Macau
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WHY MACAU?
Macau, or the special administrative region of China, is a fascinating and unique place to start business. The country is well known for its beautiful architecture, friendly people, and lack of regulations. But it’s also an incredibly competitive and risk-averse environment, which can be difficult to navigate if anyone is not prepared for it.
One of the best ways to prepare for Macau’s competitive environment is to understand the business environment in the region. This includes understanding the different types of businesses that operate in Macau, how they succeed or fail, and what factors impact their success.
ADVANTAGES
Being a Special Administrative Region of China, Macau shares many structural similarities with its close neighbour Hong Kong yet offers U.S. suppliers a market with distinct characteristics and opportunities.
Macau is Strategically Positioned:
Macau is one of the main economic windows into China, and being part of the SAR of the People’s Republic of China has only served to further enhance the relationship between the two countries.
Macau is Continuously Improving Its Legal Framework:
Having an open economy means Macau’s integration into the international trade system and the use of international business rules and practices are beneficial for the country’s economic development.
Macau Has Efficient Capital Markets and Portfolio Investment:
Macau allows for the free flow of financial resources, and foreign investors can obtain credit in the local financial markets.
Stable Political Environment
Macau is a politically stable country, which makes it an ideal business investment location. Having a politically stable environment is crucial because it provides the ideal environment for nurturing a new business. A good political country is also able to offer its investors more in terms of tax breaks and other perks depending on the nature of the intended business, which are all important factors to help boost the growth of a new business.
Good Human Resource Development
Macau is invested in its people. The country invests on growing and developing the education of its people, as well as encouraging its citizens to attend professional training courses. This helps ensure its people are more than well equipped to meet the demands of an ever growing, competitive market.
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TAX REGIME OF MACAU
Individual Taxation
Citizens and foreigners who establish residency in Macau enjoy tax rates that are significantly lower than those levied in other developed Asia-Pacific nations such as Japan. Beneficial tax rates also extend to citizens and foreign nationals who work in the city. Macau’s nominal per capita GDP of $70,130 was the tenth highest in the world as of 2024. While foreigners usually cannot become citizens, they can gain residency by investing in the local economy.
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Property taxes accrue from ownership of all residential, commercial, and industrial properties and are dependent upon assessed value or actual rental income, whichever is higher. Rental income is taxed at 10%, and a 6% rate applies to assessed value. There is no inheritance, gift, or capital gains tax in Macau, but stamp duties are levied against transfers of tangible or intangible property.
Corporate Taxation
Corporations benefit from conducting business on the peninsula, as capital gains and corporate income are taxed at significantly lower rates than in European nations and the United States. The preferential tax treatment attracts numerous businesses, the majority of which are casinos that comprise a large percentage of Macau’s GDP. Corporate entities are separated into two groups. Group A companies must adhere to proper accounting measures and maintain capital levels equal to or greater than 1,000,000 MOP. Group B companies are either first-time filers or those entities that do not meet the capital requirements of group A businesses. Group B organizations are taxed on assessed profit measures, while group A entities are levied on certified tax returns submitted to the Macau Finance Bureau.
TYPES OF BUSINESS STRUCTURES IN MACAU
For Macau’s new company incorporation, one must know about the different types of business entities. They are as follows:
Macau Limited Company
- Must have a minimum capital share of MOP 25,000
- Should have one director and one shareholder.
- Should have one company secretary.
- For a single shareholder, the company name should end with ‘one man limited’.
Macau Holdings Limited Company
- Must have three directors and three shareholders.
- Must have a minimum capital share of MOP 1,000,000.
- Liability limited to subscribed shareholders.
- Should have a limited value of HK$100 shares.
Macau Unlimited Company
- Should have at least two shareholders.
- No minimum registration capital required.
- Capital contribution is a must.
Macau Mixed Company
- No requirement for capital share.
- Should have two shareholders.
- One shareholder with unlimited liability and another with limited liability.
- Capital contribution required.
Macau Mixed Holdings Company
- Must have a minimum share capital of MOP 1,000,000.
- Subscription of shares required.
- Must have four shareholders.
One shareholder with unlimited liability, and the remaining three with limited liability.
COMPANY REGISTRATION PROCESS
Step 1: Registering a trading name.
- The first and foremost step to start a company in Macau is to apply for registering the trade name.
- One must apply to the Commercial Registry Office.
- One must fill out an application form and provide all the necessary documents.
Step 2: Submitting article of association and memorandum
- Upon receiving the trade name approval, an individual must submit the memorandum and article of association within the next two months.
- Each document must be authorized by a private or public notary.
- For authorization, one can either look for a reliable lawyer or contact the private notary of IPIM.
- The applicant’s document, along with a certified notary, also works.
Step 3: Registering the company
- For offshore company registration in Macau, an individual must submit a few essential documents within fifteen days of signing the memorandum.
- One must submit these documents to the Commercial Registry Office.
- The essential documents for company incorporation in Macau are the following:
- Verified application letter
- Company constitution documents
- Shareholders list along with identification copies.
- Appointment letter for the administrative board
- Photocopy of certified Admissibility of Trade Name.
Step 4: Applying for taxes
- Before commencing company operations, it is important to register it for taxes in the Macau Finances Services Bureau.
- For an application for taxes, these documents are needed :
- Two copies of signed and verified industrial tax forms.
- Shareholder’s names with copies of their identification.
- Administrative board member list.
- Appointment letter for administrative board members.
- Certificate of company registration.
- Copy of article of association and memorandum.
- Industrial tax payment receipt.
Step 5: Enrolling for other services
- The final step involves the enrolment of both the employer and the employees to the Social Security Fund.
- Here, one must make quarterly payments every year.
It takes around 12 working days for the Macau Business Registration to complete the registration and issue the Company Business Certificate.
RELATED BLOGS
The countries’ service sector dominates the economy, employing about three-fourths of the total labour force. Macau is a free port, and trade is vital. Much of Macau’s imports consist of raw materials or semifinished goods for manufacturing purposes.
Author: Chandrawat & Partners
Topic: Doing Business in Macau
Contact Us
Get in touch with the right people to get the right help in setting up your business in Macau.
Contact us at: [email protected]
We have a team of professionals to help you with all your business needs. So, that you can focus on business expansion in Macau.
Please feel free to email us on [email protected]
Macau
Why macau?
Macau, or the special administrative region of China, is a fascinating and unique place to start business. The country is well known for its beautiful architecture, friendly people, and lack of regulations. But it’s also an incredibly competitive and risk-averse environment, which can be difficult to navigate if anyone is not prepared for it.
One of the best ways to prepare for Macau’s competitive environment is to understand the business environment in the region. This includes understanding the different types of businesses that operate in Macau, how they succeed or fail, and what factors impact their success.
Advantages
Being a Special Administrative Region of China, Macau shares many structural similarities with its close neighbour Hong Kong yet offers U.S. suppliers a market with distinct characteristics and opportunities.
Macau is Strategically Positioned:
Macau is one of the main economic windows into China, and being part of the SAR of the People’s Republic of China has only served to further enhance the relationship between the two countries.
Macau is Continuously Improving Its Legal Framework:
Having an open economy means Macau’s integration into the international trade system and the use of international business rules and practices are beneficial for the country’s economic development.
Macau Has Efficient Capital Markets and Portfolio Investment:
Macau allows for the free flow of financial resources, and foreign investors can obtain credit in the local financial markets.
Stable Political Environment
Macau is a politically stable country, which makes it an ideal business investment location. Having a politically stable environment is crucial because it provides the ideal environment for nurturing a new business. A good political country is also able to offer its investors more in terms of tax breaks and other perks depending on the nature of the intended business, which are all important factors to help boost the growth of a new business.
Good Human Resource Development
Macau is invested in its people. The country invests on growing and developing the education of its people, as well as encouraging its citizens to attend professional training courses. This helps ensure its people are more than well equipped to meet the demands of an ever growing, competitive market.
TAX REGIME OF MACAU
Individual Taxation
Citizens and foreigners who establish residency in Macau enjoy tax rates that are significantly lower than those levied in other developed Asia-Pacific nations such as Japan. Beneficial tax rates also extend to citizens and foreign nationals who work in the city. Macau’s nominal per capita GDP of $70,130 was the tenth highest in the world as of 2024. While foreigners usually cannot become citizens, they can gain residency by investing in the local economy. Property taxes accrue from ownership of all residential, commercial, and industrial properties and are dependent upon assessed value or actual rental income, whichever is higher. Rental income is taxed at 10%, and a 6% rate applies to assessed value. There is no inheritance, gift, or capital gains tax in Macau, but stamp duties are levied against transfers of tangible or intangible property.Corporate Taxation
Corporations benefit from conducting business on the peninsula, as capital gains and corporate income are taxed at significantly lower rates than in European nations and the United States. The preferential tax treatment attracts numerous businesses, the majority of which are casinos that comprise a large percentage of Macau’s GDP. Corporate entities are separated into two groups. Group A companies must adhere to proper accounting measures and maintain capital levels equal to or greater than 1,000,000 MOP. Group B companies are either first-time filers or those entities that do not meet the capital requirements of group A businesses. Group B organizations are taxed on assessed profit measures, while group A entities are levied on certified tax returns submitted to the Macau Finance Bureau.TYPES OF BUSINESS STRUCTURES IN MACAU
Macau Limited Company
- Must have a minimum capital share of MOP 25,000
- Should have one director and one shareholder.
- Should have one company secretary.
- For a single shareholder, the company name should end with ‘one man limited’.
Macau Holdings Limited Company
- Must have three directors and three shareholders.
- Must have a minimum capital share of MOP 1,000,000.
- Liability limited to subscribed shareholders.
- Should have a limited value of HK$100 shares.
Macau Unlimited Company
- Should have at least two shareholders.
- No minimum registration capital required.
- Capital contribution is a must.
Macau Mixed Company
- No requirement for capital share.
- Should have two shareholders.
- One shareholder with unlimited liability and another with limited liability.
- Capital contribution required.
Macau Mixed Holdings Company
- Must have a minimum share capital of MOP 1,000,000.
- Subscription of shares required.
- Must have four shareholders.
COMPANY REGISTRATION PROCESS
Step 1: Registering a trading name.
- The first and foremost step to start a company in Macau is to apply for registering the trade name.
- One must apply to the Commercial Registry Office.
- One must fill out an application form and provide all the necessary documents.
Step 2: Submitting article of association and memorandum
- Upon receiving the trade name approval, an individual must submit the memorandum and article of association within the next two months.
- Each document must be authorized by a private or public notary.
- For authorization, one can either look for a reliable lawyer or contact the private notary of IPIM.
- The applicant’s document, along with a certified notary, also works.
Step 3: Registering the company
- For offshore company registration in Macau, an individual must submit a few essential documents within fifteen days of signing the memorandum.
- One must submit these documents to the Commercial Registry Office.
- The essential documents for company incorporation in Macau are the following:
- Verified application letter
- Company constitution documents
- Shareholders list along with identification copies.
- Appointment letter for the administrative board
- Photocopy of certified Admissibility of Trade Name.
Step 4: Applying for taxes
- Before commencing company operations, it is important to register it for taxes in the Macau Finances Services Bureau.
- For an application for taxes, these documents are needed:
- Two copies of signed and verified industrial tax forms
- Shareholder’s names with copies of their identification
- Administrative board member list
- Appointment letter for administrative board members
- Certificate of company registration
- Copy of article of association and memorandum
- Industrial tax payment receipt
Step 5: Enrolling for other services
- The final step involves the enrolment of both the employer and the employees to the Social Security Fund.
- Here, one must make quarterly payments every year.
It takes around 12 working days for the Macau Business Registration to complete the registration and issue the Company Business Certificate.
Related blogs
The countries’ service sector dominates the economy, employing about three-fourths of the total labour force. Macau is a free port, and trade is vital. Much of Macau’s imports consist of raw materials or semifinished goods for manufacturing purposes.
Author: Chandrawat & Partner
Topic: Doing Business in Macau
Contact Us
Get in touch with the right people to get the right help in setting up your business in Macau.
Contact us at: [email protected]