Administrative Measures for the Filing of Investments by Hong Kong and Macau Service Providers in the Mainland (for Trial Implementation) was issued by the Ministry of Commerce recently and will take effective on 1st June 2016. Shanghai Dongjin concluding some main points for this new regulation as follows.
Since CEPA took effective in the Year 2003, within the coming ten years, around ten supplementary agreements were executed for the purpose of the free trade between the mainland China and Hongkong/Macao Special Administrative Region. Further, in the Year 2014, with the setting up of China (Guangdong) Free Trade Pilot Zone, a special Guangdong Agreement was executed and entitled HK and Macau service providers to have the recording mode during setting up or change formalities instead of the former approval mode. Now, with the successful implementation of this pilot policy in Guangdong FTZ, and from 1st June 2016, this policies is expanded to the whole mainland China.
- The requirements for HK and Macau service providers
- Permanent resident in HK and Macau (Individual);
- The legal entity which is set up in HK and Macau and subject to the laws and regulations of HKSAR and MCSAR (including all companies, further, it should meet the below requirements:
- Legally registered or set up in HK and Macau and has the business registration certificate or other license for the service to be provided;
- Actually have the business operation in HK or Macau (e.g. pay taxes/have staffs and etc.).
- Exclusive areas
- Restriction matters mentioned in Article 9 Chapter 4 of CEPA Service Trading Agreement with HK and the establishment and changes formalities for companies in telecom, culture and financial industry;
- Restriction matters mentioned in Article 9 Chapter 4 of CEPA Service Trading Agreement with Macau and the establishment and changes formalities for companies in telecom, culture and financial industry;
- The purpose is to set up other business forms instead of the company;
- Other special situation as involve in the national security, merge the domestic company, invest in the listing companies, and invest by equity or subject to other special regulations in FTZ.
- Way of recording
Online registration (for both setting up and change formalities) via http://wzzxbs.mofcom.gov.cn/app/entp/guide and the recording certificate will be obtained within three working days.
- Dongjin comments
The central government will strengthen the background reviewing on the HK and Macau investor, especially on its real controller. The government is to set up the credit system for HK and Macau investor and may have punishment or restriction on any dishonest investor.
We are remind all relevant HK, Macau or other relevant investors of paying attention to this regulation, obey it and avoid being put on the black list due to any negligence.
If you have any questions, please send the email to me.
Ms. Jojo Hu
TEL: 0086-21-68868335 ext 324 / FAX: 0086-21-68868021