Hainan company formation procedures are more or less the same as that of other parts of mainland China. To further open up and promote economy, Hainan has a lot to offer, from cheap labor to advanced infrastructure. In addition to this, the government facilitates establishment of businesses with their attractive economic policies. However, setting up a company can be a long process with a lot of documentation and approval requirements from various authorities. The following are the procedures you need to pay attention to.
1. Conduct market research
Before entering a foreign market, conduct necessary research about the market, consumers, job market dynamics, and potential growth prospects. Inquire about the process of incorporating a company, the paperwork required and the corporate connections that need to be developed.
You can even hire a service agency to provide you a detailed report about the market, industry and consumers you’re about to invest in.
2. Choose an office location
Before you set out to look for ideal cities to do business in, ask yourself these questions:
(1) What are the logistic requirements of your business? How will your transport human capital and resources to and from your office?
(2) Is your business dependent on goods or supplies being imported to China? Do you need to be closer to the port?
(3) How will you transport the goods to and from port? What will be the transportation cost?
(4) What rules and regulations are prevalent in the city of your choice?
After evaluating all aspects affecting your business operations, select a region to setup an office or factory. Having a registered office in China will help in getting a business license.
3. Select Business form
You have many options when it comes to business entity forms, and each business type has benefits and downsides of its own. You can start a joint venture, set up a wholly foreign owned enterprise, or setup a representative office according to your actual situation. Or you may ask advise from Tannet.
4. Develop a business plan
Once you’re done deciding what you want to be, you need to determine your game plan. Foreign companies are required to provide a 5-year plan, which highlights the basic business idea, operational activities, and business guidelines. Be very tactful, when developing a business plan, because if the government has approved it, you can’t operate outside the guidelines and objectives mentioned in the business plan.
5. Get all the documents in place
You need to provide a copy of Certificate of Incorporation, reference letters from banks, parent company’s list of directors, verification of your Chinese company, a business plan, sufficient registered capital, registered office documentation, letter of authorization and much more. Know the government requirements beforehand to prevent setbacks and delays in the registration process.
6. Getting approval from concerned authorities
In order to get your commercial license and approval certificate, you will be dealing with the State Administration of Industry and Commerce (SAIC) and the Ministry of Commerce (MOFCOM).
Setting up a new business can be very difficult. Before business setup, there are lots of factors need to be taken into consideration in order to improve the survival rate. Tannet is glad to help you incorporate a company in Hainan, we can also help you file trademark registration.
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.
Previous：Trademark Registration in Hainan
Next：Company Formation in Hainan Free Trade Zone