Glossary
- Hainan Free Trade Port (FTP)
- A special economic zone covering Hainan Island, China, established with preferential trade, tax, and investment policies designed to attract foreign capital and talent.
- Zero-Tariff Policy
- A framework under which qualifying goods and entities within the Hainan Free Trade Port are exempt from certain import tariffs, subject to eligibility conditions that are reviewed and can change over time.
- Economic Substance
- The principle that an entity's activity on the ground — physical presence, local decision-making, and a workforce proportionate to its stated activities — should match the tax or regulatory position it claims.
- WFOE (Wholly Foreign-Owned Enterprise)
- A limited liability company in mainland China owned entirely by foreign investors, one of the most common entity structures for foreign businesses operating in the country.
- EOR (Employer of Record)
- An arrangement in which a third party formally employs staff on a client's behalf — handling payroll, statutory contributions, and local labour compliance — while the client directs the employee's day-to-day work.
- IIT (Individual Income Tax)
- China's personal income tax, withheld and remitted by employers on behalf of employees as part of standard payroll processing.
- First-to-File (Trademarks)
- A trademark registration principle under which rights generally belong to whoever registers a mark first, regardless of who used it first — the system that governs trademark registration in China.
- AML / KYC (Anti-Money Laundering / Know Your Client)
- Regulatory and internal procedures used to verify a client's identity and the source of funds involved in an engagement, as part of standard financial and corporate compliance practice.
- Compliance Calendar
- A documented schedule of an entity's recurring regulatory obligations — filings, renewals, and reporting deadlines — tracked to keep an entity in good standing over time.