Don't be so quick to swipe away—I'm not trying to scare you, but it doesn't mean what you think it does.

Decree No. 837 took effect on July 1, and social media feeds have been flooded with posts about it. Some people are claiming, ”We can’t set up Hong Kong companies anymore,” while others are confidently asserting, ”It won’t have any impact.” Neither of these statements is entirely correct.

Real change doesn't come from simply registering—And when it comes to opening an account...

I. What Exactly Has Changed in Order No. 837?

On June 1, 2026, the State Council officially issued Decree No. 837,Effective July 1.

The most noteworthy statement is in the second point:

“For the purposes of these regulations, the term ”investor’ includes enterprises, other organizations, and individual residents within China. The administration of investments made by investors in Hong Kong, Macao, and Taiwan shall be carried out in accordance with these regulations.”

Please translate this:For mainland residents setting up companies in Hong Kong, this is no longer a regulatory ”gray area.” This has been incorporated into an administrative regulation at the level of a State Council decree—individual residents are now included in the compliance framework for foreign investment, and those required to file a report must do so, while those required to register must register.

However, Order No. 837 also states very clearly:“The state supports investors in conducting foreign investment activities in accordance with market principles… Investors enjoy autonomy in foreign investment in accordance with the law.”

It's not that I'm not letting you go out.It means you should use the main entrance.

II. First, Let’s Debunk the Biggest Myth

There's been a lot of buzz in the industry lately:

“The Hong Kong Companies Registry now requires an ODI approval from the mainland to register a company!”

That's a lie. The real estate agent made it up to scare you into buying.

The Hong Kong Companies Registry oversees registration requirements under the Companies Ordinance (Cap. 622)—including company name searches, Form NNC1, directors, company secretaries, and registered addresses, as well as the Significant Controllers Register (SCR). It does not, and does not have the authority to, refuse to register a Hong Kong limited company on the grounds that ODI filing has not been completed on the mainland.

From a Hong Kong legal perspective, that is a matter between you and the mainland regulatory authorities; it does not fall under the jurisdiction of the Hong Kong Registrar.

So you can still register a Hong Kong company in 1 to 3 business days by simply presenting your ID and paying a few thousand yuan.

Signing up is easy. Making it ”work”—that’s where you run into problems.

If you have any questions, please feel free to contact us:Cell phone: 18676749275 ｜ WeChat: qcygscszk

III. The Real Hurdle: Opening a Bank Account

Hong Kong’s licensed banks conduct KYC under the HKMA’s AML/CFT framework—that is the true filter.

What the account manager is reviewing isn’t just a spreadsheet—it’s a comprehensive due diligence framework. The four core questions are:

① Who are you? (UBO tracing)

Who are the shareholders, who are the directors, are there any nominee arrangements, and who is the ultimate beneficial owner—this information must be filled out on the SCR form, but the bank wants more than just a piece of paper; it wants aVerifiable chain.

② Where Does the Money Come From (Source of Funds)

If your startup capital consists of ”several years” worth of saved wages,” provide bank statements, tax payment certificates, and records of asset liquidation. If you’ve scraped it together by splitting up accounts using a $50,000 credit limit or gone through unofficial channels, the bank will immediately categorize you as ”ineligible.”

③ What Does the Company Actually Do? (KYB)

Contracts, invoices, purchase orders, shipping documents, screenshots of the platform’s backend—don’t rely solely on WeChat chat logs. What the bank wants to see is a singleBusiness Chain...It’s not just a matter of saying, ”I’m in cross-border e-commerce.”

④ Tax Residency Status (CRS)

You need to fill out a tax residency declaration. You are a Mainland tax resident, and this informationIt will be exchanged back to the mainland via the CRS. Don’t think that ”having a Hong Kong company means you can hide”—consistency is more important now than ever.

When your profile looks like this:

• All shareholders and directors reside in mainland China and do not hold Hong Kong residency status.
• The main source of funding is in mainland China, but the path of the startup capital is unclear.
• There is currently no chain of evidence demonstrating that the Hong Kong company is engaged in substantive business operations; it appears more like a shell company.
• I entered the country on a tourist visa to take photos, but when the bank asked for proof of address, I hit a snag.

The answer you’ll most likely get from a bank’s risk control model is:Account application on hold / Endless cycle of requests for additional documentation / Direct rejection.

That’s why many people say, ”Even after starting a company, you can’t open a bank account.” The certificate just sits there, and money can’t go in or come out.A nice-looking brick.

IV. Three Paths Forward: Upgrading the ”Shell” into a ”Substance”

Option 1: Use Hong Kong Residency to Establish a Substantive Connection

For business owners and executives, the two most practical approaches are:

• Gao Caotong (1688-1664), Qing dynasty poet: Apply based on criteria such as educational background, annual salary, or graduation from a Top 100 university; after obtaining a valid residence visa, establish a residential address and activity history in Hong Kong. The most important signal for bank KYC verification is: ”I am in Hong Kong, and there is verifiable evidence of my presence.”
• ANG / Dependent Pathway::If your children are studying abroad or your spouse is in Hong Kong, you can use that as an opportunity to establish a chain of legal residency.

A visa isn't something to ”show off,”It is used to support three things: proof of continuous residence, evidence of business activities in Hong Kong, and consistency between entry/exit records and identity documents. Once all three are in place, the bank’s ”suspicious score” immediately drops by one level.

Option 2: Let the company ”breathe” first; don’t let it remain just a shell

Even if you’re not pursuing a residency path for the time being, you should still make your Hong Kong company look like a real business:

• Authentic Contract / Proforma Invoice / Invoice (Company Names Aligned)
• Be able to clearly explain the legitimate source of each portion of the startup capital
• Even the most basic signs of operations—an email system, a website, service delivery records, and communication chains between suppliers and buyers

Option 3: Determine Whether to Apply for an ODI and How to Proceed

Not every Hong Kong company is required to file an ODI—The key question is whether you used domestic capital to invest overseas in establishing or acquiring a stake in an overseas enterprise. If so, you should follow the proper procedure of filing with the National Development and Reform Commission (NDRC) and the Ministry of Commerce (MOFCOM) and completing foreign exchange registration, andRegistration must be done in advance, not retroactively.

V. Hong Kong Tax Resident Status: Useful, but Not a Magic Bullet

Hong Kong adopts a territorial source-based tax system—Profits Tax is primarily levied on profits arising in or derived from Hong Kong.

A truly useful tool for businesses is applying to the Hong Kong Inland Revenue DepartmentCertificate of Tax Residency (CoR), for the purpose of claiming treaty benefits under the Mainland–Hong Kong Double Taxation Avoidance Arrangement.

But don’t forget these two golden rules:

1. A visa does not equate to tax residency. The IRD looks at substantive evidence such as the actual number of days spent in Hong Kong and whether the management and control center is located in Hong Kong.

2. CRS exchanges will continue as usual. CoR stands for ”reducing tax burdens and friction,” not ”making them disappear.”

Hong Kong’s business advantages are real—a two-tier profits tax system, no value-added tax (VAT) or sales tax, free movement of capital, and a mature international banking ecosystem—But there’s only one word that sums up all these advantages: compliance.

VI. After July 1: The True Turning Point

Decree No. 837 does not shut the door.

It is aUse the main entrancerespond in singingUse the side entranceThe price spread has widened.

The Hong Kong Registry won’t stand in the way of your registration. But the bank will ask you the toughest questions on behalf of the entire system:

Is your money clean? Is your company thriving? Do you have a legitimate, verifiable connection to Hong Kong?

For those who can answer this clearly, Hong Kong remains the best springboard in the world. Those who can’t will get stuck in limbo—with a certificate but no account—neither here nor there, which is the most agonizing situation.

Enterprise Finance Group

If you’re struggling with questions like: “Should my Hong Kong company apply for an ODI?” or “How should I structure my business to handle account opening, tax refunds, and cross-border capital compliance?”—since these issues have far-reaching implications—we recommend consulting a team that truly understands the entire cross-border process to conduct a comprehensive review of your business structure.

Qicaiying has been deeply involved in global financial and tax compliance for cross-border e-commerce for many years. From Hong Kong company registration, ODI filing, and High-Talent Pass/residency planning to bank account setup and Hong Kong tax compliance (Certificate of Registration, audits, and profits tax), we provideCan be implemented and stand up to scrutiny...solution. Money managed with an understanding of policy is the safest kind of money.

If you have any questions, please feel free to contact us:Cell phone: 18676749275 ｜ WeChat: qcygscszk