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Company Formation · Pillar Guide

Set Up a WFOE in the Hainan Free Trade Port — Done Right in 2026

The 100%-foreign-owned company most investors use to trade, hire, and bank in China. We register the company in about a week and handle the whole setup — structured to qualify for the FTP's reduced 15% tax.

China-based · Hainan FTP specialists
Company registration
~1 week
to your business licence · bank account follows after
100% foreign-owned · no local partner
A Wholly Foreign-Owned Enterprise (WFOE) is the most common way for foreigners to do business in China, including the Hainan Free Trade Port (FTP) — a Chinese limited-liability company owned 100% by foreign investors, with no local partner required. In Hainan, the company itself can be registered in about a week, after which the corporate bank account and remaining steps follow. There's no fixed minimum capital for most business types, and you don't need your own physical office to register — HCSG arranges everything end to end. Setup runs through a defined sequence of official stages, from name approval to business licence to tax registration. The one thing that genuinely matters is getting it right the first time: the correct business scope and a properly structured setup are what unlock the FTP's reduced 15% corporate income tax for qualifying companies.
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Hainan WFOE at a glance

The numbers that shape your Hainan WFOE setup

~1wk
to business licence
Company registration with clean documents; the bank account follows after.
5
official stages
Name approval → licence → seals → tax → bank. We handle each.
15%
FTP corporate tax
For qualifying companies with genuine local operations (vs 25% standard).
100%
foreign ownership
No Chinese shareholder, no local partner.
What a WFOE is

What a WFOE is: a company you own outright in China

A WFOE is a 100% foreign-owned Chinese limited-liability company — the clean way to operate in China on your own terms.

Ownership

100% foreign-owned

A Chinese LLC owned entirely by foreign investors — no Chinese shareholder needed.

Independence

No local partner

You don't share equity or control with a local party to do business in China.

Control

Your operations, profits & IP

Full control of how you run the business, the profits it makes, and your intellectual property.

The route

The stages of registering your WFOE in China

A defined sequence of official stages — HCSG handles each step so the setup is clean from name approval to a working account.

1

Name approval

Your company name is checked and reserved with the authorities.

2

Business licence

The company is registered and the business licence issued — about a week with clean documents.

3

Company seals

The official company chops are carved — legally required to operate and sign.

4

Tax registration

The company is registered with the tax authorities and set up to invoice.

5

Bank accounts

Corporate accounts, including the foreign-currency account, are opened — this follows after the licence.

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What to expect

WFOE setup in Hainan: the practical questions answered

The four things founders ask first — timeline, capital, office, and getting money out.

Timeline

About a week to register

Company registration (the business licence) takes about a week with clean documents. Your bank account and final setup follow after.

Capital

No fixed legal minimum

For most businesses there's no fixed legal minimum. We recommend around USD 50,000 as a practical level for smooth approval — contributed over time, not all upfront.

Office

A qualifying registered address

You don't lease an office you occupy, and it isn't a virtual mailbox — HCSG provides a qualifying, compliant registered address that meets Hainan FTP substance requirements, and handles the compliance side.

Foreign exchange

Profits move out cleanly

No separate forex approval is needed to move routine profits out of China. The foreign-currency account is set up during bank onboarding, which we manage.

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The 15% tax — Hainan FTP's headline benefit

Qualifying companies with genuine local operations pay just 15% corporate income tax — versus the standard 25%. The reduced rate is confirmed through 31 December 2027. And it isn't a deadline to fear: the Hainan FTP is a long-term national project building to 2035, when the 15% rate is set to widen to nearly all FTP businesses — so 2035 is when the benefit broadens, not ends.

Now

Confirmed through 31 Dec 2027

The 15% corporate rate for qualifying encouraged-industry companies — plus a matching 15% cap on personal income tax for high-end, in-demand talent.

From 2035

It widens, not ends

As the Free Trade Port completes its build-out, the 15% rate is planned to extend to nearly all FTP enterprises, and the personal-tax break to all residents over 183 days.

Early movers establish their position now — while the rate is confirmed and before requirements tighten. HCSG gets you set up and qualified.

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How we help

How HCSG sets up your Hainan WFOE

We're based in China and run the whole setup end to end, so it's right the first time.

The right scope & structure, first time

We match your business scope and setup to what the authorities will approve — and to what qualifies you for the 15% rate.

A qualifying registered address

Not a leased office you occupy, and not a virtual mailbox — we provide a qualifying, compliant registered address that satisfies Hainan FTP substance requirements, and handle the compliance side so you don't navigate it alone.

Every stage handled

Name approval, business licence, company seals, tax registration and bank onboarding — managed end to end.

Banking that actually opens

We prepare you for the bank's requirements so your corporate and foreign-currency accounts open without a wasted trip.

The outcome: a registered, bankable Hainan company structured to qualify for the 15% rate — without you learning the system the hard way.

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Good to know

WFOE questions founders ask us

Answers to the things that come up after the basics — ownership, capital, scope, visas, compliance and exit.

Can a single foreign individual own a Hainan WFOE, or do I need a company as shareholder?+
Both work. A WFOE can be owned by a foreign individual or by a foreign parent company. The shareholder type changes which supporting documents are needed, but it doesn't change your ability to own 100% of the company.
Do I have to pay all the registered capital upfront?+
No. For most businesses there's no fixed legal minimum, and the capital you commit is contributed over time rather than paid all at once. We usually recommend around USD 50,000 as a practical level that supports smooth approval and banking — not because it's required, but because it positions the company well.
Can I change or expand my business scope after the WFOE is registered?+
Yes, though changing scope is a formal amendment and adding certain activities can require extra approvals. It's cheaper to set a scope at registration that covers where you expect to go in the first year or two — choosing the right scope up front is something we advise on.
Does a Hainan WFOE let me sponsor work visas for foreign staff?+
A properly set-up, operating WFOE is generally the entity that sponsors foreign-employee work permits and the related residence permits. Visa sponsorship is separate from company registration — if you're relocating staff, plan them together, and we can handle both.
What ongoing compliance does a WFOE have after setup?+
Expect regular tax filings, an annual corporate income tax reconciliation, and annual reporting, with bookkeeping kept to Chinese accounting standards. Setup is one-time; compliance is ongoing — we can manage it so nothing lapses.
If my plans change, how hard is it to close a WFOE?+
Closing a company is more involved than opening one — it needs tax clearance, settling any liabilities, and a formal wind-down, and it takes time. It's worth knowing that before you start, because a company that simply stops filing creates problems rather than quietly disappearing. We can manage a clean closure if it comes to that.
Can I keep capital and move profits in foreign currency?+
Yes. Capital can be injected in foreign currency into the company's foreign-currency account, which is opened during bank onboarding. Moving routine profits out of China doesn't need a separate forex approval — we set the accounts up so funds move cleanly.
Is the 15% tax rate automatic once I'm registered in Hainan?+
No — registration and the tax rate are separate. The reduced 15% rate is for qualifying companies with genuine local operations in Hainan; a company that doesn't qualify pays the standard 25%. Structuring your setup to qualify from the start is exactly what we handle.
How long is the 15% tax rate available?+
The reduced 15% corporate rate is confirmed through 31 December 2027 for qualifying companies. Rather than expiring, it's set to widen from 2035 as the Hainan Free Trade Port completes its build-out — extending to nearly all FTP businesses. The practical takeaway: it's a good time to get established and qualified now, while the rate is confirmed and before requirements tighten.
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In this series

Keep reading

WFOE registered capital explained WFOE vs JV vs Rep Office Setting up a WFOE remotely Registered address & office Qualifying for the 15% tax rate Opening a corporate bank account in China Our company-formation service
Published by the HCSG Publishing Department. This guidance reflects the current Hainan Free Trade Port policy framework and HCSG's advisory practice. For your specific situation, contact our team for a tailored consultation. Reviewed and maintained by the HCSG Publishing Department · Updated June 2026.

Start your Hainan WFOE with the setup done right

Tell us what you're building. We'll structure the company to qualify for the 15% rate — and run the whole setup for you.

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