One-Step Process for Foreign Business Registration Cuts Over 77% of Paperwork
At a recent press conference on the 19th batch of institutional innovations for the Hainan Free Trade Port, officials announced that Hainan has streamlined its registration process for foreign enterprises. The number of registration steps for foreign enterprises has been reduced from five to one, while application materials have been reduced by over 77%.
Simplified Notarization Benefits Hong Kong and Macao Investors
Lin Gang, Deputy Director of the Hainan Provincial Market Supervision Administration, highlighted the introduction of simplified notarized documents for non-natural person investors from Hong Kong and Macao. This policy has already helped investors in 8,740 instances by the end of 2024.
“In the past, businesses had to get qualification certificates from the Hong Kong Notary Association and the China Legal Services Company, scan and upload more than 50 pages, or submit them in person—quite inconvenient,” said Zhan Siyuan, Assistant Director of Hainan First Investment Holding Group. “Now, with the simplified policy, the notarization is just 8 pages, and entering a document number in the system is all that’s needed.”
Fully Digital Services and Overseas Access
Hainan has also moved towards fully digital registration for certain foreign-funded enterprises. The new process allows identity verification and electronic signatures for Hong Kong and Macao residents with Mainland Travel Permits, Taiwan residents with Mainland Travel Permits, overseas Chinese with Overseas Chinese Passports, and foreigners holding Permanent Residence IDs.
Foreign passport holders can complete identity verification in person if needed. Additionally, English-language forms are now available, and the “Hainan e-Registration” system can be accessed from overseas, simplifying online business handling for foreign investors.
Reduced Paperwork and Self-Disclosure Options
To further ease registration, Hainan introduced the Hainan Free Trade Port Market Entity Registration Management Regulations.
This new regulation waives many document requirements and allows frequent registration and filing matters to be self-disclosed. So far, this initiative has benefited foreign enterprises in 3,622 instances.
Direct Registration for Foreign Enterprises
One major highlight is the introduction of a direct registration system, which allows foreign enterprises to directly engage in service trade in Hainan without setting up a local business entity.
Seamless Business Setup Services
Hainan also improved the processes for business setup, changes, and cancellations for foreign enterprises. Tasks like tax registration, social security, housing fund contributions, seal engraving, and bank account opening can now be handled effortlessly, this has benefited foreign enterprises in nearly 30,000 instances so far.
Increased Foreign Investment in Hainan
According to statistics from the Hainan Provincial Market Supervision Administration, 2,072 new foreign-funded enterprises were registered in Hainan in 2024, a 19.77% increase from the previous year. The number of countries and regions investing in Hainan has also grown significantly, from 43 in 2018 to 174 today.
NOTE:
Non-natural person investors (非自然人投资者) refers to legal entities or organizations that invest, as opposed to individual human beings (natural persons). This term specifically refers to companies, corporations, partnerships, trusts, or other institutional entities that are registered in Hong Kong or Macao and are investing in Hainan.
Key Characteristics of Non-Natural Person Investors:
- Legal Entities: These are organizations that have a legal identity separate from their owners or members. Examples include:
- Corporations
- Limited liability companies (LLCs)
- Partnerships
- Trusts
- Foundations
- Distinct from Natural Persons: Natural persons are individual human beings, while non-natural persons are organizations or entities created under the law.
- Investment Activities: Non-natural person investors engage in activities such as:
- Establishing businesses
- Acquiring shares or stakes in companies
- Participating in joint ventures
- Investing in real estate or other assets
This means that companies or organizations from Hong Kong and Macao no longer need to provide extensive documentation to prove their legal status when investing in Hainan. Instead, they can use a simplified notarization process, making it easier for them to operate in the region.
Why This Matters:
Ease of Doing Business: By simplifying the process for non-natural person investors, Hainan is making it more attractive for foreign companies and organizations to invest in the region.
Economic Growth: Encouraging institutional investors can lead to larger-scale investments, job creation, and economic development in Hainan.
Related article: Hainan e-Registration System: A Step-by-Step Guide for International Businesses (Updated 2025)
