from all around the world.

In the year 2017, Hainan's GDP achieved 446.25 billion yuan ($65.3 billion), an increase of 7 percent compared with 2016. The added value in the primary industry was 97.93 billion yuan, increased by 3.6 percent; that in the secondary industry was 99.71 billion yuan, increased by 2.7 percent; that in the tertiary industry was 248.61 billion yuan, increased by 10.2 percent. The ratio of the three industries is 22.0:22.3:55.7, indicating that the effect of Hainan’s service industry in supporting local economic development was enhanced by that year.

Pillar Industries

To accelerate and optimize industrial structure in Hainan province as a new economic growth point, and promote Hainan's comprehensive, sustained and healthy development economically and socially, instructions to adhere to ecological red lines have been implemented. According to the Main Functional Area Planning in Hainan province and the red line of ecological protection requirements, the overall development of space and industrial layout was formulated based on the province's economic and social development over a period of time.

There are 12 key provincial cultivation industries:

Tourism

On the premise of protecting the ecological environment, the province focuses on the development of marine tourism, medical tourism, shopping tourism, convention and exhibition tourism, sport tourism, rural tourism, forest tourism, RV camping tourism and characteristic urban tourism. 

Tropical feature high-efficiency agriculture

The province mainly focuses on enhancing off-sea breeding, developing natural rubber, consolidating and developing aquaculture of winter vegetables and melons, speeding up the development of tropical fruits, promoting the development of modern agriculture services, especially in logistics industry of agricultural product processing and leisure agriculture, Internet+ agriculture, and agricultural insurance.

Internet industry

The province enhances the development of application service industries, including electronic commerce, game animation and service outsourcing. Meanwhile, Hainan strengthens the integration between Internet and other industries including tourism, agriculture, medical care, education, logistics, real estate, and finance.

Medical care and health industry

The province focuses on promoting the development of medical licensing in Chinese medicine, health care, health insurance and internet health care services.

Finance and insurance industry

The province encourages domestic and foreign financial institutions to set up branches in Hainan, expands market players, increases credit funds, constructs multi-level financial markets, makes good use of the insurance dividend policy, strengthens inclusive finance, and promotes local financial innovation and other measures to enhance the development of the financial services industry in Hainan.

Exhibition industry

The province further improves facilities and services, actively introduces international conferences, associations and company annual meetings, cultivates a group of exhibitions with the characteristics of internationalization, specialization and branding in tourism shopping, marine tourism, health care, the Internet industry, efficient agriculture, aerospace and other fields.

Modern logistics industry

The province focuses on strengthening the province's integrated transport system, logistics infrastructure and logistics service facilities, studies the establishment of trading centers for energy, rubber, jewelry and other commodities, developing bonded logistics, cross-border electronic commerce, and promoting the logistics mode of innovation and logistics resource integration.

Oil and gas industry

Hainan strengthens efforts in the development of the raw materials industry, including oil, aromatic hydrocarbons, urea, and methanol,, as well as the fine chemical industry, new materials industry, high-end chemical product industry and energy trading industry.

Pharmaceutical industry

Relying on "Haikou Medical Valley", Hainan focuses on the development of medical industries in bio medicine, Chinese medicine, and medical equipment.

Low carbon manufacturing

Hainan spares no effort in the development of the automobile manufacturing industry, green food processing industry, new energy and new materials industry.

Estate industry

Hainan focuses on the development of shantytowns to improve residential real estate in the island, operating tourism real estate, and commercial real estate. Hainan has established a stable and healthy real estate product supply system and housing security system, and enhances the development of quality and features, which are considered as priorities.

High technology, education, culture and sports industry

Hainan cultivates biological medicine, membrane materials, special glass and special natural rubber materials, photovoltaic silicon solar cells and components and breeding, and pursues international cooperation in education. It also cultivates a characteristic entertainment industry, cultural tourism industry, cultural festival exhibition industry, film and television production industry, new media and creative industries, sports leisure industry and international cultural trade industry.

Advantages

First, it has unique regional advantages. Located in the conjoining area of Asia and the Pacific Ocean, Hainan Island is located midway between Japan andSingapore. It is an important maritime transportation route connecting two major water systems: the Pacific Ocean and the Indian Ocean.

Second, it has an open free trade zone policy Hainan is intended to be a free trade zone under a major national strategic policy, and will gradually explore and steadily promote free trade port construction with Chinese characteristics, all planned, deployed and encouraged by the central government. The China (Hainan) Pilot Free Trade Zone will operate across the entire island, with its strategic positioning as a "pilot area with comprehensively deepened reform and opening-up ", a "national experimental area for ecological civilization", an "international tourism consumption center" and a "national major strategic service area".

Third, it has innovative development planning. Hainan was the first pilot province approved by the central government to carry out the reform of replacing multiple plans for provincial development with one master plan. In accordance with requirements of pilot reforms proposed by the central government, Hainan insists on unified planning and becoming both a big and scenic city. It wants to break the barriers of department and division segmentation, optimize space layout and resource allocation, and coordinate the six types of space planning, namely essential functions, ecological wealth, urban systems, land use, forest land protection and use, and marine functions.

Fourth, it has high-level infrastructure. A convenient "traffic network" including the sea, land and air has been constructed in Hainan. The island has the world's first roundabout high-speed railway, running through 12 cities and counties in the east and west. Total road length of the province is 20,860 km; the network density is 79.23 km/100 square km. Haikou Meilan International Airport and Sanya Phoenix International Airport have a combined throughput of 40 million person-times. Boao International Airport has been completed and put into operation. The system of "four directions, five ports", with Haikou port and Yangpu port as the two cores, has been improved on a daily basis.

Fifth, it has multicultural talent pool. Hainan is the youngest province in China. It grew from the grand occasion of "100,000 talents crossing the strait" in its early days, and is growing now from the magnificent feat of "1,000,000 talents entering Hainan action plan". At present, Hainan has nearly 1.3 million talents, of whom nearly 50,000 are high-level. With its unique ecological environment, Hainan attracts more than 100,000 "migratory bird" talents every year, over 30 percent at the top of their professions.

Sixth, it has efficient review. Hainan will energetically simplify administrative licensing items, focus on improving examination and approval services, eliminate more than 1,200 items subject to delegated authority to lower-level governments and adjust their examination and approval procedures, and eliminate the application materials for 875 provincial-level administrative licensing items.

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 )

-RepresentativeOffices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

Contact Tom Lee for company registration in Hainan