One-stop services for foreign investing in Hainan China, offer business setup consulting, company registration, accounting services in Hainan

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.

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.

Company setup in Hainan free trade zone attracts so much attention in these days. As one of China's foremost tourist destinations, and with its year-long warmth, sunshine and beautiful tropical beaches, Hainan is an excellent investment destination for entrepreneurs and businesses. The Chinese central government decreed in April 2018 that HaiNan will open a pioneering free trade zone by 2020, and a similar free trade port by 2025. It is estimated that economic growth will be more rapid than that of the Mainland in the next 5 to 10 years.

Why Set up a Company in Hainan free trade zone?

Free trade zones are often a good first port of call for foreign investors who are in the process of starting their Chinese company. They offer many benefits, most commonly, ,tax breaks, faster business setup and administration timescales, industry-specific benefits (such as subsidies and investment opportunities).

There is to be a particular focus on medicine and health-care in Hainan. Mainland China has very strict regulations in place for the medical industry. Hainan is already a hot spot of Chinese and foreign medical tourism, and they're planning to grow further, no doubt spurred on by the relaxed medical industry regulations there.

Moreover, The government is also looking into allowing legal gambling in Hainan, namely sports lottery and horse racing. While your company may not be involved with gambling, an influx of tourists and money may well impact your business positively.

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,Hainan, 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.

Once your business is officially registered in Hainan, it's required to maintain proper accounting records in accordance with accounting standards in China and to report taxes on both monthly (for business tax, individual income tax) and quarterly (corporate income tax) basis. Late submissions will face penalties and surcharges.

When foreign companies come to Hainan to set up Small Medium Enterprises, one of the headaches is to find an English-speaking professional accounting & tax advisory and agency firm. Even there is help from local professionals, due to language and communication problems, it is still hard for investors to find the correct way of investment and to completely understand the local investment and tax policy. Furthermore, it is hard for the foreign investors to set up a complete and legal financial & tax system as well as the related procedures. Therefore, different kinds of incompliant problems regarding tax and legal areas will be accumulated with the invested company and lead to serious legal risks step by step.

A lucky investor may get the fluent English-speaking internal accountant by recruitment, but it does not mean the invested company no longer needs an external consultant. Due to the professional limitation of internal accountant, particularly when it comes to comprehensive issues regarding taxation, customs, foreign exchange, labor, banks and so on, it is hard for the internal accountant to propose sophisticated professional advice and options to the company’s management.

During the practical operating, many small and medium sized companies conclude that full time cashier and full time accountant cost a lot and create certain burden for operation. Meanwhile, as they might not be full occupied by works due to the limited work load. To be successful, any enterprise regardless its size often needs a financial and accounting expertise.Outsource your accounting project to us is the best solution to this problem.  With Our professional accounting service, clients can have the expertise they require when they require.

Our accountant could assist you and negotiating with your local officer to use the proper tax reporting method for your China presence. And submit the tax reports monthly and quarterly on your behalf.
.
The details of our services are set out below
◾Update the books in accordance with the Chinese Accounting Standards
◾Prepare monthly financial statements for tax filing purpose and submit if applicable
◾File monthly Business Tax Return and Individual Income Tax Return
◾File Corporate Income Tax Return quarterly
◾Annual Corporate Income Tax Filing
◾Monthly Bookkeeping Service
◾Audit of Financial Statements

Contact Tom Lee for business setup consulting in Hainan