Legal and Regulatory Updates
China’s New Beneficial Owner Disclosure Rules: Key Insights for Businesses
Effective November 1, 2024, the Administrative Measures on Beneficial Owner Information mandate that companies, partnerships, and foreign company branches in China disclose beneficial ownership details to enhance market transparency and combat money laundering. Issued by the People’s Bank of China (PBC) and State Administration for Market Regulation (SAMR), the Measures align China with global standards set by the G20 and FATF. Non-compliance may lead to fines up to 50,000 yuan. The disclosed information remains confidential and accessible only to authorized government and AML institutions, emphasizing the need for proactive compliance.
China Promulgated the Negative List 2024 for Foreign Investment Access at National Level
On November 1, 2024, China enacted the “Special Administrative Measures (Negative List) for Foreign Investment Access (2024 Edition),” repealing the previous list published at the end of 2021. Compared with the 2021 edition, the 2024 national Negative List for Foreign Investment Access has removed the last two remaining restrictions in the manufacturing sector. The number of restricted items on the national Negative List has been reduced from 31 to 29.
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.
