Sunday, January 20, 2019

Introduction To Hainan Laocheng Economic Development Zone, Business Formation In Hainan China

Hainan-Laocheng-Economic-Development-Zone

Hainan Laocheng Economic Development Zone (hereinafter referred to as the “Development Zone”) was founded in May 1988 and was upgraded to a provincial development zone by the National Development and Reform Commission in March 2006. The Development Zone is adjacent to the Qiongzhou Strait in the north, Beibu Gulf in the west, Haikou Meian Science and Technology Park in the east and Jinma Logistics Park in the south.
It boasts the country’s fourth comprehensive free trade zone — Haikou Comprehensive Bonded Zone, one of the 25 pivotal ports in China — Macun port (a national first grade port) and a logistics service base of China National Offshore Oil Corporation.
The planned area of the Development Zone is 571 sq km, including a 117-sq-km in the central urban area. So far, a total of 53 sq km has been developed.
The software and information service sector in Hainan Eco-software Park are the top driving force for the Development Zone’s industrial upgrading. The park opened in April 2011 and completed a 650,000-sq-m construction project and had another 650,000 sq m under construction by the end of May last year. More than 920 enterprises including Tencent, Neusoft, Chinasoft, Donghua Software, India’s NIIT have settled down in the park. Six of them are the top 20 software and information service providers on China’s A-share market.
The park has been identified as a national public service demonstration platform for small and medium-sized enterprises, a national science and technology business incubator and a national new industrialization demonstration base. It has also been recognized as the first batch of Hainan’s cultural industry key projects and cultural industry demonstration parks.

To facilitate people who want to invest and set up business in Hainan Laocheng 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)


Contact Tom Lee for company registration in Hainan Laocheng Economic Development Zone


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