Registering a foreign-funded company in Hainan Island, China is an exciting venture that requires careful attention to the documentation and legal procedures. This article aims to provide a comprehensive guide on the documents and process involved in the registration of foreign-funded companies in Hainan. By understanding the requirements and steps, you can navigate the registration process smoothly and establish a successful business presence in Hainan Island.
The procedures for setting up a foreign funded company in Hainan include the following steps:
- Name registration: Foreign investors must register the name of their company with the Hainan Provincial Administration for Market Regulation (市场监督管理局) office in Hainan Free-Trade port. web: https://amr.hainan.gov.cn/ Tel: 0898-66767973 (Consumer consultation); Hainan Commercial Registration Consultation Telephone: 4007965656.
- Obtaining a Certificate of Approval (COA): Once the name is registered, foreign investors must obtain a Certificate of Approval from the Market Regulation Office. To obtain a COA, the foreign invested enterprises (FIE) must submit an application to the Hainan Provincial Administration for Market Regulation (HPAMR). The application must include the following information: the name and address of the FIE, the type of FIE, the amount of registered capital, the names and nationalities of the shareholders, the business scope of the FIE. The HPAMR will then review the application and issue a COA if it is approved. The COA is valid for a period of five years and can be renewed.
- Applying for a Business License: With the Certificate of Approval, foreign investors can apply for a Business License from the same office.
- Other steps: There are other steps involved in setting up a Free-Trade zone company in Hainan, such as opening a bank account and obtaining a tax registration number.
It’s important to note that the specific procedures and requirements may vary based on the nature of the business, industry sector, and specific policies of the Hainan Free Trade Port.
Something to keep in mind:
Foreign investors are strongly recommended to retain a Chinese entity that is authorized or permitted by relevant authorities to directly submit the application documents.
The Chinese entity that acts as a sponsor will be responsible for submitting the application documents to the relevant authority and following up on the application process. The sponsor will also be responsible for providing the foreign investor with the necessary assistance, such as translation and interpretation services.
The following are some of the requirements for a Chinese entity to act as a sponsor:
- The entity must be a legal entity registered in China.
- The entity must have a good credit record.
- The entity must have the necessary experience in setting up foreign funded companies in Hainan.
If you are a foreign investor who is interested in setting up a Free-Trade zone company in Hainan, you should contact a professional service provider who can assist you with the process.
Registration Application Form for Companies
To initiate the registration process, you will need to complete a registration application form for companies. This form includes essential details such as the company name, business scope, registered capital, shareholder information, and the proposed legal representative. Ensure that all information provided is accurate and aligned with the local regulations.
Articles of Association of the Enterprise Group
The Articles of Association outline the internal structure, governance, and operation of the enterprise group. It establishes the rights and responsibilities of shareholders, the decision-making process, and other crucial aspects of the company’s operations. Consult with legal professionals to draft the Articles of Association in compliance with Chinese laws and regulations.
Approval from Relevant Authorities
Obtaining approval from the relevant authorities is a critical step in the registration process. Depending on the nature of your business, you may need to seek approval from various government departments, such as the local commerce bureau, industry-specific regulatory bodies, and the Hainan Provincial Administration for Market Regulation. Ensure that you provide all necessary documents and fulfill any specific requirements as per the regulations.
Capital Verification and Investment Certificate
Foreign-funded companies are required to go through a capital verification process to confirm the authenticity and legality of the invested capital. Engage a certified accounting firm to conduct the capital verification and issue a capital verification report. Additionally, you will need to obtain an investment certificate to demonstrate the source and amount of foreign investment.
Business Opening Registration
After obtaining the necessary approvals and completing the capital verification, you can proceed with the business opening registration. This involves submitting an application for business opening registration for foreign-funded companies. Along with the application, you will need to provide supporting documents such as the project contract, approval documents from relevant authorities, credit certificate of the foreign-funded company, and the appointment letter of the principal representative.
Operation Site and Office Domicile
As part of the registration process, you must provide proof of the operational site or office domicile. This includes submitting a certificate or agreement verifying your right to use the designated office space for your business operations. Ensure that the office location aligns with the zoning and business requirements set by local authorities.
Tax Registration and Additional Requirements
After successfully completing the registration, you must fulfill tax registration obligations with the local tax authorities. This includes obtaining a tax registration certificate, complying with tax regulations, and fulfilling other tax-related obligations based on the nature of your business. Additionally, depending on the specific industry, there may be additional requirements, permits, or licenses that you need to obtain before commencing operations.
Here are some of the benefits of registering a foreign-funded company in Hainan Island:
Favourable tax policies: The Hainan government offers a number of favourable tax policies for foreign-funded companies, including a reduced corporate income tax rate of 15% for companies engaged in encouraged industries. This tax rate has been in effect since January 1, 2020, and it will remain in effect until December 31, 2024. After 2024, the Hainan government will review the tax rate and make a decision on whether to extend it or not. The encouraged industries in Hainan include:
- Modern services
- High-tech industries
Free trade zone: Hainan Island is a free trade zone, which means that there are no import or export duties on goods traded within the zone. This can save foreign-funded companies a significant amount of money on their supply chain costs.
Investment incentives: The Hainan government offers a number of investment incentives to foreign-funded companies, including grants, loans, and tax breaks. These incentives can help foreign-funded companies to finance their operations and grow their businesses.
Strategic location: Hainan Island is located in a strategic location, with easy access to major markets in Asia, Europe, and the Americas. This makes Hainan Island an ideal place to launch or expand a business with a global reach.
Business-friendly environment: The Hainan government is committed to creating a business-friendly environment for foreign investors. This includes providing a streamlined registration process, offering access to government resources, and enforcing laws and regulations fairly.
Conclusion: Registering a foreign-funded company in Hainan Island, China is an involved process that requires careful attention to detail and adherence to local regulations. By preparing and submitting the required documents accurately and timely, you can streamline the registration process and establish your business successfully. Engaging the services of experienced legal and accounting professionals familiar with the process can provide valuable guidance and ensure compliance. With the right documents, approvals, and adherence to the registration process, you will be on your way to operating your foreign-funded company in Hainan Island, China successfully. For more information, contact Business@tropicalhainan.com.