Decree No. 837 contains a significant change that many people have overlooked—For the first time, ”individual residents” have been included within the scope of foreign investment regulation.

In the past, ODI filing requirements applied only to businesses. Individuals registering Hong Kong companies, purchasing overseas real estate, or making overseas equity investments have long operated in a legal gray area where there were no explicit laws governing such activities.

Now, Order No. 837 explicitly states: When individual residents invest by establishing overseas companies, acquiring overseas assets, or gaining control of foreign enterprises,In principle, they all fall within the scope of regulation.The

If your Hong Kong company is registered in an individual’s name, this article is directly relevant to you.

I. Which types of individual conduct are now subject to regulation?

The scope of ”individual foreign investment” covered by Order No. 837 is broader than you might think:

In the past, these were all gray areas, but following the implementation of Order No. 837, they have all been brought under the regulatory framework.

II. Document No. 37: Currently the Only Legitimate Channel for Individuals to Invest Overseas

Many people are unfamiliar with ”Document No. 37.” To put it simply:

Document No. 37 = “Notice of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Management of Overseas Investment, Financing, and Round-Trip Investment by Domestic Residents Through Special Purpose Companies” (Hui Fa [2014] No. 37)

It is a foreign exchange registration system established by the State Administration of Foreign Exchange specifically for ”special purpose vehicles (SPVs) established overseas by individuals,” and is currently the only compliant channel for individuals to invest overseas.

The distinction is clear: Companies setting up a Hong Kong entity must follow the ODI process, while individuals setting up a Hong Kong entity must follow Circular No. 37.

However, the scope of application of Document No. 37 is limited—it primarily covers ”SPVs established for the purpose of overseas financing or round-trip investment.” If an individual simply registers a Hong Kong company to receive payments from Amazon, Document No. 37 may not necessarily apply directly at this time; this is precisely the area where the detailed rules need to be clarified.

III. Three Scenarios Facing Individual Hong Kong Companies

Scenario 1: An individual registers a Hong Kong company under Circular No. 37

✅ Compliance Status: Good. Once Order No. 837 takes effect, your structure will be well-documented. Going forward, you simply need to ensure that your compliance records are complete and that the sources of funds are clearly traceable.

Scenario 2: An individual registers a Hong Kong company without registering under Document No. 37

⚠️ In a gray area. Following the implementation of Order No. 837, the compliance risks associated with this structure have become immediately apparent. It is recommended to assess as soon as possible whether Document No. 37 applies, or to consider transferring the Hong Kong company to a mainland enterprise for ODI filing.

Scenario 3: Individuals Holding Overseas Assets Through Informal Channels

⚠️High risk.Key areas include: purchasing and remitting foreign currency through underground money transfer networks, using the foreign exchange quotas of non-immediate family members, and using shell companies to hold shares in overseas entities on behalf of others. With the combined impact of Order No. 837, the Fourth Phase of the Golden Tax Project, and financial institutions’ anti-money laundering regulations, such practices carry extremely high risks.

Are you unsure whether your overseas assets pose any compliance risks under Order No. 837?

Cell phone: 18676749275 ｜ WeChat: qcygscszk

Under ”Individual Compliance,” Qicaiying Consulting will provide you withCompliance Assessment of Individuals’ Overseas Assets—Including: whether your offshore structure requires registration under Document No. 37, whether there are any risks associated with gray-area practices, and planning the optimal compliance path.

IV. What Individual Investors Should Do Now

1. Review the existing inventory

No matter what form your overseas assets take—whether they’re companies, real estate, equity, or bank accounts—start by taking stock of them.

2. Review the registration under Document No. 37

If you hold an offshore SPV in your personal name (particularly in a round-trip investment structure), please confirm whether you have completed the registration required under Document No. 37. If you have not registered, please assess the possibility of completing the registration as soon as possible.

3. Verify the source of funds

Are the sources of funds for overseas assets compliant? Is there a legitimate basis for every foreign exchange purchase and remittance? If any part of this chain is unclear, it could be subject to scrutiny in the future.

4. Avoid gray-area practices

Underground money transfer operations, currency exchanges between non-relatives, and remittances based on fictitious trade transactions—under Order No. 837, these are not issues that can be addressed only ”after being detected”; rather, they can trigger system alerts and account freezes at any time.

V. Qi Cai Ying: Experts in Compliance for Individual Overseas Investments and Identity Planning

Qicaiying Group has specialized in overseas investment compliance and identity planning services for over 10 years, offering:

✅ Document No. 37 Registration Agency Services: One-Stop Service for Individual Overseas SPV Filing and SAFE Declaration

✅ Compliance Assessment of Individuals’ Overseas Assets: Review existing structures, assess risks, and develop compliance plans

✅ Identity Planning Support Services: Passports and green cards from Guinea-Bissau, São Tomé, Vanuatu, Nauru, and other countries provide the necessary legal status for offshore asset allocation

Compliance Assessment of Individuals’ Overseas Assets

Are you unsure whether your overseas assets pose any compliance risks under Order No. 837?

Cell phone: 18676749275 ｜ WeChat: qcygscszk

Under ”Individual Compliance,” Qicaiying Consulting will provide you withCompliance Assessment of Individuals’ Overseas Assets—Including: whether your offshore structure requires registration under Document No. 37, whether there are any risks associated with gray-area practices, and planning the optimal compliance path.

About Enterprise Caiying Group

Established in 2015 and headquartered in Shenzhen, Qicaiying Group specializes in providing one-stop financial, tax, and corporate compliance services to cross-border e-commerce companies and businesses expanding overseas. Its services include Hong Kong and overseas company registration, bank account opening, cross-border financial and tax compliance, ODI filing, VAT/EPR registration, bookkeeping services, and corporate identity planning. Having served over 50,000 companies to date, it is a trusted financial and tax compliance partner for cross-border sellers.

Cell phone: 18676749275 ｜ WeChat: qcygscszk