Annual Compliance for a Foreign-Owned Company in Hainan (2026)

The work does not stop when a Hainan company receives its business licence. A foreign-owned company has recurring tax, employment, reporting and corporate obligations even if it has little activity.

Ignoring a dormant-looking company is one of the fastest ways to create tax, credit and deregistration problems later.

1. File taxes on the required schedule

The company needs to submit tax returns according to its registered taxes and filing periods. Depending on the business, these can include VAT, corporate income tax, individual income tax withholding, surcharges, stamp tax and other items.

Nil activity does not always mean no filing. Confirm whether nil returns are required and keep the accounting records supporting them.

Corporate income tax is generally prepaid during the year and reconciled through the annual settlement. If the company claims Hainan’s 15% rate, retain the catalogue, revenue and substantive-operation evidence for that tax year.

2. Submit the annual market-entity report

Companies registered by 31 December of the previous year generally submit an annual report through the National Enterprise Credit Information Publicity System between 1 January and 30 June.

The report covers company and operational information, some of which becomes public. Inaccurate or late reporting can affect the company’s credit status.

For the 2025 reporting year, Hainan’s official filing period ran from 1 January to 30 June 2026. Check the annual notice for later years rather than assuming the dates can never change.

3. Complete foreign investment information reporting

Foreign-invested enterprises have information-reporting obligations connected with establishment, changes and annual operation. Some information is shared through integrated reporting systems, but the company remains responsible for accuracy and completeness.

Changes to shareholders, capital, business scope, legal representative, address or other registered details may trigger update filings during the year. Do not wait for the annual report to correct a material change.

4. Keep payroll and employee records aligned

Employers need consistent employment contracts, payroll, individual income tax withholding and social-insurance records.

For foreign employees, monitor work-permit and residence-permit expiry dates. Changes in passport, employer, role or other registered details may need to be reported promptly.

If there are no employees, make sure the company’s claimed operating model, tax position and substantive-operation evidence remain internally consistent.

5. Review licences and business scope

Industry permits may expire or require annual inspection, data submission or continuing conditions. Check whether the company has added products or services beyond its registered scope or original permit.

A business licence is not a permanent approval for every future activity. Review new revenue lines before signing customer contracts.

6. Maintain corporate approvals and registers

Keep shareholder decisions, director or executive decisions, capital contribution evidence, contracts, accounting records and company-seal controls in order.

The current Company Law generally requires subscribed capital of a newly established limited liability company to be contributed within five years. Track each shareholder’s due date rather than discovering it during a bank or registration transaction.

7. Check cross-border transactions

Capital contributions, overseas service payments, royalties, loans and dividends need documents that match their stated purpose. Reconcile bank records, tax treatment, contracts and foreign-exchange registration information.

If the company expects to distribute profit, confirm early whether prior losses, reserves, tax filings and financial statements are ready. Profit repatriation is much easier when records have been maintained throughout the year.

A simple annual calendar

Monthly or quarterly

bookkeeping and tax returns;
payroll, individual income tax and social insurance;
invoice and bank reconciliation; and
licence-specific reporting where applicable.

Early in the year

close the prior-year accounts;
prepare the corporate income tax annual settlement;
review whether tax incentives remain supportable; and
begin annual-report data collection.

By the applicable annual deadline

submit the market-entity annual report;
complete foreign investment annual information reporting; and
file any sector or statistical reports that apply.

Throughout the year

update registration after company changes;
renew permits and immigration documents;
record shareholder and management decisions; and
monitor the registered-capital schedule.

Official sources

The obligations depend on the company’s activity, tax status, employees and licences. Build a compliance calendar for the actual entity rather than relying on a generic annual checklist.

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