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Insights
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CW CPA’s insights page publishes practitioner-written analysis on the tax, compliance, and advisory issues facing foreign corporates and PRC enterprises in Hong Kong and Greater China. Our aim is to share practical knowledge that helps companies make informed decisions when doing business in China or expanding into overseas markets. Most articles are available in Chinese, Spanish, and Portuguese. If there is a topic you would like us to cover, we welcome you to reach out.
China’s State Council Decree No. 837 introduces a broader ODI compliance framework, shifting from SAFE registration under Hui Fa No. 37 to integrated filing, supervision, risk control and enforcement.
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China’s State Council Decree No. 837 introduces a broader ODI compliance framework, shifting from SAFE registration under Hui Fa No. 37 to integrated filing, supervision, risk control and enforcement.
Read articleHong Kong private companies limited by shares are subject to Profits Tax on profits arising in or derived from Hong Kong. The standard corporation rate is 16.5%; under the two-tiered regime, the first HKD 2 million of assessable profits is taxed at 8.25%. This guide covers the full scope of Profits Tax obligations — from computing assessable profits and supporting offshore claims to stamp duty on share transfers, related-party charges, and the 2025/26 one-off tax waiver — with practical compliance notes for directors and finance teams.
Read articleHong Kong companies are required to maintain a Significant Controllers Register (“SCR”) to record individuals and legal entities that exercise significant ownership or control. This guide explains which companies must keep an SCR, what information must be recorded, how significant controllers are identified, and the penalties for non-compliance.
Read articleThis article targets employers, foreign investors, HR teams, payroll teams and finance teams seeking guidance on Hong Kong Employer’s Return obligations. The primary keyword should appear in the H1, introduction, meta title, meta description and one or two H2-adjacent paragraphs. Secondary keywords should be distributed naturally across sections on BIR56A, IR56B, IR56E, IR56F, IR56G, offshore employment, IRD employer filing and payroll record-keeping.
Read articleRCEP has become an operating regional framework for companies using China, Hong Kong and the wider Asia-Pacific region as part of their manufacturing, sourcing, distribution or investment strategy. This article examines how RCEP interacts with the Greater Bay Area, Hong Kong’s trade and services functions, rules of origin, transhipment requirements and regional supply-chain planning.
Read articleThe Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone is emerging as one of the Greater Bay Area’s most important platforms for cross-border innovation. More than a technology park, Hetao seeks to connect Hong Kong’s international financial, legal and research strengths with Shenzhen’s advanced manufacturing, engineering and commercialisation capabilities. For foreign technology companies, it offers a strategic lens through which to assess China opportunities in AI, life sciences, semiconductors, robotics, fintech and advanced manufacturing.
Read articleA representative office remains a limited but useful China market-entry structure for foreign companies conducting market research, sourcing, liaison, and quality-control activities. This article explains the current regulatory framework, establishment process, tax treatment, employment restrictions, and when a WFOE may be more appropriate.
Read articleHong Kong's Mandatory Provident Fund (MPF) regime is a core component of the territory's employment regulatory framework. For companies hiring local employees, MPF obligations extend beyond monthly contributions to encompass employee enrolment, payroll administration, workforce planning, termination liabilities, and compliance with evolving regulatory requirements. This guide examines the legal framework governing MPF participation, recent developments including the abolition of the MPF offsetting arrangement and the implementation of the eMPF Platform, and the key considerations for businesses operating in Hong Kong.
Read articleForeign-invested enterprises and other companies operating in China face a year-round compliance cycle that extends well beyond annual filings. In addition to monthly and quarterly tax and payroll obligations, companies must manage annual audits, corporate income tax reconciliation, annual reporting, and time-sensitive updates to corporate and shareholder information. This article outlines the main compliance requirements under the PRC framework and highlights the practical areas where companies most often face timing, coordination, and disclosure issues.
Read articleChanging a legal representative in China requires careful planning beyond the registration filing. Companies should review their articles of association, approval procedures, company chops, bank access and handover arrangements to ensure compliance and reduce legal and operational risks.
Read articleSetting the right amount of registered capital for a foreign-invested enterprise in China is crucial. Too little or too much can have far-reaching consequences. This article provides guidance on how to determine your registered capital needs.
Read articleChina’s fapiao system has undergone major digital transformation. This updated guide explains what fapiaos are, how they support VAT compliance and business expense management, and what companies should know about China’s nationwide rollout of fully digitalized electronic invoices from 1 December 2024.
Read articleThe SFOC Code of Governance is reshaping governance expectations for Hong Kong sports associations. This article examines key governance principles, compliance challenges, and practical strategies for managing affiliated bodies within a multi-layered sports ecosystem.
Read articleChina’s new invoice compliance framework introduces positive and negative lists that turn “four‑flow consistency” into a enforceable standard. By linking contracts, business substance, fund flows, and invoices, the rules significantly heighten tax scrutiny—especially for foreign‑invested and cross‑border operations.
Read articleAmid global turmoil, China’s industrial strength is drawing renewed confidence from multinational giants. From BASF’s €8.7 billion Zhanjiang mega‑project to cross‑industry data spanning chemicals, EVs, semiconductors and clean energy, China stands out as a rare anchor of scale, efficiency and stability for global investment.
Read articleRunning accounting in Mainland China demands rhythm and evidence. Monthly compliance aligns the business with regulators, while disciplined documentation defends tax positions. CAS books stand on their own, bridged systematically to group reporting. When evidence is assembled contemporaneously, VAT credits are protected, remittances proceed smoothly, audits stay calm, and management trusts the numbers through consistent controls and predictable month‑end execution.
Read articleWhen accounting discipline becomes the daily norm, the yearend close looks ordinary. Audits move faster, fees stop creeping up, and tax positions rest on contemporaneous evidence. Cash is visible and controllable, forecasts feel like plans, and boards stop asking whether numbers can be trusted, leaders focus on what to do.
Read articleForeign companies in Chinese Mainland often underestimate the legal and operational significance of company chops. They are not merely administrative stamps. They sit at the center of contract execution, banking control, invoice management, and internal authorization. The real risk lies not only in who holds the chop, but in whether the business can show clear authority, proper approval, and reliable records. This article explains the main types of chops, the most common control failures, and the practical steps foreign-invested businesses should take to reduce legal and operational exposure.
Read articleMaster data governance and access controls create the most significant downstream issues for SMEs, as weak customer, vendor, or item data—and conflicting user access rights—can undermine core cycles such as Order‑to‑Cash and Procure‑to‑Pay. While O2C or P2P reviews may deliver rapid operational improvements, recurring problems in cash, procurement, inventory, and reporting often stem from poor data discipline and insufficient access oversight. Pairing any main process review with a light master‑data and access scan therefore ensures sustainable improvements and prevents system‑level gaps. This article provides practical guidance to help SMEs prioritize controls and strengthen long‑term operational reliability.
Read articleAn internal control review assesses whether controls are well‑designed and operating effectively, highlighting gaps in governance, key financial processes, and technology controls, while common challenges such as user access management, reconciliations, and report validation continue to create operational risk. This article explains why these reviews are essential for strengthening financial integrity and organisational resilience.
Read articleEstablishing a foreign-invested enterprise in China requires alignment between market access rules, business scope, capital structure, and ongoing compliance obligations. Recent legal reforms have introduced stricter capital timelines, enhanced disclosure requirements, and more standardised registration processes. Investors should assess these elements together to ensure both successful incorporation and sustainable operations.
Read articleAn Internal Control Review evaluates whether an organization’s control framework is properly designed, implemented, and operating effectively, and identifies prioritized actions to address control gaps and improve consistency.
Read articleHong Kong’s implementation of the OECD Pillar Two framework introduces new notification and reporting obligations for multinational enterprise groups. This article outlines the statutory deadlines for top-up tax notifications and returns, the role of the IRD Pillar Two Portal, and key compliance considerations for Hong Kong constituent entities.
Read articleHong Kong’s Pillar Two Portal enables multinational groups to submit required notifications and top-up tax filings under the global minimum tax regime. This article outlines the portal’s purpose, registration timeline, and practical steps for Hong Kong constituent entities.
Read articleThis article explains the main safe harbour mechanisms under the OECD/G20 Pillar Two global minimum tax framework. It outlines the Transitional CbCR Safe Harbour, the phased increase in Simplified ETR thresholds from 15% to 17%, and the role of the QDMTT Safe Harbour in preventing duplicative top-up taxation. Practical guidance is provided on how multinational enterprises can apply these mechanisms during the early implementation period of the GloBE rules.
Read articleHong Kong’s implementation of the Foreign-Sourced Income Exemption (FSIE) regime and the OECD BEPS 2.0 Pillar Two global minimum tax framework has altered the practical value of several traditional tax planning approaches. This article examines how offshore profits claims, the two-tier profits tax rate, and foreign-sourced passive income are treated under the evolving regulatory environment, and what the changes mean for multinational groups and SMEs operating through Hong Kong.
Read articleA comparative analysis of how Hong Kong and Singapore are implementing the OECD BEPS 2.0 Pillar Two global minimum tax from 2025. The article examines the HKMTT, Singapore’s DTT and MTT regimes, incentive design, compliance frameworks, and strategic implications for multinational investors operating across Asia.
Read articleChina’s 2025 Catalogue of Encouraged Industries for Foreign Investment, effective 1 February 2026, expands the number of encouraged sectors to 1,679 and reflects updated policy priorities in advanced manufacturing, digital infrastructure, and regional development. The revised catalogue introduces new opportunities for foreign investors seeking preferential tax, customs, and regional investment incentives.
Read articleHong Kong implemented the OECD Pillar Two global minimum tax through the Inland Revenue (Amendment) (Minimum Tax for Multinational Enterprise Groups) Ordinance 2025. This article explains the Hong Kong Minimum Top-Up Tax (HKMTT), the Income Inclusion Rule (IIR), reporting deadlines, and filing obligations for multinational enterprise groups, including how the regime interacts with the OECD GloBE rules and Hong Kong’s existing tax framework.
Read articleA comprehensive guide to incorporating a private company limited by shares in Hong Kong. This article examines statutory formation requirements, governance structure, beneficial ownership transparency, charge registration, tax obligations, economic substance considerations and key legal issues relevant to foreign private investors.
Read articleAs China’s consumer market moves beyond 50 trillion yuan in annual retail sales, the real story is not scale — it is structural change. Slower growth, AI-driven purchasing, instant retail infrastructure, stricter competition enforcement, and evolving consumer values are reshaping how brands operate. For foreign companies entering China, distribution is no longer just about finding a sales partner. It is about determining who controls the brand’s data, pricing architecture, platform visibility, and long-term positioning in an increasingly intelligent and regulated market.
Read articleAn overview of the proposed Hong Kong tax rates and relief measures for the 2026–27 year of assessment, including profits tax, salaries tax, property tax, allowances, and statutory deductions.
Read articleThe Hong Kong Budget 2026–27, delivered by Financial Secretary Paul Chan on 25 February 2026, outlines a strategic fiscal plan focused on high‑quality growth, innovation, and long‑term competitiveness. With an expected surplus of HK$2.9 billion for 2025–26 and HK$22.1 billion for 2026–27, the Budget introduces a range of tax relief measures, targeted industry incentives, and new initiatives to strengthen Hong Kong’s position as a global financial and innovation hub.
Read articleThe revised group audit standard became effective for periods beginning on or after 15 December 2023. It fundamentally reshapes how auditors approach scoping, supervision, communication, and documentation in multi-component engagements. This guide provides a practitioner-focused overview of the most significant changes and their practical consequences for group and component auditors.
Read articleThis comprehensive ISA 600 (Revised) component auditor playbook is designed specifically for Hong Kong audit firms and Asia-Pacific component auditors executing group audit engagements. The guide provides practical implementation frameworks for building execution credibility through five core disciplines: faithfully receiving and confirming group instructions, performing risk-responsive planning and scoping, maintaining rigorous PBC discipline, delivering clear and timely reporting, and escalating matters constructively.
Read articleChoosing between a CLG, registered society, or charitable trust is crucial for Hong Kong NGOs. This guide compares legal structures, governance frameworks, audit requirements, and fundraising credibility. Learn which structure best suits your organization's needs for regulatory compliance, donor confidence, and long-term sustainability.
Read articleAs China prepares its 15th Five-Year Plan (2026–2030), understanding the direction of policy requires more than reading the new document in isolation. By comparing the 14th and 15th Five-Year Plans, clear changes emerge in how China approaches foreign direct investment. While openness remains, greater attention is now placed on how foreign investment supports industrial upgrading, technology development, and long-term economic priorities. This article outlines what has changed—and what foreign investors should consider when planning their China strategy for the next planning cycle.
Read articleA practical, experience-based guide to NGO governance that moves beyond policies and checklists. This article sets out a usable governance toolkit for boards and management teams—covering decision authority, conflicts of interest, safeguarding, risk, and donor-facing assurance—designed to translate governance principles into day-to-day practice.
Read articleHong Kong has consolidated its position as a leading global fintech hub through regulatory innovation, digital asset licensing, sovereign tokenisation, and cross-border financial connectivity with the Greater Bay Area. Supported by strong capital markets, capital mobility, and advanced financial infrastructure, the city continues to institutionalise digital finance development.
Read articleFinancial Due Diligence (FDD) is a transaction-focused financial review that normalizes and aligns a target’s financials to support valuation and deal structuring. It does not provide an audit opinion or recommend price. Instead, it delivers restated financials, normalized EBITDA bridges, and balance-sheet clarity, highlighting issues that materially affect earnings quality, net assets, working capital, and net debt. This article explains what clients should expect from FDD, how it differs from an audit, what investors should review in an FDD report, common misunderstandings and limitations, typical Hong Kong and PRC accounting surprises, and the key questions investors should ask to extract decision-useful insights.
Read articleThe article explains why Hong Kong remains an attractive choice for multinational regional headquarters even after the implementation of BEPS 2.0 (Pillar Two). Rather than losing ground due to global minimum tax rules, Hong Kong has adapted by introducing its own Hong Kong Minimum Top‑Up Tax (HKMTT) while retaining its simple territorial tax system. Beyond tax, practical advantages include Greater Bay Area (GBA) integration, CEPA market access, cross‑boundary data flow facilitation, reciprocal enforcement of judgments with Mainland China, deep financial connectivity, and a strong talent pool. Together, these attributes support strategic, operational, and compliance benefits for Asia‑focused headquarters.
Read articleNGO governance in Hong Kong operates within a unique regulatory framework centered on Section 88 of the Inland Revenue Ordinance. Unlike corporate models, NGO boards must manage complex multi-source funding—including government subventions and donations—while maintaining mission primacy. This analysis provides a practical framework for financial oversight, cybersecurity, and conflict management to ensure long-term public trust.
Read articleGroup audits, especially under ISA/HKSA 600 (Revised), require more than coordinating separate audits—they demand a proactive, risk-based strategy that integrates component work into a cohesive group opinion. With strengthened expectations around communication, access, supervision, and consolidation testing, principal auditors must orchestrate roles, responsibilities, and documentation across global teams. This article explores practical strategies to scope effectively, manage instruction flows, overcome access limitations, and avoid common failure points. From consolidation walkthroughs to aggregation risk control, successful execution hinges on early planning, robust two-way communications, and disciplined quality management aligned with the latest auditing standards in Hong Kong and internationally.
Read articleIn Hong Kong, nearly all locally incorporated companies must undergo annual statutory audits, regardless of profit or IRD tax return requests. This applies to both private companies limited by shares and companies limited by guarantee. Common misconceptions—such as audits being unnecessary for small or inactive businesses—can lead to legal penalties. Only officially dormant companies that meet strict conditions are exempt. This explainer outlines the legal basis under the Companies Ordinance (Cap. 622), clarifies who must be audited, addresses misunderstandings, and details the directors’ responsibilities and penalties for non-compliance.
Read articleIn Hong Kong, most companies are required to undergo a statutory audit, but smooth audit outcomes depend largely on how well financial statements and records are prepared before year-end. Audit delays and qualified opinions are often caused by weak close processes, documentation gaps, and misaligned audit, AGM, and tax timelines. This guide explains audit readiness in the Hong Kong context, outlines the audit lifecycle in practice, and highlights what companies can do months in advance to ensure their financial statements are properly prepared and ready for audit.
Read articleKnown for its white sand and clear water, Hainan is commonly recognized as the "Hawaii of China." Soon, the southern Chinese province will reach an important milestone: The Hainan Free Trade Port (Hainan FTP), launched in June 2020, is scheduled to implement a full island-wide customs closure starting on 18 December 2025. This means that the Hainan Free Trade Port will operate as a unique customs territory within China. This setup provides global businesses with a new and exciting opportunity to enter the Chinese market, thanks to reduced barriers and enhanced policy support.
Read articleExplore the 2025 strategic shift for German investors in China as they pivot from asking whether to stay to how deeply to localize. Our report analyzes how leading German firms are combating price pressures in Mainland China by building local R&D and supply chains, while leveraging Hong Kong as a strategic 'resilience buffer.' Gain critical insights on recalibrating your Greater China strategy for renewed growth and competitiveness.
Read articleTo attract foreign investment and promote reinvestment of profits in China, a new tax credit policy has been introduced, offering eligible overseas investors a 10% tax credit on direct reinvestments from distributed profits. This initiative not only provides significant tax savings but also aligns with China's commitment to high-quality economic opening. With clear eligibility requirements and operational processes, foreign investors can optimize their capital allocation while enjoying the benefits of this policy. Discover how to maximize your investment returns in China. Read on to learn more!
Read articleHong Kong’s thriving fintech ecosystem is rapidly transforming financial services with cutting-edge innovations and cross-sector collaboration. Home to over 1,100 fintech firms and 10+ unicorns, the city is forecast to generate USD 606 billion in fintech revenue by 2032. Backed by robust government support, deep capital markets, and global connectivity, Hong Kong is a strategic base for startups and investors alike. High-growth segments such as wealthtech, blockchain, and digital assets are flourishing. With initiatives like Fintech 2025 and sandbox programs, Hong Kong is cementing its position as a leading global fintech hub in the Greater Bay Area and beyond.
Read articleAs China and Latin America deepen economic and cultural ties, 2025 marks a milestone in their evolving strategic partnership. With a focus on sustainable growth, innovation, and cross-border collaboration, both regions are advancing trade, investment, and cultural exchange. Key developments include massive infrastructure projects like Peru's Chancay Port, green energy investments in Brazil, lithium cooperation in Chile, and growing cultural diplomacy. Hong Kong and Chinese cities play pivotal roles in facilitating financial, legal, and diplomatic connections. Together, these initiatives are redefining global cooperation and positioning China and Latin America as dynamic partners in a multipolar world.
Read articleOn 11 March 2025, China wrapped up its yearly Two Sessions on a promising note, signalling encouraging prospects ahead. The Two Sessions refer to the annual meetings of the national legislature, the National People’s Congress, and the political advisory body, the National Committee of the Chinese People’s Political Consultative Conference. They bring together policymakers to deliberate on the country’s key economic and social policy direction for the year. Marking the last year of the 14th Five-Year Plan, 2025 prioritises stability while concurrently building on forward momentum for growth and development.
Read articleOn 19 February 2025, China’s Ministry of Commerce (“MOFCOM”) and National Development and Reform Commission jointly issued the 2025 Action Plan for Stabilising Foreign Investment (“Action Plan”). Policymakers have repeatedly affirmed the pivotal role played by foreign investment in the pursuit of high-quality opening-up. The Action Plan, therefore, serves as the logical and natural continuation of these long-standing efforts to nurture innovative productive forces. The 20 measures under 4 aspects specified in the Action Plan are to be implemented nationwide by the end of 2025. Details regarding ancillary measures to facilitate their effective and efficient implementation will be released in due course.
Read articleHong Kong’s 2025-26 Budget, announced by Financial Secretary Paul Chan, focuses on economic growth through innovation and industry upgrades. Key measures include tax reliefs, enterprise support, and incentives for technology, finance, trade, and green development. Salaries and profits tax reductions, SME financing support, and infrastructure investments aim to boost competitiveness. While Hong Kong faces geopolitical and economic challenges, the budget prioritizes stability and long-term growth. The government maintains its simple tax regime and introduces targeted initiatives to strengthen its business hub status. CW welcomes these measures, supporting businesses in navigating opportunities and ensuring sustainable development.
Read articleChina’s economic outlook for 2025 signals a year of transformation, marked by shifts towards high-tech production, consumption-driven growth, and sustainable development. With GDP expected to grow by at least 5%, government policies are focusing on stimulating domestic demand, stabilizing the property sector, and expanding green energy and healthcare industries. Key initiatives include consumer trade-in programs, fiscal stimulus, and monetary easing. While global trade tensions pose challenges, China’s strategic diversification and policy adaptability position it for resilience. As 2025 unfolds, China remains committed to innovation, high-quality growth, and economic stability.
Read articleOn December 20, 2024, the State Administration for Market Regulation (SAMR) issued the Implementation Measures for the Administration of Company Registration (“SAMR Order No. 95”), effective February 10, 2025. As a departmental regulation issued under the State Council's authority, SAMR Order No. 95 standardizes how local registration authorities administer company registration, ensuring compliance with China’s broader corporate governance reforms.
Read articleOn December 12, 2024, the Lin-gang Special Area of the Shanghai Free Trade Zone introduced new measures to promote high-quality financial leasing development. These policies aim to enhance competitiveness through optimized business environments, financial support, and industry-specific incentives. Key areas of focus include civil aviation, medical equipment, and green leasing, alongside fostering cross-border innovation and talent development. Effective from January 1, 2025, these measures will shape a dynamic financial leasing ecosystem. Companies should leverage these policies, strengthen financial partnerships, and expand internationally to maximize growth opportunities, especially under the Belt and Road Initiative.
Read articleThe Catalogue of Encouraging Industries in Western China (2025 Version) is a policy document that outlines the industries that the Chinese government encourages for investment and development in its western regions. The 2025 version aims to further boost the economic growth in western China by providing attractive incentives for both domestic and foreign investors. The industries listed in this catalogue are considered essential for the region’s modernization and sustainable development. These industries encompass various sectors, including high-tech, clean energy, advanced manufacturing, and ecological protection.
Read articleGerman companies are intensifying their investments in China, signaling strong confidence in the market's long-term potential. Key sectors like automotive, chemicals, and fashion are leading this growth. Mercedes-Benz and Volkswagen are advancing electric vehicle (EV) innovations tailored for China, while BASF commits €10 billion to a new chemical production facility. Hugo Boss is expanding its retail footprint to capture China's demand for premium products. With €7.3 billion in Foreign Direct Investment in the first half of 2024, Germany’s "In China, for China" strategy emphasizes localization and sustainability. Despite geopolitical challenges, German firms remain focused on fostering strategic growth and partnerships.
Read articleThe 2024 revision of China's Anti-Money Laundering (AML) Law brings significant updates to combat financial crimes. Effective January 1, 2025, the law introduces a risk-based approach, expands predicate offenses, and strengthens compliance obligations for financial institutions. Foreign-invested and outbound enterprises must adopt robust AML practices, including thorough due diligence and transparent financial transactions. Advanced technologies like AI and blockchain are encouraged for AML monitoring, reflecting the law's focus on evolving risks. The revision also emphasizes international cooperation, aligning China’s efforts with global AML standards and reinforcing compliance for enterprises with cross-border operations.
Read articleThe State Administration for Market Regulation issued Order No. 95, introducing new Implementing Measures for the Administration of Company Registration in China, effective February 10, 2025. These regulations aim to enhance transparency, compliance, and efficiency in company registration, affecting both domestic and foreign enterprises. Key highlights include stricter oversight of capital contributions, mandatory registration liaison officers, and detailed requirements for intermediaries. Companies must also align their business scope with capital requirements and adhere to market access policies. CW provides expert guidance to ensure compliance with these measures and streamline the registration process in China.
Read articleOn 15 November 2024, Hong Kong and Peru signed a landmark Free Trade Agreement (FTA) during the APEC Economic Leaders’ Meeting in Lima. The agreement covers competition, intellectual property, investment, trade in goods and services, and online commerce, among other strategic areas. It grants Hong Kong enterprises access to over 150 Peruvian industries, surpassing WTO commitments. The FTA provides a stable legal framework to boost commerce, fostering opportunities for Hong Kong businesses to expand into Latin America. With bilateral trade growing steadily—merchandise at 4% annually (2019-2023) and services at 16.3% annually (2018-2022)—this partnership solidifies economic ties.
Read articleEffective 1 December 2024, China’s State Administration of Taxation (SAT) has implemented fully digitalised e-invoices, or e-fapiao, nationwide. This initiative simplifies invoicing processes, replacing traditional paper-based invoices with a streamlined digital format featuring 17 key elements, including a unique 20-digit identification code. Legally equivalent to paper invoices, the e-invoice reduces administrative burden and enhances tax compliance. The move underscores China’s commitment to modernizing tax administration while promoting efficiency and standardization for businesses and consumers. By eliminating the need for duplicate copies, the digital system improves usability and supports the broader digital transformation of the country’s financial ecosystem.
Read articleChina’s new pilot work plan, effective 29 November 2024, permits wholly foreign-owned hospitals in nine key cities, including Beijing, Shanghai, and Shenzhen. This initiative aims to enhance the healthcare sector with innovative service models, cutting-edge technologies, and improved local medical capacity. Eligible investors must demonstrate expertise in hospital management and address gaps in healthcare provision. Exclusions apply to hospitals specializing in traditional Chinese medicine, psychiatric care, or high-risk procedures. By fostering foreign participation, China seeks to meet growing healthcare demands while maintaining strict oversight of ethical and medical risks in this highly regulated industry.
Read articleThe Closer Economic Partnership Arrangement (“CEPA”) amendment between mainland China and Hong Kong, effective 1 March 2025, expands market access for Hong Kong businesses. Covering trade in goods, services, investment, and economic cooperation, CEPA now includes liberalisation measures in sectors like construction, financial services, and tourism. Key updates include easing equity ownership limits and professional service restrictions. Hong Kong enterprises can also capitalize on premier legal and arbitration services for Mainland operations. While most measures apply nationwide, select pilot initiatives focus on the Greater Bay Area, highlighting enhanced integration and opportunities for Hong Kong-based companies in a growing market.
Read articleOn 15 November 2024, China announced significant changes to its export tax rebate policies, effective 1 December 2024. The elimination of rebates for aluminium, copper, and certain biofuels, along with a reduction in rebate rates for batteries and refined oil products, is set to impact businesses across key sectors. This shift aims to address the financial burdens faced by exporters under the current VAT framework. Companies must now evaluate how these adjustments affect their operations and develop strategies to navigate the evolving landscape. Discover how these changes could reshape the export market and what it means for your business.
Read articleOn 24 October 2024, the Shenzhen Municipal Committee’s Office of the Financial Committee promulgated the Action Plan for Promoting High-Quality Development of Venture Capital Investment in Shenzhen (“Action Plan”). The document was released as a consultation draft, inviting public input. The deadline for feedback submission was 31 October 2024.
Read articleBetween December 2023 and March 2024, the HKSAR Government conducted a consultation on the Global Anti-Base Erosion (“GloBE”) Rules and the Hong Kong Minimum Top-up Tax (“HKMTT”). Upon the conclusion of the consultation, Hong Kong’s Financial Services and the Treasury Bureau, in collaboration with the Inland Revenue Department, has recently published a Legislative Council (“LegCo”) Paper. The document recapitulates the input gathered from various stakeholders and presents the government’s feedback based on the findings.
Read articleThe Chancay Port in Peru, a $3.6 billion project funded by China's Belt and Road Initiative, is set to transform trade between Latin America and Asia. Located 70-80 kilometers north of Lima, it can handle large ships and reduce shipping times by 10-20 days. While promising economic benefits for Peru, the project has raised concerns about China's influence in the region.
Read articleEffective 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.
Read articleOn 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.
Read articleChina 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.
Read articleEffective sustainability reporting is crucial for demonstrating an organization's commitment to sustainable development. This article guides you through essential considerations and structured steps for a successful sustainability report. Begin by securing top-level commitment to ensure resource allocation and understand the regulatory landscape early on. Start small, focusing on core sustainability metrics, and gradually expand your scope. Develop in-house expertise and engage stakeholders to create a comprehensive sustainability narrative. A five-step process—from assessing readiness to continuous improvement—helps organizations draft meaningful reports that resonate with stakeholders and enhance sustainability efforts. With the right approach, sustainability reporting can drive significant environmental and social benefits while aligning with business objectives.
Read articleThe "Guangdong Maritime Economy Development Report (2024)" highlights that Guangdong has held the top spot in China's maritime economy for 29 years. In 2023, its maritime GDP was 1.87781 trillion RMB, comprising 13.8% of the regional GDP. The maritime industry, including emerging sectors like marine pharmaceuticals and renewable energy, contributed significantly to regional growth. Technological advancements and international cooperation, particularly in the Guangdong-Hong Kong-Macao Greater Bay Area, have bolstered its maritime sector's robust performance.
Read articleHong 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.
Read articleThe topic of Environmental, Social, and Governance (ESG) is gaining momentum worldwide. This article underscores the critical role of ESG principles in modern business, highlighting their benefits for resilience, innovation, and stakeholder alignment. It explores challenges in ESG implementation, such as data and resource constraints, and proposes solutions like data analysis and capacity building. Conclusively, it advocates for ESG integration as essential for sustainable growth and industry leadership, especially for businesses in Europe and China seeking sustainable strategies.
Read articleNansha, a strategically located district in Guangzhou, China, has emerged as a dynamic hub for innovation and cooperation, particularly within the Guangdong-Hong Kong-Macao Greater Bay Area (GBA). Designated as the Demonstration Zone in Nansha of Guangzhou for All-round Cooperation Among Guangdong, Hong Kong and Macao, the district is fostering a vibrant ecosystem for businesses, industries, and talents from across the region. This article offers an overview of the Nansha Plan, highlighting the advantageous policies within the Nansha Cooperation Zone and showcasing examples of successful foreign enterprises that have thrived in this area.
Read articleForeign investors hiring employees in China must account for more than salary and recruitment. This article explains the main legal and compliance considerations for local hiring, including employment structures, labour contracts, probation, working hours, statutory leave, individual income tax, social insurance, housing provident fund contributions, foreign employee rules, termination obligations, and employer cost planning under China’s current labour and social security framework.
Read articleManaging employee termination in Hong Kong can be a sensitive and difficult task. This article will provide you with an overview of the key aspects of employee termination in Hong Kong. It covers important topics, such as the legal grounds for termination, notice periods, procedural requirements, and unfair grounds for dismissal.
Read articleNavigating employee termination in China is a delicate and often challenging process. You may be faced with the need to sever ties with an employee while operating in China. Whether it is due to underperformance, misconduct, or company restructuring, terminating an employment relationship requires prudent management. It also demands strict adherence to the relevant local […]
Read articleAt the forefront of innovative development, Shenzhen has captured the interest of foreign investors around the world. At the start of August 2023, the Shenzhen Municipal Government issued three documents, each containing a clutch of measures, to comprehensively optimise the city’s business environment and facilitate foreign investment. This article will delve into how the newly implemented set of measures can enable foreign businesses to operate and invest in Shenzhen and the GBA with greater ease.
Read articleOn 9 June 2022, Hong Kong’s Legislative Council passed the Employment and Retirement Schemes Legislation (Offsetting Arrangement) (Amendment) Bill (“the Amendment Bill”) to abolish the MPF offsetting mechanism. This article provides a summary of the main legislative changes and details the government’s proposed measures to tide over businesses during the transition period.
Read articleUnlocking Success in the Chinese Market: Discover Intelbras' Winning Formula of Relationships and Innovation. Learn how this pioneering Brazilian company overcame challenges and harnessed China's industrial strength, as revealed by an exclusive interview with a senior Intelbras representative.
Read articleHong Kong boasts a simple and straightforward corporate tax system compared to other jurisdictions. This notwithstanding, you should have a sound knowledge of its operation to fully leverage the benefits of favourable tax policies. In addition, it is important to observe your tax filing obligations to keep fines and penalties at bay. This guide will help you navigate the workings of corporate income tax or profits tax in Hong Kong.
Read articleDiscover the journey of Fernando Hernandez, a Colombian entrepreneur who ventured into the business landscape of Hong Kong. Uncover the reasons that led him to establish a Hong Kong company, leveraging the advantages and efficiency of Hong Kong's commercial and financial ecosystem. If you're seeking insights into entering the Chinese market or require expertise in agrochemical services and regulatory affairs, explore Fernando's success story and connect with him.
Read articleThe export VAT refund system in China allows eligible businesses to recover VAT paid on purchases related to the provision of taxable goods or services for export. There are two refund methods: Exemption, Deduction, and Rebate (EDR) for manufacturing enterprises, and Exemption and Rebate (ER) for trading enterprises. This article provides an accessible overview of how the export VAT refund system works in China.
Read articleA company secretary in Hong Kong helps a subsidiary maintain statutory records, manage Companies Registry filings, support valid corporate actions and track local compliance obligations. For overseas-owned subsidiaries, the role is important because failures in filings, governance records or local follow-through can create regulatory, transactional and operational risk.
Read articleDiscover essential tips for navigating China's banking landscape as a foreign investor, including how to set up a corporate bank account and understanding the various documentation requirements to ensure seamless business operations.
Read articleChina has made the digital economy a crucial part of its national development strategy, with a goal to increase the output of core industries in the digital economy to 10% of the national GDP by 2025. The Guangdong-Hong Kong-Macao, Greater Bay Area, is one of the regions with the highest degree of digital economy development in China, creating abundant business opportunities for foreign companies.
Read articleClosing a company in Mainland China requires a formal deregistration process rather than simply ceasing operations. Foreign investors should assess whether ordinary deregistration, simplified deregistration, business suspension, bankruptcy, or compulsory deregistration applies, taking into account liquidation, tax clearance, employee liabilities, creditor claims, customs matters, bank account closure, and company registration requirements.
Read articleBackground A HK consulting firm (‘A’) sent its consultant staff to Mainland China to provide consultant services to the clients of an advisory company in Mainland China (‘B’). A charges B consultancy fee of RMB 5m. Under normal circumstances, the consultant staff would not spend more than 183 days in any calendar year on the […]
Read articleBackground A multinational group headquartered in Europe (“EU Co”) owns a Foreign-Invested Enterprises in Mainland China, FIE 1, which in turn holds 100% equity interest in FIE 2. FIE 2 mainly purchases raw material from local suppliers, manufactures machines, and sells to FIE 1 who then sells to corporate clients. FIE 2 is certified as […]
Read articleChina’s Personal Information Protection Law (“PIPL”) came into effect on 1 November 2021. Accompanying the PIPL, the Cyberspace Administration of China (“CAC”) also published draft Measures for the Security Assessment of Outbound Data for public consultation. In most cases, multinational companies with operations in China will involve some communication going back and forth between China […]
Read articleCharities In Hong Kong SAR, there is no statutory definition of what constitutes a charitable institution or trust of a public character (“Charity”) with a charitable purpose, nor is there a single piece of legislation which governs Charities in Hong Kong and how donations are applied. In 2017, the Hong Kong SAR Government’s Audit Commission reviewed various government departments’ supervisory measures […]
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