Macau Company Incorporation

Macau is a commercial city with a very open economy, advantageous geographic location and complete infrastructure. Macau is also a free port without exchange controls, and funds can flow in and out freely; thus many investors have been attracted to invest in Macau.  · Stable financial system

· Satisfactory trading environment

There is no special restriction on Macau company incorporation, and Macau practices a low taxation rate system, with limited items of taxation. In recent years, favorable factors have been increasing in Macau, and economic environment has met sustained development, in particular, hospitality and tourism, which drove the rise of Macau's economy, and the international community showed increasing confidence concerning investment in Macau. At the same time, Macau is also one of the freest and most open regions for global trade and investment.

Advantages

  · Low taxation rate system and low operating cost

  · Is a potential offshore service center

  · Is a platform for economic and trading cooperation between mainland China and Portuguese-speaking countries

Macau Companies Can be Divided into Two Major Categories, as Follows

  · Macau local company

  · Macau offshore company

Types of Macau Local Company

  · Personal commercial enterprise

  · Corporate commercial enterprise

  · Economic interest group  

Taxation on Macau Local Company

· Basic Period

from January to December of each year

· Business Tax

Corporate enterprises or individual persons that operate any industrial and commercial activities shall be subject to business tax at the taxation rate determined according to business operation, generally at a sum of MOP 300 (or USD 37.5)

· Profits Complementary Tax (Income Tax)

Profits from industrial and commercial business operations is subject to income complementary tax, at a taxation rate of 3%-12%  

Taxation Period

Taxation of not more than MOP 3,000 shall be fully paid in September. Taxation more than MOP 3,000 shall be paid in two installments between September and November. In case of taxation paid by installment, a default in payment of the first installment of taxation within September as provided will cause overdue interest and 3% of unpaid taxation levied additionally, and will cause the second installment of taxation to become due immediately.  

Social Security Fund

Employers shall contribute MOP 30 per month for native employees who shall contribute MOP 15 per month. Employers shall contribute MOP 45 per month for non-native employees who shall contribute nothing.   

Macau Offshore Company Incorporation

Macau offshore company means a Macau company operating outside of the Macau region. Benefits for this kind of company include exemption from profits tax, business tax, stamp duty, and offshore company management and technical professionals who are approved to reside in Macau can be exempt from salary tax for the first 3 years of employment in an offshore company, etc.

Offshore companies can be engaged in the following offshore services: information equipment consulting, information consulting and programming, information handling, database business, administrative and archive supporting business, research and development business, technical test and analysis business, ship and aerial equipment & material operation and management services.  

Requirements to Operate Offshore Business

  · Application for transaction and settlement currency other than MOP

  · Sales targeted to non-Macau residents

  · Market oriented to non-Macau regions  

Government Fee

Offshore organizations approved to operate in Macau need to pay establishment fee of MOP 5,000 to relevant governmental authority, and pay semiannual operating fee ranging from MOP 5,000 to 15,000 (applicable to offshore business service organizations), or from MOP 3,000 to 10,000 (applicable to offshore auxiliary service organizations).  

Required Information and Time for Incorporation

  · Chinese and English names of company

  · Copies of ID cards or passports of shareholders and directors

  · Copies of ID cards or passports of relevant staff

  · Registered address of company

  · Registration of Macau local or offshore company   (requires about 3 to 4 weeks)  

If you would like further information concerning Macau Company Incorporation, please contact our professionals and we will provide you with free advisory