Hainan company setup scenarios
Explore practical scenarios for trading, software and other activities in Hainan. Each starts with the company structure and operating requirements, then checks whether Free Trade Port policies apply.
Wondering whether you can own the company outright? Read our guide to 100% foreign ownership in China and Hainan before comparing the scenarios below.
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Before any policy discussion
Start with the company
Before looking at tax or customs policies, confirm how you will sell, invoice, hire, import or operate in China. Those facts determine the entity, documents and registrations you need.
Your activity
A foreign-owned company can be the right starting point when you need to contract with China customers, issue local invoices, import or export under your own name, or employ staff.
Read the foreigner's company-registration guideYour ownership
Many activities can be carried out through a wholly foreign-owned enterprise (WFOE), but the right answer depends on your precise business scope and any foreign-investment restrictions.
See when 100% foreign ownership is possibleYour preparation
Foreign shareholders need a clear ownership plan, a suitable business scope, a registered address and documents prepared in the right form for the chosen structure.
See the Hainan document checklistYour structure
The structure changes what the business can do, who controls it and whether it can invoice, trade, hire or simply research the market.
Compare WFOE and joint-venture routesAdvanced Hainan policy scenarios
These examples are most useful for businesses with a defined Hainan operating plan: trading, local processing, imported equipment, overseas investment or qualified fund management.
Before relying on a policy route
Trading and corporate tax
A trading company registered in Haikou in 2021 and carries out substantive operations in Hainan, with domestic sales of non-ferrous metals. In 2023, it recorded RMB 100 million in revenue and RMB 10 million in annual profit.
At a 25% corporate income tax rate, its annual tax payable would be RMB 2.5 million. Because bulk commodity trading is included in the relevant encouraged-industry catalogue and the company meets the substantive-operation conditions, it may apply the stated 15% rate. Its annual corporate income tax would be RMB 1.5 million - a reduction of RMB 1 million. Read the 15% corporate income tax guide.
Outbound investment
A Hainan software and internet-culture company completed outbound-investment filings and set up a Hong Kong subsidiary to manage overseas game publishing. The Hong Kong company distributed RMB 190 million in profits to its Hainan parent in 2022.
Assuming no other deductions, a 25% corporate income tax rate would result in RMB 47.5 million of tax. For a qualifying company in the relevant tourism, modern-services or high-tech sector, qualifying new income from direct outbound investment may receive the stated corporate income tax treatment. In this example, the saving is RMB 47.5 million.
Manufacturing and customs
A new-materials producer imports general-purpose resin from the United States, the EU and Japan. It adds modifiers and carries out processing in Hainan to produce higher-performance material for domestic sale.
For each tonne of finished product, the example uses RMB 22,200 of imported material and RMB 2,600 of non-FTP material, against a domestic selling price of RMB 40,000. The processing value-add rate is 61.3%, above the stated 30% threshold. The example therefore models a tariff saving of RMB 2,600 per tonne when the product enters the mainland market. Read the zero-tariff guide.
Production equipment
A company imports a shore-side container crane for its own production use in Hainan. The equipment is outside the negative list used in this example and has an import value of RMB 90 million.
At an assumed combined import-tax rate of 24.3%, the import taxes would be RMB 21.87 million. Where a qualifying Hainan entity imports eligible equipment for its own use, the stated zero-tariff treatment can remove that import-tax cost. In this example, the saving is RMB 21.87 million. Check the zero-tariff conditions.
Aviation maintenance
An aviation company with an operating base in Hainan imports aircraft landing gear for routine maintenance. The landing gear falls within the raw-material scope used in this example and has a customs value of RMB 20 million.
At an assumed combined import-tax rate of 14.13%, the import taxes would be RMB 2.826 million. Under the stated zero-tariff treatment for eligible raw materials, the company saves RMB 2.826 million in import tax.
Fund management
Hainan Tiantang Private Equity Fund Management Co., Ltd., a subsidiary of a licensed financial institution, focuses on the potential of China's onshore assets and has investment-management capability. Following the introduction of the QFLP policy, it established and began investing through a QFLP fund in Hainan in 2021.
The firm obtained QDLP pilot qualification in 2021. In July 2023, Keep Inc., an online fitness platform backed by its Hainan QDLP fund, listed in Hong Kong, making it the first Hainan QDLP fund investment to reach an IPO.
These are public policy scenarios adapted from Hainan FTP material, not Zhongzhi client case studies. Figures, dates, tax rates and outcomes are illustrative only. Policies, catalogues, eligibility and approvals can change, so we confirm the current position against your specific business plan before you rely on a route.
What this means for your plan
The right route is not simply the fastest registration. It connects your company structure, local operations, tax, customs and compliance plan.
What you will sell, make, import, invest in or provide determines the routes worth checking.
For many routes, local people, premises, accounts, assets and operating records matter as much as the incorporation documents.
A current eligibility review can clarify the relevant entity, customs process, tax treatment and evidence before you invest.
The examples are useful starting points, but authorities, customs and banks assess each business against the rules in force at the time.
Before you register
Your business activity and shareholder profile decide the exact route. These answers explain the usual decisions before a filing begins.
In many sectors, a foreign individual or overseas company can own a Hainan foreign-invested enterprise. The answer depends on your specific activity and whether it has foreign-investment restrictions. Read when 100% foreign ownership is possible.
A WFOE is commonly used where a foreign owner needs a China entity that can contract, invoice, hire and operate. A joint venture may be relevant for restricted activities or a meaningful local partner; a representative office is generally for market research and liaison rather than trading. Compare the structures.
You normally need shareholder information, a business description, a registered address, a registered-capital plan and the required identity or corporate documents. The document format varies depending on whether the shareholder is an individual or an overseas company. See the document guide.
The company needs its official chops, tax registration, invoicing setup and usually a corporate bank account before it can operate normally. Trading, hiring or regulated activities can add further registrations. Read the China business-bank-account guide.
The capital amount should be credible for the activities, operating costs and counterparties your company will have. It is a commercial and compliance decision, not a number to choose in isolation. Read the registered-capital guide.
Assess eligibility once the proposed entity and operating model are clear, but before major spend or import commitments. Whether a policy applies can depend on your activity, location, people, records and the rules in force at the time. Read about the substantive-operation requirement.
Start your company plan
Tell us what you will sell, make, import or provide in China, who will own the company and when you plan to start. We will identify the likely entity, documents and policy questions to check first.
