MACAU COMPANY REGISTRATION

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With the rapid development of Macao's economy, the industrial structure has developed from the past four pillars of gaming and tourism, processing and export industry, finance industry and real estate and construction industry to an industry with the service industry as the main body.

Offshore non-financial companies opened in Macao Organizations must fulfill the requirements for substantive business operations and develop in accordance with the investment plan when applying for an offshore license in order to obtain a number of tax incentives granted by the law.

I.Macau Company Introduction

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  • Macau is the Macau Special Administrative Region of the People’s Republic of China. It is located on the southeast coast of China, on the west bank of the Pearl River Estuary, 60 kilometers from Hong Kong and 145 kilometers from Guangzhou. With a total area of square kilometers, it consists of two outlying islands, Macau Peninsula, Taipa Island and Coloane. The official languages are Chinese and Portuguese, and Cantonese is the everyday language. English is widely used in trade, tourism and commerce.
  • Location
    Macao is located on the coast of the Pacific Ocean and the South China Sea, on the west bank of the Pearl River Estuary, and at a low latitude south of the Tropic of Cancer. It is adjacent to Gongbei, Zhuhai, Guangdong in the north, Wan Chai and Hengqin across the Xijiang tributaries, the Inner Harbor and the Jiamakou Channel to the west, Hong Kong’s Lantau Island to the east across the Lingding Ocean, and the Wanshan Islands to the south.
  • Population
    About 680,000.
  • Language
    Traditional Chinese, Portuguese.
  • Currency
    Macau Pataca(MOP$)
  • Economics
    Macao’s economic structure is simple, with the gaming, tourism, hotel and leisure industries as the main pillars of the economy and an important source of residents’ income. Macau’s business development has always been driven by the tourism industry. Since the liberalization of gambling rights, the economy has developed rapidly, stimulating the spending power of local residents and tourists, leading to the rapid development of Macau’s business.
  • Time Zone
    UTC+8
  • Foreign Exchange Control
    NIL.

  • Legal System
    Continental Law(Civil Law)

  • Main Company Legislation
    Macau Commercial Code

澳門公司01 80 1
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Population
About 680,000.

MOP$
Currency

UTC+8
Time Zone

Continental Law
(Civil Law)
Legal System

Main Company Legislation
Macau Commercial Code

  • Location
    Macao is located on the coast of the Pacific Ocean and the South China Sea, on the west bank of the Pearl River Estuary, and at a low latitude south of the Tropic of Cancer. It is adjacent to Gongbei, Zhuhai, Guangdong in the north, Wan Chai and Hengqin across the Xijiang tributaries, the Inner Harbor and the Jiamakou Channel to the west, Hong Kong’s Lantau Island to the east across the Lingding Ocean, and the Wanshan Islands to the south.
  • Language
    Traditional Chinese, Portuguese.
  • Economics
    Macao’s economic structure is simple, with the gaming, tourism, hotel and leisure industries as the main pillars of the economy and an important source of residents’ income. Macau’s business development has always been driven by the tourism industry. 
  • Foreign Exchange Control
    NIL.

  • With the rapid development of Macau’s economy, the industrial structure has evolved from the four pillars of gaming and tourism, processing and export, financial and real estate construction to an industrial structure dominated by the service industry.
  • Tax rate: 5% government tax, the import is free, cigarettes, alcohol, and automobiles are all subject to consumption tax; the net profit from operating industry is subject to aprogressive tax, and the tax rate ranges from 3% to 12%; All industrial and commercial organizations are required to pay a fixed annual business tax, which is US$37.5.
  • Macao economic and trade promotion activities are organized/co-organized every year, namely participating in various large-scale economic and trade exhibitions and investment cooperation negotiations held in Macao, China and around the world.
  • Investors must first obtain a license from the Macau government before setting up a company in Macau and registering to engage in offshore services.
  • Set up companies and other offshore non-financial institutions in Macau. It must be established and continued in accordance with Macau’s business regulations.

II.Economic overview and business advantages of setting a company in Macau

With the further implementation of the “Mainland and Hong Kong Closer Economic Partnership Arrangement” (CEPA) and the “Pan-Pearl River Delta Regional Cooperation Framework Agreement”, Macao and the Mainland, especially the Pan-Pearl River Delta region, have further deepened their economic integration, with the following characteristics:

  • Macau has a good trading environment.
  • A stable financial system with well-known banks.
  • Low tax rate: the business does not generate profits tax, business tax, inheritance tax, gift tax, property transfer tax, stamp tax and salary tax (non-Macau residents).
  • No foreign exchange control, funds can go in and out freely.
  • Macau companies are exempt from overseas profits and are less likely to be recognized as blacklists.

III.Macau company registration regulations

  • To register a company in Macau, you need to prepare as follows:

Company name application

If the company has only one shareholder, the company name must end with “one-person limited company”. If the company has two or more shareholders, it can end with a “limited company”. The company name may need to be named in Chinese and English, and the official will translate the company name into Portuguese based on the English company name.

Registered capital

The standard registered capital is 25,000 patacas, if exceeding it, local government fees will be increased.

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The Economics and Advantages of Macau Companies

Directors and shareholders

A Macau company needs at least one shareholder and one director. The directors/shareholders can all be the same person. However, it is stipulated that the natural persons of the organization members must be persons over the legal age of 18 to hold the position; generally limited company shareholders cannot exceed 30 members.

Shares

The company is required to distribute the shares in full, and bearer shares cannot be registered;

IV.Macau offshore business introduction

Responsible for the approval, technical assistance, and supervision of non-financial offshore business, and promote the development of non-financial offshore business in Macau through promotional activities. Offshore institutions allowed to operate in Macau are classified as “offshore commercial service institutions”. The government provides a number of tax  incentives for offshore business activities.

Offshore business specifications
Offshore institutions can be divided into two categories: offshore financial institutions and offshore non-financial institutions. According to Decree No. 58/99/M of the Offshore Business Law, the offshore financial industry is approved and supervised by the Macau Monetary Authority. The non-shore financial industry is approved and supervised by the Macau government. The operation of the offshore business must comply with the following conditions:
1.Only use non-MOP currency as the transaction and settlement currency.
2.Only for non-Macao SAR residents.
3.Only for non-Macao SAR markets.

(2).Offshore non-financial institutions
Offshore service industries are eligible for a number of tax incentives or exemptions, including supplementary income tax/business tax and stamp duty. The stamp duties exempted include:
a. The establishment of offshore institutions and the increase in the corporate capital of these institutions.
b. Insurance contracts regarding offshore risks.
c. Bank transaction activities required within the scope of offshore business.
d. Contracts entered into with entities whose domicile is not located in this region due to engaging in offshore business.
e. Stamp tax on property transfer related to the purchase of a property for use as an office location for offshore institutions.
Application for opening a company in Macau No matter whether you are a local resident of Macau or not, you can apply to operate offshore business.

(3).Tax incentives for operating offshore service industry

  • The offshore service industry can be eligible for a number of tax incentives or exemptions, including supplementary income tax/business tax and stamp duty. The exempted stamp duty includes:
    1.The establishment of offshore institutions and the increase of the company’s
    corporate capital.
    2.Insurance contracts regarding offshore risks.
    3.Bank transaction activities required within the scope of offshore business.
    4.Contract with an entity whose domicile is located in a non-local area because it is engaged in the offshore business.
    5.The property purchased is used as the transfer stamp duty related to the office location of the offshore organization.
    6.Macau company registration applications can apply for offshore business regardless of whether they are local residents of Macau or not.

(4).Restrictions on foreign trade
Macau is a highly open market, enjoying the status of Free Economic Zone and a separate customs territory. There is no foreign exchange control and free flow of funds. Imported goods (such as raw materials, machinery, and equipment) do not have to pay taxes.
The establishment of an import and export company in Macau According to the”Consumption Tax Regulations”, the import of alcoholic beverages (except for rice wine) and tobacco with an alcohol intensity of 30% or equal to 30% (20 degrees) by volume is subject to consumption tax.

V.What are the differences and characteristics of various business types in Macao?

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Shareholders

Registered capital

forms of investment

Company
Suffixes

Unlimited company

icon1

Two or more

No limit

icon6

Contribute capital by subscription capital. The forms of investment is money or labor.

S.N.C.

Unlimited Company with Limited Liability Shareholders

icon1

One or more limited liability shareholders or one or more
unlimited liability shareholders

No limit

icon6

The types of investment are money, finance, and labor, but limited liability shareholders can't contribute by labor.

(S.C.)

joint-stock limited liability partnership company

icon2

At least three
limited shareholders and one unlimited liability shareholder

The lower limit is MOP 1 million and no upper limit

icon7

The types of investment are money, finance, and labor, but limited liability shareholders can't contribute by labor.

S.C.A.

Limited Company

icon3

A minimum of two and a maximum of 30 members.

The lower limit is MOP 25,000, no upper limit

icon9

Shareholders contribute by way of subscription shares the par value of each share is MOP 1,000 or above, and is a multiple of MOP 100.

Lda.

Single Shareholder Private Company

icon4

One

The lower limit is MOP 25,000, no upper limit

icon9

The company's capital is composed of a single share, and other conditions are the same as above.

One person
Limited company

Company Limited

icon5

At least three

The lower limit is MOP 1 million and no upper limit

icon7

The company's entire capital should be divided into shares and represented by stocks, the value of each share is equal and not less than MOP100.

S.A.

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