FTP Benefits

Market entities will enjoy a number of benefits in investment, tax and market access when doing business in the Hainan Free Trade Port (FTP), Shen Xiaoming, Governor of Hainan Province, south China, said on June 8.

License application and government approval will not be required for industries that are not prohibited by law or mandatory standards, Shen told a press conference in Beijing.

Foreign investment will be subject to a management system combining pre-establishment national treatment and a negative list designated for the FTP, further reducing restrictions and prohibitions on the basis of free trade zones, Shen said.

Domestic firms registered in the

FTP will be encouraged to raise funds by issuing shares abroad. The FTP will also offer tax benefits for firms operating in sectors such as tourism, modern services and new and high technology by exempting enterprise income tax for the income from their direct investment overseas.

The southern island province will further open the tertiary industry by reducing restrictions on market access. Efforts will be made to deepen opening up in sectors such as shipping, telecommunication, business services, education, culture and sports, according to Shen.

Foreign securities, futures and fund management institutions are encouraged to establish wholly owned or joint-venture financial institutions, while overseas universities or vocational colleges specializing in engineering, technology, agriculture and medicine can independently run schools in Hainan, he said.