Registering a company (offshore company) in the Hainan Free Trade Port can take advantage of unique policy advantages (such as zero tariffs, etc.) to grow bigger and stronger and register for listing.
Hainan will begin to close its borders in 2025. Registering a company (offshore company) in the Hainan Free Trade Port can take advantage of unique policy advantages (such as zero tariffs, etc.) to grow bigger and stronger and register for listing; registering a company in the Hainan Free Trade Port is actually very convenient, and investors will get more business opportunities and development opportunities than in the mainland.
1. What are the benefits of opening a company in Hainan?
(1) You can enjoy various tax incentives
a. corporate income tax: 0-15% for encouraged industries in the Hainan Free Trade Port; 0-25% in non-free trade zones in the mainland.
b. Personal income tax: If you have lived in the Hainan Free Trade Port for a total of 183 days in the tax year, you will be taxed at three progressive tax rates of 3%, 10%, and 15%; in non-free trade zones in the mainland: 0-45%.
c. Tariffs + consumption tax + value-added tax
In the Hainan Free Trade Port: the tariff for duty-free goods on the island is 0; other goods are subject to "five taxes in one"; in non-free trade zones in the mainland, most goods are subject to tariffs, and the specific tax rates vary.
2. Companies registered in Hainan are offshore companies.
Offshore companies can be directly listed, registered or deregistered in Hainan, without the need to register another company in the Cayman Islands as a springboard as in non-free trade zones in the mainland.
3. Register a company in Hainan and open a Hainan FT account.
Companies registered in Hainan can realize the free transfer of 9 different currencies and settle in different currencies. For example, if a company in the free trade port trades with a company in Singapore, there is no need to convert RMB into Singapore dollars, and directly use FT accounts and Singapore dollars for settlement.
4. Support overseas securities and fund management institutions to establish wholly-owned and joint-venture financial institutions, and allow domestic and foreign universities or vocational schools in science, engineering, agriculture, medicine, etc. to independently run schools in Hainan. 60 well-known domestic and foreign universities have been determined to settle in Hainan Free Trade Port.
5. Unrestricted, no prohibition, no entry. Hainan implements no prohibition, no entry. In principle, the relevant departments have cancelled the license and approval, and implemented the filing system and commitment system for enterprises. If the commitment meets the conditions, business can be carried out.
2. What kind of company is good to set up in Hainan?
1. Investment companies
In the future, Hainan Free Trade Port will have a low tax rate on investment income, free and convenient investment, free and convenient cross-border capital flow, and now overseas investment income is tax-free; so, it will be very advantageous to set up an investment company in Hainan.
2. Trade companies
Hainan will trade with the world in the future, and implement the "five taxes in one" to merge value-added tax, consumption tax, vehicle purchase tax, urban maintenance and construction tax, and education surcharge into sales tax, so there are certain advantages in registering a trade company in Hainan, and with the improvement of the opening policy, trade companies, especially international trade companies, will have great room for development in the future.
3. Technology companies
Technology companies not only have a wide range of business, but also enjoy tax incentives when registered in Hainan. They can apply for national high-tech enterprise certification. If the application is successful, they can receive government subsidies. At that time, they can choose to do research and development and sales in Hainan, and do factory processing in the mainland.
4. Cross-border e-commerce companies
After Hainan closes its borders, it will gradually open up the external network, and at that time, you can do TIKTOK live e-commerce business without climbing over the wall, which will greatly reduce the operating costs of enterprises and achieve real cost reduction and efficiency improvement.
5. Cultural and tourism companies
Hainan has unique natural resources and location advantages. In the future, people from different countries will come to Hainan to travel after the customs closure. 195 countries will have visa-free entry, and people from all over the world will come to Hainan to eat, drink and have fun. Therefore, cultural and tourism, antiques, and consumer companies will have great development in the future.
6. Logistics companies
After the customs closure, the logistics services of Hainan Free Trade Port will be further optimized and more convenient, which will bring more business opportunities to logistics companies and provide more space and opportunities for the development of related industries.
7. Financial companies
In the future, Hainan will open up global finance and will freely exchange currencies with various countries, forming a layout of a region outside the customs, Hong Kong to the European and American markets, and Hainan to the Southeast Asian and Middle Eastern markets. Therefore, supporting companies doing finance in Hainan will have great development prospects in the future.
8. Aviation companies
The aviation industry in Hainan Free Trade Port will usher in new business opportunities and development opportunities.
3. What procedures are required to register a company in Hainan?
The first step is to verify the company name.
You need to prepare about 3-5 company names and verify the name on the official website of Hainan Provincial Market Supervision Administration. The verification is free of charge.
Step 2: Fill out the registration form
Step 3: Record a video
Step 4: Prepare materials
The materials to be prepared include proof of registered address (lease contract/property certificate); Articles of Association (need to determine shareholders and shareholding ratios, registered capital and payment deadlines, etc.); Business scope documents; Identity documents of shareholders, supervisors and legal representatives; Other necessary materials (prepared according to the list required by the Market Supervision Administration, which may change from time to time). It should be noted that the business scope must be selected from the "Hainan Free Trade Pilot Zone Haikou Area (Comprehensive Bonded) Business Scope Standard Expression Query System", and non-standard expressions will be rejected.
Step 5: Enter and submit materials
After the materials are complete, enter the materials online and submit them for review; the submitted materials must be complete and no errors can occur. If the application is rejected, you need to modify the materials and submit them again based on the reasons for the rejection.
Step 6: Receive the business license and official seal.
After the review is passed, you can go to the offline Industrial and Commercial Bureau to collect it or choose to mail it; four seals (official seal, private seal, financial seal, invoice seal) will be given to register a company in Hainan; these seals can be collected together with the original and duplicate copies of the business license. It should be noted that after obtaining the business license, the staff of the Market Supervision and Administration Bureau will verify (on-site inspection or telephone) the company address from time to time to confirm the authenticity of the address. If a false registered address is used, it will be punished or even the business license will be revoked.
Step 7: Open a basic bank account.
Every company must open a basic bank account. Make an appointment with the account manager in advance and go to the bank with the company's business license, seal and other materials. Of course, in addition to the basic account, you may also need to open a capital account and one or more foreign currency accounts (a foreign currency account can only be used in one currency). It should be noted that the account will not take effect immediately after opening. The bank staff needs to verify (on-site inspection) the company address to confirm the authenticity of the address. You also need to deposit a small amount of money into the account before the account can take effect.
Step 8: Apply for tax registration and social security account opening.
It should be noted that: (1) Tax declaration must be completed regularly every month. Even if there is no income, a zero declaration must be made. (2) The registered address is the most basic. If there is no place, a company cannot be registered. If you fill in an address at random, or use a free or low-cost virtual address, it will most likely be rejected by the system, and you will not be able to cooperate with subsequent inspections and account opening by industrial and commercial, tax, banking and other departments, which will bring potential risks to the company's operations.