|
The implementation of the Mainland and Hong Kong Closer Economic Partnership Arrangement and the Mainland and Macau Closer Economic Partnership Arrangement (hereinafter referred to as "CEPA", an acronym for Closer Economic Partnership Arrangement) enlightens the eyes of many Hong Kong and Macau corporations falling under the "Definition of Origin", and enables them to find immeasurable business opportunities in mainland China. Therefore, more multinational companies are also being solicited to invest strategically in Hong Kong and Macau.
Advantages for CEPA Foreign Enterprises
- They are entitled to zero-tariff cargo import in China, which increases the competitiveness of Hong Kong and Macau products in mainland markets
- There are more multinational companies solicited in Hong Kong and Macau to make strategic investments
- They are entitled to the reduction or abolishment of cargo trading tariffs, which liberalizes trade services
- They are entitled to the reduction or abolishment of all measures of discrimination, which facilitates trading investment
- They can enjoy easy clearance which reduces costs
Preconditions
- They have gained the "certificates of service suppliers" issued by Hong Kong and Macau Governments
- They shall comply with the industries planning of the Chinese Government.
- The registered capital is suitable to the investing scale
Requirements for Application for the "Certificate of Service Supplier"
- They shall be enterprises incorporated under Hong Kong or Macau laws
- They shall be enterprises operating in Hong Kong or Macau engaged in substantial business operations (with different operating periods as required by different industries) for more than three years
- They shall pay a profits tax as provided by the law (an enterprise incurring losses also meets the requirement provided that it is engaged in substantial business operations in Hong Kong and Macau)
- They own or rent grounds/offices for their substantial business operations, which are in accordance with their business scopes and scales
- They employ free Hong Kong or Macau residents, and this portion of staff will account for more than 50% of the total number of employees
|
