Business registration shortened to 1 day in Sanya

 hainan.gov.cn | Updated: 2020-11-30

South China's Hainan has continued to deepen comprehensive reform in business services and as a result, business registration procedures can now be completed in Sanya within one day.

"The Hainan Free Trade Port is really efficient in handling business registration affairs," said a businessman surnamed Li from Tianjin. 

Attracted by the opportunities brought by construction of the Hainan FTP, Li sought to start a business in Sanya and the business registration agency Company Steward helped him finish all the procedures, such as business license application, company seal making, invoice application, social security registration, and bank account opening, on Nov 27.

Company Steward was established by several university graduates in March this year to provide services to enterprises in the Sanya Central Business District. 

The Hainan FTP has attracted a large number of investors from home and abroad, with more than 170 new companies like Company Steward being established, most of which are from outside the island and some are even run by foreign investors.

According to statistics, a total of 14,629 companies have been registered in Sanya as of Nov 25 since the launch of the master plan for the construction of the Hainan FTP on June 1, up by 117 percent year-on-year.

The comprehensive reform of Hainan's business services is an important reason for the growing number of investors in Sanya, according to Li Junfeng, a registrar from the Sanya administration for market regulation.   

According to Li, business entities can now log on to an online platform to apply for business registration at any time. They can submit application forms and the system will process them instantly without the need for registrar review. After confirmation of registration, an electronic business license will be issued and then the entire process of business license, official seal making, invoice application, social security registration, as well as bank account opening can be completed without having to show up in person.

 

A staff member (R) from Sanya guides an investor on the online business registration process. [Photo/hinews.cn]  

About Hainan Resort Software Community (RSC)

 

 Standing on the River Meilun in the west of Hainan Island, Hainan Resort Software Community on the Yinbin Peninsula is thriving. 

As one of the 11 major parks established to pursue initial policies of Hainan Free Trade Port, the community serves as a pilot and exemplary zone for relevant constructions. It has been recognized as a state-level technology business incubator and one of the first national bases for the export of digital services.

The community aspires to build itself into a source for digital trade and a base for financial innovation while gathering outstanding talents. It opts to establish a national blockchain zone and achieve digitalization in culture and sports industries, healthcare, and finance. Based on the integrated application of blockchain technologies, it is expected to become a free and digitalized port with thousands of enterprise functioning to support and millions of citizens better served, hence the fulfillment of “a linked and accessible Hainan”.

During the 13th Five-Year Plan, the revenue of RSC delivered an average annual growth of 50.86%. Intakes of enterprise, profits earned and the tax revenue in 2020 all doubled. 

With giants like Tencent and Baidu settled in the park, RSC now boasts 9206 registered companies in total. In a favorable and steady manner, the community is making its contribution to the early achievement of Hainan’s goal of a 1-trillion-worth digital economy.  

Oriented toward targeted markets and senior talents, the community leaves no stone unturned when it comes to creating an enabling environment where systematic and professional services will be offered for registered companies and special efforts will be made to facilitate cooperation among those leading ones. While building a national pilot blockchain zone, the community is expected to bring in high-quality innovation platforms and exceptional scientists and engineers home and abroad, thereby providing strong support for the development of digital economy in Hainan Free Trade Port.

“We work at a park and innovate in daily life”. The community comes with beautiful surroundings and complete “micro-city” facilities for working, living, education, business, and entertainment. iSchool (micro-city future school), micro-city theater, library, stadium, and healthcare are all in operation now. Invested in CNY 2 billion and working in strategic collaboration with Beijing National Day School, iSchool values students and educates them to be “confident, disciplined and free” in future society. Such facilities will draw mid-to-high-end talents and constitute a reason to stay.  

The first phase of Hainan Resort Software Community has been concluded, and the second one is now under construction by high standards, following the “people-oriented” philosophy. New lifestyles on a technology-driven basis will be formed in meeting talents’ needs for happy life including those for personal career, kids education, and parents care. 

China's master plan paves the way for Hainan's globalized future

 China on Monday released a master plan for the Hainan free trade port, through which China has enlisted 60 key measures to turn the tropical island and China's popular tourist destination into an international hub that could compete with global centers such as Dubai and Singapore.

According to the package of special policies, Hainan is expected to "basically establish" a free trade port system focusing on trade and investment liberalization by 2025, to become "more mature" by 2035 and to turn into an "internationally influential, high level" port by 2050.

In order to meet the development plan of the region over the 15-year span schedule, a delegation of the local government has been sent to Dubai, Singapore, etc., to study how free trade rules have been successfully implemented.

An immediate consequence of the proposed policies could be an attempt to turn Hainan into China's new frontier free trade port and transportation hub, as well as opening to foreign investments in fields such as healthcare, biotech, education, entertainment and innovation leaving financial services.

Hainan has always been considered of strategic importance by the Chinese leadership since the era of Deng Xiaoping when it's promoted to the country's smallest and southernmost province in 1988, to April 2018 when President Xi Jinping announced the plan to make the island into China's largest free-trade zone (FTZ).

At this regard, the latest master plan represents a bigger and more ambitious initiative than the previous FTZ in 2018 and will be characterized by tax free on imports and exports, a more opened and friendly investment environment and an increased capital flow.

In global finance, tax plays a pivoting role in the direction of flows of investments and capitals and is a key element for turning a place into an attractive pole for consumers, talents, investors and companies.

Places such as Dubai and Singapore have become over the years so wealthy and prosperous because of the lower than average income tax on both businesses and individuals and these successful case studies unquestionably represent an incentive for Hainan to convert itself into a better and thriving place where to live and to conduct business.

In this sense, the decision to set a 15 percent maximum personal income tax on eligible talents and corporate income tax on enterprises is going to guarantee Hainan the ability to establish a level playing field with other global tax havens.

The strategic location of Hainan, which stands besides Guangdong Province and in a southern position than Hong Kong, plays a key role in extending the border of China and in bridging the mainland territory and its Greater Bay Area with South East Asian countries such as Vietnam, the Philippines and Indonesia, enhancing trade and cooperation and making Hainan the natural entry point to China from the southern part of the world.

The tropical climate plays in favor of making Hainan a natural alternative to Singapore for holding important international political and economic events due to the large experience as a tourist spot and to an already well developed infrastructure of five-star beachfront hotels and a resort-like atmosphere.

In this sense, China could add to the so-called "summer Davos" in Dalian another international renowned location where to hold major events with an immediate benefit for the domestic economy in terms of increased volume of international tourism and consumption and in terms of strengthening China's image and influence on the global stage.

The decision made by China to bet on Hainan represents a wise move in the direction of a further expansion of the country's economy by promoting joint development with the Greater Bay Area.

In light of China's opening-up policy, the country has chosen to develop its crown jewel by converging economic and political interests, making Hainan into a future global center and a natural choice for foreign investments.

Enterprises to enjoy more benefits at Hainan free trade port

 Market entities will enjoy a batch of benefits in investment, tax and market access when doing business at the Hainan free trade port, Shen Xiaoming, governor of Hainan, said on June 8.

License application and government approval will not be required for industries that are not prohibited by law or mandatory standards, Shen told a press conference in Beijing.

Foreign investment will be subject to a management system combining pre-establishment national treatment and a negative list designated for the free trade port, further reducing restrictions and prohibitions on the basis of free trade zones, Shen said.

Domestic firms registered in the free trade port will be encouraged to raise funds by issuing shares abroad. The free trade port will also offer tax benefits for firms operating in sectors such as tourism, modern services and high technology by exempting enterprise income tax for the income from their direct investment overseas.

Intl airline set up in Sanya to boost Hainan free trade port

 An international airline company will be created jointly by China Eastern Airlines and its partners to serve the construction of the Hainan free trade port, according to a strategic cooperation framework agreement signed on Saturday.

The joint venture, named Sanya International Airlines, will be controlled by China Eastern Airlines, with its stake owners including Hainan Province Transport Investment Holding Co Ltd, Sanya Development Holdings Ltd, Juneyao Airlines and Trip.com Group.

The agreement is among a slew of key projects reached to accelerate the development of the southern island province into an international trade hub and a free trade port in years to come.

Chinese authorities unveiled a master plan on June 1, vowing to build Hainan into a globally influential high-level free trade port by the middle of the century, the Xinhua News Agency reported.

Aviation is Hainan's most important transport solution due to the island province's unique geographical conditions and location, and its rapid development needs a convenient and well-connected aviation network.

China Eastern is one of the first batch of carriers to launch business in Hainan since 1998. Currently, the carrier is operating flights in three airports in the province and transporting up to 3 million passenger trips annually.

 

 

Hainan launches first cross-border cash-pooling for multinational group of companies

 HAIKOU, June 16. /TASS/. The Bank of China launched a first full-fledged system of bilateral cross-border cash-pooling for a group of multinational companies belonging to the Changfeng Energy Group in order to manage cross-border capital from the center, reported the Hainan Daily.

The cash-pooling system is used to consolidate the funds of a group of companies in one bank account and also allows to control multiple accounts simultaneously. The system of this kind was first launched in Hainan's pilot free trade zone.

Changfeng Energy Group specializes in investment, development and operation of energy projects. The major foreign company mainly invests in gas industry. As cross-border trade on Hainan grows, difficulties arise in the movement of capital between the Chinese and foreign subsidiaries within this multinational group of companies. The first cross-border cash-pooling launched in yuan, the newspaper writes, became an example of innovation in the financial sector based on the free trade account on the island. This system will boost the development of the business of multinational enterprises in the province's free trade port.

A free trade account creates the necessary basic conditions for cash-pooling. Not only enterprises established in the free trade port will be able to open accounts, the newspaper writes, but also companies registered abroad. "This means that foreign parent companies and subsidiaries of transnational groups can open accounts in Hainan's free trade port, which will create a global capital management center in the free trade port of Hainan," the news outlet quotes a representative of the Bank of China's Hainan office.

Innovative breakthroughs can build better pilot FTP: Industry experts

 Hainan may seek innovative breakthroughs in economic and social governance to build a better pilot free trade port, industry experts said.

Lin Zhigang, deputy research fellow at the Chinese Academy of International Trade and Economic Cooperation of the Ministry of Commerce, said at an online seminar that to better build the Hainan Free Trade Port, there should be innovations in policies and systems, and the newly-launched master plan for the Hainan Free Trade Port already demonstrates the country's efforts in governance innovation. The online seminar was jointly held by the Hainan Research Institute of the University of International Business and Economics and the Free Trade Zone Research Institute of Nanjing University.

According to the master plan, qualified overseas personnel are allowed to serve as legal representatives of legal institutions, public institutions, and State-owned enterprises in the Hainan Free Trade Port.

The breakthrough is beneficial for Hainan to attract more international talents to serve the free trade port, he said.

In addition, according to the master plan, the free trade port should implement an international evaluation mechanism for talents, and conduct market-based evaluation through salary levels to form a market-oriented talent mechanism.

The policy helps Hainan attract talents of various types in a more flexible and convenient manner, Lin said.

Nie Pingxiang, deputy director of the service trade institute under the MOC, said that the master plan also demonstrated institutional innovation and reform in trade and investment liberalization and facilitation.

According to the plan, for trade in goods, the system of liberalization and facilitation with "zero tariff" as the basic feature should be implemented. For service trade, the measures of "allowing both market access and operation" should be carried out.

UIBE's Hainan Research Institute said in the process of implementing the master plan, it will accurately grasp policy trends, enhance academic research and strengthen academic cooperation to offer constructive suggestions on building the Hainan Free Trade Port.