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As global trade grows, more and more international businesses are seeking efficient solutions for company registration and bank account opening. In the past, Hong Kong was the go-to place for international traders looking to resolve cross-border RMB settlement issues. However, the tightening due diligence policies of traditional Hong Kong banks have made it increasingly difficult for businesses to open accounts. In contrast, Hainan Free Trade Port offers a simplified and more accessible alternative. This article explores why Hainan has become a popular choice for international traders seeking a seamless business setup process.
Challenges in Hong Kong: The Stricter Bank Due Diligence
Traditionally, Hong Kong has been a hub for international trade companies, offering a straightforward process for company registration and opening international bank accounts. But with Hong Kong's banks tightening their due diligence practices, especially concerning Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations, many businesses now face significant challenges in getting their accounts approved. The increased scrutiny and lengthy procedures have made it harder for traders to operate efficiently.
International Payment Solutions in Hainan
In contrast to Hong Kong’s increasingly stringent requirements, Hainan offers a more streamlined process for international traders. The process of registering a company in Hainan is far simpler, and its policies provide fewer obstacles for foreign investors.
International traders who previously considered Hong Kong for their business setup now find Hainan a more attractive option. Hainan offers not only simplified company registration requirements but also a much easier and faster bank account opening process. As businesses increasingly face difficulties with traditional Hong Kong banks, Hainan’s easy and efficient setup process, along with its favorable business environment, has become an ideal solution.
1. Simplified Company Registration Requirements
In other regions of China, even though you don’t have to come to China in person to set up a company, you are still required to notarize and certify some documents, and for some non-Hague Convention countries, you may need to apply for more troublesome consular certification.
In Hainan, these requirements have been further simplified. For foreign shareholders, if you have previously obtained a Chinese visa or have entry and exit records at a Chinese embassy or consulate abroad, you only need to provide a copy of your passport, visa, and entry/exit records to register your company in Hainan.
This means that if you have previously visited China, you don’t even need to go through the Hague Apostille process, saving you more time in the registration process.
2. Convenient Bank Account Opening Process
In other regions, bank account opening usually requires the legal representative of the company to be physically present in China to handle the procedures. This often causes trouble for foreign legal representatives.
In Hainan, the legal representative only needs to provide their passport to Hongda, and we will handle the appointment with the bank. After passing the KYC process, the bank will arrange an online confirmation appointment with the legal representative. This way, foreign legal representatives do not need to come to China in person.
Why This is Important?
This streamlined process offers one paramount advantage: it empowers foreign investors to launch their Chinese operations at an unprecedented pace. For businesses involved in import-export, cross-border e-commerce, or those providing remote services such as professional consulting, software development, and digital marketing, the traditional barriers of location and complex procedures are effectively eliminated. Since their models are not tied to a physical presence, investors can bypass the months typically spent on notarization, certification, and international travel. This allows for an almost "seamless" transition from business plan to operational reality, enabling them to swiftly capture opportunities in both the Chinese and Southeast Asian markets. This significant gain in efficiency not only reduces the time and cost of initial setup but also provides entrepreneurs with a crucial first-mover advantage in a fast-evolving market landscape.
Other Incentives in Hainan
In our previous blogs, we have highlighted the investment advantages of Hainan, China’s only provincial-level free trade zone, particularly in sectors such as modern services, high-tech industries, and tropical agriculture. In addition to these, Hainan Free Trade Port offers benefits such as low corporate income tax (15%), exemptions from certain taxes (including tariffs, import VAT, and consumption taxes), as well as support for talent introduction and low personal income tax.
1. Policy Incentives, Tax Benefits Fueling Business Growth:
Hainan enjoys a series of policy supports including zero tariffs, low tax rates, and a simplified tax system. For multinational companies and foreign enterprises, Hainan provides a highly favorable tax environment, particularly suited for businesses in trade, finance, and technology sectors.
2. Strategic Location, Opening the Door to Southeast Asia Market:
Hainan is strategically located as China’s gateway to Southeast Asia. As a frontier for China’s opening-up policy, Hainan is not only a hub for cross-border trade and logistics but also plays a crucial role in international tourism and financial services.
In addition, according to China’s latest policies, Hainan will begin full island closure operation on December 18, 2025. After this closure, production and trade in Hainan will become even more convenient.
With only two months left before Hainan’s full closure operation begins, this is a golden window for foreign investors to set up companies in Hainan.
Take Action Today!
Hainan is attracting global investors with its open attitude and innovative services. Whether it’s the simplified registration process or the intelligent bank account opening system, it reflects Hainan's determination to build an international and business-friendly environment. If you want to seize the development opportunities of Hainan Free Trade Port, now is the best time to take action!
For more details about Hainan company registration, feel free to contact Hongda for a free consultation!
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