May 1 onwards! Hainan Free Trade Port registered company threshold dropped greatly: 15% tax rate + zero tariff, cross-border e-commerce sellers save millions of tax per year?
Published: 2026-04-20

A Shenzhen seller's real experience

Lao Zhang in Shenzhen to do Amazon, annual sales of 80 million, the annual corporate income tax alone will have to pay 25%, almost 2 million.

He has always wanted to move a place, but heard that Hainan Free Trade Port registration company procedures are complex, high threshold, it has been procrastinated. Until last month, a peer told him:

“I paid less than $1 million in taxes on the same profit from a company registered in Hainan.”

Only then did Old Zhang begin to study the matter seriously. And the good news is—After May 1, the process for registering a company in Hainan will be significantly simplified once again!

01 What Exactly Have the New Regulations for the Hainan Free Trade Port Changed?

The Hainan Provincial Market Supervision Administration has just released a new version of the Business Entity Registration Guidelines, which consists of two documents:

"Standards for Business Entity Registration Documents (2026 Edition)"

"Guidelines for Materials to Be Submitted for Business Entity Registration (2026 Edition)"

Effective Date: May 1, 2026

The key changes in these new regulations can be summarized in four words:

Direction of ChangepreviouslyNow (after May 1)
Adaptation to the Rule of LawRegulations are scattered, and standards vary from region to region.Nationally Unified Registration Standards
Convenience in Getting Things DoneLots of paperwork, running between offices, and waiting for approvalsOne-Stop Online Services + Digitalization
risk prevention and controlInformation asymmetry and numerous compliance blind spotsFull Traceability + Smart Alerts
Uniform StandardsRequirements vary by city and countyA Single Set of Standards Across the Province

In short: Registration is faster, fewer documents are required, and the process is more transparent.

02 Why Should Cross-Border E-Commerce Sellers Pay Attention to Hainan?

Many people think Hainan is just a tourist destination. But for business owners in the cross-border sector, Hainan’s policy advantages are very real:

💰 First Benefit: 15% Corporate Income Tax (Lowest in the country)

Mainland Chinese Companies:25%
Enterprises in Encouraged Industries in the Hainan Free Trade Port:Up to 15%
For the same 10 million in profits, you can save 1 million in taxes in Hainan. What’s more—cross-border e-commerce, import and export trade, and logistics and warehousing are all classified as ”encouraged industries”!

🚢Second Benefit: The list of zero-tariff items continues to expand

• Zero tariffs on production equipment imported for personal use
• Zero tariffs on imported vehicles for business use and yachts
• Zero tariffs on imported raw materials and auxiliary materials for production
For sellers engaged in import business or setting up overseas warehouses, the money saved is no small amount.

🌐 Third Benefit: More Flexible Fund Settlement

As a free trade port, Hainan enjoys special policy benefits regarding cross-border capital flows. For companies requiring ODI filing or planning to invest overseas, the approval process in Hainan is often faster than in the mainland.

💡 If you’re not sure whether your business falls under the ”encouraged industries” category, or if you’d like to plan your Hainan company structure in advance, feel free to contact us for a free assessment—(microsoft:: qcygscszk.cell phone:: 18676749275)

03 These Three Types of Sellers Are Best Suited to Consider Hainan

Seller TypeWhy Is It a Good Fit for Hainan?Estimated Savings
Category A: Established sellers with annual profits of 5 million+Directly benefit from the 15% tax rate, replacing the 25% corporate income tax rateFor every 5 million in profit, approximately 500,000 less is paid in taxes
Category B: Sellers/traders engaged in import businessProduction equipment and raw materials are eligible for zero tariffsBased on import volume, ranging from hundreds of thousands to millions
Category C: Sellers planning to make ODI investments abroadHainan’s Fast-Track Approval Process + Convenient Funding PoliciesReduced time costs and improved compliance efficiency

⚠️ Note:

Not all companies are eligible for the 15% tax rate; they must meet two key requirements:
① The company’s core business falls under the ”Catalog of Encouraged Industries” for the Hainan Free Trade Port (cross-border e-commerce fully meets the criteria).
② Substantive operations (i.e., having actual office space and staff in Hainan)

04: Three Things You Should Prepare in Advance Before the New Regulations Take Effect

The new regulations officially took effect on May 1, but registering a company in Hainan isn’t something you can do with just a single click. Here’s what you should do right now:

Confirm whether your business falls under the category of ”encouraged industries” (if you’re unsure, please contact us for a free assessment).

Planning the Corporate Structure for Hainan: Should We Register a Subsidiary or a Branch? What Is the Best Way to Optimize Tax Arrangements?

Prepare the basic documents: the legal representative’s ID card, determination of the scope of business, and planned registered capital (under the subscribed capital system)

💡 Special Note:

Following the implementation of the new regulations on May 1, a surge in registrations is expected. By consulting early and getting in line early, you can seize the opportunity during the initial phase of the new policy.

📞 Want to take advantage of the policy benefits on May 1, but not sure where to start? Contact us right away to get a one-on-one Hainan company registration plan—(microsoft:: qcygscszk.cell phone:: 18676749275)

05: The 5 Questions Sellers Care About Most

Q1: If I’m living out of town, can I register a company in Hainan?

Yes. You do not need to be physically present to register a company in Hainan; the entire process can be completed online. However, please note the ”substantive operations” requirement, which mandates a physical office address and staff.

Q2: After registering a company in Hainan, what should I do with my original company?

There is no need to dissolve the existing company. The standard practice is to establish a new subsidiary in Hainan, transfer part of the business to the Hainan-based company, and take advantage of tax incentives.

Q3: How much is the registered capital? Does it need to be paid in?

It is generally recommended to contribute between 2 million and 5 million RMB (a commitment to contribute is sufficient; full payment is not required at once). The specific amount depends on the scale of the business and industry practices.

Q4: Is it a hassle to move from Shenzhen or Guangzhou to Hainan?

There’s no need to physically relocate. You can rent an office space in Hainan (a coworking space will suffice), and the finance team can collaborate remotely. Many sellers in Shenzhen operate this way.

Q5: How long does it take to register a company in Hainan?

Prior to the new regulations, the processing time was generally 15–20 business days. Following the implementation of the new regulations on May 1, the official goal is to further reduce processing times; actual processing times may vary.

06 Why Choose Qicaiying to Help You Register a Company in Hainan?

We do more than just help you fill out registration forms. Qicaiying offers a one-stop service covering everything from registration to compliance:

 Hainan company registration — Full-service handling; no need to be present

 Tax Planning Solutions — How to Legally Maximize the Benefits of the 15% Tax Rate

 Operational Support — Office Space + Bookkeeping and Tax Filing + Staffing Guidance

 ODI Filing Support —— If you need to invest overseas, we’ll take care of everything for you

 Annual Maintenance and Management — Bookkeeping, Tax Filing, Annual Review, and Compliance Audit: A Worry-Free Year

Below are some of Qicaiying’s ODI filing case studies

📌 Our Commitment:

We don’t just help you obtain a business license—we ensure you can truly take advantage of the policy benefits offered by Shanghai Nan. From structural design to day-to-day operations, we provide end-to-end support.

📞 Contact Information (microsoft:: qcygscszk.cell phone:: 18676749275)

Tags:
  • Hainan Free Trade Port
  • Hainan company registration