Assessment of whether an entity's actual activity falls inside Hainan's encouraged-industry catalogue — the gateway condition for the Free Trade Port's reduced corporate income tax rate.
What this covers
- Assessment of the intended activity against the encouraged-industry catalogue currently in force
- Business scope wording drafted to match the qualifying activity rather than approximate it
- Identification of the revenue-composition condition that attaches to the reduced rate, and what it implies for the business model
- Review of where the activity sits against the foreign investment negative list applicable in Hainan
- A written eligibility position with its basis, for the entity's own file
- A plain answer where the activity does not qualify, with what would have to change for it to
Our services
Availability is not automaticThe reduced rate attaches to activity inside the encouraged catalogue, not to a Hainan registration.
The Free Trade Port's headline corporate income tax rate is not available to every entity registered in Hainan. It is available to enterprises whose activity falls within an encouraged-industry catalogue, and the catalogue is specific: it is organised around what a business actually does, not around how it describes itself. An entity can be genuinely operating in Hainan, entirely compliantly, and still sit outside it.
Scope drafted to the catalogueThe business scope filed at registration is what an assessment reads; loose drafting is what puts a qualifying business on the wrong side.
This is the single decision most worth getting right before formation, because the business scope filed at registration is what an assessment will be read against. A scope drafted loosely, or drafted to keep future options open, can put an otherwise qualifying business on the wrong side of the line — and amending scope after the fact is a filing exercise that invites the question of why it was needed.
The revenue-composition conditionQualifying turns on the encouraged activity being a substantial part of actual revenue — a business-model question, not a paperwork one.
There is usually a revenue-composition condition attached as well: qualifying is not merely about naming an encouraged activity, but about that activity being a substantial enough part of what the entity actually earns from. That shapes the business model, not just the paperwork, and it is better understood before a group decides which of its activities to put in the Hainan entity.
A written position, or a plain noThe basis recorded for your file, and a direct answer where the activity does not qualify.
We assess the intended activity against the catalogue in force, draft the scope to match it, and set out the position in writing with its basis. Where the activity does not qualify, we say so — an optimistic filing leaves the exposure with you, not with us. The catalogue and its conditions are periodically revised, so we confirm against the current published version at the time of the engagement rather than working from a prior year's.
Why choose HainanInc?
Eligibility assessed before the scope is filed, not after
Checked against the catalogue currently in force, not a prior year's
A plain answer where the activity does not qualify
All Hainan FTP Incentives and Substance services
- Encouraged Industry Eligibility
- Substantive Operation Compliance
- Preferential Tax Position Support
- Zero-Tariff and Customs Readiness
- Park and Site Selection