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Payroll In Macau

Starting A Business in Macau

Business Opportunities in Macau 

One of the primary purposes of all businesses is to expand and grow their market. With each passing day, the economy of Macau is booming. It indicates flourishing business opportunities in the country. 

Belonging to the SAR or Special Administrative Region of the People’s Republic of China, Macau’s business structure and environment are similar to Hong Kong, its neighboring country. Being a country with a free port, businesses and entrepreneurs can get easy access to shipping their products to various locations worldwide. Besides, the low taxation rates make Macau a hotspot for startups. 

The trading partners of Macau include Hong Kong, Mainland China, Japan, Switzerland, European Union, and the United States. Therefore, businesses and entrepreneurs can gradually enter these markets for better trade. Macau has signed a Closer Economic Partnership Agreement (CEPA) with Mainland China to improve the country’s economic integration. The purpose of this pact between the two countries is to strengthen their commercial and economic relations. It can help entrepreneurs to expand their trading in Mainland China as well. 

All these benefits make Macau a suitable location for doing business. However, for company registration in Macau, you must abide by the rules of the Macau government. Here is a brief guide to help you with company incorporation in Macau.

Benefits of Starting a Business in Macau 

The advantages of doing business in Macau are as follows:

Strategic positioning 

Regarding acquiring the Chinese business market, Macau is a suitable location for doing business. It is a part of the Special Administrative Region of China. Therefore, both Macau and China maintain a cordial and friendly relationship. Therefore, entrepreneurs and investors setting a company in Macau can expand their audience base and acquire renowned Chinese suppliers. 

Better legal framework 

The open economy system promoted by the Macau government allows foreigners to undergo international trade effortlessly. For the country’s economic development, entrepreneurs in Macau should follow international practices and business rules for the company registration process in Macau. 

Efficient capital markets 

The free and seamless flow of financial resources in the Macau market makes it suitable for entrepreneurs and investors to start a business here. Besides, foreign investors can get credit for their business from the local financial markets in Macau. All these allow an easy flow of capital for better business gains in Macau. 

Autonomy 

Macau became a Special Administrative Region in 1999. It happened due to the reversion of China. From then on, Macau follows a high level of autonomy in its country. The government does not intervene in every affair of the state. Therefore, businesses and entrepreneurs can manage their trade according to the benefit of their target market. 

Simple and low taxes

The low taxation system makes it suitable for entrepreneurs to start a business in Macau. The tax system of Macau can be divided into three parts – corporate tax, individual tax, and professional tax. Businesses making a profit below MOP 300,000 should pay a tax between 3% to 9%, while those making a profit of more than MOP 300,000 pays 12%. The maximum professional tax rate is 12%. 

Requirements for Starting a Business in Macau 

These are the requirements to do business in Macau: 

Work permit and visa 

One of the primary documents for Macau company incorporation requirements includes the visa. If you have to conduct business in Macau, you have to get either of the two: 

  • Get a visa on arrival from the Immigration Department at any border checkpoint in Macau. 
  • Get a Macau visa from a Chinese embassy in your native country. 

To start a business in Macau and work for a long time, you must extend your stay with the help of a work permit. In Macau, a work permit is a blue card in standard terms. 

Company name 

You must provide a valid company name for company incorporation in Macau. Further, the company’s name can be in English, Portuguese, or Chinese. Make sure to have a company name that has no connection to the existing enterprise in Macau. 

Also, choose a company name that is not offensive. Neither should it derogate the religious beliefs of any people. Once you have selected a valid company name, opt for the business name registration in Macau in the Registrar of Trade. 

Company address 

For setting up a company in Macau, it is crucial to provide a company address. The company’s address should be somewhere in Macau for proper business transactions. Along with the name of the company, get its address registered. If necessary, you can also provide a company email address and phone number. 

Taxation 

For doing businesses in Macau, paying a tax on the profits earned in Macau is necessary. The taxation system of this country is divided into corporate and professional tax. 

Businesses earning within MOP (Market Operating Price) 300,000 must pay a 3% to 9% tax. A 12% corporate tax is payable by businesses that incur a profit of more than MOP 300,000. The professional tax rate is 12%. In the case of foreign artisans and freelancers, a tax rate of 5% is levied on their income, provided they are working in Macau without a valid work visa. 

Business capital 

The business capital required to set up an offshore company in Macau depends on the type of company you establish. For a limited company, you should have a capital of MOP 25,000. On the other hand, for a limited holding company or a mixed holding company, the minimum share capital should be MOP 10,00,000. 

Directors and company secretary 

The number of directors and shareholders required to start a company in Macau depends on your chosen business entity. You need one director and one company secretary for a limited company, with three directors and three shareholders for a limited holding company. Two shareholders are a must for an unlimited and mixed company in Macau. Finally, in the case of a mixed holding company, you ought to have four shareholders. 

Types of Business Structures in Macau 

For Macau’s new company incorporation, you have to learn 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 

The steps to incorporate a company in Macau are as follows: 

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. 
  • You must apply to the Commercial Registry Office. 
  • You 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, you must submit the memorandum and article of association within the next two months.  
  • Each document has to be authorized by a private or public notary. 
  • For authorization, you 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, you must submit a few essential documents within fifteen days of signing the memorandum. 
  • You must submit these documents to the Commercial Registry Office. 
  • The essential documents for company incorporation in Macau are the following:
    1. Verified application letter 
    2. Company constitution documents 
    3. Shareholders list along with identification copies. 
    4. Appointment letter for the administrative board 
    5. Photocopy of certified Admissibility of Trade Name. 

Step 4: Applying for taxes 

  • Before commencing company operations, you must register it for taxes in the Macau Finances Services Bureau. 
  • For an application for taxes, you need these documents:
    1. Two copies of signed and verified industrial tax forms 
    2. Shareholder’s names with copies of their identification 
    3. Administrative board member list 
    4. Appointment letter for administrative board members 
    5. Certificate of company registration 
    6. Copy of article of association and memorandum 
    7. Industrial tax payment receipt 

Step 5: Enrolling for other services 

  • The final step involves the enrollment of both the employer and the employees to the Social Security Fund. 
  • Here, you have to make quarterly payments every year. 

How Much Does It Cost to Incorporate a Company in Macau? 

The cost of incorporating a company in Macau varies from one enterprise to another. You do not need any capital share to set up an unlimited or mixed company. However, in the case of mixed holding companies and holding limited companies, the cost of incorporating is MOP 10,00,000. On the other hand, for company registration in Macau, precisely for a limited company, the cost is MOP 25,000.  

Are Foreigners in Macau On Certain Passes Allowed to Start a Business in Macau?

Yes, non-residents can start a business in Macau with a work visa and work permit. To get the work permit, these are the documents required: 

  • Passport 
  • Visa
  • Passport-size photographs 
  • Purpose proof
  • Documents for accommodation 
  • Proof of economic stability to sustain in Macau 

The Macau Immigration Department takes care of the work visa. It allows foreigners from 81 countries to conduct business in Macau without a visa for a particular period. These 81 countries can stay in Macau for 14 days to a year without a visa. The number of days to stay depends on your nationality. 

Two visa options are available for foreign nationals willing to start a business in Macau – the visa on arrival and the visa through a Chinese embassy. To prepare for these visas, you must submit an application at the border checkpoint upon arriving at Macau and the respective countries, respectively. However, not all visitors can apply for this visa. 

These are the people who can apply for these visas: 

  • Foreigners visiting Macau for business purposes. 
  • Foreigners want to stay in Macau for a more extended period. 
  • Foreigners who do not belong to the list of those 81 countries are exempted from having a visa.

Government Assistance for Foreign-owned Businesses 

The government provides grants for starting a business in Macau. The Young Entrepreneurs Aid Scheme aims to motivate the youth of Macau to explore various business opportunities and benefit the economy. It offers financial assistance without any interest. 

The Science and Technology Development Fund formulates the innovation and research environment by providing financial support. Besides, the Macau government has the Small Grant Program, where the Hong Kong and Macau government provides funds to facilitate startups. 

How Multiplier Can Help 

Setting up a company in Macau involves a lot of compliance and regulations. However, employers working around  company incorporation in Macau can jump straight into hiring and managing talents, while enjoying all the benefits Macau offers. Connect with Multiplier today and enjoy the immediate benefits of doing business without the requirement of company incorporation in Macau. The team also takes up the responsibility of employing suitable talents and running payroll in a hassle-free manner.

As a comprehensive platform, Multiplier is responsible for helping you thrive in the global market. From tracking growth to entering new markets, Multiplier handles the whole process hassle-free. In addition, get a SaaS-based solution for quickly generating work permits from Multiplier. 

Frequently Asked Questions

To start a business in Macau, you must submit financial statements and annual returns to the Financial Services Department. Companies generating more than MOP 50,000 consecutively in three years should conduct yearly audits.

For better accounting records, companies in Macau should submit annual returns every year. Your company must submit all these documents to the Financial Services Department.

To start a business in Macau, companies should follow civil law. It incorporates the basic principles of the English, Chinese, Portuguese, and German standard law systems.

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