Company Creation HAINAN

Hainan FTZ — China Free Trade Port

BTOBExchange — Company Formation in Hainan FTZ

China is opening up.
Hainan is the gateway.

The only free trade zone inside China — 15% corporate tax, 0% customs duties, direct access to the world's largest consumer market from a 100% foreign-owned structure, to invest in China's future.

15% CIT
Preferential FTZ rate
0% customs
Imported goods
~15 days
Operational company
海南 · Free Trade Port
15%
Corporate income tax (FTZ)
0%
Customs duties on goods
35k km²
Free trade zone area
1.4Bn
Accessible Chinese consumers

The problem

China was closed.
Hainan changes that.

The Chinese government has made Hainan the laboratory of its global economic opening. It is the only zone where the rules of the game are rewritten in favour of foreign investors.

You want China, but China frightens you

Opaque bureaucracy, capital restrictions, blocked profit repatriation — mainland China intimidates foreigners. Hainan FTZ changes the rules: simplified formation, freely repatriable capital, and a regulatory framework aligned with international standards.

Your costs to enter the Chinese market are prohibitive

0% customs duties on imported goods, 15% corporate tax instead of 25% on the mainland, and reduced VAT on services. Hainan FTZ gives you access to the world's largest market with a competitive tax structure, without the usual constraints.

Your company is not perceived as local in China

A company based in Hainan is a fully-fledged Chinese company. It can sell directly to Chinese consumers, bid on public tenders, and access domestic e-commerce platforms — Tmall, JD.com, Douyin — without a mandatory local intermediary.

“Hainan is not just a tropical island. It is the world's largest economic laboratory — and the least-known gateway to 1.4 billion consumers.”

Why Hainan FTZ

China without the barriers,
with all the advantages

01
01

Among the lowest taxes in Asia

15% corporate tax instead of 25% on the Chinese mainland. 0% customs duties on goods imported into the FTZ. For high-tech companies and qualified services, additional exemptions can bring the effective tax burden to levels unmatched anywhere in the Asia-Pacific region.

02

Direct access to the Chinese domestic market

A company in Hainan is a Chinese company. It directly accesses mainland Chinese consumers, domestic e-commerce platforms (Tmall, JD.com, Douyin Shop), local distribution networks and institutional partnerships — without requiring a mandatory local partner.

02
03
03

Free capital repatriation

Unlike traditional mainland China, Hainan FTZ allows foreign investors to freely repatriate their profits, dividends and invested capital. This is one of the most significant advances of China's opening-up policy — and a major break from historical practice.

04

An international free port under construction

The launch of island-wide customs operations marks a new phase: Hainan enters its acceleration cycle as an international free port. Billions of yuan are being invested in infrastructure, logistics hubs, finance and digital services. Entering now means positioning yourself before the model reaches full maturity.

04
05
05

High-potential industry, tech and services

Four priority sectors massively supported by the state: international tourism, modern financial services, high-technology trade, biomedicine. Specific incentives — subsidies, regulatory fast-track, access to public procurement — are reserved for companies establishing themselves in these sectors in Hainan.

Available structures

Which company
in Hainan for you?

In the vast majority of cases, the WFOE is the structure of choice — full control, access to the Chinese market, free repatriation. BTOBExchange qualifies your project and guides you to the exact right structure.

Recommended

Wholly Foreign-Owned Enterprise · Recommended

WFOE

Foreign entrepreneurs, e-commerce, tech, services, import-export and any activity without a mandatory local partner.

  • 100% foreign control
  • No local partner required
  • Flexible minimum capital
  • Direct sales in mainland China
  • RMB + multi-currency bank account
  • Free profit repatriation
  • Formation in ~15 days

Sino-foreign partnership

Joint Venture

Strategic sectors requiring a local partner, access to government networks or Chinese public procurement.

  • Partnership with a Chinese partner
  • Access to regulated markets
  • Local institutional networks
  • Shared operational risks
  • Tax advantages preserved
  • Tailor-made structure

Lightweight presence without commercial activity

Representative Office

Prospecting, market intelligence, coordination and exploration before committing to a permanent structure in Hainan.

  • Official presence in China
  • No direct commercial activity
  • Ideal for testing the market
  • Minimal setup cost
  • Upgradeable to a WFOE
  • Facilitated expatriate staff

Methodology

From zero to operational company
in 15 days

01
01

Consultation & Qualification

Analysis of your business, sector, target markets and China ambitions. Determination of the optimal structure — WFOE, Joint Venture or Representative Office — based on your profile, capital and growth objectives in China.

02

File & MOFCOM Approval

Preparation of the complete file and submission to the Hainan Ministry of Commerce (MOFCOM). Name verification, drafting of articles of association in Chinese and in English, legalisation and apostille of foreign-origin documents. We manage the entire administrative process.

02
03
03

SAMR Registration & Business Licence

Registration with the State Administration for Market Regulation (SAMR). Obtaining the Business Licence — the founding document of your company in China. Your WFOE legally exists and has a unique registration number (统一社会信用代码).

04

Tax Registration & Official Seals

Registration with the Hainan tax bureau, obtaining official seals (company seal, financial seal, legal representative seal). These seals are essential for all legal, contractual and banking transactions in China. No document can be signed without them.

04
05
05

Professional RMB Bank Account

Opening a professional bank account in RMB and foreign currencies with a partner bank in Hainan (Bank of China, ICBC, China Merchants Bank). Full assistance for registered capital deposit and activation of international transfers.

06

Operational — Ready for China

Active company, Business Licence issued, bank account open, seals in hand. You can sell in mainland China, repatriate your profits, hire locally and access Chinese e-commerce platforms. Welcome to the market.

06
3–5 days
MOFCOM approval
~15 days
Business Licence issued
2–4 wks.
Operational bank account

Roadmap

Hainan is not sold for what it is
but for what it is becoming

The true Hainan investment thesis lies in its trajectory: enter during the rise of the free port, before its framework is fully mature and before competition intensifies.

Step 01
18.12.2025

Island-wide customs transition

The switch to special customs operations gives Hainan its true inflection point: greater flows, more regulatory flexibility and a free port logic applied across the entire island.

Step 02
2035

Fully mature FTP system

The official roadmap targets a much more complete framework for trade, investment, cross-border capital, people movement, transport and data flows.

Step 03
Mid-century

World-class free port

The final objective is not merely a competitive tax zone, but a world-class Chinese platform to attract capital, talent, regional headquarters and international operations.

Now
Enter before saturation
2035
Target regulatory maturity
Long term
Global platform under construction

Pricing

Hainan FTZ Package

Each Hainan project is individually qualified. A BTOBExchange China-specialist advisor will present an offer tailored to your sector, target structure and ambitions in the Chinese market.

WFOE · Full Incorporation

Starter

from USD 2,000

Entrepreneurs and SMEs seeking a legal presence in Hainan FTZ without additional complexity.

  • Complete WFOE incorporation
  • Official Business Licence
  • Unified social credit number
  • Official seals (3 seals)
  • Fully certified documents
Recommended

WFOE + Account + Support

Business

Custom quote

Operators who want to be active quickly with an RMB account, tax setup and e-commerce access.

  • Everything in Starter
  • RMB + multi-currency bank account
  • Full tax registration
  • Initial VAT filing
  • MOFCOM/SAMR guidance
  • Accounting setup & reporting

Complex Structures & Optimisation

Enterprise

Custom quote

Holdings, JVs, multi-entity structures or projects requiring advanced tax optimisation in Hainan.

  • Everything in Business
  • Optimised holding structure
  • Joint Venture if applicable
  • 15% CIT / exemption optimisation
  • Multi-jurisdiction advisory
  • Investment support

* Official Chinese fees (MOFCOM, SAMR, seals, publication) and banking fees are not included unless expressly stated. Price varies depending on the chosen structure and sector of activity.

Testimonials

They made Hainan
their gateway to China

We were selling in China through local distributors taking 40% margin. With our WFOE in Hainan, we sell directly on Tmall and JD.com. Our margins tripled in 9 months. BTOBExchange managed everything from the Business Licence to our online store opening.

M. Fontaine
E-commerce France — Hainan FTZ

I was looking for a way into China without a forced local partner. The WFOE in Hainan was exactly what I needed. 15% corporate tax, 0% customs duties on my equipment, and direct market access. BTOBExchange was surgically precise on every administrative step.

K. Müller
Tech & Software — Berlin / Hainan

Our Hainan holding manages our Asia-Pacific operations. Profits flow back freely, the corporate tax rate is unbeatable in Asia, and our local team is hired directly. This is the structure we should have had 5 years ago. BTOBExchange set it up for us in 15 days.

A. Bernier
Asia-Pacific Investor — Paris / Hainan

Frequently asked questions

What you need to
know about Hainan FTZ

Hainan FTZ is still largely unknown to European entrepreneurs. Here are the 8 questions that change perceptions — and the decision to set up there.

Q.

What is Hainan FTZ and how is it different from mainland China?

Hainan Free Trade Zone (FTZ) is a special economic zone covering the entire island of Hainan — 35,000 km², the world's largest free port. Unlike mainland China, Hainan offers 15% corporate tax (vs 25%), 0% customs duties on goods imported into the zone, and a simplified regime for foreign investors with free capital repatriation.

Q.

Can I create a WFOE in Hainan without living in China?

Yes. Physical presence is not required to create a WFOE in Hainan. You can incorporate remotely through notarised powers of attorney. A short trip may be needed for bank account opening depending on the institution, but BTOBExchange guides you through alternative solutions.

Q.

Which sectors are eligible for Hainan's tax benefits?

The four priority sectors with the strongest incentives: international tourism (resorts, MICE), modern financial services (fintech, asset management), high-tech trade (tech, software, data), and biomedicine (pharma, medical devices). Other sectors benefit from the 15% corporate tax rate as long as the activity is registered in Hainan.

Q.

Can I repatriate my profits from Hainan to Europe?

Yes. This is one of the major advances of the Hainan FTZ regime over standard mainland China. Foreign investors can freely repatriate dividends, profits and invested capital, provided they have met their tax obligations in Hainan. Transfers to foreign accounts in EUR or USD are possible through partner banks.

Q.

Can my Hainan company sell in mainland China?

Yes. A WFOE in Hainan is a full-fledged Chinese company and can trade in mainland China. Customs duties may apply when transferring goods from the FTZ to the mainland, but for services, digital, and e-commerce, access is direct and unrestricted.

Q.

What's the difference between Hainan FTZ and other Chinese free trade zones?

Hainan is unique: it's an entire island set up as a free trade zone — not just an industrial park or port area. Its area (35,000 km²) is unparalleled. It enjoys the strongest political backing from Beijing since the 1990s and aims to become a world-class international free port by 2035.

Q.

How long does it take to open a company in Hainan?

The Business Licence is typically issued in 10 to 15 business days. Opening a business bank account takes an additional 2 to 4 weeks. With BTOBExchange, you are fully operational — active company, account open, seals in hand — in about 4 to 6 weeks total.

Q.

What documents do I need to create a WFOE in Hainan?

For a foreign individual shareholder: valid passport, recent proof of address (less than 3 months), bank statement or proof of solvency. For a legal entity: parent company registration documents, articles of association, powers of representation. All foreign documents must be apostilled and translated into Chinese by a certified translator.

Contact

Tell us about your Hainan project

A BTOBExchange advisor specialised in China will analyse your project and guide you to the optimal structure to enter the Chinese market via Hainan FTZ. The initial consultation is free and without obligation.

Reply within 24h
Free initial consultation
Hainan FTZ Expert
WFOE & Chinese structures specialist
Transparent Process
Detailed quote before any commitment
Hainan

Start your expansion

China is opening up.
Don't miss the window.

Every month without a structure in Hainan is a month watching the Chinese market from the outside while others set up inside.