Open a Company in Hainan Free Trade Zone

Following the Master Plan of June 2020, Hainan has been transforming into a Free Trade Port (island-wide special customs operations started on 18 December 2025), the first one in China. If Hainan became a special economic zone back in 1988 (and a pilot free trade zone in 2018), nowadays, the authorities considered it is time to move forward and to apply the “Masterplan” referring to a series of changes linked to the business in Hainan Island. New policies have been implemented, in order to ease the business path to foreign investors. Those interested in opening a company in Hainan Free Trade Zone are invited to talk to our agents for opening a company in China.

The difference between FTZ and FTP

Building Hainan Free Trade Port means offering additional solutions to sustain foreign investments in this part of China. Among these, the Chinese authorities planned to transform Hainan into a major international financial, trading, and shipping center in China. While Hainan Free Trade Zone already offers tax exemptions and a series of encouragements to attract foreign investments of all kind, Hainan Free Trade Port applies zero tariffs to a wide range of imports, such as vehicles, consumer goods, manufacturing equipment, raw materials and many more. Additionally, the service and high-tech industries are on the list of future developments in the Hainan Free Trade Port. This means that companies with activities in these important industries can pay a reduced 15% corporate income tax rate (applied since 2020) if their main business is in Hainan's Catalogue of Encouraged Industries (over 60% of income) and they operate substantively in Hainan. If you are interested in Hainan Free Trade Zone, please feel free to address your inquiries to our team of company formation specialists in China and ask for assistance.

Why start a business in Hainan FTZ?

Hainan Free Trade Zone already provides complete support for investors interested in starting companies in this part of China. There are plenty of tax incentives, relaxed investment policies, a wide range of advantageous economic services, a favorable ecological environment, and many more. Here are some benefits to consider when opening a company in Hainan FTZ:

1. Obtaining the needed special licenses and permits in a fast manner (electronic licenses are permitted);
2. The incorporation of companies without harsh formalities;
3. Complete support for financial trading and operations;
4. A series of tax incentives and exemptions offered to foreign entrepreneurs.

Domestic and foreign entrepreneurs interested in opening a company in Hainan Free Trade Zone can talk to our specialists for support. We can help international investors start a WFOE in China, the proper business structure available, or the Wholly Foreign-Owned Enterprise.

What are the rules for opening a company in Hainan Free Trade Zone?

The registration of a company in China is not a complex process, yet, complete assistance and guidance are recommended to international entrepreneurs who do not have a clear image of business formation in this country. The WFOE is a great option for overseas investors in Hainan FTZ due to the lack of complexities, easy formation, and registration. Plus, the registered capital of a WFOE has no statutory minimum, but under the 2024 Company Law it must be paid into a Chinese bank account within 5 years. Registration for tax purposes is compulsory in China, so you might want to receive our support in this matter. We mention that you do not need to travel to China’s Hainan island to open a WFOE, as one of our company formation experts can act on your behalf with a power of attorney and represent your firm. It is important to note that the local Administration for Market Regulation (under the State Administration for Market Regulation, which replaced the SAIC in 2018) is the institution that issues the business licence for companies registered in the Hainan Free Trade Zone.

Looking for starting a WFOE in China? This structure is preferred by foreign investors due to the facilities offered and the ease with which it can be opened. Once you establish the name and activities, you can proceed to the formalities of its registration. Thus, with the help of our local agents, you will be able to fill in the necessary forms and prepare the company’s documents. Our specialists can also help you with opening a bank account in this country.

What other companies can I open in Hainan FTZ?

Partnerships and joint-stock companies are also excellent business choices for international entrepreneurs in Hainan Free Trade Zone, and just like in the case of WFOEs, entrepreneurs need to observe the rules for licenses and permits in China. We have also gathered information, facts, and figures about China’s economy and business that you might find it useful and interesting:

• China’s total FDI stock for 2019 was of around USD 1,769 billion;
• in 2019, China was the second-largest FDI recipient after USA and before Singapore;
• in its last edition (the series was discontinued in 2021), the World Bank ranked China 31st among 190 economies in the world, according to the 2020 Doing Business report;
• around USD 62 billion was the total value of greenfield investments in China in 2019.

International entrepreneurs who need more details about how to open a company in Hainan Free Trade Zone are invited to contact our team of company formation specialists in China.