Macao's financial and legal sector is undergoing a long and difficult phase of legislative change, as a result of which two laws have already been adopted and two more are under development. It is expected that such development will attract the attention of investors and increase the number of people who potentially would like to open a company for financial services in Macau or create a large business related to innovative technologies and register a company for fintech in Macau.
Several new innovative organizations related to operations with financial assets have already entered and successfully operating at the local market.
Let's take a closer look at legal developments, as well as the characteristics of young companies in the financial sector.
Over the past two years, the local legislature has enacted the following laws to strengthen international financial cooperation and economic stability in Macau:
- A law that simplifies the calculation of compensation due to depositors by moving from “full offset” to a “gross payments” approach;
- A law that provides opportunities for inclusion in the list of non-EU countries on tax issues. All permits for offshore companies expire in early 2021.
In addition, the Macao government has approved the following bills designed to stimulate economic diversification and stimulate the development of the financial leasing industry:
- Draft scheme of tax benefits for the law on financial leasing, which provides for stamp duty and income tax exemption in order to attract entities that could register financial companies in Macau to establish a leasing business;
- Draft Law on Financial Leasing Companies, which:
- redefines financial leasing companies from "credit institutions" to "financial institutions" subject to simplified regulation;
- provides a legal definition of "subsidiaries" for financial leasing;
- reduces the requirements for the authorized capital for the establishment of a financial leasing company;
- sets fines to protect the law.
The Macau authorities are determined to further develop the banking and financial sector to attract business people willing to pursue an innovative financial business and persuade them to register a fintech company in Macau. Additional steps will be taken to address the challenges posed by international financial activities.
We also draw your attention to the fact that IQ Decision UK specialists have a profound knowledge of the Asian financial landscape and are ready to advise clients on company registration in Macau, provide assistance at each stage of company registration in China or Macau, and provide other related professional services.