Business-model map
Customers, contracts, revenue, delivery, data, people, goods and funds shown as one operating flow.
Market-entry consulting
China Market Entry Consulting for Foreign Companies
Independent China market-entry consulting for foreign founders and SMEs: feasibility assessment, investment structure advisory, location comparison, cost and timeline planning, and regulatory screening — delivered by a Hainan-based team.
- Independent assessment
- Structure and location planning
- Fixed-scope advisory
Independent Private Consultancy — Not a Government Agency
Hainan Setup is a privately owned business consultancy (Liebang (Hainan) Technology Co., Ltd.), registered in Haikou, Hainan, China. We are not affiliated with, endorsed by, sponsored by, or acting on behalf of any government agency or authority, including the Hainan Administration for Market Regulation (AMR), the Hainan Free Trade Port authorities, or any other government body.
All company registration, licensing, and filing procedures described on this website can also be completed directly with the relevant government authorities. Our service fees cover professional advisory, documentation, and administrative support only, and do not include government fees, which are payable separately to the authorities where applicable.
Quick answer
What is China market-entry consulting?
China market-entry consulting is a decision-stage assessment that tests whether a business should enter China, which operating route and location fit, what the first-year commitments may be, and which regulatory questions must be confirmed before money is committed.
- Decision first: compare a WFOE, representative office, partner, distributor, EOR or phased test.
- Location fit: compare Hainan with other China locations against customers, people, logistics and substance.
- Visible dependencies: identify questions that need authority, legal, tax, customs or banking confirmation.
- Standalone output: receive a written assessment without committing to registration services.
Before you choose an entity type, sign a lease, or open a bank account in China, you need answers to questions that determine whether any of those steps make sense. Our market-entry consulting gives foreign founders and overseas SMEs a structured, independent assessment of their China options — starting from the business case, not from a registration form.
We are a privately owned business consultancy based in Hainan. We do not act on behalf of any government authority, and all registration and licensing outcomes depend solely on the competent government bodies.
1. What market-entry consulting covers
A typical engagement is structured as a fixed-scope advisory project, delivered before any registration work begins.
- Feasibility assessment: whether your product, service or business model fits the Chinese market, including regulatory restrictions, foreign-investment access rules, and competitive landscape.
- Investment structure advisory: WFOE vs. representative office vs. joint venture vs. Employer of Record — which structure matches your stage, headcount, revenue expectations and risk appetite.
- Negative-list and industry access screening: whether your industry is restricted, prohibited, or encouraged for foreign investment under the current Foreign Investment Negative List and Hainan FTP catalogue.
- Location comparison: Hainan Free Trade Port versus Shanghai, Shenzhen, Beijing and other options — tax regimes, setup costs, talent availability, sector clusters and operating substance requirements.
- Cost and timeline planning: realistic total cost of entry across registration, address, banking, tax, hiring and ongoing compliance, with a month-by-month sequence.
- Tax and operating-model consultation: corporate income tax rates, VAT, cross-border fund flows, transfer pricing basics, and how the Hainan FTP 15% CIT and 15% PIT regimes apply to your structure.
- Administrative process coordination: once you decide to proceed, we coordinate the sequence of registration, banking and tax setup steps on your instructions — but all approvals are issued by the relevant authorities, not by us.
For a detailed breakdown of the Hainan + Hong Kong two-layer structure, see our corporate structuring guide.
Hiring foreign talent as part of your entry plan? Our China work visa and work permit guide (2026) explains the Z visa, work permit and residence permit process, with Hainan-specific thresholds.
Planning from Southeast Asia? Compare the country-specific setup paths for investors from Singapore, Malaysia and Thailand.
2. Start with the business case, not the paperwork
Most foreign founders arrive asking "how do I register a company in China?" The better first question is "should I, and in what form?"
Registration is a downstream step. If the industry is on the negative list, if the tax benefits require operating substance you cannot yet demonstrate, or if a lighter structure like an Employer of Record would get you to market faster and cheaper, registering a WFOE on day one is the wrong move.
We map your business model, target customers, expected headcount, revenue timeline and funding structure against the current rules before recommending a path. The output is a written assessment with a recommended structure, estimated costs, a realistic timeline, and the specific conditions that would change the recommendation.
3. Hainan versus other China locations
Hainan is not right for every business. It offers distinctive advantages — the 15% corporate income tax rate for encouraged industries, zero-tariff arrangements, the 15% personal income tax cap for high-end talent, and the most open visa-free regime in China — but it also requires genuine operating substance on the island, and some sectors are better served by mainland hubs.
| Factor | Hainan FTP | Mainland tier-1 cities |
|---|---|---|
| Corporate income tax | 15% for encouraged industries | Standard 25%; some zones offer 15% |
| Personal income tax | 15% cap for qualifying talent | Progressive up to 45% |
| Tariffs | Zero-tariff for qualifying goods | Standard import duties |
| Setup cost | Lower address and labour costs | Higher rent and salaries |
| Sector clusters | Tourism, modern services, high-tech, aerospace | Finance, tech manufacturing, trade |
| Operating substance | Required for tax incentives | Varies by zone |
We compare your specific industry and operating model across locations rather than defaulting to Hainan. If Shanghai or Shenzhen is a better fit, we say so.
4. What the engagement looks like
Step 1 — Scoping call (30 minutes, free). We learn your business, timeline and budget, and confirm whether a consulting engagement is the right next step.
Step 2 — Feasibility and structure assessment (2–3 weeks). We deliver a written report covering industry access, recommended entity structure, location comparison, cost estimate, timeline and key risks. This is a standalone deliverable — you are not committing to registration with us.
Step 3 — Decision and optional execution. If you decide to proceed, we can coordinate the administrative sequence (registration, banking, tax setup) as a separate engagement, or you can take the report and execute independently. There is no obligation to use our execution services.
Step 4 — Post-setup advisory. For clients who establish an entity, we remain available for ongoing compliance, tax planning and policy monitoring as your operation scales.
5. What this service is not
To keep this page transparent:
- We are not a government agency, and we do not guarantee any registration, licence or approval.
- We do not promise a specific number of days to obtain a business licence — timing depends on the authority, your documents and your industry.
- We do not provide legal opinions on Chinese law; where legal analysis is required, we work with licensed law firms.
- We do not offer tax avoidance schemes. Our tax advice focuses on legitimately available incentive regimes and compliance.
- We do not recommend structures designed to evade regulatory requirements, including hiding the true nature of a business to bypass advertising or investment rules.
6. Who this is for
This engagement is designed for:
- First-time foreign founders evaluating whether and how to enter China
- Overseas SMEs that want an independent assessment before committing to a Chinese entity
- Teams already using an Employer of Record or contractor arrangement and considering upgrading to their own entity
- Investors or corporate development teams comparing Hainan against other Asia-Pacific entry points
- Founders who have received conflicting advice and want a second opinion grounded in current rules
7. Frequently asked questions
For a comprehensive overview of the China entry process, see our Doing Business in China 2026 roadmap.
Do I need to register a company to use this service? No. The consulting engagement is standalone. Many clients use it to decide whether registration makes sense at all.
How much does the consulting engagement cost? Fees depend on scope and complexity. We provide a fixed quote after the free scoping call, before any work begins. Our pricing page lists standard packages; custom scoping is quoted separately.
Can you guarantee my company will be registered or my licence approved? No. We prepare and coordinate on your instructions, but all decisions are made by the relevant government authorities. No consultancy can guarantee approval.
What if Hainan is not the right location for me? We will say so. The assessment compares Hainan against other Chinese locations and, if appropriate, other Asia-Pacific markets. We do not default to Hainan.
Is this a legal service? No. We are business consultants. Where legal opinions or licensed legal work are required, we refer clients to qualified PRC law firms.
How is this different from your company registration service? Market-entry consulting happens before any registration decision and is a standalone advisory deliverable. Company registration is the later execution stage for a structure and location that have already been selected.
8. Talk to us
Tell us about your business, your market, and where you are in the decision process. We will start with a free 30-minute scoping call and recommend whether a full assessment makes sense.
Or contact us directly — we reply within one business day.
Decision-stage advisory
A written China entry decision before you spend on the wrong structure.
Market-entry consulting is for the stage when registration is still one option—not the assumed answer. We turn the proposed product, customer, revenue, staffing, data, import, location and funding model into a decision map. The work compares practical routes, identifies regulated edges, estimates operating commitments and explains which unknowns must be confirmed before management approves a China launch.
The output is a standalone advisory deliverable. It does not require the client to buy registration services from us. That separation matters: the recommended route should follow the business facts, not a filing product. Where legal, tax, customs, employment or sector-specific advice is required, we define the question and coordinate with appropriately qualified professionals rather than presenting an administrative opinion as a final specialist conclusion.
What you receive
Entry-route comparison
A decision table for a WFOE, representative office, partner, distributor, EOR or phased test where relevant.
Location assessment
Hainan and other candidate locations compared against industry fit, talent, customers, cost, logistics and operating substance.
Risk and confirmation register
Regulatory questions, assumptions, evidence sources, decision owners and items requiring authority or specialist confirmation.
Budget and action sequence
A practical first-year cost model and dependency-based roadmap from validation through entity activation and ongoing compliance.
What we need from you
Commercial plan
Product or service, target buyers, expected contracts, price, sales channel and the reason China is being considered.
Operating model
People, office, suppliers, manufacturing, imports, exports, technology, data access and customer-support activities.
Ownership and funding
Investor locations, control expectations, funding sources, related entities and planned cross-border payments.
Decision constraints
Budget, target date, must-have outcomes, unacceptable risks, existing commitments and management approval criteria.
Who this service fits
- ✓Foreign founders comparing whether, when and how to establish a China operation.
- ✓International SMEs that need a board-ready entry recommendation with cost, timing and risk dependencies.
- ✓Teams receiving conflicting advice and wanting a fact-based second view before signing contracts or leases.
When this is not the right service
- —Clients who have already approved a straightforward structure and only need filing execution.
- —Projects asking for guaranteed market success, licences, bank acceptance or tax treatment.
- —A full legal opinion, tax opinion, investment-banking mandate or nationwide primary market-research engagement unless separately scoped with qualified providers.
How the engagement works
Every stage has an input, an owner and a checkable output.
1. Initial fit check. Send a short description of the business, entity status, target outcome, timing and records already available. We use that information to decide whether this service matches the problem and to identify the few questions that materially change scope. A free first discussion is for scoping; it is not a legal opinion, tax opinion or promise that an authority or institution will accept the case.
2. Written scope and responsibilities. Before paid work begins, the proposal identifies deliverables, information owners, milestones, dependencies, fees, exclusions and the normal communication route. If the work may require a lawyer, tax adviser, customs specialist, translator, property provider, bank or another third party, that dependency is visible rather than hidden inside a general “full service” label. The client can see what our team will do and what still belongs to management or an external decision maker.
3. Document intake and gap review. We organize the records received and mark what is complete, missing, inconsistent, expired or awaiting confirmation. A document gap and an operating gap are not treated as the same thing: a missing copy may be collected, while missing people, premises, transactions or management activity may require a real business change. We explain the effect on cost and timing before the team continues down a path built on an unsupported assumption.
4. Dependency-based execution. Work moves in the order the facts and institutions require, not in the order that makes a progress list look busy. Each material checkpoint records the current status, question owner and next action. Management remains responsible for commercial choices and the truth and completeness of information supplied. We remain responsible for the consulting, preparation and coordination promised in the written scope.
5. Review before submission or commitment. Where the service leads to an application, filing, lease, bank interaction or recurring compliance process, the responsible client contact reviews the material assumptions and approvals before the relevant commitment. We separate “prepared,” “submitted,” “accepted,” “under review” and “approved,” because those states create different responsibilities. A receipt or institution response is retained where available instead of treating an internal task completion as proof of an external result.
6. Handover and continuing obligations. Completion includes a practical handover: what was delivered, what remains open, the next deadlines, who controls documents or credentials, and which events should trigger a new review. If the company needs a connected service—such as registration followed by bookkeeping, or premises followed by policy evidence—that next scope is explicit. The goal is a company team that knows what it has, what it must maintain and when it should ask for help again.
Pricing expectations
Confirm the scope first. Quote the real work second.
Projects are quoted by question set, markets compared, business-model complexity, research depth, interviews and specialist coordination. A focused structure-and-location screen costs less than a multi-product, regulated-industry entry study with supply-chain, data and tax workstreams.
We start with a free scope discussion, then provide the deliverables, assumptions, timetable and fixed or staged fee in writing. See the pricing page for current starting points; no registration purchase is required.
Connected services
Connect this work to the next stage of the company lifecycle.
company registration →
Execute the selected entity structure after the decision is approved.
bookkeeping, tax and payroll →
Model and operate the recurring compliance workload.
office and workspace →
Test whether a Hainan operating base fits the people and activity plan.
FTP policy applications →
Assess incentive eligibility against the chosen operation and evidence.
Frequently asked questions
Questions to settle before engagement.
Will you always recommend Hainan?+
No. Hainan must fit the industry, customers, people, logistics and operating plan. The assessment can recommend another China location, a phased test or no entity yet when that is the stronger commercial conclusion.
Is this the same as company registration?+
No. Consulting answers whether and how to enter. Registration executes an approved entity plan. A client can use the consulting report with us, another provider or its own team.
Can you confirm whether our activity is permitted?+
We screen the business model against current public rules and identify the issue. Formal legal or regulatory conclusions may require qualified counsel or confirmation from the competent authority, which we can help frame and coordinate.
How long does an assessment take?+
Timing depends on scope and access to management information. A focused project may take a few weeks; regulated or multi-location work may take longer. The proposal sets milestones and identifies dependencies before work begins.
What can happen after the report?+
Management can pause, validate assumptions, run a pilot, appoint partners or move into entity registration and operating setup. If implementation is approved, each downstream service is separately scoped so advisory conclusions remain visible.
Start with a practical plan
Talk to an Advisor
Tell us about your business, target market and current decision stage. We will start by identifying the questions a full market-entry assessment should answer.
General information only. Registration, tax, customs and banking outcomes depend on current rules and your facts.
Important Notice
Hainan Setup is a private consulting firm, not a government agency, and we do not represent or act on behalf of any government body. Our services are limited to business consulting and administrative support. All licenses, approvals and registrations are granted exclusively by the competent government authorities. Nothing on this page constitutes legal, tax or investment advice; policies may change and are subject to official publications.