Hainan offers lucrative business opportunities for entrepreneurs and enterprises. According to a report released by the Latin American News Agency, the prosperity degree of Hainan province is probably to exceed world-recognized free trade port examples of Singapore, Dubai and Hong Kong. Those who will set up business there will enjoy excellent business environment as the country offers quite a number of advantageous policies. Details are listed below.
Beneficial Policies for Industrial Parks
Hainan has announced a raft of measures to boost the development of industrial parks and has collected tax revenue of RMB 22.47 billion yuan in 24 key industrial parks in the first half of 2018, according to the Hainan Provincial Bureau of Statistics. It unveiled a package of incentive policies in the three fields of talent introduction, industrial promotion and taxation structure.
1. Talent introduction
Hainan is piloting schemes to give talents high-level monetary incentives and other forms of support. The provincial government has made a specific instruction on bringing in talents.
2. Industrial promotion
Hainan has released various preferential policies to support strategic emerging industries, high-tech, Internet, e-commerce and small and medium-sized enterprises (SMEs), creating a solid foundation for their development.
3. Taxation awards
Hainan has introduced a provincial tax structure that gives incentives to three major industrial parks, namely, the Yangpu Economic Development Zone, the Hainan International Tourism Island Pilot Zone and the Boao Lecheng International Medical Tourism Pilot Zone.
Favorable Policies to Boost Headquarters Economy
Haikou, capital city of China's southernmost Hainan province, has introduced a set of preferential policies to attract global conglomerates and boost the development of its headquarters economy.
Under the preferential policies, regional headquarters engaged in tourism and modern service industries will each receive a bonus of RMB 5 million yuan if their first year operations make a contribution of RMB 30 million yuan to local revenue, and headquarters of companies from new and high-tech industries will receive a bonus of as much as RMB 10 million yuan if they contribute 30 million yuan annually to local revenue after registration.
Haikou will offer a maximum of 3 million yuan to a new company setting up its headquarters in the city as an office rent allowance within the first five years, and a maximum subsidy of 10 million yuan if it purchases an office in the city.
Haikou Integrated FTZ to Open B2C E-commerce Services
The Haikou Integrated Free Trade Zone (FTZ) completed clearance procedures for its first cross-border e-commerce Business to Customer (B2C) direct purchase business on Aug 31 and will energetically develop the services in September.
The mode of cross-border direct purchase enables domestic consumers to buy overseas products directly from e-commerce transaction platforms networking with customs. Parcels posted from abroad are delivered to consumers after customs supervision and inspection. Its advantages include cheaper prices, up-to-date brand styles and convenient and safe customs clearance.
Fully Open Up Shipping Business
The Ministry of Transport has issued a plan that highlights supporting Hainan to fully open up its international shipping business to promote the in-depth reform and opening-up of the tropical island's transportation industry.
Drafted to serve the implementation of the blueprints of the central authorities to build Hainan island into a pilot free trade zone and gradually build it into a free trade port with Chinese characteristics, the plan said the current 51 percent investment limit set for international shipping agencies that register in Hainan will be canceled and foreign investors can establish companies of their own or set up joint ventures without any ceiling to run international shipping business and relevant services.
Conference and Exhibition Industry Grows Fast
China's southernmost island province of Hainan has seen the rapid development of its conference and exhibition industry in recent years. In 2017, Hainan held nearly 18,000 conferences, attracting a total of 19.5 million overnight attendees, and industry revenue reached RMB14.5 billion yuan. By 2020, the industry on the tropical province is expected to attract 30 million overnight attendees and rake in 40 billion yuan of revenue, according to a government plan on the industry.
Preferential olicies for Taiwan investors
Hainan is drafting policies jointly with the Taiwan Affairs Office of the State Council and other relevant departments to encourage Taiwan compatriots and investors to join in the construction of the Hainan pilot free trade zone and free trade port.
To date, more than 1,800 companies have been registered by Taiwan investors in Hainan, including in agriculture, manufacturing and service industries. Construction of the Hainan pilot free trade zone and free trade port will create new opportunities for cooperation between Hainan and Taiwan, not only in the agriculture sector but in education, healthcare, tourism and protection and development of marine resources.
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