Hainan Province lies at the southernmost tip of China, facing Guangdong Province in the north across the Qiongzhou Strait; the Democratic Republic of Vietnam in the west across the Beibu Gulf (Gulf of Tonkin), and Taiwan Province in the east across the South China Sea. To the south and southeast it is bounded in the South China Sea by the Philippines, Brunei and Malaysia. Encompassing Hainan Island, Xisha Archipelago, Zhongsha Archipelago and Nansha Archipelago as well as their dependent waters, Hainan Province covers a land area of 35,000 square kilometers and a sea area of approximately 2 million square kilometers. Hainan Island is China's second largest island after Taiwan, with an area of 33,900 square kilometers (not including its satellite islets). Zengmu Shoal of Nansha Archipelago is the southernmost part of Chinese territory.
Haikou sits at the northern tip of Hainan Island. As the capital city of Hainan, Haikou is the provincial administrative, economic, cultural and transportation hub of the province, as well as the largest city within the area. Situated along a stretch of long coastline, the province is rich in natural resources and is also known as the ‘Coconut City’
Located at the southern tip of Hainan Island, Sanya is the nation's southernmost city. It is one of only two prefecture-level cities in the Hainan Province (the other being Haikou). As a renowned tourist city in China, tourism is the most important industry in Sanya's service sector. Dubbed the "Oriental Hawaii", Sanya has the most beautiful coastal scenery in Hainan. A state level holiday resort was set up in Yalong Bay. Four of the biggest bays in Sanya are Dadonghai, Sanya, Haitang, and Yazhou. Other attractions include Cape Tian-Ya-Hai-Jiao, the "Lu Hui Tou", Wuzhizhou Island and the Tiger & Crocodile Centre
Hainan’s pillar industries encompass agriculture, tourism, petrochemical industry, electronics and information, and marine bio-pharmaceutical industry.
There are three principal business models for foreign companies seeking to establish themselves in China : Joint Ventures, Wholly Foreign-Owned Companies, and Representative Offices (ROs)
Foreign investors can now determine an organizational structure according to the operations of their enterprises at their own discretion. Such potential investors should approach the appropriate government departments for a better understanding of the legal procedures involved in setting up a business in China.
A representative office may only engage in non-profit making activities. Accordingly, it may engage in any of the following functions: conducting research and providing data and promotion materials to potential clients and partners, conducting research and surveying for its parent company in the local market, liaising with local and foreign contacts in China on behalf of it’s parent company, acting as a coordinator for the parent company’s activities in China, making travel arrangements for parent company representatives and potential Chinese clients and other non-profit making business activities.
The following is the procedure to Set Up Representative Office In Haikou, Sanya
Step 1:
Applicant appoints an agent, which must be a foreign investment services company in the mainland.
Step 2:
Agent submits on applicant’s behalf all the required documents to the provincial foreign trade and economic cooperation department for handling application procedures.
Step 3:
Upon approval granted, applicant should proceed promptly to the provincial or municipal administration for industry and commerce for registration.
Step 4:
Other formalities to be handled by the resident representative:
Complete residence application procedures with local public security bureau by presenting registration certificate, representative certificate and approval certificate;
Apply for opening bank account by presenting registration certificate and approval certificate to local foreign exchange administration;
Apply to Customs for permission to import office equipment, daily necessities and transport vehicles for use by the representative office and its personnel;
Complete tax payment registration procedure at local tax office;
Appoint local Foreign Service Company to recruit local staff.
setting up a business in China involves a lot of paperwork. This tedious process can be tided over by approaching one of the many firms that provide the relevant services. Nevertheless, before making any investment decisions, investors should be well acquainted with the related regulatory issues. While investors may choose to let the agencies or consulting firms take care of the decision-making processes, it is advisable for them to understand the procedures themselves.