Investors can opt to start the process of setting up a company in China in any of its provinces. In the last years, Hainan, a province located in Southern China, positioned itself as an important location for business purposes, where investors can find suitable opportunities for investments and trade (our team can provide information on the most attractive investment industries).
Thus, we recommend you start the process of company formation in Hainan, which also offers the possibility of carrying out business activities in the Free Trade Port, the country’s largest special economic zone. Please refer to our team if you want to start a company in China is this region of the country (we offer complete and personalized corporate legal services).
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The highlights of the business environment in Hainan
Company formation in Hainan is recommended for a variety of reasons, ranging from tax purposes (which is one of the most crucial matters in determining a place of business) to the duration and complexity of the registration process and many others. In the list below, our consultantspresent some of the advantages of investing in Hainan:
- the procedure on company formation in China in the province of Hainan can be completed in around 3-5 business days;
- the process of obtaining business licenses takes around 14 days;
- the corporate income tax is charged at a rate of 15% (compared to the national standard rate of 25%), and it is applicable to companies operating in the fields of tourism, high-tech and modern services;
- many foreigners (from 85 countries) can arrive in Hainan visa-free (for stays of up to 30 days).
What legal entities are available for company formation in Hainan?
Businessmen who will opt to start a business in Hainan can register several legal entities. One of the ways to engage in business operations is by registering a WOFE in China (it refers to a wholly owned foreign enterprise). It is also possible to start a joint venture, a partnership or to register a representative office (the latter can be used for business purposes, but it can’t engage in economic activities). We can also help you if you want to open a company in Saudi Arabia or another country, through our local partners. In Saudi Arabia the timeframe for incorporation is 2 months compared to China, where it is 5-8 days.
Opening a bank account
In order to open a company in China, investors must also set up a corporate bank account. Similarly, the requirement applies in Hainan, where businessmen can select a bank of their choice. Once they have made the decision, they must prepare a file containing the company’s incorporation documents and the evidence that the company has been registered in Hainan.
What activities can be carried out in the Free Trade Port?
Those who will opt for company formation in Hainan in the Free Trade Port have the possibility to develop a variety of business activities, some of which are:
- agriculture, forestry, fishery;
- construction;
- manufacturing;
- transportation and storage;
- activities related to the financial sector;
- scientific research.
Also, it must be noted that the local authorities plan to transform the Free Trade Port in one of the leading locations for high-tech talent (by 2035). However, we mention that 4 of the total number of industries that are carried out here represent the pillars of economic development in Hainan, namely: tourism, high-tech industry, modern service, high efficiency tropical agriculture.
These 4 industries have the most important share in Hainan’s GDP, reaching 70% (according to the data provided by the Hainan Free Trade Port). Depending on the industry of interest, we provide dedicated assistance in setting up a company in China in any region of the country, Hainan included.
We offer additional services, such as tax registration, tax compliance and accounting (bookkeeping, preparing financial statements, tax reports), payroll, with the assistance of our accountants in China.
