Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA) Trade in Services Under CEPA, service suppliers in Hong Kong enjoy preferential treatment when setting up business in various service sectors in the Mainland. Many of these are sectors in which Hong Kong has competitive advantages. The liberalisation measures under CEPA provide Hong Kong service suppliers with preferential access to the Mainland market. The preferential treatment takes various forms, including allowing wholly-owned operations, relaxing restrictions on equity shareholding, reducing registered capital requirements, relaxing restrictions over geographical location and business scope, etc. Hong Kong Service Supplier (HKSS) Both "natural persons" and "juridical persons" of Hong Kong can enjoy preferential treatment offered by the Mainland if they fulfil the definition of HKSS under CEPA. HKSS as a "natural person" means a Hong Kong permanent resident, whereas HKSS as a "juridical person" means any legal entity duly constituted or otherwise organised under applicable laws of Hong Kong (i.e. corporation, partnership, sole proprietorship, etc.) and which has engaged in substantive business operations in Hong Kong for 3 to 5 years. Service supplier as a juridical person should apply to the Trade and Industry Department for a
HKSS Certificate, and then apply to relevant Mainland authorities for providing services in the Mainland with CEPA treatment. Service supplier who wants to enjoy the CEPA treatment as a natural person is not required to apply for a HKSS Certificate. Frequently Asked Questions (Updated)
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Last revision date: 26 January 2012