Setting up a WFOE in Hainan is a good choice for foreign investors looking for business setup in China. Hainan is wonderful tourist destination, but now it is taking to become a business hub. Established as the largest special economic zone in China in 1988, the island belongs in the vanguard of China's economic development, with particular emphasis on aerospace, healthcare and modern agriculture nowadays.
The Chinese central government decreed in April 2018 that Hainan would open a pioneering free trade zone by 2020, and a similar free trade port by 2025. The reason for this is its well-placed location in the ASEAN zone and the estimates that its economic growth will be more rapid than that of the Mainland in the next 5 to 10 years. Investors should seize this opportunity.
Benefits of Business Setup in Hainan
(1) Internet and high-tech companies offered reduced VAT of less than 2%;
(2) Profit tax reduced for qualifying new businesses;
(3) Foreign-owned companies can apply for government grants;
(4) Hainan is 'visa free' for citizens of 59 countries, meaning that it is easy to access;
(5) Foreign workers can apply for a 2 year work permit, or 5 years if they hold a Master's degree;
(6) Highly qualified foreign workers (Bachelor's degree level upwards) working for a Hainan-based local company can apply for a housing allowance of 2-5k RMB per month from the local government.
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Documents Required for Setting Up a WFOE
Gathering the documentary evidence needed to apply for a WFOE is time-consuming. Tannet will guide you through this every step of the way. We will require the following documents from you in order to open a WFOE, including but not limited to:
(1) Company director/s passport copies;
(2) Company office lease rental contract;
(3) Business feasibility report;
(4) Chinese name of company;
(5) Business scope;
(6) Copies of overseas company registration documents (required if a company is the foreign investor).
General Procedures for WFOE Setup
(1) Name registration with State Administration of Industry and Commerce (SAIC);
(2) Apply to open a WFOE at the local Administration for Industry and Commerce;
(3) Apply for business license;
(4) Apply for the Organisation Code Certificate from the Technical Supervision Bureau;
(5) Assist in registering with the state and local tax bureau;
(6) Assist in the creation of your Chinese company seal;
(7) Register with local statistics bureau;
(8) Help you to open a Chinese corporate bank account (foreign currency and CNY);
(9) Apply for authorization to print or purchase financial invoices (fapiao);
(10) Purchase uniform invoices;
(11) Register with the local career service center (for staff hiring);
(12) Register with Social Welfare Insurance Center.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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