China Releases Circular Concerning CEPA Implementation

October 16, 2012 Posted by China Briefing Reading Time: 3 minutes

Oct. 16 – China’s Ministry of Culture (MOC) released the “Circular Concerning the Issues on Implementing the ‘Ninth Supplement to the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA)’ and the ‘Ninth Supplement to the Mainland and Macau CEPA’ (shiwenhan [2012] No.1916, hereinafter referred to as ‘Circular’)” on September 27, 2012. The Circular is scheduled to take effect on January 1, 2013.

Issues concerning the implementation of the Ninth Supplements are hereby notified as below:

Service providers of Hong Kong and Macao are permitted to establish wholly-invested internet service business premises in the mainland. Applications for setting up wholly-invested internet service business premises shall be submitted to the local administrative departments of culture above the county level for examination and approval. The establishment conditions and application process shall be carried out according to the “Regulations on the Administration of Business Premises for Internet Services” as well as the relevant policies, and the examination results shall be delivered to the administrative departments of culture at provincial level for record.

Service providers of Hong Kong and Macao are permitted to establish wholly-invested entertainment places in the pilot areas of Qianhai, Shenzhen and Hengqin, Zhuhai. Applications for wholly-invested entertainment places shall be submitted to the Guangdong Provincial Department of Culture for examination and approval. The establishment conditions and application process shall be carried out according to the “Regulations on the Administration of Entertainment Places” as well as the relevant policies, and the examination results shall be delivered to the MOC for record.

Service providers of Hong Kong and Macao are permitted to establish jointly-invested performance troupes controlled by the mainland party in the mainland. Applications for setting up performance troupes shall be submitted to the local administrative departments of culture at the provincial level for examination and approval. The establishment conditions and application process shall be carried out according to the “Regulations on the Administration of Commercial Performances” as well as relevant policies, and the examination results shall be delivered to the MOC for record.

Dezan Shira & Associates is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in emerging Asia.

For further details or to contact the firm, please email china@dezshira.com, visit www.dezshira.com, or download the company brochure.

You can stay up to date with the latest business and investment trends across China by subscribing to The China Advantage, our complimentary update service featuring news, commentary, guides, and multimedia resources.

Related Reading

Hong Kong and Singapore Holding Companies
In this issue of China Briefing Magazine, we take a closer look at the benefits of both Hong Kong and Singapore holding companies, how to establish and maintain a company in each of these jurisdictions, and the relevant double tax agreements.

Hong Kong City Guide
Asia Briefing’s complimentary Hong Kong City Guide is designed for the investor seeking a general overview of one of the world’s most dynamic regions and a key pillar in today’s global economy. Hong Kong has been a major beneficiary of China’s changing economic policy over the past few decades and local authorities have big plans for infrastructure investments and development zones to make the city’s economy even stronger.