Hong Kong Services Provider - Specific Criteria

In "Mainland and Hong Kong Closer Economic Partnership Arrangement", the form of legal services provided by Hong Kong service providers has the following specific criteria:-

( A ) In addition to the legal services sector, the Hong Kong service providers providing such services in the Mainland should :-

(1)   According to the Hong Kong Companies Ordinance or other relevant regulations, for those incorporated or established and obtain a valid business registration certificate.  As if required by law, it shall obtain the relevant license to provide such service or permission.

Under the "Arrangement", it clearly states:   Overseas companies registered in Hong Kong, with its offices, liaison offices, "letterbox company" and the special one which has not established but to provide certain services for its parent company, do not belong to this annex which referred as Hong Kong service providers.

(2)   For those with substantive business operations in Hong Kong. The criterias are:-
     (i)  The nature and scope of business:   Hong Kong service providers provide services, the nature and scope.  It is intended to be included in the Mainland, the nature and scope of services provided.

     (ii) Accumulated years:   Hong Kong service providers should have been incorporated or established in Hong Kong and engaged in substantive business operations for three years (including 3 years) or above, wherein:

        (a) it provides construction and related engineering services.  Hong Kong service providers should have been incorporated or registered in Hong Kong and engaged substantive business operations for 5 years ( including 5 years ) or more ;
        (b) it provides real estate services.  Hong Kong service providers which engaged in substantive business operations in Hong Kong has no restrictions in the number of years ;
        (c) the provision of banking and other financial services ( excluding insurance and securities ) of the Hong Kong service providers, namely the Hong Kong bank or financial companies, it should be under the Hong Kong Monetary Authority and is subject to "Banking Ordinance" after the granting of the license.   It engaged in substantive business operations in five years ( including 5 years ) or more ;
        (d) the provision of insurance and related services in Hong Kong, such kind service providers, namely the Hong Kong insurance companies, it should be registered in Hong Kong, and engaged in and with substantive business operations for 5 years ( including 5 years ) or more.

            Note:           Since the effective date of "Arrangement", the service provider other than the parties through acquisitions or mergers, obtained more than 50% equity interest for one year was acquired or merged, the acquired or merger one which provided service was regarded as services provider in Hong Kong.

   (iii) Income taxes:   Hong Kong service providers which engaged in and with substantive business operations in Hong Kong are subject to profits tax under the law.
   (iv) Business premises:   Hong Kong service providers in Hong Kong should own or rent business premises that engage substantive business operations, and its business premises should be in consistent with its business scope and scale.   To provide maritime transport services in Hong Kong, the service providers have gross tonnage which should be more than 50% ( including 50% ) in Hong Kong for being registered.
   (v) Employees:   There is no restriction on the residence of employees that employed by Hong Kong service providers, no matter it is local residents or one-way.   But permissions are granted to those which have fom the Mainland are over 50% of its workforce.

( B )  The legal services sector in Hong Kong law firm ( company ) , the applicant should provide the service in the Mainland :

  • (1)  According to the relevant laws of the Special Administrative Region of Hong Kong, law firm (company) established and obtained a valid Business Registration Certificate.
  • (2)   The law firm (company ) of the sole proprietor and all partners should be registered as a practicing solicitor in Hong Kong.
  • (3)   The law firm (company) should be the main scope of business in Hong Kong to provide local legal services.
  • (4)   The Law Firm (company) or a sole proprietor or partner, it shall be subject to profits tax under the law.
  • (5)   The Law Firm (company), it should be engaged in and with substantive business operations in Hong Kong for more than 3 years (including 3 years).
  • (6)   The law firm (company) should be in Hong Kong, owned or rented business premises with engagement in substantive business operations.