VITA LIBERTA
type: channel
date: 2026-05-07T13:16:51Z
update period: hourly
update frequency: 1
update base: 2000-01-01T12:00+00:00
items: Hong Kong SMEs Hit Record Growth: CPA Australia Data
items: Hong Kong Maintains Position in Global Financial Rankings, Securing Top-3 Status Among World Centers
items: Corporate Income Tax (CIT) in China: Principles, Rates, and Compliance
items: Contribution of Registered Capital to Companies in China: Evolution of Requirements and Strategic Planning After the 2024 Reform
items: Key Risks After Obtaining a Work Permit and Residence Permit in China
items: Company Registration Procedure for Foreign-Invested Enterprises in China
items: How a Foreign Investor Can Obtain a Visa and Residence Permit in China as Founder and Director of Their Own Company
items: Launching a Business in China: Where to Start to Avoid Risks
items: Hong Kong Allocates $200 Million to Boost SME Competitiveness
items: China vs. Hong Kong: Where to Start a Business to Avoid Drowning in Rules and Still Make Money

Hong Kong SMEs Hit Record Growth: CPA Australia Data
type: item
creator: Pavel
date: 2026-05-07T13:16:48Z
subject: Legal and Business News
description: The Hong Kong Special Administrative Region is witnessing an unprecedented surge in the small and medium-sized enterprise (SME) segment. According to the annual survey conducted by CPA Australia, 68% of respondents reported positive business momentum in 2025 — the strongest performance in a decade. 2026 Outlook: Historic Confidence Highs Business sentiment remains robust in the […]
encoded: The Hong Kong Special Administrative Region is witnessing an unprecedented surge in the small and medium-sized enterprise (SME) segment. According to the annual survey conducted by CPA Australia, 68% of respondents reported positive business momentum in 2025 — the strongest performance in a decade. 2026 Outlook: Historic Confidence Highs Business sentiment remains robust in the medium term. The survey revealed record expectations: 71% of SME representatives plan to scale operations in 2026, while 76% forecast accelerated economic growth for Hong Kong itself. These figures represent the highest levels ever recorded in the history of this study. Three Pillars of Success for Hong Kong SMEs Experts identified key factors driving sustainable growth: • Financial stability. Hong Kong ranked first among all surveyed markets on this metric, demonstrating exemplary capital and reserve management. • Technology investments. 64% of enterprises attribute profitability gains to digital infrastructure spending. Artificial intelligence receives particular focus: 40% of local entrepreneurs are already allocating resources to AI-based solutions. • Cybersecurity strengthening. Notable progress has been made in digital hygiene: the share of companies suffering losses from cyber incidents dropped from 72% to 43% in 2025. Challenges Requiring Attention Despite the overall positive outlook, respondents highlighted two systemic issues: → Rising labour costs. For 42% of companies, increased payroll expenses became the primary operational challenge (up from 35% a year earlier). → Cyber risks. Information security threats continue to concern nearly 60% of survey participants — significantly above the sample average of 42%. Hong Kong’s SME sector is entering a phase of confident post-crisis recovery, underpinned by financial discipline and accelerated digitalisation. Record business optimism for 2026 reflects high entrepreneur confidence in the SAR’s economic policy. Meanwhile, the ability to e…

Hong Kong Maintains Position in Global Financial Rankings, Securing Top-3 Status Among World Centers
type: item
creator: Pavel
date: 2026-04-24T13:21:55Z
subject: Legal and Business News
description: According to the 39th edition of the prestigious Global Financial Centres Index (GFCI), Hong Kong has confirmed its status as one of the key nodes in the global financial system, retaining third place worldwide with a final score of 765 points. Narrow Gap with Global Leaders The competition at the top of the ranking remains […]
encoded: According to the 39th edition of the prestigious Global Financial Centres Index (GFCI), Hong Kong has confirmed its status as one of the key nodes in the global financial system, retaining third place worldwide with a final score of 765 points. Narrow Gap with Global Leaders The competition at the top of the ranking remains extremely tight. The margin between Hong Kong and the list leaders is measured in single digits: just two points behind first-place New York, and one point behind second-place London. Meanwhile, the Special Administrative Region continues to dominate the Asia-Pacific region, outpacing its closest regional competitor — Singapore. A detailed breakdown of sectoral sub-indices highlights the strengths of Hong Kong’s financial ecosystem: Leadership in Core Financial Segments World No. 1: Banking, insurance, and financial technologies (FinTech); Second place globally: Investment and asset management; Fourth place: Quality of government regulation and institutional environment; Sixth place: Professional services and trading infrastructure. Growth Outlook: Rising Influence in the Medium Term The current GFCI edition conducted a comprehensive assessment of 120 financial centers worldwide. Based on surveys of international experts and market participants, Hong Kong was included in the shortlist of jurisdictions whose role in the global financial architecture is expected to strengthen over the next 2–3 years. Stable retention of third place in the global rankings, dominance in the high-tech FinTech segment, and high scores across key industrial sectors confirm that Hong Kong possesses fundamental resilience. Even amid intensifying geopolitical and economic competition, the city continues to adapt to new challenges while maintaining its appeal for international investors, banks, and technology companies.

Corporate Income Tax (CIT) in China: Principles, Rates, and Compliance
type: item
creator: Виталий
date: 2026-04-20T06:29:18Z
subject: Blog
subject: Business in China
description: Corporate Income Tax (CIT), also referred to as Enterprise Income Tax (EIT), is the main direct tax for most companies earning income in China. The legal basis is the Law of the People’s Republic of China “On Corporate Income Tax”, which regulates in detail the procedure for determining and taxing profits. Calculation principle and tax […]
encoded: Corporate Income Tax (CIT), also referred to as Enterprise Income Tax (EIT), is the main direct tax for most companies earning income in China. The legal basis is the Law of the People’s Republic of China “On Corporate Income Tax”, which regulates in detail the procedure for determining and taxing profits. Calculation principle and tax base CIT is levied on the company’s net profit for the financial year, which is the difference between total revenues and allowable deductible expenses. Thus, the taxable base is adjusted gross income after taking into account all reasonable and documented costs, as well as losses carried forward from previous periods. Key rates and benefits The basic (standard) CIT rate is 25%. However, the system provides for an extensive network of preferences aimed at stimulating technological development and regional growth: Nationwide benefits: For high-tech enterprises (HNTEs) and new type of maintenance enterprises, the rate is reduced to 15%. Small, low-profit businesses can apply an effective rate of 5% or 10% to a portion of their annual profits. Regional Benefits: Special Administrative Zones (e.g. Hainan Free Trade Port, Shanghai Lingang New Zone, Qianhai Cooperation Zone) offer incentive companies with real economic activity (operational substance) a rate of 15% for a certain period. <img fetchpriority="high" decoding="async" width="1190" height="1657" src="https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-key-corporate-income-tax-cit-rates-and-benefits-in-china.webp" alt="" class="wp-image-33886" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-key-corporate-income-tax-cit-rates-and-benefits-in-china.webp 1190w, https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-key-corporate-income-tax-cit-rates-and-benefits-in-china-215x300.webp 215w, https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-key-corporate-income-tax-cit-rates-and-benefits-in-china-735x1024.webp 735w, https://www.vitaliberta.hk/wp-content/up…

Contribution of Registered Capital to Companies in China: Evolution of Requirements and Strategic Planning After the 2024 Reform
type: item
creator: Виталий
date: 2026-04-10T04:25:56Z
subject: Blog
subject: Business in China
description: Registered Capital, as stipulated in the company’s constitutional documents and recorded in the register of the State Administration for Market Regulation (SAMR), is not merely a formal figure. It represents a legal obligation of the founders towards the company and its creditors, a fundamental guarantee of the financial soundness of the business entity. The requirements […]
encoded: Registered Capital, as stipulated in the company’s constitutional documents and recorded in the register of the State Administration for Market Regulation (SAMR), is not merely a formal figure. It represents a legal obligation of the founders towards the company and its creditors, a fundamental guarantee of the financial soundness of the business entity. The requirements for its contribution in China have undergone a significant transformation, reflecting the pendulum of state policy between stimulating entrepreneurial activity and protecting market stability. Historical Context and Essence of the 2024 Changes Before 2013, China operated under a system requiring founders to contribute capital within strictly defined timelines and with minimum thresholds. The liberal reform of 2013 abolished both the deadlines and minimum amounts for most industries, transferring the process to the discretion of shareholders. This led to a boom in company registrations but also gave rise to risks associated with “shell” companies. The new revision of the PRC Company Law, which came into effect on July 1, 2024, marks a return to a regulated model, but in an updated format. The key innovation is the reinstatement of a fixed maximum term for the full payment of the registered capital. According to the amendments, founders are obligated to fully fulfill their financial obligations, as stipulated in the company’s articles of association, within 5 years from the date of the company’s state registration. This rule is mandatory and aims to strengthen the creditworthiness of businesses from the moment of their establishment. <img loading="lazy" decoding="async" width="1190" height="1805" src="https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-registered-capital-in-china_-evolution-of-rules.webp" alt="" class="wp-image-31230" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/04/1.-registered-capital-in-china_-evolution-of-rules.webp 1190w, https://www.vitaliberta.hk/wp-content/u…

Key Risks After Obtaining a Work Permit and Residence Permit in China
type: item
creator: Виталий
date: 2026-04-06T09:41:42Z
subject: Business in China
subject: Blog
description: From Formal Status to Sustainable Residence Obtaining a work permit and a residence permit in China is a crucial milestone, marking your formal recognition as a foreign expert. However, this stage should be viewed not as a final goal, but as an entry point into the ecosystem of regulated long-term relations with the government bodies […]
encoded: From Formal Status to Sustainable Residence Obtaining a work permit and a residence permit in China is a crucial milestone, marking your formal recognition as a foreign expert. However, this stage should be viewed not as a final goal, but as an entry point into the ecosystem of regulated long-term relations with the government bodies of the People’s Republic of China. After receiving the documents, a period of active interaction with the system begins, within which your legality ceases to be a static fact and becomes a dynamic process requiring constant confirmation. The risks at this stage are predominantly administrative and predictable: they arise not from ignorance of the rules, but from a lack of understanding of the depth and interconnections of the requirements, as well as from the false assumption that the issued documents have a “permissive” rather than a “declaratory” nature in the long term. The key challenges are associated with the need to continuously demonstrate: The economic viability of your stay for the Chinese economy. Full tax and regulatory compliance, both for you personally and for the sponsoring company. Actual and continuous integration into the country’s legal framework, including adherence to immigration deadlines. In Zhejiang Province, as in other developed regions, these requirements are formalized in clear, but not always publicly advertised procedures. Consequently, the strategy for successful long-term residence lies in transitioning from a reactive response to authorities’ requests to the proactive formation of one’s administrative dossier, anticipating the logic of the inspecting bodies. Risk of Losing Residence Permit Due to Prolonged Absence from China Holders of a work-type residence permit must consider the most important immigration rule concerning the continuity of residence. According to clause XVI.3 of the typical guidelines of Zhejiang Province (as well as similar provisions in other regions), continuous stay outside of Chi…

Company Registration Procedure for Foreign-Invested Enterprises in China
type: item
creator: Виталий
date: 2026-03-23T10:09:17Z
subject: Blog
subject: Business in China
description: Just ten years ago, the procedure for establishing a foreign-invested company in China resembled navigating a labyrinth with many closed doors. The foreign investor was forced first to find the “right key” – a special permit – and only then received the right for their company to exist in the form of a business license. […]
encoded: Just ten years ago, the procedure for establishing a foreign-invested company in China resembled navigating a labyrinth with many closed doors. The foreign investor was forced first to find the “right key” – a special permit – and only then received the right for their company to exist in the form of a business license. This approach, burdened by barriers inherited from the era of “opening up,” created a field of uncertainty and significant time costs at the start. The situation has undergone a radical transformation. Today, China offers foreign capital not a labyrinth but a clear and largely standardized registration roadmap, fundamentally changing the regulatory philosophy. The introduction in 2020 of the Foreign Investment Law (FIL) became not merely a legal reform but a symbolic “reboot” of the system, replacing three different sets of rules for various types of enterprises with one common standard. The modern process can be characterized by three key principles: Universality: Regardless of whether the company is a joint venture or wholly foreign-owned, the basic registration process follows unified rules. “License First”: The company is legally born at the moment the business license is issued, allowing for quick market entry, while necessary industry-specific permits are obtained in parallel or afterwards. Transparent Boundaries: The main reference point for an investor is the “Negative List” – an exhaustive and publicly available list of industries with restrictions. If the business sector is not included in it, the path to registration is maximally straightforward and comparable to the procedure for a Chinese investor. This article serves as a detailed navigator through this updated system. We will break down the standard registration procedure step by step, explain the logic behind the “Negative List,” and highlight special scenarios for large-scale projects requiring capital construction. Understanding this structure is the first and decisive step toward t…

How a Foreign Investor Can Obtain a Visa and Residence Permit in China as Founder and Director of Their Own Company
type: item
creator: Виталий
date: 2026-03-20T15:07:51Z
subject: Blog
subject: Business in China
description: Step-by-Step Guide 2026: From Company Registration to an R Visa and Permanent Residence The Core Problem: “I established a WFOE in China. Now I want to come, become its General Director, manage the business, and live here with my family. But Ministry of Foreign Affairs staff say: you cannot work in your own firm—you are […]
encoded: Step-by-Step Guide 2026: From Company Registration to an R Visa and Permanent Residence The Core Problem: “I established a WFOE in China. Now I want to come, become its General Director, manage the business, and live here with my family. But Ministry of Foreign Affairs staff say: you cannot work in your own firm—you are the founder! Where is the logic in this?” Such inquiries are among the most frequent from foreign entrepreneurs. The answer: you can—but only on the condition of absolute legal clarity of the structure and adherence to 12 critical steps. Otherwise: permit denial, fines, deportation, entry ban. Introduction: A Unique Status – A Unique Procedure A foreign investor who is simultaneously the founder (shareholder) of a Chinese company and plans to hold a senior management position within it (e.g., General Director, Director, Board Member) faces a specific legal and administrative situation. Their status combines two key roles: business owner (investor/owner) and employee (hired worker). Chinese legislation clearly separates these concepts, and for lawful residence and work in China, it is necessary to meet the requirements for each of them. <img loading="lazy" decoding="async" width="1609" height="1533" src="https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities.webp" alt="" class="wp-image-23777" srcset="https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities.webp 1609w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-300x286.webp 300w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-1024x976.webp 1024w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-eyes-of-chinese-authorities-768x732.webp 768w, https://www.vitaliberta.hk/wp-content/uploads/2026/03/1.-_investor_-_worker_-in-the-ey…

Launching a Business in China: Where to Start to Avoid Risks
type: item
creator: Виталий
date: 2026-03-16T12:02:44Z
subject: Business in China
subject: Blog
subject: Registration, liquidation of companies
description: The idea of opening a company in China is inspiring: new niches are formed here annually—from digital services and biotechnologies to the export of premium goods and green-tech solutions. The market actively supports innovation, and the growth of domestic demand makes the PRC attractive not only for industrial investments but also for agile projects. However, […]
encoded: The idea of opening a company in China is inspiring: new niches are formed here annually—from digital services and biotechnologies to the export of premium goods and green-tech solutions. The market actively supports innovation, and the growth of domestic demand makes the PRC attractive not only for industrial investments but also for agile projects. However, it is important to remember: without the correct registration of a legal entity, any commercial activity by a foreigner is considered illegal. Even preparation for market entry requires compliance with the established procedure—starting from choosing the legal form and ending with tax registration. What You Need to Know Before Registering a Company in China Since 2020, the procedure has become simpler thanks to the Foreign Investment Law and the digitalization of public services: for example, registration through the One-Stop Service allows submitting documents to the SAMR, tax authorities, and bank within a single process. But simplification does not cancel responsibility. Mistakes at the stage of choosing the structure (for example, an attempt to conduct direct sales through a representative office) can lead to the suspension of activities and fines. Business Structure Options for Foreigners As of 2026, the legislation of the PRC allows the following forms of presence: Representative Office – suitable only for marketing, research, and logistical coordination. Direct commercial activity is prohibited (clause 5 of the Regulations on Representative Offices of Foreign Enterprises, SAMR, 2023). Wholly Foreign-Owned Enterprise (WFOE) – fully foreign-owned capital, the ability to conduct business, hire staff, and receive profits. The most popular form for long-term presence. Legal entity with a Chinese partner (Joint Venture) – today it is used rarely and only for operational reasons (for example, access to licensed spheres: telecom, education). The form 中外合资企业 as mandatory has been abolished. The choice depends on …

Hong Kong Allocates $200 Million to Boost SME Competitiveness
type: item
creator: Pavel
date: 2026-03-04T12:27:37Z
subject: Legal and Business News
description: The Government of the Hong Kong Special Administrative Region has announced a comprehensive support package aimed at enhancing the resilience and competitiveness of local small and medium-sized enterprises (SMEs), with total targeted funding amounting to USD 200 million. Key Support Areas Under this initiative, the subsidy cap for the BUD Fund (Special Fund on Branding, […]
encoded: The Government of the Hong Kong Special Administrative Region has announced a comprehensive support package aimed at enhancing the resilience and competitiveness of local small and medium-sized enterprises (SMEs), with total targeted funding amounting to USD 200 million. Key Support Areas Under this initiative, the subsidy cap for the BUD Fund (Special Fund on Branding, Upgrading and Domestic Sales) will be raised to USD 150,000 per application, encouraging companies to invest in brand development, digital transformation, and expansion into new sales markets. Special emphasis is placed on technological modernization: enterprises adopting artificial intelligence-based solutions will receive priority, tailored assistance from regulators. Insurance Protection and Guarantee Mechanisms To mitigate export risks, the Hong Kong Export Credit Insurance Corporation (HKECIC) will launch a pilot insurance program this year covering transactions with counterparties in high-risk jurisdictions — exclusively for SMEs. Concurrently, the SME Financing Guarantee Scheme is being expanded: Application deadline for the 80% Guarantee Product extended to 31 March 2028; Main scheme open for applications until mid-November 2026; Total credit guarantee capacity increased by USD 20 billion, providing additional liquidity access for thousands of businesses. Support for the Food Sector The Centre for Food Safety has waived certification fees for food products for a two-year period to reduce operational costs for manufacturers and distributors. By mid-2026, a new unified brand for local agricultural and fisheries products will be introduced, backed by an integrated quality control system featuring independent testing, certification, and end-to-end supply chain traceability.

China vs. Hong Kong: Where to Start a Business to Avoid Drowning in Rules and Still Make Money
type: item
creator: Виталий
date: 2025-12-30T12:26:10Z
subject: Blog
subject: Business
subject: Business in China
description: Starting a business in mainland China and in Hong Kong are not the same thing at all. Mainland China offers direct access to the market, factories, logistics, and domestic demand. Hong Kong often functions as a convenient international platform: a company for contracts, payments, holding, and trade with the world — including China — without […]
encoded: Starting a business in mainland China and in Hong Kong are not the same thing at all. Mainland China offers direct access to the market, factories, logistics, and domestic demand. Hong Kong often functions as a convenient international platform: a company for contracts, payments, holding, and trade with the world — including China — without constantly battling currency restrictions and local bureaucracy. China and Hong Kong: Business Specifics <img loading="lazy" decoding="async" width="1024" height="992" src="https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-1024x992.png" alt="" class="wp-image-16622" srcset="https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-1024x992.png 1024w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-300x291.png 300w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-768x744.png 768w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_-155x150.png 155w, https://www.vitaliberta.hk/wp-content/uploads/2025/12/1.-entrepreneurs-enter-china-for-very-practical-reasons_.png 1429w" sizes="auto, (max-width: 1024px) 100vw, 1024px" /> Hong Kong, meanwhile, is formally part of China but has a separate legal and tax system and its own financial infrastructure. This explains the popularity of the model: “we work with China, but keep the company in Hong Kong.” Legally, it’s easier to conclude international contracts, receive payment in foreign currency, and build a holding structure. It’s important to understand: Hong Kong does not replace mainland operations if you genuinely need a physical presence “on the ground” (office, staff, sales within the PRC, manufacturing). But it often addresses tasks where a mainland company becomes too burdensome. Formats of …