Is a licence required for Forex activities in China?
China's economy ranks second in the world after the USA in terms of nominal GDP. It has had a tendency to developing for quite a while now. In this regard, the question of how to get a Forex licence in China is relevant.
The nuances of obtaining a licence in China
According to the laws, Forex is not subject to increased regulation in the country. Therefore, there are no mandatory conditions for registration of Forex activities in China. It is profitable to develop this type of business in Hong Kong.
The administrative district is considered one of the world's major economic centers that includes about 190 banks. There are several levels of banks, such as those with a full license, limited permission and deposit organizations. All businesses must follow the rules established by the Monetary Authority.
Taking into account that Hong Kong is a region with its own laws, Forex activities are regulated at the level of this legislation. Before obtaining a licence, it is mandatory to register a company that will operate in the Forex market, as well as collect the following documents:
- The Charter of the company;
- Local papers of the company;
- All business conditions;
- Principles of the Company's operation.
A licence may be issued only by creditworthy organizations distinguished by reliability and a positive reputation. If you need a licence, feel free to contact our specialists at IT-OFFSHORE.
Before applying for a licence, it is recommended to familiarize yourself with a number of requirements. For a small licence, the smallest share capital contribution must be at least 5 million and for a full - one 30 million. The company must have one director and it is obligatory to have a legal office within the jurisdiction. The firm must be audited annually and report on its financial results.
Nuances of company incorporation
Registering a company in Hong Kong in the financial services sector is particularly beneficial. Due to the fact that the district is the financial center of Asia, many local institutions are able to raise their capital and conduct transactions in this jurisdiction. Hong Kong is expected to play a key role in raising capital, including bond issues and the private equity sector.
The Hong Kong government promotes innovation in financial services. The financial services sector is considered one of the liberalized fields. Companies operating in the financial sector can obtain a licence to operate fully. A personal presence is not always necessary to start a company. Learn more about accounting, auditing and brokerage firm registration from our experts at IT-OFFSHORE.
The pros and cons of doing business in China
Over the past few years, China has become a relevant place for international companies. The country's economy holds second place in the world, annually growing indicators of trade turnover, GDP, and investment.
It is especially advantageous to conduct business in Hong Kong, as the district has low-profit tax rates and a loyal tax system. The district works closely with mainland China and also has a high level of intellectual property protection. The district has many international banks. The economic situation is stable.