Be The First Mover While It's Still In The Primitive Stage!
The Government of
the Hong Kong Special Administration Region (HKSAR) and the Central
People's Government (CPG) reached agreement on the main parts of the
Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) on
29 June, 2003, and signed the CEPA on the same day.
Hong Kong companies will
benefit in 3 areas:
Trade in goods
subject to rules of origin
Trade in services
Trade and
investment facilitation
Economic benefits include:
Zero import tariff
preference, especially for Hong Kong brand name products
"First Mover"
advantage for service providers from WTO-plus market liberalization
measures
Greater access
into the Mainland market
Definition of "Hong Kong
company":
Incorporated in
Hong Kong
Paying profits tax
in Hong Kong (unless exempted)
Length of
operations in Hong Kong
Size and nature of
operations in Hong Kong
Proportion of
staff employed in Hong Kong
While details of
implementation are still under way, it will certainly be advantageous to
be the "First Mover" to benefit from the Arrangement.
We, in Hong Kong,
are ready to help our Clients in setting up Hong Kong companies and
advise them on the proper procedure in deriving full benefits from the
CEPA. Please contact us for details.
