Legal and Regulatory Updates
Implementation of the Registered Capital Management System under the Company Law of China
China has recently updated its regulatory framework with the State Council’s Provisions on the Implementation of the Registered Capital Management System under the Company Law (Decree No. 784), which took effect on July 1, 2024. These provisions are designed to enhance transparency, regulate shareholder commitments, ensure the safety of market transactions, and improve the overall business environment.
The New Era of Customs Duties: A Comprehensive Analysis of the Law of the People’s Republic of China on Customs Duties (2024) and its Comparison with the 2017 Regulations
On April 26, 2024, the Standing Committee of the National People’s Congress promulgated the Law of the People’s Republic of China on Customs Duties under Presidential Decree No. 23. This new law, effective from December 1, 2024, marks a significant overhaul of China’s customs duty framework, replacing the 2017 Regulations on Import and Export Duties. The new law aims to standardize customs duty collection and payment, promote foreign trade, and support high-quality development. It introduces a comprehensive framework, including duty items, rates, calculation methods, and tax incentives. The law also emphasizes compliance and enhanced roles for customs authorities, aiming for clarity and consistency in duty application, thus impacting international trade and customs administration in China.
Exploring Hong Kong’s Patent Box Regime
On July 5th, 2024, the Hong Kong SAR Government enacted the Inland Revenue (Amendment) (Tax Concessions for Intellectual Property Income) Ordinance 2024, introducing a “patent box” tax incentive regime (“Patent Box Regime”). This regime offers tax concessions on qualifying profits derived from eligible intellectual property (IP) developed through research and development (R&D) activities within Hong Kong. By implementing this regime, Hong Kong seeks to stimulate the growth of IP trading, encourage companies to engage in IP-related activities, and solidify its position as a leading regional hub for intellectual property.
This article delves into the intricacies of the Patent Box Regime, highlighting its objectives, key features, eligibility criteria, and implications for businesses.
Hong Kong Introduces New Capital Investment Entrant Scheme
Hong Kong’s new Capital Investment Entrant Scheme (New CIES) is set to attract high-net-worth investors, reinforcing the city’s status as a global financial hub. Launched on March 1, 2024, the scheme enables international and Chinese investors to gain residency in Hong Kong by investing in specific asset classes. To help you leverage the New CIES, this article provides an overview of the eligibility criteria, the range of investment assets that fall within scope, and details regarding the application procedure.
Major Revisions to China’s Company Law: Key Amendments You Should Know
Following its review of multiple draft amendment versions over the past three years, the Standing Committee of the National People’s Congress of China finally enacted the revised Company Law on 29 December 2023. It is set to take effect on 1 July 2024. Coincidentally, the amendment was passed on the 30th anniversary of the initial enactment of the Company Law, which was on 29 December 1993. This article provides a detailed exploration of the key changes brought about by the latest revision to China’s Company Law. Additionally, it examines the potential implications for businesses operating in China.
Phase 3 of Hong Kong’s New Inspection Regime Comes into Operation
On 27 December 2023, Hong Kong implemented the third phase of the New Inspection Regime under the Companies Ordinance (Cap. 622), allowing directors, company secretaries, and other relevant parties to request the withholding of their personal information from public view. The regime, introduced in three phases between August 2021 and December 2023, addresses concerns about safeguarding sensitive personal data in public registers. While maintaining transparency, it shields information like residential addresses and identification numbers of company officers from public access. The full article provides an overview of all phases and details the application process for protecting personal information.
