China is a vast market, but when business owners plan to develop in China, they always meet challenges to register in China due to high travel cost.
Along with the new policy for Hainan Island Duty Free Zone, more and more global business owners start to choose Hainan as their business first step, today we would like to share you the benefit to register one foreign invested company in Hainan island.
1. Tax advantages for Hainan Company:
- Lower corporate income tax rate:
From 2020 to 2025, for enterprises registered in Hainan Free Trade Port and in encouraged industries that are substantially operating, the corporate income tax is levied at a reduced rate of 15%. This is significantly lower than the national standard corporate income tax rate of 25%, reducing the tax burden for companies.
- Tax exemptions for new overseas direct investment of certain enterprises:
Before 2025, for tourism, modern service, and high-tech enterprises established in Hainan Free Trade Port, the income obtained from their new overseas direct investment is exempted from corporate income tax.
- Duty-free policies for imports and exports:
Enterprises can enjoy exemptions from import tariffs, import value-added tax, and consumption tax for imported production equipment, operating means of transportation, and raw and auxiliary materials for production. This helps reduce the cost of production and operation for companies.
2. Policy support:
- Investment facilitation:
Hainan Free Trade Port implements a policy of "unrestricted access except for those prohibited by law". That is, in principle, the government has cancelled permits and approvals except for those mandated by mandatory standards and laws, and has implemented a filing system and a commitment system for enterprises. This encourages investment liberalization and facilitation, allowing companies to start businesses more easily.
- Industry support:
The Hainan government actively promotes the adjustment of the industrial structure and focuses on developing key industries such as modern agriculture, tourism, and high-tech industries. For enterprises in these fields, registering in Hainan can better access development opportunities. There are also various support policies such as tax rebates, subsidies, and rewards for companies in fields such as the Internet, finance, high-tech, exhibitions, electronic information, medical and health, and logistics.
- Talent support:
The government offers talent introduction policies for enterprises registered in Hainan, such as housing subsidies and talent apartments, as well as the same rights for purchasing houses and enrolling in schools as local residents for talents introduced by enterprises. This helps companies attract high-quality talents.
3. Geographical advantages:
- Strategic location for international trade:
Hainan is located in the South China Sea and is an important gateway for China's opening up. It is close to Southeast Asian countries and regions, serving as a bridge connecting China and Southeast Asia. For companies engaged in international trade and overseas business, Hainan has great geographical advantages in terms of market access and logistics.
4. Business environment and development opportunities:
- Improved business environment:
The Hainan government has been continuously improving the business environment, streamlining administrative procedures, and improving work efficiency. This provides a good operating environment for companies.
- Potential for business expansion and innovation:
With the construction of the Hainan Free Trade Port, there are more opportunities for business cooperation, technological innovation, and the development of new business models. Companies can explore new markets and business areas, and promote the transformation and upgrading of enterprises.
SODA has a series of service for Hainan Island company, such as company registration, virtual business address, business bank open, book keeping...Kindly contact us to get more details to launch Hainan Island company.
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