Setting up a Foreign Investment Commercial Enterprises (FICE ) in Hainan

Hainan FICE Formation Service
Hotline: 86-755-82143348, Email:amyhuang@citilinkia.com
From 1 December 2004, a new investment vehicle has been made available to foreign investors as the Chinese government is allowing and encouraging foreign investors to set up "Foreign Investment Commercial Enterprises" (FICEs) in China to conduct wholesale, retail and other permitted businesses. This type of business entity possesses the total right of trade and business. It can conduct import/export activities by itself, independent of the local import and export company and does not require the setting up of a manufacturing company.
 
Furthermore, from 1 March 2006, FICEs are permitted by law to apply and obtain approval documents from the Hainan Burea of Trade and Industru in the Hainan City, instead of from Ministry of Commerce in Beijing.
 
The FICE is normally in the form of a Limited Liability Company wholly owned by one of more foreign investors (both foreign individuals and corporations). It is a legal person. The foreign investor has sole responsibility for its profits and losses. The liability is limited to the amount of registered capital injected into the entity. The FICE is able to implement strategies that effectively conform to the interests of its overseas parent company. To carry on different trading businesses, it must have the required permits and certificates.
 
To establish a FICE (for the business of importing, exporting, wholesaling, retailing and distribution) in Hainan, a foreign investor has to submit the necessary incorporation documents to various authorities for registration. It is advisable for the foreign investor to entrust an authorised consulting body or agency to handle the tedious submission and application processes.
 
Hainan FICE Registration Procedures
Step 1: Deciding the name of the company

Step 2: Reservation and Application of Approval of Use of Company Name.Prior to any of the following applications, the investor should reserve a name for its prospective FICE with the Hainan Administration of Industry and Commerce.
 
Step 3: Registration of Approval Certificate.After completion of the Name Approval Notification, the Approval Letter and Approval Certificate are the next to be registered.
 
Step 4: Registration of Business Licence.Within 30 days of obtaining the Approval Certificate, the foreign investor will need to register and apply for a Business Licence for the FICE from Hainan Administrative Bureau for Industry and Commerce. The foreign investor is also required to submit similar documentation to the Hainan Bureau of Trade and Industry for approval and filing.
 
Step 5: Registration of Organisation Code Registration Certificate.This is purely a procedural step. The Organisation Code Bureau will issue certificates within 1-3 working days.
 
Step 6: Registration of Tax Registration Certificate.Once your Organisation Code Registration Certificate is approved, you may apply for a Tax Registration Certificate at the Hainan local tax authority. At the same time, you should also apply for the company seal and legal representative seal. Together with the Approval Certificate, Business Licence and other documents, the formal application form affixed with the seals should be submitted to the authority for examination and approval.

 
Materials required for Application for Registration of a FICE in Hainan
Before submitting an application to the Goverment for approval and registration, the following materials should be readily available:
1. Name and address of the FICE;

2. Lease agreement of the FICE;

3. An application for establishment of the FICE;

4. Feasibility Report covering items such as technological process, equipment, raw material supply, market survey, economic results, infrastructure facilities, expected profitability, etc;

5. Articles of Association of the proposed FICE;

6. Catalogue of import and export commodities being applied for by the FICE;

7. Names of the proposed chairman and members of the FICE board of directors and their appointment letters;

8. Original Bank Reference Letter of issued by the banker of the investor (shareholder) of the FICE;

9. Original Certificate of Incorporation of the FICE investor;

10. Latest Audit Report of the investor (shareholder) of the new FICE;
 
Contact Us
For further queries, please do not hesitate to contact ATAHK at anytime, anywhere by simply calling China hotline at 86-755-82143422, 86-755-82143512, or emailing to anitayao@citilinkia.com.