Located
in the Yangpu Peninsula in the northwest of Hainan, the development zone was
approved as a national development zone enjoying preferential policies of the
free trade zone by the State Council in 1992. In 2007, the State Council
approved the establishment of the Yangpu Bonded Port in the development Zone.
It was listed as a “new industrialization demonstration base (petrochemical)”
by the Ministry of Industry and Information Technology in 2010 and a
“national cyclic transformation pilot demonstration park” by the national
development and Reform Commission and the Ministry of Finance in 2014.
Yangpu Economic Development Zone boasts the shortest distance to
international main sea routes among all of China’s petrochemical
bases. It is the nearest development to the South China Sea, and is the
bridgehead for the construction of China ASEAN Free Trade Area and the regional
economic cooperation in the Beibu Gulf area. The development zone is surrounded
by sea in three directions and richly endowed with deep-water wharf and
convenient transportation. In addition, it is a zone downwind and conducive to
develop port-oriented industries.
The zone has an approved area of 30 sq km with a planned area of
120 sq km. About 50 sq km have been developed with an investment of 77.41
billion yuan ($11.71 billion) since its establishment more than 20 years ago.
According to plans outlined by local government, it will be
built into a shipping hub, a petrochemical base, an oil reserve base and a pulp
production base for Southeast Asia.
Yangpu Economic Development Zone will focus in particular on,
oil and gas the chemical industry, logistics and trade, processing and
manufacturing and the marine resource development.
It focuses on inviting investment in the following fields:
1. Services relating to resource exploration in the South
China Sea: marine engineering, port construction and operation, South China Sea
resource exploration service and petroleum product trading center.
2. Petrochemical and supporting industries: ethylene,
propylene, styrene, ethylene oxide, propylene oxide, OX downstream products,
rubber and plastics processing and industrial gas.
3. Bonded port-oriented services: Export-oriented
processing, warehousing logistics, display, international procurement and
distribution, commodity trading.
4. Modern processing and manufacturing: equipment
manufacturing and printing and packaging.
To facilitate people who want to invest
and set up business inYangpu Economic Development Zone, 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)
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