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09 November 2017
Private Client & Offshore Services Macau
In the advent of the transfer of sovereignty over Macau from Portugal to China, the then-Macau Territory was bestowed with an offshore regime (Decree-Law 58/99/M, October 18 1999, effective November 1 1999) boasting a comprehensive list of 20 offshore activities of commercial and auxiliary services allowed in Macau, including:
Being close to Hong Kong and mainland China, Macau initially attracted many businesses wishing to set up offshore activities. However, in 2005 the allure of the offshore regime was greatly reduced for new investors(3) after a decision by Macau's chief executive(4) regarding the removal of the following 12 activities from the list:
Since then, the offshore regime has been long neglected by new investors. According to Statistics and Census Service press releases regarding quarterly company statistics, the number of existing commercial offshore companies has been slowly on the decline:
End of year |
Number of commercial offshore companies |
Reduction, year on year |
2014(5) |
480 |
9 |
2015(6) |
472 |
8 |
2016(7) |
453 |
19 |
Just as many began to believe that offshore activity was a sunset industry, Macau's mandate to become a commercial and trade cooperation service platform between China and Portuguese-speaking countries came into play.
On September 18 2017 the Dispatch of the Chief Executive 323/2017 was published in the Official Gazette, citing that "considering the necessity to update the list of the offshore activities of commercial and auxiliary services allowed in the Macau Special Administrative Region", and "on the proposal of the Macao Trade and Investment Promotion Institute", the chief executive of Macau decreed that:
"the list of the offshore activities of commercial and auxiliary services attached to Dispatch 236/GM/99, October 29, as amended by Dispatch of the Chief Executive 205/2005, is substituted with the list attached to the present dispatch and of which it forms an integral part."
As a result, the list now comprises:
Although the exact extent of the new addition regarding trade in goods and services between China and Portuguese-speaking countries is yet to be tested and its effects assessed, it is arguably one of the single most favourable policies that the government has put forth for the development of Macau in order to become a commercial and trade cooperation service platform between China and Portuguese-speaking countries.
For further information on this topic please contact Pedro Cortés or Calvin Tinlop Chui at Rato, Ling, Lei & Cortés Advogados by telephone (+853 2856 2322) or email (cortes@lektou.com or chui@lektou.com). The Rato, Ling, Lei & Cortés Advogados website can be accessed at www.lektou.com.
Endnotes
(1) Article 12(1) of Decree-Law 58/99/M, October 18 2017, see http://bo.io.gov.mo/bo/i/99/42/declei58_en.asp#a12.
(2) Article 12(5) of Decree-Law 58/99/M, October 18 2017, see http://bo.io.gov.mo/bo/i/99/42/declei58_en.asp#a12.
(3) The companies, having been duly authorised to exercise offshore activities, are not affected by subsequent amendments to the list and can continue to operate within their scope of activities.
(4) Dispatch of the Chief Executive 205/2005, see http://bo.io.gov.mo/bo/i/2005/24/despce.asp#205.
(5) Company statistics for the fourth quarter 2014, see www.gcs.gov.mo/showNews.php?PageLang=C&DataUcn=85875.
(6) Company statistics for the fourth quarter 2015, see www.gcs.gov.mo/showNews.php?DataUcn=96698&PageLang=E.
(7) Company statistics for the fourth quarter 2016, see www.gcs.gov.mo/showNews.php?DataUcn=108540&PageLang=E.
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