A comparison of investing from a Hainan platform against the group's existing entity or an offshore holding, and the formation of the platform when Hainan is the better route.
What this covers
- A written comparison of investing from a Hainan entity, the group's existing entity, and an offshore holding
- A check of whether the platform's activity falls within the industries the outbound-income exemption covers
- A substance plan for the platform — management, people, accounts, and assets in Hainan
- The capital and dividend routes mapped, including the foreign exchange steps at the bank
- Formation of the platform entity, handed to the annual compliance calendar
- Annual re-confirmation that the conditions behind the exemption still hold
Our services
Hainan as one option, comparedSet against the existing entity and an offshore holding, with the numbers.
The first question is whether Hainan should be the investing entity at all. The exemption on income from new outbound investment is real, but it attaches to a particular kind of enterprise, is conditional, and runs to a stated date. For some groups the existing entity or an offshore holding is simpler and just as good; for others the Hainan platform changes the economics. We answer that in writing, with the numbers, before anything is formed.
A real platformThe exemption rests on the entity genuinely operating in Hainan.
If Hainan wins, the platform has to be a real one. The exemption and the other Free Trade Port positions rest on the entity genuinely operating on the island — management, people, accounts, and assets — and an investment vehicle that is only an address does not meet that standard.
Capital routes mapped before the first transferFunds out and returns back, with the bank's foreign exchange steps in view.
Capital then has to move in both directions on the right routes: funds out for the investment, and returns back. The foreign exchange registration for direct investment is handled at the bank, and it is worth mapping the route before the first transfer rather than discovering it at the counter.
Re-confirmed every yearA structure that qualified at formation can stop qualifying when the facts change.
We form the platform, put it on the annual calendar, and re-confirm each year that the conditions still hold, because a structure that qualified at formation can stop qualifying when the activity or the staffing changes. We do not advise on the investments the platform makes.
Why choose HainanInc?
A written comparison with numbers before any entity is formed
A platform that genuinely operates in Hainan
Conditions behind the exemption re-confirmed every year
Related insights
Hainan's Two-Way Capital Channels: QFLP, QDLP and an Overlooked Exemption
Hainan runs pilot regimes for inbound and outbound fund capital, and a corporate income tax exemption on new outbound direct investment that most structuring conversations never reach.
Navigating RMB Capital Routing: Structuring Considerations for Offshore Principals
Capital routing into and out of a Hainan entity sits at the intersection of foreign exchange control, banking compliance, and corporate structuring. We examine the considerations that matter most.
All Outbound Investment via Hainan services
- Hainan Outbound Platform Structuring
- ODI Filings and FX Registration
- Outbound Acquisition Approvals
Our services
Our practice areas cover the whole life of a presence in Hainan — from the market-entry assessment made before anything is filed, through formation, tax incentives, customs and zero-tariff compliance, and annual compliance, to the work permits, outbound investment, and deregistration around it. One engagement model means a single accountable team across all of them.
