Hengqin Guangdong-Macao In-Depth Cooperation Zone: Policy Background and Latest Developments in 2026
The Hengqin Guangdong-Macao In-Depth Cooperation Zone is not simply an option for “setting up a new company address.” It is an important platform for supporting Macao’s appropriate economic diversification. According to the Master Plan for the Development of the Hengqin Guangdong-Macao In-Depth Cooperation Zone approved by the State Council, by 2029, the Cooperation Zone aims to establish an institutional system that is highly coordinated with Macao’s economy and deeply aligned in terms of rules, while promoting the parallel expansion of Macao-funded enterprises and the employment and living scale of Macao residents (source: Chinese Government Website).
As of September 2025, Hengqin authorities disclosed that the Cooperation Zone had more than 7,300 Macao-funded enterprises, with over 28,000 Macao residents living, residing, and working in Hengqin. This reflects that the integration of Hengqin and Macao has moved from a policy concept into practical operation (source: Executive Committee of the Hengqin Guangdong-Macao In-Depth Cooperation Zone). For Macao SMEs, the most noteworthy incentive is the “dual 15%” tax benefit: eligible industrial enterprises may be subject to corporate income tax at a 15% rate; for high-end and urgently needed talent, the portion of individual income tax burden exceeding 15% may also be exempted (source: Guangdong Hengqin Office, Chinese Government Website).
Business assessment:2026 is a critical year for the second phase of development of the Cooperation Zone. The policy focus is shifting from “investment attraction” to “substantive operations, industrial synergy, and talent implementation.” A model that only registers a company without actual operations may not be able to truly benefit from the policy incentives.
How should Macao businesses enter the market?
- First assess industry fit:Traditional Chinese medicine, big health, culture and tourism exhibitions, cross-border e-commerce, professional services, technology R&D, and modern finance are more closely aligned with the Cooperation Zone’s key priorities.
- Prepare proof of substantive operations in advance:This includes office premises, employee social security records, contracts, revenue flows, and records of R&D or service delivery, so as to avoid remaining merely a “shell company.”
- Design the business around a “Macao brand + Hengqin operations” model:For example, Macao catering, retail, wholesale, and professional service providers can keep their brand, customer trust, and cross-border resources in Macao, while placing back-office functions, showcases, training, supply chains, or Mainland market expansion in Hengqin.
Tax Incentives: Practical Guide to 15% Corporate Income Tax and Individual Income Tax Cap
Hengqin’s most direct commercial appeal is its “dual 15%” tax arrangement. For SMEs in Macao, the key is not simply registering a company in Hengqin, but proving that the business, team, accounting, and assets are genuinely operating in the Cooperation Zone. According to information from the Ministry of Finance, eligible Hengqin industrial enterprises may pay tax at a 15% corporate income tax rate. Conditions include having a principal business that falls within the Catalogue of Preferential Corporate Income Tax Policies (2021 Edition), with revenue from principal business accounting for more than 60% of total revenue, and meeting substantive operation requirements. The catalogue has been expanded from the original 6 categories and 80 items to 9 categories and 150 items, covering areas such as technology R&D, advanced manufacturing, Macao-branded industries, cultural tourism, conventions and exhibitions, commerce and trade, and modern finance (source: Ministry of Finance).
In practice, Hengqin tax authorities summarize “substantive operation” as the “four presences”: production and operations in the Cooperation Zone, personnel in the Cooperation Zone, accounting in the Cooperation Zone, and assets in the Cooperation Zone. Materials reposted by the Liaison Office of the Central People’s Government in the Macao SAR also state that enterprises should arrange, according to their scale, for at least 3 to 30 employees to pay social security in Hengqin for 6 months or more, and that management is conducted through “self-assessment, declaration and commitment, and retention of materials for future inspection” (source: Liaison Office of the Central People’s Government in the Macao SAR).
15% Corporate Income Tax: Conduct “Industry Matching” Before Implementation
Macao enterprises are advised to first divide their revenue into three categories: core revenue, supporting revenue, and non-related revenue. Only when core revenue consistently exceeds 60% is it worthwhile to use the 15% tax rate as the basis for financial modeling. For example, if a Macao food brand only sets up a showroom office in Hengqin, that may not be sufficient. But if it establishes R&D, supply chain management, cross-border e-commerce operations, or an overseas brand expansion team in Hengqin, and keeps the relevant contracts, invoices, employees, and financial accounting in Hengqin, the chances of success will be much higher.
- Step 1: Compare your principal business against the 9-category, 150-item preferential catalogue to confirm whether it is included.
- Step 2: Design the revenue structure to ensure eligible principal business revenue remains above 60% over the long term.
- Step 3: Retain evidence such as lease agreements, employee social security records, bank statements, fixed assets, meeting minutes, and contracts.
Individual Income Tax Cap: Suitable for Executives, R&D Staff, and Cross-Border Professionals
At the individual level, Hengqin exempts the portion of individual income tax burden exceeding 15% for qualified high-end and urgently needed talent from within and outside Mainland China working in the Cooperation Zone. Macao residents may also enjoy an exemption on the portion exceeding the Macao tax burden. Eligible income includes wages and salaries, remuneration for labor services, author’s remuneration, royalties, business income, and recognized talent subsidy income (source: Hengqin Cooperation Zone Finance Bureau and Tax Bureau). Data from Guangdong Tax Service shows that as of the end of August 2025, the individual income tax incentive for Macao residents had benefited more than 1,500 instances, with tax reductions and exemptions exceeding RMB 70 million (source: Guangdong Provincial Tax Service, State Taxation Administration).
- Advice for business owners: If the company plans to station Macao executives or R&D personnel in Hengqin on a regular basis, it should plan the employment contracts, place of work, salary payment arrangements, and individual income tax filing location at the same time.
- Risk reminder: Do not use “nominal appointments” purely to save tax. Tax reviews will focus on whether the person is genuinely working in Hengqin, whether the income is sourced from the Cooperation Zone, and whether the supporting materials are traceable.
Comparison of Four Pathways for Macau Companies Entering Hengqin
Macau companies entering Hengqin do not necessarily need to establish a large-scale company from the outset. A more practical approach is to first choose the right pathway based on business maturity, team structure, and tax capacity. According to official information from the Hengqin Cooperation Zone, as of May 8, 2025, there were 7,002 Macau-invested enterprises in the Cooperation Zone, representing a 51% increase since the zone was established and accounting for 12.4% of all enterprises in the Cooperation Zone. This reflects the accelerating pace of Macau companies entering Hengqin, but it also means competition and compliance requirements are rising at the same time. Source: Official website of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin.
The key question is not “whether to go to Hengqin,” but “in what capacity to enter Hengqin”: registering a company, setting up an office presence, joining an industrial park, or first testing the market through individual operations and project-based collaboration.
Pathway 1: Establish a Hengqin Company and Pursue the 15% Corporate Income Tax Rate
This is suitable for companies with stable revenue that can locate their team and accounting operations in Hengqin, such as technology services, cross-border e-commerce, cultural tourism and MICE, and branded food trading. According to policies issued by the Ministry of Finance and the State Taxation Administration, enterprises that qualify under the Catalogue of Preferential Corporate Income Tax Policies for the Guangdong-Macao In-Depth Cooperation Zone in Hengqin (2021 Edition), whose main business income accounts for 60% or more of total income, and that meet substantive operation requirements may pay corporate income tax at a rate of 15%. Macau business owners are advised to first prepare “three tables”: a revenue source table, an employee work location table, and an asset and contract location table, to confirm whether they can pass the substantive operation review.
Pathway 2: Enter an Industrial Park or Incubator to Reduce Startup Costs
This is suitable for startups, young entrepreneurs, professional service providers, and asset-light teams. Industrial parks usually provide office space, policy application support, business registration, and talent services, making them relatively friendly to Macau companies entering the mainland market for the first time. In practice, priority should be given to whether the park matches your industry, such as traditional Chinese medicine, technology R&D, cultural tourism and MICE, modern finance, or Macau-branded industries, rather than looking only at rent. Before signing, it is advisable to ask the park to provide past successful application cases, a list of available subsidies, and confirmation on whether it supports social insurance for Hong Kong and Macau residents, bank account opening, and tax filing.
Pathway 3: Set Up an Operating Base or Branch Function for Market Testing
If a Macau company still mainly serves local clients but wants to expand into Zhuhai, Guangzhou, Shenzhen, or the Greater Bay Area, it can first set up business development, customer service, warehousing and distribution, or product display functions in Hengqin. This approach requires a smaller investment and is suitable for food and beverage supply, wholesale, education and training, branded retail, and B2B services. Since March 1, 2024, Hengqin has officially implemented its tiered management system. Official information shows that the “first-tier” bonded exemption policy for goods has been expanded to cover enterprises and various other entities, which benefits cross-border goods flow and display-based transactions. It is recommended to first test three indicators over six months: mainland customer inquiry volume, transaction cycle, and logistics and tax costs.
Pathway 4: Individual Operations or Project-Based Collaboration for Low-Risk Market Testing
For freelancers, consultants, designers, training instructors, and small brand owners, entering the market can begin through individual business filing, short-term events, trade fairs, or collaboration with Hengqin companies. In recent years, Hengqin has introduced facilitation measures such as market entity address registration and individual business filing, with the goal of lowering the entry threshold for Macau residents to start businesses. It is advisable not to rush into establishing a heavy-asset company, but instead to enter through one clearly defined project, such as a brand pop-up event, a corporate training course, or a trial order for a cross-border supply chain, and then decide whether to upgrade to company-based operations based on cash flow.
Summary recommendation: Companies with stable annual revenue and the ability to place a team on the ground may consider establishing a Hengqin company and planning for the 15% tax incentive. SMEs that are still validating the market should first consider an industrial park, operating base, or project-based collaboration. Before entering Hengqin, companies should at minimum prepare a business plan, compliance checklist, budget, and 6- to 12-month cash flow projection to avoid the shell-company risk of “registering first, then looking for business.”
Key Supported Industries: Technology, Traditional Chinese Medicine, Finance, and Tourism
Hengqin’s industrial policy is not about spreading benefits evenly. Instead, it focuses support on the “Four New” industries: technology R&D and high-end manufacturing, Macao-branded industries such as traditional Chinese medicine, cultural tourism, conventions, exhibitions and commerce, and modern finance. For Macao SMEs, the implication is straightforward: if your business can align with one of these areas, your chances are usually higher when applying for premises, subsidies, tax incentives, and cross-border resources.
According to data from the Statistics Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, the Cooperation Zone’s GDP reached RMB 54.705 billion in 2025, with value added by the tertiary sector reaching RMB 49.482 billion, up 12.2% year on year. Separately, according to data released by the Macao SAR Government Information Bureau for the first three quarters of 2025, the value added by the “Four New” industries reached RMB 25.964 billion, up 14.6% year on year, accounting for 66.1% of GDP. Sources: Hengqin Statistics Bureau and Macao SAR Government Information Bureau.
Technology: Suitable for R&D, SaaS, AI Applications, and Hardware Solutions
Technology companies should first position Hengqin as a “base for R&D and mainland market testing,” rather than simply as an office address. Macao companies engaged in AI tools, data services, medical technology, education technology, smart retail, or supply chain systems may consider establishing an R&D or technical services entity in Hengqin to serve clients across the Greater Bay Area.
- Practical advice: Prepare three materials first: a product white paper, a list of R&D personnel, and case studies of implemented client projects. When applying for technology-related support, a vague business plan is not enough. It is best to have a demonstrable MVP or revenue record.
Traditional Chinese Medicine: Macao Brands Can Follow a “Macao Registration + Hengqin Production” Model
Traditional Chinese medicine is one of Macao’s most distinctive industries. The Guangdong-Macao Traditional Chinese Medicine Science and Technology Industrial Park has become an important platform, and the Macao Pharmaceutical Administration Bureau has also publicly supported the “Macao registration + Hengqin production” model to promote the R&D, commercialization, and expansion of Chinese medicine products into Portuguese-speaking and Southeast Asian markets. This is particularly suitable for health supplements, Chinese medicine formulas, wellness foods, and health and wellness service brands.
- Practical advice: Macao brands should not build large-scale factories at the outset. Start with formula compliance, sample trial production, and packaging standardization, then assess whether to work with Hengqin park enterprises for contract manufacturing.
Finance: Focus on Cross-Border Asset Management, Funds, and Corporate Services
Modern finance is not an opportunity reserved only for large banks. Macao accounting, legal, insurance, family office, cross-border payment, and corporate advisory services can all provide supporting services around the growth of Hengqin enterprises. As noted above, as of May 8, 2025, the Cooperation Zone had 7,002 Macao-funded enterprises. These enterprises themselves represent a potential customer base for financing, tax, compliance, and asset allocation services.
- Practical advice: Financial and professional services firms should design a “compliance package for Macao companies entering Hengqin,” covering company establishment, tax assessment, bank account opening, capital flow structuring, and annual maintenance, rather than selling only a single service.
Tourism, Conventions, Exhibitions, and Commerce: Extending Macao’s Visitor Flow into Hengqin
The core of cultural tourism, conventions, exhibitions, and commerce is to extend Macao’s sources of visitors for tourism, dining, retail, family entertainment, and MICE into “Macao + Hengqin” dual-location products. For example, food and beverage brands can build central kitchens or recruit mainland franchise partners, family and education brands can set up experience centers, and event companies can undertake cross-border events and business hospitality.
- Practical advice: Merchants can first design a “one-day Macao-Hengqin itinerary”: a Macao brand experience, a Hengqin business visit, and dinner or a family activity. Promote it simultaneously on Xiaohongshu, WeChat Channels, and Google Business Profile, test demand, and then decide whether to lease a venue or set up a location.
Practical Case: Cost-Benefit Analysis of a Macau Company Expanding into Hengqin
Assume a Macau SME originally sells health foods or cultural tourism products, already has a Macau brand, supply chain, and a small number of wholesale clients, and plans to set up an operating base in Hengqin for mainland e-commerce, corporate procurement, and R&D showcases. This type of company is best suited to a “Macau brand + Hengqin conversion” model, rather than simply relocating its office.
According to 2025 data from the Statistics Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, the Cooperation Zone recorded GDP of RMB 54.705 billion, with value added from the tertiary sector reaching RMB 49.482 billion, up 12.2% year on year; total annual imports and exports reached RMB 43.878 billion, up 70.0% year on year; and by year-end, there were 7,800 registered Macau-funded business entities, up 14.7% year on year. (Source: Statistics Bureau of the Guangdong-Macao In-Depth Cooperation Zone in Hengqin, republished by the Liaison Office of the Central People’s Government in the Macao SAR)
Cost Side: Look Beyond Rent and Calculate the “Substantive Operation Cost”
The main costs of expanding into Hengqin usually include company incorporation, office or showroom space, mainland accounting and tax services, employee social insurance, cross-border logistics, e-commerce operations, and compliance consulting. If a company only sets up a shell entity, it may not be able to benefit from the policies. Official corporate income tax incentives require companies to maintain substantive operations in the Cooperation Zone, meaning that production and business activities, personnel, accounts, assets, and other key elements must be established in Hengqin.
- Recommendation 1: Start with a 6- to 12-month pilot instead of making heavy asset investments from the outset; use a small office, shared showroom space, or industrial park service platform to test demand.
- Recommendation 2: Separate “one-off setup costs” from “monthly fixed costs” in the budget, and reserve 3 to 6 months of cash flow for compliance and market development.
Revenue Side: Tax, E-Commerce, and Market Reach Are the Three Levers
If a company meets the requirements for encouraged industries and substantive operations, it may pay corporate income tax at a 15% rate, compared with the standard 25% corporate income tax rate for general mainland enterprises. A simple example: if a Hengqin company has annual taxable income of RMB 1 million, the rate difference can create roughly RMB 100,000 in tax capacity; however, the prerequisite is that business revenue, team structure, and accounting arrangements genuinely form a closed loop in Hengqin.
More importantly, there is the market side. In 2025, Hengqin’s retail sales through public online networks reached RMB 2.672 billion, up 22.9% year on year, indicating continued growth potential in online consumption and cross-border e-commerce. For Macau brands, Hengqin is not merely a lower-cost office location, but a springboard into Greater Bay Area corporate clients, mainland e-commerce platforms, and Portuguese-speaking market service chains.
- Recommendation 3: Food, traditional Chinese medicine, and broader health-sector companies should first evaluate a “Macau registration + Hengqin production/testing/showcase” model.
- Recommendation 4: Cultural tourism, MICE, and trading companies can position Hengqin as their mainland sales, customer service, and livestream e-commerce base, while retaining brand presence, experience delivery, and high-end client reception functions in Macau.
In conclusion, expanding into Hengqin is not worthwhile for every Macau company. But if a company can align with one of the policy priorities, such as technology, traditional Chinese medicine, finance, cultural tourism, MICE, or trade, and achieve substantive operations, then the cost-benefit case can truly hold up.
Frequently Asked Questions
What is the minimum cost for Macau SMEs to establish a presence in Hengqin?
The minimum cost depends on the nature of the business: company registration only is approximately MOP 20,000-50,000; if a physical office is required, Hengqin office rent is around RMB 40-80 per square meter per month. Including registration and tax agency fees, first-year operating costs are approximately MOP 80,000-150,000.
What are the eligibility requirements for the "Double 15%" tax incentives?
To qualify for the corporate income tax incentive, a company must fall within the encouraged industries catalog of the cooperation zone, such as traditional Chinese medicine, culture, tourism and MICE, modern finance, and others, and must have actual business operations. For the individual income tax incentive, the applicant must be recognized as high-end talent or urgently needed talent, with the employer applying on their behalf.
How does Hengqin office rent compare with Macau?
Hengqin office rent is approximately RMB 40-80 per square meter per month, significantly lower than MOP 150-300 on the Macau Peninsula, offering strong value for money. However, some office buildings may require long-term leases and minimum floor area commitments.
How can Macau SMEs register a company in Hengqin?
They can apply online through the Hengqin one-stop commercial registration platform, or engage a local law firm or accounting firm to handle the process. Required documents include Macau identity proof, address proof, and the company’s articles of association. The process generally takes 10-15 working days.
What are the advantages of setting up a company in Hengqin for expanding into the Mainland China market?
Companies can benefit from easier access to the Mainland China market while retaining Macau’s free port advantages. Enterprises in key industries may enjoy a preferential 15% tax rate, while high-end talent may receive individual income tax subsidies, helping reduce operating costs and strengthen competitiveness.
