Under CEPA, service suppliers in Hong Kong enjoy preferential treatment when setting up business in most service sectors in the Mainland. Many of these are sectors in which Hong Kong has competitive advantages. 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.
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.