Can Hong Kong people set up domestic limited liability companies in the Mainland?

LCNLCN Consulting: I have a colleague from Hong Kong who wants to open a company in the Mainland. Can Hong Kong people set up a limited company in the Mainland? What should I do if I can? I can't. What should I do? Lawyer Ma Jianrong of Shanghai answered: According to the relevant regulations on foreign investment in China, Hong Kong individuals or companies should refer to the above regulations, that is, Hong Kong individuals need to go through the examination and approval procedures in accordance with the Regulations on Foreign Investment to set up companies in the Mainland, and it is considered that foreign capital cannot be registered as domestic-funded enterprises. As foreign investors, they can still enjoy quite preferential policies in the Mainland at present. Of course, the preferential corporate income tax may be adjusted in March next year. Compared with domestic enterprises, its establishment procedure is only slightly more complicated. If there are no other suggestions, set up a foreign-funded enterprise directly. Of course, if it is necessary to set up a domestic company, we can consider adopting the method of anonymous shareholders, that is, the nominal registered shareholder is a mainland individual and the actual shareholder is a Hong Kong individual. Of course, the different business scope of the company will have different effects on the anonymous investment agreement between the two parties and the subsequent operation of the company, which needs to be handled carefully. Lawyer of brother Simba of Guangzhou replied: I agree with lawyer Ma. However, you can apply to set up a "Hong Kong-funded company" in Guangzhou, which is a policy formulated by Guangzhou government departments specifically for Hong Kong people to set up a "domestic-funded company" in Guangzhou. The procedure of setting up such a company is slightly more complicated than that of setting up an ordinary domestic company. My colleague recently set up such a company in Guangzhou on behalf of Hong Kong customers.