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Hainan Company Registration for Foreign Investors
Hainan's Free Trade Port Law has applied since 10 June 2021, and island-wide customs closure began on 18 December 2025. This page sets out how a foreign investor registers a company in Hainan, which incentives carry conditions, and what Hongda handles locally.
- Foreign investors can set up a limited liability or joint-stock company and file online, with document simplifications available on conditions.
- The 15% corporate income tax rate requires encouraged activities, substantive operations and at least 60% of revenue from those activities. It applies until 31 December 2027.
- A shared registered address does not, on its own, meet the substantive-operation test for tax relief.
- The 30-day visa exemption covers 61 countries but does not permit work. Registration does not require every foreign investor to hold a Chinese visa.
- Zero-tariff imports apply only to listed beneficiaries and to goods outside the import taxation catalogue, with further exclusions.
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Hainan Free Trade Port: the framework that applies to a new company
The Hainan Free Trade Port Law took effect on 10 June 2021. The Hainan provincial government launched island-wide customs closure on 18 December 2025, and the supporting goods and tax arrangements took effect the same day.
A joint notice from the Ministry of Finance, the General Administration of Customs and the State Taxation Administration defines two boundaries. The "first line" lies between Hainan and countries and regions outside China's customs territory; the "second line" lies between Hainan and the rest of China's customs territory, that is, the mainland. How a company's goods are taxed depends on which line they cross and whether the goods and the company qualify for relief.
Registering a company in Hainan: who can invest, what to submit, and how it is filed
- Choose the form and check market access. Foreign investors can set up a limited liability or joint-stock company. Hainan applies its own negative list (2020 edition) across the island, and the national list preserves Hainan's more favourable arrangements. Business activities come from the standard business-scope catalogue.
- File online. Hainan e-Registration 2.0 does not accept paper applications. The provincial market regulator is the registration authority, with island-wide registration officers. Identity is checked by facial recognition, or else by notarised documents, attendance in person or authorised confirmation.
- Prepare the documents: the application form, articles of association, identity documents, address evidence where required and any approvals needed before registration. Appointment documents, and address documents under the commitment route, are kept for inspection rather than submitted.
| Investor | Identity documents |
|---|---|
| Foreign company or individual | Notarisation plus an apostille where the Apostille Convention applies; otherwise notarisation and Chinese consular authentication. |
| Foreign individual holding a Chinese permanent resident ID card, or a passport with confirmed entry checked against the original | No notarisation needed. |
| Hong Kong, Macao or Taiwan investor | Separate rules apply; specified mainland-issued residence or travel permits are exempt from notarisation. |
Outside the negative list, simplified identity documents are allowed on conditions, and investors already registered in China can reuse certified documents with the required declarations. Shareholders of a new limited liability company normally pay their subscribed capital within five years.
Registration is not a licence to operate. Streamlined approvals and a registered business scope do not replace the permits a regulated activity requires.
Registered address: fixed premises, shared addresses and address custody
Hainan separates the registered address from the substantive operations that tax relief requires. Match the planned activity and premises to an address route before registering.
| Address route | Conditions | Limits |
|---|---|---|
| Fixed premises | A real, lawful and safe location with usable, independent space; addresses in the standard address database can be declared by commitment. | Planning, building-safety and address-verification requirements still apply. |
| Shared address or designated office area | Companies under common control, with common investors or in the same group can share an address; areas designated by a county-level government or a park can host several companies. | The rules do not allow unlimited registrations at any address. |
| Address custody | Activities that need no fixed premises, such as e-commerce and consulting, can use a qualified custodian. | Individual businesses and branches are excluded; a company whose business needs fixed premises must change its registration. |
The address-custody measures took effect on 1 December 2025 and are valid for five years. Tax relief separately requires premises, equipment, staff, accounts and assets in Hainan.
Tax incentives apply only when the company meets the conditions
The standard corporate income tax rate is 25%; Hainan's 15% rate depends on the company's business and its substantive operations on the island.
| Incentive | Who qualifies | End date |
|---|---|---|
| 15% corporate income tax | Companies registered in Hainan, operating substantively, whose encouraged activities produce at least 60% of revenue. | 31 December 2027 |
| Exemption for new outbound-investment income | Tourism, modern services and high-tech enterprises: profits of new overseas branches, or dividends from new direct investments in companies at least 20% owned, where the investee's statutory corporate tax rate is at least 5%. | 31 December 2027 |
| Individual income tax relief | Eligible high-end and urgently needed talent: the burden above 15% on specified Hainan income is exempt. | 31 December 2027 |
Match the company's actual business to the encouraged-industry catalogue; foreign-invested enterprises use the encouraged foreign-investment catalogue. A company with no branches outside Hainan must keep its operations, staff, accounts and assets in Hainan; branch structures are tested separately.
- Staff work in Hainan and are paid from the company's Hainan account.
- Staff living in Hainan for at least 183 days a year: at least three if the company has fewer than 10 employees, 30% if it has 10 to 99, and 30 if it has 100 or more.
- Accounting records, the basic and main settlement bank accounts, and the assets in use are in Hainan and match the business.
Talent relief generally requires 183 days' residence, recognised talent status or Hainan income of at least RMB 300,000, and an employer that meets the substance test. Off-island business trips, leave and training can count, but actual residence must reach 90 days; declaration, disclosure and credit conditions apply.
After the island-wide closure: zero tariffs and the 30% value-added rule
Listed beneficiaries, including Hainan-registered companies with independent legal-person status, can import goods outside the taxation catalogue free of import duty, import VAT and consumption tax. Catalogue goods and goods under trade remedies need separate checks.
Transfers between beneficiaries are relieved as prescribed. Sales to island non-beneficiaries, or into the mainland, generally trigger import tax unless a special policy applies, and domestic taxes on island transactions still apply.
Processors in encouraged industries with independent legal-person status and the required registration can bring goods into the mainland free of import duty when Hainan processing adds at least 30% of value; import VAT and consumption tax remain payable.
Value added = (mainland sale price − imported materials − domestically purchased materials) ÷ (imported materials + domestically purchased materials) × 100%
Labelling, repacking and simple cutting do not qualify, and valuation and accumulation rules apply. The specified pre-closure zero-tariff policies were repealed when closure began.
Banking: capital accounts, the EF account, and opening in person or remotely
| Account | Purpose and conditions |
|---|---|
| Foreign-currency capital account | Receives capital contributed in foreign currency; registration applies and use of the funds is restricted. |
| EF account (EFE / EFN) | EFE for eligible Hainan entities and EFN for overseas entities, subject to bank review. Separate capital-transaction rules apply. |
EFE normally requires six months' registration in Hainan, compliant cross-border classifications, no major violations in the past year and no high-risk anti-money-laundering listing. It initially targets firms with genuine trade or investment needs, excluding macro-control sectors; defined relaxations apply. EFN normally requires one year's overseas registration and compliance checks, with specified relaxations. The rules took effect on 6 May 2024, and an island entity that converts to EF cannot keep its FT account.
People's Bank of China rules allow an authorised person to open the account and require the bank to verify the opening intention for a basic account. In Hongda's experience, the legal representative need not attend: we handle the application with the original documents. Most banks first ask the legal representative to upload an online recording confirming the intention to open the account.
Staffing a Hainan company: visas, work permits, EOR and labour dispatch
Hainan's visa exemption allows nationals of 61 countries to stay up to 30 days for short-term purposes such as business; work requires the appropriate visa before entry. Working in China normally requires a work permit and a work-type residence permit, with statutory exceptions such as permanent residents.
Under Hainan's work-permit measures, Category A and B applicants face no age limit. Urgently needed Category B applicants who meet the conditions can apply for Category A treatment and R-visa facilitation.
| Dispatch rule | Requirement |
|---|---|
| Headcount | Dispatched workers normally make up no more than 10% of the workforce, counted as direct employees plus dispatched workers. |
| Temporary positions | The position lasts no more than six months. |
| Auxiliary positions | Non-core positions that serve the core business; the employer must consult staff and publish the list. |
| Replacement positions | Cover for employees temporarily absent for study, leave or similar reasons. |
Where an EOR arrangement amounts to labour dispatch, these limits apply, and describing it as outsourcing does not change that. Our Hainan company has completed labour-dispatch business registration, as recorded in its approval notice.
What Hongda handles in Hainan
Hongda provides company registration and related services in Hainan, covering set-up, accounting, premises, banking and staffing.
| Service | What we do | Related page |
|---|---|---|
| Company registration | We register companies in Hainan. | — |
| Bank accounts | We handle Hainan bank account applications. | Bank account opening |
| Accounting and tax | We provide bookkeeping and tax filing. | Accounting and bookkeeping |
| Registered address | We provide registered addresses for Hainan companies. | — |
| Work permits | We handle work permits for Hainan companies. | Work permits |
| EOR | We provide EOR services in Hainan. | HR and EOR; Payroll |
| Office rental | We arrange office rental in Hainan. | — |
| Labour dispatch | Provided by our Hainan company, which has completed labour-dispatch business registration. | — |
Tell us which of these your planned operation needs.
Frequently asked questions
Is there a minimum registered capital?
No general minimum applies to ordinary companies. Shareholders of a limited liability company generally pay their subscriptions within five years of incorporation, as set out in the articles. Some industries have their own rules on minimum capital, payment or timing, and these take precedence.
Can one foreign individual own the company alone?
Yes, where foreign sole ownership is permitted. A foreign individual can set up a single-shareholder limited liability company, subject to the negative list. The shareholder must be able to show that the company's assets are separate from their own; otherwise, the shareholder is jointly liable for the company's debts.
Do I need Chinese staff?
You need to arrange a registration liaison who is a Chinese national; Hongda does not provide its own employees for this role. The liaison must hold a Chinese resident ID card and normally live in China, but need not be a director. Registration agents generally cannot act as liaisons. The 15% tax rate separately requires qualifying staff in Hainan.
What taxes apply?
Corporate income tax is normally 25%; Hainan's 15% rate is conditional. Eligible small low-profit enterprises pay 20% on 25% of their taxable income until 31 December 2027. Under the VAT Law, in force since 1 January 2026, the general VAT rates are 13%, 9% and 6%.
Can I set up the company without a Chinese work visa?
Yes. A Chinese visa is not among the documents every foreign investor must submit, and identity documents can be notarised and authenticated abroad. Working at the company normally requires a work permit and a work-type residence permit; visa-free entry does not allow employment. Permanent residents follow the rules for their status.
Does the legal representative need to attend the bank account opening?
In Hongda's experience, no: we apply with the original documents, and most banks ask the legal representative for an online recording confirming the intention to open the account. Official rules allow an authorised person to apply; the bank verifies intention in person or by video, depending on its risk assessment.
Sources and last verified
- Hainan Free Trade Port Law (Presidential Order No. 85).
- Hainan registration materials: 琼市监规〔2026〕1号.
- Corporate income tax: 财税〔2020〕31号 and 财税〔2025〕3号.
- Talent tax relief: 财税〔2025〕4号.
- Goods taxation: 财关税〔2025〕12号.
- Last verified: 10 November 2026.
- Next review of tax incentives: 31 December 2027.