The China (Hainan) Pilot Free Trade Zone, approved by the State Council, will cover the whole island of Hainan. The government plans to make the zone an international tourism and shopping center, as well as offer services and support for development of the Belt and Road Initiative and other national strategies. Backed up by the government, there are a number of benefits for investors to set up businesses in Hainan free trade zone.
Benefits For Enterprises
1. Free office space near Haikou city provided for companies in agriculture and agricultural products, internet, e-commerce, and high-tech industries.
2. Internet and high-tech companies offered reduced VAT of less than 2%.
3. Profit tax reduced for qualifying new businesses.
(1) If yearly net profit is 700k RMB or less, profit tax is 10% and the local government returns 4%, so companies need only pay 6%.
(2) If yearly net profit is greater than 700k RMB, profit tax is 19% and the local government returns 4%, so companies need only pay 15%.
4. Foreign-owned companies can apply for government grants.
5. The incentive policy for key industry projects can be negotiated specifically.
Benefits for Foreign Workers
1. Hainan is visa free for citizens of 59 countries, meaning that it is easy to access.
2. Foreign workers can apply for a 2 year work permit, or 5 years if they hold a Master's degree.
3. Foreigners can also apply for a China green card (permanent residency) within a year.
4. Highly qualified foreign workers (bachelor's degree level and above) working for a Hainan-based local company can apply for a housing allowance of 2-5k RMB per month from the local government.
Tannet’s Services
*Company incorporation services:
1. Market research/Feasibility study
2. Business assessment;
3. Company formation (WFOE/RO/JV);
4. Provision of Virtual office address;
5. Bank account opening.
*Post registration services:
1. Accounting, tax filing and auditing;
2. Payroll outsourcing;
3. Work/residence permit;
4. Trademark/patent/copyright registration;
5. Special license application;
6. Barcodes registration.
Contact Us
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
Previous：Hainan Company Formation: Types of WFOE
Next：Hainan Company Setup Services