Starting with June 2020, Hainan Free Trade Zone will transform into a Free Trade Port, the first one in China. If the free trade zone opened its doors back in the 1980s, 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 company formation agents in China.
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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 will implement zero tariffs for most 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 will pay a corporate income tax of no more than a 15% rate. 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:
- Obtaining the needed special licenses and permits in a fast manner (electronic licenses are permitted);
- The incorporation of companies without harsh formalities;
- Complete support for financial trading and operations;
- 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, or the Wholly Foreign-Owned Enterprise, the proper business structure available.
What are the rules of 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 the 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 minimum share capital for a WFOE is CHY 30,000 deposited in a Chinese bank account. The 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 State Administration for Industry and Commerce of the People’s Republic of China is the institution that issues the certificate of incorporation for companies registered in Hainan Free Trade Zone.
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;
- a major improvement is seen and reported by the World Bank that ranks China 31st among 190 economies in the world, according to the 2020 Doing Business report;
- around USD 62 million 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.