Key Takeaways

  • Hainan offers 15% CIT for encouraged industries and plans island-wide customs closure by end of 2025; Shenzhen Qianhai has policy channels for encouraged and cross-border business.
  • Both jurisdictions require industry classification plus filing/recognition — incentives are not automatic.
  • The choice depends on industry, substance and post-closure customs/tax arrangements.
  • One group can locate different functions in both places.

Introduction

"Should I register in Hainan or Shenzhen?" is a frequent question for founders lately. Hainan's 15% CIT and the 2025 customs closure draw attention, while Qianhai offers mature cross-border and financial channels. It is not either/or — it depends on your industry and business flow. This article compares tax, industry focus and practical thresholds, then gives a decision checklist.

1. Hainan FTP: 15% CIT and Customs Closure

15% CIT for encouraged industries

Hainan applies a reduced 15% CIT to enterprises in encouraged industries; the incentive requires industry classification plus filing and is not automatic (subject to the latest policy).

Customs closure by end of 2025

Hainan plans island-wide customs closure by the end of 2025; post-closure, "first line open, second line controlled" with value-added processing and zero-tariff lists pending detailed rules (subject to the latest policy).

Practical point

Recognition weighs main-business revenue share and industry codes; confirm first whether your main business falls in the encouraged catalogue.

2. Shenzhen Qianhai: Cross-Border and Financial Channels

Qianhai encouraged / cross-border channels

Areas like Qianhai provide policy channels for encouraged industries, cross-border finance and services — e.g. a CIT preference catalogue and RMB/foreign-capital facilitation (subject to the latest policy).

Mature ecosystem

Qianhai sits next to Hong Kong, easing Hong Kong-capital landing, cross-border funding and professional services.

Practical point

Incentives also require matching the industry catalogue and recognition, with real-office and staffing requirements.

3. Tax and Cost Comparison Checklist

01 CIT — Hainan encouraged 15%; Qianhai encouraged can also apply 15% (per catalogue and recognition). 02 VAT — Both follow mainland VAT law; no special exemption. 03 Talent & social — Qianhai's talent policy and hukou are more mature; Hainan explores individual tax relief for talent. 04 Office cost — Shenzhen rents higher; Hainan parks offer more subsidies and space. 05 Cross-border — Qianhai's cross-border finance is mature; Hainan's trade ease releases after closure.

4. Choosing by Industry

Cross-border e-commerce / trading

If exports and offshore trade dominate, Hainan's post-closure zero tariff and value-added processing have upside; Qianhai's settlement is mature, so run both.

Holding / funds

Both can host an onshore holding platform, but offshore structures need ODI and round-trip planning.

High-tech / services

Check whether the main business sits in the encouraged catalogue; different catalogues, different outcomes.

5. Common Misconceptions

Myth 1: Register and enjoy

Incentives need classification and filing/recognition; a shell will fail later review.

Myth 2: Closure means tax-free

Closure changes customs control and some tax items; CIT relief still follows the catalogue and filing.

Myth 3: The two are mutually exclusive

You can put a trading entity in Hainan and an R&D or treasury entity in Shenzhen by function.

FAQ

Q1: Can anyone enjoy Hainan's 15% CIT? Only encouraged-industry enterprises with qualifying main-revenue share and completed filing/recognition, subject to the latest policy.

Q2: Does Qianhai also have 15%? Qianhai can apply 15% CIT to encouraged-industry enterprises meeting its catalogue, with recognition required (subject to the latest policy).

Q3: Will a Hainan company be cheaper after closure? Closure affects customs and trade; CIT relief still hinges on industry classification — not simply "closure equals tax-free".

Q4: Can I set up in both places? Yes. Locating different entities by function is common for international and cross-border groups.

Q5: How do I tell if my main business is encouraged? Match against the Hainan FTP encouraged-industry catalogue and the Qianhai preference catalogue by main revenue and industry code.

Related Services & Next Steps

Subject to the latest policy; consult an advisor for a tailored plan.