Huge changes proposed in Action Plan for First-Class Business Environment in Hainan Province (2020-2021).

To speed up the establishment of a law-based, international and convenient business environment, inject vitality into various market entities, and to accelerate the building of Hainan as a free trade port, it’s reported that the Action Plan is formulated with Hainan’s current situation taken into consideration.

Part One. Starting a Business

1. Further reforms to separate business licenses and operation permits with full coverage of pilot projects; for administrative licensing issues undertaken by provincial and lower-level governments, the optimized approval service is to be replaced by registration document filing and a notification commitment system.

2. Free seal-engraving service will be provided to businesses in all aspects and across the whole province for the engraving of company official seal, financial seal, invoice seal and legal representative seal.

3. Explore the practice of commitment system for business residence and notification commitment system for business name registration to increase the one-time pass rate of the business name verification process.

4. Apply a pilot supervision mode of presumed qualification with “unconditional access, registration upon filing, approval-free operation and credit-based supervision” in Yangpu Economic Development Zone, Boao Hope City Pilot Zone of International Medical Tourism, Haikou Jiangdong New District and Sanya Yazhou Bay Sci-Tech City in areas with mandatory standards.

Enterprises are allowed to undertake business activities with a business license upon making the qualification commitment, while sectoral administrative departments should provide guidance from early stages, follow the whole process, direct and urge enterprises to abide by relevant laws and regulations as well as industry norms, through spot checks and guiding industrial associations, conduct examinations and credit ratings during-and-after-event supervision activities.

Part Two. Dealing with Construction Permits


5. Establish a public service information platform for the planning and creation of engineering construction projects in Hainan province, and improve scientific decision-making process for projects.

6. Explore reforms to adopt the ‘checklist plus commitment’ system in the examination and approval of small and medium-sized engineering projects invested by social investors, and formulate a simplified approval process.

7. Promote a pilot implementation of Inherent Defect Insurance (IDI) for construction project quality in the Yangpu Economic Development Zone, Bo’ao Hope City Pilot Zone of International Medical Tourism, Haikou Jiangdong New District and Sanya Yazhou Bay Sci-Tech City, and explore an insurance model of risk control for project quality, safety during the whole process.

Part Three. Registering Property

8. Establish a regular updating mechanism of the cadastral map, regularly update the cadastral map data disclosed to the public, and provide a search service through which the natural status of real estate properties registered in the province, seizure, mortgage and restrictions on the properties, cadastral map and other information according to the address (except for information related to the privacy of enterprises and individuals).

9. Promote the joint mode of ‘real estate registration + online integrated service platform + mobile app’ to enhance the registration efficiency.

10. Establish a rapid mechanism for the reduction and exemption of real estate registration fees for small and micro-enterprises. Individual businesses can apply for real estate registration with their business license, and the real estate registration fees will be directly exempted.

Part Four. Getting Credit and Improving Financing Environment

11. Implement a government-bank-insurance joint credit guarantee that provides a collective credit scheme for sci-tech SMEs and specialized and innovative enterprises. Government departments select small and medium-sized sci-tech enterprises and specialized and innovative enterprises, and establish a risk sharing mechanism for bank loans, bonding companies will provide guarantees and banks issue long-term loans. City and county level finance authorities offer subsidies to guarantee companies for qualified business operations based on local financial capacity.

12. In tourism, modern service and high-tech and other key industries, the industrial chain guarantee loan model will be explored through which large/strong companies will provide guarantee to small/weak ones, so as to improve the level of financial services and ease the financial difficulties of enterprises.

Part Five. Taxpaying Convenience

13. Promote an integrated tax service portal, on which over 90% of tax-related issues can be handled, and explore and promote the application of blockchain technology in taxation management.

Part Six. Trading Across Borders

Building Hainan into a first class business environment

14. Improve the building of Hainan’s ‘Single Window’ for international trade, strengthen the application of port-logistics collaboration system, and enhance the level of cross-border trade facilitation.

15. Promote the ‘two-step declaration’ of imported goods, and further reduce the time for declaration preparation and customs clearance.

16. Improve the paperless system of Yangpu Port container terminal and promote its application to improve the efficiency of customs clearance.

17. Apply the dynamic ‘one negative and three positives’ checklist management of zero tariff imported goods.

Part Seven. Protecting Investors

18. Further facilitate in and out capital transfer management under the QFLP scheme, and improve the mechanism for protecting investor rights and interests.

19. Pilot the establishment of a green channel for rapid patent examination and authorization in the Haikou National High-Tech Industrial Development Zone and Sanya Yazhou Bay Sci-Tech City and create a demonstration zone for intellectual property protection for the Hainan Free Trade Port.

20. Explore the establishment of compensation insurance for overseas intellectual property infringement loss. Insurance institutions are encouraged to carry out overseas intellectual property infringement liability insurance, patent enforcement insurance and patent infringement loss insurance, etc.

Part Eight. Enforcing Contracts

21. Integrate resources on the ‘Hainan mobile micro-court’ platform, accelerate the practice of online filing, promote cross-regional remote handling and cross-level joint handling of lawsuits, and create a one-stop mobile litigation service system.

Part Nine. Filing for Bankruptcy

22. Implement on a trial basis the system of business deregistration through making announcement and commitment, streamline the procedure of bankruptcy liquidation, and facilitate the withdrawal of market entities.

23. Set up the bankruptcy administrator fee protection fund, foster professional- and market-oriented development of bankruptcy administrator professional team, and promote the withdrawal of “zombie enterprises” from the market.

24. Promote legislation on bankruptcy for the Hainan Free Trade Port, standardize business bankruptcy procedure, and explore the establishment of an individual bankruptcy system.

25. Improve the international talent evaluation mechanism, evaluate human resource categories by applying payment as the main indicator, and establish a market-oriented talent mechanism.

26. Adopt the negative list management on the work permit of foreigners working in Hainan Free Trade Port, expand the scope of permanent residence applied by foreign high-end industrial talents, and open up more visa-free entry channels.

27. Professionals with Hong Kong, Macao and Taiwan qualifications in financial, architectural, planning, patent agency and other service sectors are allowed to practice in Hainan without taking the mainland practice examination. 

28. Explore the establishment of a ‘free trade port construction experience officer’ system, and strengthen the application of “positive/negative rating” results for government services, in a bid to force the government to improve its service capability and efficiency through assessment from market entities in Hainan.

29. Speed up the application of “all-in-one code” in the field of government service, and enable the accessibility to all government-service-related affairs through the code, which shall be adopted for administrative examination and approval, public service and comprehensive supervision.

30. Promote the reform of cross-regional jurisdiction of administrative cases. Reform the jurisdiction mechanism of administrative cases, enhance the judicial credibility of administrative trials, and resolutely stop and correct the violations of interests of private enterprises by administrative bodies and law enforcement personnel at all levels.

31. Launch intensive special rectification campaigns in construction and engineering project bidding, eliminate unreasonable restrictions and barriers set for enterprises with different types of ownership, especially private enterprises and foreign-invested enterprises and standardize the practice of bidding agents and evaluation experts in accordance with the law.


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