Macau is the Special Administrative Region within the territory of the People's Republic of China. It is a potentially beneficial region for investments with such fast-growing industries as textile, tobacco and gambling. Macau has a well-developed financial infrastructure and creates favourable conditions for running a business.
Forms of Legal and Business Presence
- Limited Company – a vehicle that can be incorporated by 2 founders at least and the total number of shareholders should not exceed 30. The statutory capital of MOP 25,000 is required for establishing this vehicle. The liability of shareholders, in this case, is limited to the amount of contributions made.
- One Member Limited Company – as its title suggests, a vehicle can be incorporated by one person who should contribute at least MOP 25,000. The liability does not exceed the amount of the contribution made.
- General Partnership – this vehicle also can be established by 2 founders at least who bear the entire and unlimited liability for the results of the vehicle’s operation.
- Simple Limited Partnership – as its title indicates, this vehicle can be formed and operated by (i) one founder who bears the entire and unlimited liability for the entity’s undertakings and (ii) a founder whose liability is limited to the amount of the contribution made.
- Partnership Limited by Shares – like the previous type of a vehicle, this entity can be formed by at least one partner who bears the unlimited liability for all entity’s undertakings and at least 3 founders whose liability is limited to the amount of the contributions made. The statutory capital of the vehicle constitutes MOP 1,000,000.
- Joint Stock Company – this vehicle should have at least three founders and the statutory capital in the amount of MOP 1,000,000. The entity is more advanced, designated mainly for involving financing.
Company Registration Requirements and Steps
If you want to run business and start a company in Macau for this purpose, this may be accomplished after passing these preliminary steps:
- Defining your business objectives for incorporating a company in Macau.
- Checking the admissibility of the suggested trade name for a future vehicle in the Commercial Registry Office.
- Collecting information about founders, beneficiary owners and management of the future company
- Drafting and notarizing memorandum and articles of association.
- Submitting the set of documents to the Commercial Registry Office.
- Registering for tax and social security purposes.
- Opening a corporate bank account.
- Obtaining licenses and permits (depending on the types of activities the future company is going to conduct). The offshore company should obtain a license to conduct its business in any case.
Legal and Regulatory Framework
Macau has made a number of steps to ensure the overall ease of establishing and operating companies in the region. The registration procedures are not bureaucratised and can be completed within 3-4 weeks. The principal legal act regulating the operation of companies is the Macau Commercial Code. The main state bodies the founders should deal with through the registration process and later are the Commercial Registry Office, the Macau Financial Services Bureau, the Social Security Fund, of the Macao Trade and Investment Promotion Institute.
Advantages of the Jurisdiction
Forming a company in Macau may be promising in view of these potential benefits you may enjoy:
- Stable, open and well-developed economy
- Zero currency control
- Advantageous conditions for foreign investments
- Well-developed financial infrastructure and a number of tax incentives
- Good access to the Mainland China market
- Highly developed tourism and gaming industries
- Qualified local professionals
Tax System of Macau
If you intend to set up a company in Macau, you may need to be aware of these basic tax highlights the jurisdiction has:
- Corporate income tax (CIT) rate – 12 %
- Personal income tax rate – 12%
- VAT – not applicable (N/A)
- Withholding tax rates (for non-residents) – (i) dividends – N/A, (ii) interests – N/A, (ii) royalties – N/A.
- Capital gains tax rates – (i) corporate – equals to the basic complementary tax rate, (ii) individual – N/A.
How Aotopay Specialists May Assist You
If you have doubts about whether Macau can be a suitable destination for your investment, Aotopay specialists may consult you more precisely on the matter. We can assist you with considering alternative options, arrange the registration process and further legal support of the prospective entity. Reach us for more detailed consultations and discussions.