Macau Company Incorporation

Overview

Macau, also Macao is a commercial city with a very open economy, advantageous geographic location and complete infrastructure. Macau is also a free port without exchange controls, and funds can flow in and out freely; thus many investors have been attracted to invest in Macau.

There is no special restriction on Macau company incorporation, and Macau practices a low taxation rate system, with limited items of taxation. In recent years, favorable factors have been increasing in Macau, and economic environment has met sustained development, in particular, hospitality and tourism, which drove the rise of Macau's economy, and the international community showed increasing confidence concerning investment in Macau. At the same time, Macau is also one of the freest and most open regions for global trade and investment.

Advantages of Set Up Macau Company

• Stable financial system
• Satisfactory trading environment
• Low taxation rate system and low operating cost
• Is a potential offshore service center
• Is a platform for economic and trading cooperation between mainland China and Portuguese-speaking countries

Two Categories of Macau Companies

• Macau local company
• Macau offshore company

Types of Macau Local Company

• Personal commercial enterprise
• Corporate commercial enterprise
• Economic interest group

Differences between Different Business Types of Companies
Business types	Number of shareholders	Capital
Unlimited Company	Two or more	Not required
Mixed Liability Company by quotas	At least one shareholder with unlimited liability and one shareholder with limited liability	Not required
Mixed Liability Company by shares	At least one shareholder with unlimited liability and 3 shareholders with limited liability	MOP1 million (min)
Limited Liability Company by quotas	2-30	MOP25,000 (min)
Limited Liability Company by sole owner	1	MOP25,000 (min)
Limited liability company by shares	At least 3	MOP1 million (min)
Offshore company	At least 1	MOP25,000 (min)

General Procedures of Company Incorporation
Procedures	Remarks/Conditions
Name of applying company	Intended company name and business operations
Investment prospectus	Including invested funds, working process, business nature, and profits in future 3 years, etc.
Signing Memorandum and Articles of Association/agreement	Having contract or private agreement signed as per company type and as provided by law, and certified by notaries.
Business registration	Attached: 1.Letter of application 2.Notarial deed for shareholders of company 3.Copies of personal ID document and shareholders register 4.Register of Board members and acceptance of appointment statement 5.Certificate of admissibility of company name
Starting business declaration	1.Starting business declaration form 2.Copy of shareholder's ID document 3.Copy of business registration certificate 4.Copy of Memorandum and Articles of Association/agreement 5.Business tax payment voucher

Taxation on Macau Local Company

• Basic Period
  from January to December of each year
• Business Tax
  Corporate enterprises or individual persons that operate any industrial and commercial activities shall be subject to business tax at the taxation rate determined according to business operation, generally at a sum of MOP300 (or USD37.5)
• Profits Complementary Tax (Income Tax)
  Profits from industrial and commercial business operations is subject to income complementary tax, at a taxation rate of 9%-12%

  Profits Complementary Tax Schedule
  Taxable annual revenue	Percentage
  Revenue to $200,000	Exemption
  $200,001 to $300,000	9%
  More than $300,000	12%

Taxation Period

Taxation of not more than MOP3,000 shall be fully paid in September. Taxation more than MOP3,000 shall be paid in two installments between September and November. In case of taxation paid by installment, a default in payment of the first installment of taxation within September as provided will cause overdue interest and 3% of unpaid taxation levied additionally, and will cause the second installment of taxation to become due immediately.

Social Security Fund

Employers shall contribute MOP30 per month for native employees who shall contribute MOP15 per month. Employers shall contribute MOP45 per month for non-native employees who shall contribute nothing.

Macau Offshore Company Incorporation

Macau offshore company means a Macau company operating outside of the Macau region. Benefits for this kind of company include exemption from profits tax, business tax, stamp duty, and offshore company management and technical professionals who are approved to reside in Macau can be exempt from salary tax for the first 3 years of employment in an offshore company, etc.

Offshore companies can be engaged in offshore services, such as information equipment consulting, information consulting and programming, information handling, database business, administrative and archive supporting business, research and development business, technical test and analysis business, ship and aerial equipment & material operation and management services.

Requirements to Operate Offshore Business

• Application for transaction and settlement currency other than MOP
• Sales targeted to non-Macau residents
• Market oriented to non-Macau regions

Government Fee

Offshore organizations approved to operate in Macau need to pay establishment fee of MOP5,000 to relevant governmental authority, and pay semiannual operating fee ranging from MOP5,000 to 15,000 (applicable to offshore business service organizations), or from MOP3,000 to 10,000 (applicable to offshore auxiliary service organizations).

Offshore Organization Operating Fees Levied According to the Following Criteria
	Currency: MOP
Offshore Business Service Organizations	Operating Fee
Capital amount: 25,000-100,000	5,000
Capital amount: 100,001-1,000,000	10,000
Capital amount: over 1,000,000	15,000
Offshore Auxiliary Service Organizations	Operating Fee
Capital amount: 25,000-100,000	3,000
Capital amount: 100,001-1,000,000	6,500
Capital amount: over 1,000,000	10,000

Required Information and Time for Incorporation

• Chinese and English names of company
• Copies of ID cards or passports of shareholders and directors
• Copies of ID cards or passports of relevant staff
• Registered address of company
• Registration of Macau local or offshore company (requires about 3 to 4 weeks)

If you would like further information concerning Macau Company Incorporation, please contact our professionals and we will provide you with free advisory.