Policy and Administrative Rules
Catalogue of Related Laws
Foreign Trade Law of the People's Republic of China
Customs Law of the People's Republic of China
Law of the People's Republic of China on Import and Export Commodity Inspection
Law of the People's Republic of China on Chinese-Foreign Equity Joint Ventures
Law of the People's Republic of China on Chinese-Foreign Contractual Joint Ventures
Law of the People's Republic of China on Foreign-Capital Enterprises
Company Law of the People's Republic of China
Law of the People's Republic of China on the Entry and Exit Animal and Plant Quarantine
Law of the People's Republic of China on Control of the Entry and Exit of Aliens
Law of the People's Republic of China on the Control of the Exit and Entry of Citizens
Securities Law of the People's Republic of China
Income Tax Law of the People's Republic of China for Enterprises with Foreign Investment and Foreign Enterprises
Individual Income Tax Law of the People's Republic of China
Law of the People's Republic of China on the Administration of Tax Collection
Environmental Protection Law of the People's Republic of China
Law of the People's Republic of China on Evaluation of Environmental Effects
Law of the People's Republic of China on Promotion of Cleaner Production
Law of the People's Republic of China on Prevention and Control of Desertifi cation
Marine Environment Protection Law of the People's Republic of China
Law of the People's Republic of China on the Prevention and Control of Atmospheric Pollution
Law of the People's Republic of China on Prevention and Control of Environmental Pollution by Solid Waste
Law of the People's Republic of China on Prevention and Control of Water Pollution
Law of the People's Republic of China on Prevention and Control of Environmental Noise Pollution
Law of the People's Republic of China on Prevention and Control of Radioactive Pollution
Frontier Health and Quarantine Law of the People's Republic of China
Labour Law of the People's Republic of China
Trade Union Law of the People's Republic of china
Searching Website for the Related Laws
1 . Searching system of laws and regulations of china (website of national people's congress of china)
http://law.npc.gov.cn:87/home/begin1.cbs
2. China Legislative Information Network System
http://www.chinalaw.gov.cn/jsp/jalor/index.jsp
3. Ministry of Commerce
http://www.mofcom.gov.cn
the above-mentioned websites are for reference only.
Key Industries with Outstanding Development
1. Hydropower: Foreign investors are encouraged to set up small-sized rural hydropower projects. Projects with investment of below RMB 30 million yuan or installed capacity of below 5000KW shall be checked and approved by the city and county-level governments.
2. Mineral products: Development of such key mineral products as manganese, aluminum, zinc, magnesium, barium, phosphorus and so on shall be emphasized.
3. Processing of forest products.
4. Processing of agricultural products.
5. Industry of traditional Chinese medicine.
6. Tourism.
Foreign Exchange Registration
Foreign Exchange Registration Application of Foreign-funded Enterprises
Before registered in the Administration of Foreign Exchange, the foreign -funded enterprise shall obtain approval document and Certificate of Approval for Establishment of Enterprises with Foreign Investment from the administrative department of commerce, and obtain the Business License issued by administrative department for industry and commerce.
After registered in the Administration of Foreign Exchange, the enterprises may obtain Foreign Exchange Registration Certificate for Foreign-funded Enterprise, which shall be presented during handling foreign exchange business in the Administration of Foreign Exchange or in the banks.
Application Documents
1. Registration Form Providing General Information about the Foreign-funded Enterprise and Foreign Exchange Registration Certificate of Foreign-funded Enterprise with the official seal of the applicant.
2. Duplicate of Business License; Non-corporation Contractual Joint Venture Shall Submit the business license (examining the original copy or the duplicate with the original seal; keeping the duplicate on file);
3. Approval document and the original copy of the Certificate of Approval for establishment of enterprises, issued by administrative department of commerce;
4. Contracts and Regulations of Equity Joint Venture & Contractual Joint Venture(examining the original copy or the duplicate with the original seal; keeping the duplicate on file);
5. Code Certificate of Institutional Framework issued by State Administration of Quality and Technology Supervision;
6. A Lost Notice shall be issued on the nationwide newspapers for reapplying the Foreign Exchange Registration Certificate for Foreign-funded Enterprise.
Note: Other issues may be consulted at the local Administrative Department of Foreign Exchange.
Hunan Bureau of State administration of Foreign Exchange
Address: No.2, Cai'e zhong Road, Changsha, Hunan
Postal Code: 410005
Tel: 86-731-4301658
Procedures for Foreign-funded Projects
Examination and Approval Procedure for Establishment of Chinese-foreign Joint Venture and Cooperative Enterprise in Hunan Province
Examination and Approval Procedure for Establishment of Wholly Foreign owned Enterprise
Rules on Employment
Any company established in Hunan shall pay series social welfare for staff members, including pension, work insurance, medical insurance and labour union fee.
The detailed payment shall be paid in accordance with a certain proportion of the staff salary based on the regulations of the local government (refer to the Table as follows).
Data source: 1. Changsha Municipal Bureau of Labor Force; 2. Changsha Municipal Housing Accumulation Fund Administration Center; 5%from salary for housing fund is compelling, some company may select extra allowance for the housing.
The companies in Hunan implement standard one week working hours. The staff enjoys public vacations stipulated by State. Normally, one week working time is 40 hours. From Monday to Friday, the overtime work and extra work hour is permitted, but the case shall be established in accordance with agreement of employee and employer. The employment contract can be terminated sententiously, but it shall meet the regulations.
In China there are 2 documents related to the labor force. One is the Labor Law that is applicable to all companies established in Chinese territory; the other is Administrative Regulations on Labor of Foreign-funded Enterprises (1994), which is formulated for the foreign-funded enterprise only.
Residence Environment
Preferential Policy Concerning the Administration of Entry and Exit
1. Senior foreign talented persons and investors, after submitting relevant certificates, can obtain F visa with at least 2 valid terms and valid period of at most 5 years or residence permission for 2 to 5 years. The application times are not limited. Foreigners who have fairly large investment in China and have made great contributions, after submitting relevant certificates, can obtain permanent residence right (green card) in Hunan. Green card bearers are exempted from going through entry and exit visa formalities.
2. All Taiwan investors who setup factories on the mainland and senior managerial persons and their accompanying spouses or children may obtain endorsement for at most 5 years' residence and multi-entry and exit permission. Taiwan residents who are employed to work on the mainland may apply for endorsement for residence and multi-entry and exit permission after submitting their employment certificates or labor contracts. Those who come to the mainland for investigation, negotiation, agreement signing and preparation work may apply for endorsement for 1-year multi-entry and exit permission after submitting the documents issued by the relevant administrative departments.
3. Taiwan residents who accord with the following conditions may obtain permanent residence on the mainland after approval:
(1) Investors who pay an annual tax amount of at least RMB 500,000 or invest at least USD 2 million in Hunan;
(2) Much-needed talents who are engaged in scientific & education & culture, medical treatment, agriculture and other fields and their spouses and children, confirmed by the Ministry of Personnel or State Administration of Foreign Experts Affairs;
4. Convenience will be brought to the overseas Chinese, the residents of Hong Kong and Macao who stay in Hunan province. With the same treatment of the domestic residents, the above personnel(including accompanying spouse and children) who invest for enterprise, study or purchase houses in Hunan and will stay for more than 3 months, will not need apply for The Temporary Residence Permit for the overseas Chinese, and the residents of HongKong and Macao.
5. Those who are from other provinces to Hunan, work in Chinese-foreign joint ventures, cooperative joint ventures, solely foreign-funded enterprises and enjoy impermanent dwell for more than 1 year, may apply to the public security organ where the enterprises are located to handle relevant procedures as long as they need a business visit abroad or to Hong Kong and Macao. The public security organ, after checking the applicant's registered permanent residence, will issue the permit in accordance with relevant laws.
Directions for Foreigners Employed in Hunan
In accordance with Stipulations of Administration for Foreigners Employed in China and Measures of Hunan Province in Implementation of Stipulations of Administration for Foreigners Employed in China, the foreigners employed in Hunan shall implement the employment license system (foreigners refer to those who have not owned Chinese nationality based on the rules of the Law of Nationality of P.R. China, foreigners employed in Hunan refer to the foreigners who have not obtained the right of residence in Hunan but been engaged in society work and obtained work payment in Hunan's administrative region). The foreigners employment license system is applicable to the foreigner employed in Hunan and the organizations with foreigners employed.
Hunan Provincial Department of Labor and Labor's Social Insurance shall set up a special organ in charge of the management of foreigner employed in Hunan.
- Operation Procedures.
In case t he organizations employ foreigners, such employment application shall be submitted and approved by authorities in charge. The foreigners with approval for employment in Hunan may hold the approval certificate and invitation signed by organizations with the right of handling foreign affaires to apply for working visa in Chinese embassy and consulate. After entry the foreigners may apply and obtain the Employment Certificate, then apply and obtain Residence Certificate and Working Visa with multi-entry and exit within one year.
2. Foreigners employed in Hunan shall meet following conditions:
a. Aged 18 or above, in good health
b. Possessing needed professional skill and related working experience in his/her employment post
c. Without criminal records
d. With organizations' confirmation for the employment
e. With valid passport or other international travel documents which can replace the passport
3. Application documents for approval of foreigners employment
a. Employer's invitation
b. Letter of Intent for the employment
c. Foreigner's working experience and education background
d. Work Qualification Certificate of the Foreigners for the Employment
e. Health Status Certificate
f. Other documents according to laws and decrees
Residence Admission
The administrative procedures of entry and exit concerning foreigners:
1. The foreigners' application for entry visa, stay extension, additional visa, and visa change is called visa application and residence permit.
2. Foreigners who hold D, Z, X andJ-1 visas must apply to the administrative department of entry and exit of the Public Security Bureau in the county or city where they reside for the foreigner residence permit or the foreigner temporary residence permit, not later than 30 days after the entry date.
3. Relevant status will be stated in the application process and shall answer the inquiries, and these procedures are to be followed:
a. Submit the passport, the visa and relevant effective certificate concerning international travel, including diplomatic, public affair passport
b. Fill in the visa and residence application form and submit a recent bust bareheaded picture of 2 inches.
c. Submit certificates concerning the visa and residence permit
For the personal employed or on the duty, the investors and the legal representatives in the enterprise may obtain2 years of effective residence permit, and other persons may obtain 1 year of residence permit.
The Procedures of Entry and Exit Concerning Taiwan Residents
Application for visa endorsement of entry and exit.
The applicant shall apply to the administrative department of entry and exit of the Public Security Bureau in the county or city where they reside for the return, multi-entry and stay extension permit. The applicant shall go through following procedures and shall answer the inquiries:
Submit a valid Certificate for Taiwan Residents Entry and Exit of China's Mainland;
Residents Entry and Exit of China's Mainland and Pass Endorsement;
Submit a recent bust bareheaded photos of 2 inches.
Submit relevant certificate originals and duplicates concerning the application
Application for residence endorsement.
The application for residence endorsement shall be handled by the administrative department of entry and exit of the Public Security Bureau in the county or city where the applicant resides. The endorsement validity period is from 6 months to 5 years in accordance with the applicant's detailed situation.
Urban Living Environment
Changsha is the capital of the consumers and the city of fashion. In many respects Changsha can be compared with Shenzhen, Shanghai and Beijing. The market is bred fully, free, open and regular. The retail giants in the world such as Walmart, Carrefourand Metro and several renowned retail chain enterprises at home and abroad gather in Changsha, building up thick commercial atmosphere. The commodities with allcolors and patterns are displayed. Changshais called the paradise of the consumers. Hunan's catering culture has far-reaching influence. Hunan cuisine is one of the eight cuisine systems in China, with various special flavor restaurants covering all corners of the province. In 2005, the catering industry earned RMB 32 billion. The booming tourism industry promoted the hotel industry development. In Changsha there are 59 hotels above 3 star level, including 6 five-star hotels. Many high and medium grade recreation and holiday inns are distributed in towns and villages. Hunan has convenient transportation system, with expressways linking all parts of the province. It is building a 3 hour economic circle around Changsha as the center. The entertainment is rich and colorful. The cultural and amusement industry is well developed. Hunanese focus on the physical undertaking, owning public sport facilities and high grade golf course.
Education and Public Health
Hunan has long been respecting education. It has the earliest scholar cradle in China—Yuelu Academy and Lushan International School specially established for the children of foreign businessmen in Changsha. There are 4,097 medical institutions with 152,200 patient beds.
Driving License
The drivers holding the license of HongKong, Macao, and Taiwan or the foreigners holding international driving license may apply for local driving license or temporary license.
The Vehicle Administration Office may issue driving license or temporary license to the investors who are qualified after examination.
The drivers holding the license of HongKong, Macao, and Taiwan or the foreigners holding international driving license shall take part in the examinations of Traffic Rules and related skills and the road practical driving.
The holders who have the driving experience for 3 years may not take part in the examination of the road practical driving.
(v) Reference Prices of Basic Elements
List of the elements price for reference
Labor Costs and other Charges
Ordinary management personnel: USD 2,000 for one person per year
Ordinary workers: USD 1,000 for one person per year
Other cost of ordinary workers: USD 50 for one person per year
Charges of Transportation
Railway
Shanghai-Changsha 1,193km
Full carload for No.6 cargo a wagon (60t) RMB8,277 yuan, RMB 138 yuan/ ton;
Less than carload No.21 RMB 11.5 yuan/100kg
Highway
Changsha-Shanghai 1,350km
Full carload RMB600-800 yuan/ton;
Less than carload RMB 880yuan/ton
Water Transport
Changsha-Shanghai RMB55-100yuan/ton
Cultivated Land Expense
Note: According to the rules of Doc. (GTZF (2001) No.174) promulgated by Ministry of State Land and Resources, the Datum Price of Land of the cities shall be renewed and adjusted timely. In case the datum price has no changes after 3 years, the newly- published by local government shall prevail.
Expenditure of mine prospecting right:
RMB 100 yuan shall be paid for 1km2 from the first prospecting year to the third prospecting year; RMB 100 yuan is increased every year per square kilometer from the forth year but the max amount is RMB 500 yuan per square kilometer.
Expenditure of mining right: RMB 1000 yuan every year per square kilometer
Payment of mine prospecting right: paid by once or installments based on the evaluation result confirmed
Payment of mining right: paid by once or installments based on the evaluation
result, but the period for the payment shall not exceed 6 years
Mine resources compensation cost:
Mine products sales income×compen-sation rate × re-mining coefficient
The compensation rate shall 0.5%-4% of the sales income based on
different minerals.
State Land Source Administration Fee
(1)Administrative Fee for Land Use and Requisition
For the use of land involving in full contract (for work, fee and time) with requisition for lump-sum cultivated land over 66.67 ha (1,000 Chinese mu) and non-cultivated land over 133,34 ha (2,000 Chinese mu), the administrative fee shall be levied 3% of the total land compensation paid for the land requisition. For the cultivated land in lump-sum requisition less than 66.67 ha. and non-cultivated land less than 133,34ha, the administrative fee shall be 4% of the total land compensation paid for the land requisition.
In case of the land requisition in semi-contract with lump sum requisition for cultivated land over 66, 67 ha (1,000 Chinese mu) and non-cultivated land over 133,34 ha (2,000 Chinese mu), the administrative fee shall be 2% of the total land compensation payment. For the cultivated land requisition less than 66.67ha. and the non-cultivated land less than 133.34 ha. the administrative fee shall be 2.5 % of the total royalty.
In case of cultivated land requisition in single contract over 66.67 ha. and non-cultivated land over 133,34 ha, the fee shall be 1.5% of the total royalty. For the cultivated land requisition less than 66.67 ha. and non-cultivated land less than 133.34 ha., the fee shall be 2% of the total land compensation payment.
The use of land for project construction with the land requisition formalities to be supplemented, which is not necessary to handle the affairs compensation and resettlement but necessary to be re-surveyed and registered, the fee levied shall be RMB 100 yuan per Chinese mu, including the project land by utilizing state-owned wasteland and waste mountain allocated free of charge.
(2)Cost of approval document for project land:
Cost of certificate for use of land:
RMB 5 yuan for individual, RMB 10 yuan for organization one certificate;
Special certificate: RMB 20 yuan for one certificate
(3) Prospecting and mining license:
Catalogue I, II prospecting project license: RMB 100
Other geological survey project license: RMB 50
Survey license change and replace: RMB 50
(4) Registration cost for mining:
Large scaled mine: RMB 500/ one mine;
Medium sized mine: RMB 300/ one mine
Small sized mine: RMB 200/ one mine;
Mine renewal and site change: RMB 100/one mine
Doing Business in Hunan Province of China:I.Survey
Doing Business in Hunan Province of China:II.Economy
Doing Business in Hunan Province of China:IV.Development Zones
