Hainan Joint Venture Registration

On June 3, 2020, 11 key parks of Hainan free trade port were listed at the same time. Hainan Province took 11 key parks as the model and experimental areas to promote the construction of Hainan free trade port, took the lead in implementing relevant policies and stress testing, and promoted the construction of Hainan free trade port to accelerate development and innovation.

What is a Hainan Joint Venture?

There are many opportunities that a successful JV can bring to a business. It can help foreign companies identify the right market, navigate often complex local regulations, monitor and safeguard intellectual property, and leverage local talent.

1. Equity Joint Venture (EJV): This is a limited liability company where profits and losses are distributed between parties in proportion to their respective equity interest.

2. Cooperative Joint Venture (CJV): This is a JV structure that offers more flexibility for investors. It can operate as a limited liability company or as a non-legal entity. Further, unlike the EJV structure – profit, risk, and control are not divided in proportion to their equity interests. Instead, they can be negotiated within the contract agreement.

Registration Procedures for Hainan Joint Venture

1. Name registration with State Administration of Industry and Commerce

2. Certificate of Approval of Joint Venture by Ministry Of Commerce or Foreign Economical Cooperation Bureau

3. Apply for Business License with SAIC

4. Chops made by Public Security Bureau

5. Organization Code License by Technical Supervision Bureau

6. Tax Certificate by Tax Bureau

7. Registration and Approval with State Administration of Foreign Exchange

8. Open Foreign Currency and RMB bank account

9. Inject Capital from investor’s overseas bank account

10. Capital Verification Report by Certified Public Accountant

11. Applying for Permanent Business License with SAIC

12. Financial certificate Registration

13. Statistics license Registration