Travel & Related Service Company

Specific Arrangements for CEPA

• Hong Kong and Macau service suppliers are permitted to build, alter and operate restaurants, apartments and eateries, in the form of wholly-owned or joint venture, in mainland China
• The joint venture travel agencies set up in mainland China by Hong Kong and Macau travel agencies with majority shareholding, jointly with domestic investment, shall have no regional limitation
• From January 2007, Hong Kong travel agencies will be permitted to set up wholly-owned or joint venture travel agencies in Guangdong Province (GD), in application for the pilot operation of group tourism business for GD residents traveling to Hong Kong and Macau

Requirements for Service Suppliers

Mainland Copartner

• Being international travel agency
• 3-year average overseas visitors exceeding 30,000 person-time prior to the application
• 3-year average yearly tourism business sales in aggregate exceeding RMB50 million prior to the application
• Being a full member of China Association of Travel Services (CATS)

Hong Kong and Macau Copartner

• Being travel agencies in operation of international tourism, or being companies that have wholly-owned travel agency in operation of international tourism
• Yearly tourism business sales in aggregate exceeding USD12 million
• Entry in the computer-based booking network internationally or locally, or establishment of their own computer-based booking network
• Being a full member of local association of travel services

Hong Kong and Macau Wholly-owned

• Yearly tourism business sales in aggregate exceeding USD$25 million

Requirements for Incorporation

• Registered capital not less than USD2.5 million
• Being a limited liability company
• The mainland copartner shall contribute not less than 51% of the registered capital (no such contribution in case of wholly-owned)
• The legal representative shall be appointed by the Mainland copartner (no such appointment in case of wholly-owned)
• Satisfactory business ground/office, operating facilities and operating personnel
• Joint venture shall be for the duration of 20 years (no such duration in case of Wholly-owned)

Required Documents for Incorporation

• The Mainland copartner's qualification supporting information, including business license, permit for operation of travel agency business, report of the annual renewal over the 3 years before application, membership card issued by relevant association of travel services
• Hong Kong and Macau copartners' (or the wholly-owned's) qualification supporting information, including certificates of Hong Kong and Macau service suppliers, certificate of incorporation, bank reference letter, financial conditions supporting information provided by a Certified Public Accountants firm, access network certificate provided by relevant computer company, membership card issued by local association of travel services, and annual financial report of the year prior to the application
• Project proposal
• Feasibility study report
• The contracts and articles of association
• Enterprise Name Approval in Advance Notice
• The register and curriculum vitae of the members of the Board of the corporation
• The lease contract for the office premises

If you would like further information concerning Travel & Related Service Company Incorporation, please contact our professionals and we will provide you with free advisory.