To Establish Foreign Invested Enterprise by CEPA

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 Establishing Foreign Invested Enterprise by CEPA

• 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 liberalises 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

Some Industries have set up companies in China through CEPA, as follows:

• Construction & Related Service Company
• Management Consulting & Related Services
• Advertising Company
• Convention & Exhibition Company
• Transportation Company
• Cargo Agent Company
• Logistics Company
• Travel & Related Service Company
• Computer & Related Services Company
• Cultural Services Company
• Distribution Services Company
• Insurance Services Company
• Market Research Services Company
• Personnel Services Company
• Publishing & Printing Services Company
• Securities & Futures Services Company
• Real Estate Services Company
• Storage & Warehousing Services Company
• Interpretation & Translation Services Company
• Individually Owned Stores

Should you have any enquires about CEPA Foreign Invested Enterprise Incorporation, please complete the form below and we will reply to you soon.