The laws that define the Legal Regime of Financial Leasing Companies and the Tax Benefit Scheme for Financial Leasing came into force on Tuesday in Macau, after being published on Monday in the region’s Official Gazette, according to an official statement.
The statement signed jointly by the Macau Monetary Authority and the Financial Services Bureau said that the two diplomas aim to develop the finance sector, in a dynamic way, with its own characteristics and to promote the development of leasing activities.
“The review of these legal documents allows us to meet the current needs of the development of leasing activities (…) by attracting foreign leasing companies to establish themselves in the Macau Special Administrative Region and to run their business here,” the statement said.
The new Legal Framework of Financial Leasing Companies removes some restrictions on the requirements and supervisory requirements to which finance leasing companies.
The new law allows leasing companies to be set up as a limited company or a joint-stock company, offering greater flexibility in choosing their form and lowering minimum capital requirements from the current 30 million patacas to 10 million patacas, “which facilitates access to the market for participants who meet the requirements, by reducing the conditions of access to this type of business.”
The new law allows banks or financial leasing companies authorised to carry out this activity in Macau to form subsidiaries whose purpose is to hold and lease assets for a particular project, with banks and leasing companies obligated only to notify the Macau Monetary Authority in advance. (Macauhub)