Brief Introduction

Hangzhou Zhijiang National Tourist and Holiday Resort (ZNTHR) is one of the 12 national tourist and holiday resorts set up upon the approval of the State Council. Its establishment is one of the significant measures taken by the government to enhance the development of tourism in Hangzhou.

The resort, with an area of 9.88 square kilometers, lies southwest to Hangzhou, south to Qiantang River and north to Wuyun Hill. The view in the resort is pretty to look at with tall green bamboo and dense trees. From the top of the mountain, you can get a bird's-eyes view of the West Lake's Serenity and Zhijiang River's glory; traveling down the river, you can enjoy magnificent Qiantang River Tides, while up the River, you can appreciate the picturesque Fuchun River, Xin'an River and One-Thousand-Islet Lake.

By the end of 1998, ZNTHR has attracted an total investment of 280 million U.S. Dollars and 1.322 million RMB on 23 projects. In all, 2.44 billion RMB has been put into construction with an area amounting to 235 thousand square meters and land developed with an area of 4.21 square kilometers. A great number of tourists from both different domestic places and abroad have been attracted to visit the newly opened Song Dynasty Town - a display of the culture of the Southern Song Dynasty, and Future World - a theme park of High - tech and Science, as the International Standard Golf Course as well.

Infrastructure

1) Power Supply A 111 kV transformer substation was built in the zone with a total capacity of (3.15+2) 10kVA. Near the zone, there is the Zhongcun 220kV transformer substation under construction.
2) Water Supply Water is supplied by Hangzhou Xiqu Water plant in the zone, with daily supply capacity of 50,000 tons.
3) Telecommunication The Zhuantang Telecommunication Branch has a capacity of 20,000 program-controlled switch lines, and a new Zhijiang Telecommunication Branch with a capacity of 60,000 lines is under construction.
4) Roads The trunk roads in directions and fork roads in the zone have been completed, with a width varied from 12 to 40 meters.
5) Drainage The daily drainage capacity in the zone reaches 40,000 tons. In the short term, the drainage is pumped to the center of the Qiantang River, and in the long term it will be sent into the Sibao Sewage Treatment Plant.

Fee Standard

1) Charge for Land Leasing Land for recreational use: 45-55 US dollars /m2; Land for real estate use: 65-90 US dollars /m2; Land for trade and commercial use: 100-150 US dollars /m2. Charge of annual land use is 1 RMB/m2.
2) Electricity Charge of power capacity enlargement: 450RMB/kVA.
3) Running Water Charge of water capacity enlargement: 1,200RMB/ton.
4) Charge for Sewage Disposal Sewage disposal facility charge (including sewage charge): 0.17 RMB/ton.
5) Telecommunication The investor is responsible for its own Telecommunication within the project area. Telephone (IDD) initial installation charge: 960RMD/set.

Preferential Policies

1) Foreign-funded enterprises invested in tourist projects with over 10 year operation time, are exempted from income tax in the first two years beginning from the profit making year, and allowed a 100% refund of the 50% income tax levied from the third to fifth year.
2) Investors in tourist Projects with no less than 20 million RMB registered capital and over 10 year operation time, are exempted from company income tax in the first two years beginning from the profit making year, and allowed a 100% refund of the 50% income tax levied from the third to fifth year.
3) The custom duty and value added tax of the imported machines and equipment for their own use within the total investment of the foreign invested enterprise in the zone, are entitled to a 50% refund and the payment will be made from the enterprise income tax levied since operation by the fiscal department, or can be fully exempted with the approval of the State Council.
4) Foreign-funded enterprises in the zone are entitled to accelerating the depreciation of their fixed assets.
5) Upon approval, foreign funded shops; tax-free shops and Chinese-foreign commercial businesses are allowed to set up in the zone.
6) With approval, Chinese-foreign joint international travel agency dealing with overseas travel business can be set up in the zone.
7) Policies on Encouragement of Non-local Investment
Headquarters of enterprises from other cities of the country moving into the zone are entitled to register about 10 permanent residents in Hangzhou from its staff, not including the wife and children of the chief manager.
Every 1 million RMB of registered capital investment ca allow one staff registers as a permanent resident in Hangzhou.
Headquarters of enterprises from other city of the country with registered capital over 30 million RMB, enjoy a 100% refund of enterprise income tax levied for the first two years and half refund from the third to fifth year.

Business Application and Approval Procedures

1) Approval Procedures for Chinese-foreign Joint Venture or Cooperative Venture Application of establishment of a Chinese-foreign joint venture or co-operative venture in the zone can be submitted by the Chinese partner or the entrusted partner if there are several Chinese partners. Application of procedures include the following items:

1. Project Proposal After confirmation of mutual intention to establish joint or cooperative ventures, project proposal can be submitted to the Economic Development Bureau of ZNTHR by the Chinese partner, which shall include the following items: A. Project application document B. Project proposal document C. Relevant documents (such as letter intent, corporate certificate of each party, capital certificate, business license and etc.)
2. Feasibility Study Report With the approval of the project proposal, the Chinese and foreign partners shall jointly compile a feasibility study report and submit it to the Economic Development Bureau of ZNTHR. It shall include the following items: A. Feasibility study report document B. Feasibility study report text C. Related documents on research, certificate or consultation D. Other required items according to specific project
3. Contract, Constitution and Name of the Enterprise With the approval of the feasibility study report, the Chinese and foreign partners shall jointly compile a contract and constitution of the venture, and submit them to the Department of Industry and Commerce for the registration of the name of the venture. The following items are required:
A. Contract and constitution document
B. Contract and constitution text and appendix
C. Name list of the directors of the board, with appointment documents
D. Enterprise name approval document
E. Other required items according to specific project
4. Approval Certificate Completing the above procedures, the Chinese partner can receive a business approval certificate by submitting the following items:
A. Contract and constitution text
B. Copies of legal person certificate of each party
C. Capital certificate of each party
D. Land contract
E. Directors of the board and appointment
F. List of imported equipment
G. Other relevant documents and memorandum, agreement and etc.
2) Approval Procedures for Solely Foreign Funded Enterprises Establishment of a solely foreign funded enterprise in the zone shall first submit an entrance application to the Economic and Development Bureau of ZNTMR. Upon the approval, the application can apply to the Department of Industry and Commerce for the registration of the enterprise name and submit the application to the Economic and Development Bureau of ZNTHR. Application procedures including the following items:

A. Application document of the solely foreign funded enterprise
B. Text of feasibility study report
C. Constitution
D. Investor legal certificate and capital certificate
E. Name list of directors of the board and appointment
F. List of imported equipment
G. Certificate of approved name
H. Other relevant documents and agreement
3) Approval Procedures for Domestic Invested Enterprises Review and approval are according to the regulations of law on Corporation and registration management procedures.