Xu Zhengyu: The company relocation mechanism opens up a new runway for enterprises, attracting them to return to Hong Kong and set up businesses.

On May 23, Paul Chan Mo-po, the Secretary for Financial Services and the Treasury of Hong Kong, answered questions from the media regarding the company re-registration mechanism. Chan stated that the company re-registration mechanism is not specifically targeted at any particular industry. Any industry that is established overseas and interested in relocating their business to Hong Kong can use this mechanism to do so conveniently and easily. Once the Companies Registry receives the application and all necessary documents are provided, approval can be granted within two weeks. Chan believes that when these companies relocate back to Hong Kong, they will bring some of their business back as well. He hopes that various companies will utilize this mechanism. The re-registration mechanism not only aids professionals but also benefits the overall economy by allowing them to operate their businesses in Hong Kong or relocate their regional headquarters back. When discussing the factors driving companies to re-register, Chan mentioned two main aspects. Some are "push" factors and others are "pull" factors, which incentivize companies originally registered overseas to come back to Hong Kong. The "push" factors include incentives that make these companies want to come back. With global regulations tightening and tax rates decreasing, many companies initially registered in offshore jurisdictions for tax benefits or reduced compliance burdens may no longer find it advantageous. This is a "push" factor that makes them reconsider registering overseas. The "pull" factors are the factors that attract them back to Hong Kong. Hong Kong's rule of law, business environment, connectivity with mainland China, financial and professional talent pool, regulatory framework, and overall facilitative environment are all factors that make companies willing to return. Chan emphasized that Hong Kong is a free economy with great appeal, attracting companies to invest their funds directly here. Their funds can freely flow in and out, and Hong Kong provides a convenient platform for companies to invest in assets in different places. The government's goal by the end of 2025 is to have 200 new companies established in Hong Kong or expand existing ones. Based on the current data available, they are confident that this goal will be exceeded.