What's on Practical Law?
Enter to open, tab to navigate, enter to select
Doing Business in Macau: Overview
Practical Law Country Q&A w-013-7754 (Approx. 22 pages)
Doing Business in Macau: Overview
by Hugo Maia Bandeira, Tiago Assunção and Daniel da Silva e Melo, Manuela António - Lawyers and Notaries
A Q&A guide to doing business in Macau.
This Q&A gives an overview of key recent developments affecting doing business in Macau as well as an introduction to the legal system; foreign investment, including restrictions, currency regulations and incentives; and business vehicles and their relevant restrictions and liabilities. The article also summarises the laws regulating employment relationships, including redundancies and mass layoffs, and provides short overviews on competition law; data protection; and product liability and safety. In addition, there are comprehensive summaries on taxation and tax residency; and intellectual property rights over patents, trade marks, registered and unregistered designs.
To compare answers across multiple jurisdictions, visit the Doing business in… Country Q&A tool.
This article is part of the global guide to doing business worldwide. For a full list of contents, please visit global.practicallaw.com/dbi-guide.
Overview
Economy
Although Macau is a small territory with a population with less than one million inhabitants, it can be considered as a rich, open and growing economy which relies substantially on the tourism and gaming industries.
Dominant Industries
The main economic industries in Macau are the gaming and tourism industries, which account for the biggest stake of the revenues of Macau.
Population and Language
As of the last quarter of 2020, Macau’s population was 683,100 (according to the government’s Statistics and Census Service).
Macau has two official languages, Chinese and Portuguese. However, English is generally spoken and widely accepted by the local private sector.
Business Culture
Macau was administered by Portugal for more than 500 years until its handover to China back in 1999. The long and intensive exposure of Macau to Portuguese influences shaped its business culture into a mixture of Chinese and Portuguese traditions and culture, although with a very strong tradition of Chinese business principles.
Other
Businesses in Macau are familiar with Western culture and understand the cultural differences. Nevertheless, it is very much appreciated locally that the other cultures respect the local way of doing business. For example, business cards are of paramount importance while having a business meeting or at the first point of business contact.
Key Business and Economic Events
Macau aims to grow and develop as one of the prime destinations for world tourism and leisure. Macau's gaming industry, particularly through its integrated resorts, will continue to play a decisive role in achieving this goal as has been seen during the last few years.
The upcoming process for the renewal or tendering of new gaming concessions/subconcessions, may bring interesting developments to the gaming industry environment. However, at this stage the terms under which the renewals/new tenders will be processed is still unknown.
Macau is also seeking to combat its overreliance on the gaming industry, through other sustainable development initiatives. The planned diversification of Macau's economy, relies on the following main pillars:
- Becoming a Commercial and Trade Co-operation Service Platform between China and Portuguese-speaking Countries (PALOP).
- Greater Bay Area development initiatives.
- One Belt One Road development initiatives.
- Development of a securities market.
In this context, the Chinese Government has voiced its support to the diversification of Macau's economy, suggesting plans for the implementation of a Renminbi (RMB) denominated stock exchange in Macau and supporting Macau to become an RMB clearing centre for the PALOP.
The first bond exchange market, Chongwa (Macau) Financial Asset Exchange Co (MOX) created in 2019, focuses mainly in the issuance of bonds by the Chinese Government, by Chinese companies and by governments or companies of Portuguese speaking countries and has seen several large transactions in the past year.
Finally, the development initiatives of the neighbouring Hengqin Island (which is meant to be a significant asset in complementing Macau's touristic offerings by supporting the development of Macau's economy in other areas) has been gaining momentum. For example, border controls have been simplified and new projects have been completed.
All of the above initiatives may attract new business and a new type of investment to Macau, which in turn may result in significant new opportunities for locals and foreign investors.
Foreign Investment
Government Authorisations
Foreign investment, ownership or control is not subject to any government authorisations.
5. Are there any restrictions or prohibitions on doing business with certain countries, jurisdictions, entities, organisations or individuals?
There are no restrictions on doing business with foreign countries or jurisdictions, except regarding the relevant UN sanctions that have been adopted in Macau. There is no exclusive governmental website providing up-to-date information regarding these sanctions, but the sanctions approved are published in the Macau's Official Gazette and can be consulted on the relevant website.
6. Are there any exchange control or currency regulations or any registration requirements under anti-money laundering laws?
Business Vehicles
9. What are the main formation, registration and reporting requirements for the most common corporate business vehicle used by foreign companies in your jurisdiction?
Registration and Formation
Private companies limited by quotas must be registered with the Movable Assets and Commercial Registry (MCR) and with the Macau Finance Department (MFD) before they can start trading.
To complete registration, a set of documents must be filed with the MCR, such as the following:
- Deed of incorporation and articles of association.
- Identification of the shareholders, directors, and (if any) members of other governing bodies.
- Proof of registration with the MFD.
After filing these documents with the MCR, registration is usually completed in ten to 15 working days. However, the company can start trading from the date of filing.
Private companies limited by quotas can register their name in one of the official languages in Macau (Portuguese or Chinese). If an English name is contemplated, companies must also have a name in both official languages too.
The word "Limited" must also be included at the end of the company name. In Macau it is typical practice to obtain prior confirmation from the MCR that the envisaged name is acceptable for registration. This is done by applying for a certificate which is issued in one to two working days.
The relevant governmental website is: www.gov.mo/pt/servicos/ps-1060/ps-1060b/ (currently there is no English language version available).
Reporting Requirements
Private companies limited by quotas are generally not subject to reporting requirements other than those related to tax reporting (see Question 20).
Share Capital
The minimum share capital is MOP25,000 for private companies with limited liability by shares (quotas). The minimum share capital is MOP1 million for public companies.
Non-Cash Consideration
Non-cash consideration is possible if evaluated by an auditor within 60 days from the date of incorporation.
Rights Attaching to Shares
Restrictions on Rights Attaching to Shares. There are no statutory restrictions on the rights attaching to shares, although restrictions can be imposed by the articles of association.
Automatic Rights Attaching to Shares. All shareholders have the right to:
- Be treated equally by the company.
- Obtain information.
- Their share of the company's profits.
- Elect managing and supervising bodies. These bodies will be responsible for sending the accounts and initiating judicial proceedings.
- Vote in the company's resolutions.
10. What is the standard management structure and key liability issues for the most common form of corporate business vehicle used by foreign companies in your jurisdiction?
Management Structure
The company is managed by the directors. It is not mandatory by law to have a board of directors.
Management Restrictions
In general, directors are not required to be Macau residents. However, certain types of activity that are subject to regulatory supervision require a local director.
Directors' and Officers' Liability
Directors are liable to the company for damages caused by willful misconduct.
Directors are also liable to creditors for actions that render the company's assets insufficient to repay the company's debts. This is if they breach any legal, statutory or fiduciary provisions aimed to protect the creditors.
Under general liability rules, directors are liable to the shareholders and third parties for damages that are directly caused during the exercise of their role as a director.
Environment
Employment
Foreign Employees
The main law regulating foreign employees in Macau is Law No 21/2009.
Foreign employees (those that are non-residents in Macau) must hold a work permit from the Labour Affairs Bureau.
Employment contracts for non-resident workers must always have a fixed term and must therefore be in writing.
Employment contracts for non-resident workers must contain the following:
- Complete identification of the parties.
- Domicile/head office of the parties.
- Professional category of the worker, or the duties to be carried out, along with the respective remuneration.
- Place of work.
- Normal working schedule and working hours.
- Effective date of the contract.
- Execution date of the contract.
There are no collective agreements in Macau. If the parties do not specify the terms of employment, the default position under Law No 7/2008 will apply. The default position under the law will also apply if the parties establish an employment regime that is less favourable to the employee than the one set out in Law No 7/2008.
Main Terms
There are no main terms that are mandatorily applicable to employment contracts. However, if the employment contract is in written form, it should contain the identification of the signatories as well as the signatures.
Macau Resident Workers
Employment contracts are not required to be in writing, and can be entered into verbally. This is with the exception of employment contracts that have been entered into with non-resident workers.
Term contracts and contracts for the employment of minors (which is only allowed in specific circumstances) must be in writing.
Written contracts or agreements must contain the identification and signature of each party and each party must retain one copy.
Non-Resident Workers
Employment contracts for non-resident workers must always have a fixed term and must therefore be in writing.
Employment contracts for non-resident workers must contain the following:
- Complete identification of the parties.
- Domicile/head office of the parties.
- Professional category of the worker, or the duties to be carried out, along with the respective remuneration.
- Place of work.
- Normal working schedule and working hours.
- Effective date of the contract.
- Execution date of the contract.
There are no collective agreements in Macau. If the parties do not specify the terms of employment, the default position under Law No 7/2008 will apply. The default position under the law will also apply if the parties establish an employment regime that is less favourable to the employee than the one set out in Law No 7/2008.
Work Permits
Foreign employees (those that are non-residents in Macau) must hold a work permit from the Labour Affairs Bureau.
Before issuing a work permit to a specific employee, the employer must obtain authorisation to hire non-resident workers. This can be granted for hiring skilled or non-skilled workers. The authorisations are granted by the Macau SAR´s Chief Executive or other governmental bodies, further to a relevant delegation or sub-delegation.
It usually takes between three and four months to obtain the required work permit from the date the employer files the request to hire non-resident workers. However, there are constant policy initiatives aimed at tightening the admission of non-resident workers in Macau. Therefore, depending on the industry, work permits can be very difficult to obtain in practice.
Administrative costs are typically estimated at USD20.
15. Are employees entitled to management representation and/or to be consulted in relation to corporate transactions (such as changes in control, redundancies and disposals)?
Termination
Employees can terminate their contracts at will at any time. This is provided they have given a minimum of seven days prior notice (longer periods can be imposed under the contract) or payment to the employer in lieu of notice.
Fair Dismissal
Under Law No 7/2008 there is a distinction between dismissal by the employer with cause (that is, fair dismissal) and dismissal without cause (that is, unfair dismissal).
Dismissal with cause is immediate and does not entitle the employee to any compensation. For the dismissal with cause to be valid, the employer must set out in writing to the employee the reasons for dismissal with cause within 30 days of becoming aware of the said cause.
Reasons for dismissal with cause include:
- Wilful disobedience of orders.
- Repeated lack of commitment in fulfilling duties.
- Chronic lateness, leaving early or abandoning work during working hours without authorisation.
- Unjustified absences from work and false statements regarding the justification of absences.
- Abnormal reduced productivity intentionally caused by the employee.
- Repeated provocation of disputes with other employees.
- Acts of physical violence, insult or other abuse.
- Severe harm to the company's interests.
- Violation of regulations relating to occupational hygiene and safety.
Dismissal with cause that is found to lack sufficient grounds entitles the employee to compensation for dismissal without cause and to payment in lieu of notice.
Statutory Minimum Notice. There is no statutory minimum notice.
Severance Payment. No severance payment is required.
Unfair Dismissal
Dismissal without cause is subject to a minimum notice of 15 days (contracts may impose longer periods), or payment to the employee in lieu of notice. Employees dismissed without cause are entitled to a redundancy compensation based on the number of years of service (up to a maximum amount of MOP240,000).
Grounds for Unfair Dismissal. The law does not specify the grounds for unfair dismissal.
Remedies. The law does not specify any remedies for dismissal without cause, apart from the compensation mentioned above.
Redundancies and Mass Termination
There are no particular regulations in respect of redundancies and mass termination.
Procedural Requirements
Employment of non-resident workers is subordinate to the employment of resident workers, and aimed at fulfilling needs that cannot be met by local employees. Additionally, the employment of non-residents must not lead to the dismissal of residents or the decline of conditions for local employees.
Therefore, any redundancies/mass termination involving both resident and non-resident workers should result in the dismissal of non-resident workers first.
Tax
Tax Residence
Tax residence is not defined in Macau laws. However, the concept has been used in double taxation treaties signed with other jurisdictions to determine the rights and obligations of taxpayers.
Other Methods to Determine Residency
Any employee (resident or non-resident) is subject to professional tax on income deriving from their work in Macau that is paid by a Macau employer (either in Macau or abroad). It is a progressive tax from 7% to 12% of the employee's income after the tax-free annual allowance has been taken into consideration (which is currently MOP144,000).
The secondment of employees does not alter the applicable tax provisions, and professional tax is still due unless both the:
- Remuneration is not paid by a Macau employer (that is, an entity subject to tax in Macau which can deduct such payments as operative costs).
- Employee is paid abroad.
Under the Macau tax system, there is no taxation on global income. Therefore, the taxes charged to the employees registered with the Macau Tax Authorities are due only on the income paid by a Macau employer to its employees (both resident and non-resident).
19. What income tax, social security and other tax or contributions must be paid by the employee and the employer during the employment relationship?
Social Security Contributions
All local employees must be registered with the Macau Social Security Fund. For each resident employee, the employer must pay MOP90 each month, and deduct MOP30 from the salary of the employee. For each non-resident employee, the employer must pay MOP200 each quarter.
Employers
Employers must keep records of the remuneration paid to all the employees including their full name, tax numbers, addresses and the period that the tax payments refer to.
Employers must also file a form with the Macau Finance Department (MFD) on or before 28 February each year. The form must include details of the names and tax numbers of all employees who have been paid a wage during the past year.
Tax residence is not defined in applicable Macau laws. However, the concept has been used in double taxation agreements with other jurisdictions to determine rights and obligations of taxpayers.
Companies incorporated in Macau and foreign corporations operating there (either through a permanent branch office or on a sporadic basis) are generally subject to taxation on the net profits earned as a result of their activity in Macau. This tax is known as "complementary tax". Few tax exemptions are granted by law or contract, but the general rule is to tax the net profits annually under the provisions of the Complementary Tax Code. This is a progressive tax, which varies from 9% to 12% of the company net profits.
However, in practice, as companies with an annual net profit of up to MOP600,000 are exempt from complementary tax, only the profit exceeding that amount is taxed at a rate of 12%.
Certain foreign corporations entering into contracts with local individuals or companies incorporated in Macau to provide certain type of services are required to register the relevant contract with MFD and to pay taxes under the provisions of the Complementary Tax Code as addressed above.
21. What are the main taxes that potentially apply to a business vehicle subject to tax in your jurisdiction?
Companies incorporated in Macau and foreign corporations operating there (either through a permanent branch office or on a sporadic basis) are generally subject to taxation on the net profits earned as a result of their activity in Macau.
The main applicable tax is complementary tax. It is a progressive tax that can vary from 9% to 12% of the company's annual income. However, in practice, as companies with an annual net profit of up to MOP600,000 are exempt from complementary tax, only the profit exceeding that amount is taxed at a rate of 12%.
Private companies limited by quotas are required to file its annual tax declaration during the months of February and March in respect to the previous tax year, while public companies are required to file their annual tax declaration from April to June in respect of the previous tax year.
In general, the complementary tax needs to be paid in two instalments in September and November of each year in respect of the previous tax year.
Industrial contribution is also potentially applicable. However, its annual payment of MOP300 (applicable for most activities) has been periodically waived by the Macau Government in its budgets in the past few years.
22. How are the following taxed:
- Dividends paid to foreign corporate shareholders?
- Dividends received from foreign companies?
- Interest paid to foreign corporate shareholders?
- Intellectual property (IP) royalties paid to foreign corporate shareholders?
Dividends Paid
Dividends paid to foreign corporate shareholders are not taxed in Macau if the company distributing such dividends pays complementary tax on the relevant amount (see Question 20).
24. Must the profits of a foreign subsidiary be imputed to a parent company that is tax resident in your jurisdiction (controlled foreign company rules)?
Competition
28. Are restrictive agreements and practices regulated by competition law? Is unilateral (or single-firm) conduct regulated by competition law?
There are no specific competition legal provisions in Macau. However, the general competition rules in the Macau Commercial Code (MCC) must be used to assess whether specific restrictive agreements and practices breach the competition rules.
The MCC prohibits all practices or agreements whose purpose or effect is to prevent, distort or restrict competition (unless otherwise provided).
In addition, under the terms of the Law for Suppression of Corruption in the Private Sector, certain corruption acts are punished with harsher penalties whenever such acts cause situations of unfair competition to occur.
Transactions Subject to Merger Control
There is no specific competition law in Macau. Therefore, transactions are not subject to any specific merger control.
Foreign-to-Foreign Acquisitions
There is no specific competition law or merger control laws in Macau. Therefore, foreign-to-foreign acquisitions are not subject to any specific merger control laws.
Specific Industries
There are certain entities subject to regulatory supervision (such as banks, insurance companies, gaming concessionaires and subconcessionaires). Although not subject to any merger control laws, there are some restrictions in the laws regulating each specific sector which may apply.
Anti-Bribery and Corruption
The basic enforceable legislation in Macau on anti-bribery and anti-corruption is as follows:
- Macau Criminal Code (approved by Decree-Law No 58/95/M).
- Organised Crime Legal Regime (approved by Law No 6/97/M).
- Organic Law on the Commissioner Against Corruption of the Macau Special Administrative Region (CCAC) (approved by Law No 10/2000).
- Law on prevention and suppression of money laundering crimes (approved by Law No 2/2006).
- Law on prevention and suppression of terrorism crimes (approved by Law No 3/2006).
- Regulation on preventive measures regarding money-laundering and terrorist financing crimes (approved by Administrative Regulation No 7/2006).
- Chief Executive Order enacting the creation of the Financial Information Office (Chief Executive Order No 227/2006).
- Law on Prevention and Suppression of Bribery in the Private Sector (PSBPS) (approved by Law No 19/2009).
- Law on the Execution on the Freezing of Assets (approved by Law No 6/2016).
The Macau Criminal Code contains some of the key legal norms on anti-bribery and anti-corruption, namely on its chapter regarding crimes against the achievement of justice and crimes committed whilst exercising public powers.
The lawful authority to conduct investigations on the subject of anti-bribery and anti-corruption is the CCAC, which activities and scope of action is regulated under its abovementioned Organic Law.
The law on prevention and suppression of money laundering crimes defines money laundering gains as any assets derived from the practice, through any form of participation, of a typified act.
The law on prevention and suppression of terrorism crimes establishes a criminal liability system for legal persons, similar to the one on the law on prevention and suppression of money laundering crimes.
Money laundering and terrorist financing activities are considered as criminal offences, punishable with a maximum penalty of 12 years of imprisonment (Articles 3 and 4 of Law No 2/2006 and Article 6 of Law No 3/2006).
Chief Executive Order No 227/2006 of 7 August, as amended by Chief Executive Order No 67/2009 of 25 February, established the Financial Intelligence Office (GIF), a project team created to provide information regarding crimes relating to money laundering and terrorist financing, in collaboration with responsible public entities.
Intellectual Property
Patents
Definition and Legal Requirements. The registration of any patents depends on a given invention fulfilling the patentability requirements foreseen in the Industrial Property Law. The invention must:
- Be new.
- Involve an inventive step.
- Be capable of industrial application.
Registration. The authority responsible for the registration of the patents is the Economic Services Bureau of Macau (ESBM). Their website provides guidance on the application procedure.
Enforcement and Remedies. The right to the patent belongs to the inventor or their successor by any title. This is except for the provisions for inventions made during the execution of an employment contract.
Length of Protection. The length of protection is 20 years from the date of the registration's request.
Trade Marks
Definition and Legal Requirements. A trade mark is a sign or set of signs which can be represented graphically, that is words (including names of persons), designs, letters, numbers, sounds, the shape of the product or of their packaging, which are capable of distinguishing the goods or services of one company from those of other company may be registered as a trade mark.
The words contained in the envisaged trade marks must be written in Portuguese, Chinese or English, but elements from these different languages can be combined.
Trade marks of products produced to be exported can be written in any language, but their use in Macau determines the trade mark's expiration.
It is mandatory to use Portuguese or Chinese in applications to register a trade mark, even for applications that are made by a foreign citizen or entity not established in Macau.
Protection. The ESBM is responsible for the registration of trade marks. Their website provides guidance on the application procedure.
Unregistered trade marks do not have any protection against a registered trade mark. This is despite the priority right that the user of an unregistered trade mark has against third party applications to register the same or a similar mark (that is, to claim priority and to backdate the filing date by up to six months).
Enforcement and Remedies. Registration of a trade mark allows its holder the right to prevent third parties from using any sign that is identical or confusing with that mark for identical or similar goods or services, or which may be likely to create a likelihood of confusion in the mind of the consumer (this includes the likelihood of association between the trade marks).
Trade mark holders can take provisional measures and bring legal proceedings to prevent the use of its marks or similar signs by third parties, or demand compensation.
Length of Protection and Renewability. The length of protection is seven years from the granting date, and the trade mark can be renewed (for equal periods) without limitation.
Registered Designs
Definition. Designs which give the appearance of all or part of a product due to its characteristics (such as lines, contours, colours, shape, textures, materials used of the product itself and its ornamentation) can be registered.
Product means any industrial or handcrafted article (such as components for the assembly of a complex product, packaging, presentation elements, graphic symbols and typographical characters). However, product excludes computer programmes.
Designs are registrable if they:
- Are new. The novelty of the design is not prejudiced if the design is not entirely new, for example, if it combines known elements in a new way or if it arranges elements differently to how they have been used before).
- Have an individual character.
Registration. The ESBM is responsible for the registration of registered designs. Their website provides guidance on the application procedure.
Enforcement and Remedies. The right to register belongs to the creator or their successors in title.
The registration of a design grants its holder the exclusive right to use it and to prohibit its use by third parties without its consent. This covers the supply, marketing, import, export or use of a product in which the design has been incorporated or applied, and the storage of that product for these purposes.
Length of Protection and Renewability. The length of protection for registered designs is five years from the date of the request. This can be renewed for equal periods up to a maximum period of 25 years.
Unregistered Designs
Definition and Legal Requirements. Textile and clothing designs and models are entitled to a prior protection. This can be done by applying to the ESBM in writing and depositing relevant samples with it.
Enforcement and Remedies. Prior protection gives the applicant a priority right over subsequent applications.
Length of Protection. Prior protection expires in three months (or sooner) after the effective registration of a design.
Copyright
Definition and Legal Requirements. Textile and clothing designs and models are entitled to a prior protection. This can be done by applying to the ESBM in writing and depositing relevant samples with it.
Enforcement and Remedies. Prior protection gives the applicant a priority right over subsequent applications.
Length of Protection. Prior protection expires in three months (or sooner) after the effective registration of a design.
Marketing Agreements
Marketing agreements are generally regulated in the Macau Commercial Code (MCC) as:
- Agency agreements (Article 622 et seq, MCC).
- Commercial concession agreements (Article 657 et seq, MCC).
- Franchise agreements (Article 679 et seq, MCC).
Each of these agreements has a specific legal framework, but the agency agreement is the main one, and its provisions may apply to the other two.
The legal system of Macau is based on the principle of contractual freedom. Therefore, parties can generally determine the contents and the terms and conditions of the agreement in which they enter into. They can also agree to combine features of any of the three agreements to have a mixed agreement.
Agency
In an agency agreement, one party agrees to promote (on behalf of the other) to third parties the goods or services in exchange for remuneration (such as commission).
Agency agreements can have a fixed term or they can be indefinite, and they can be exclusive or not (subject to what the parties have agreed to).
The agreement can be terminated either by:
- Revocation. This must be in writing and requires mutual agreement by both parties.
- Expiration. An agency agreement can expire:
- if its term expires;
- if any condition agreed by the parties ceases to exist;
- after the death or winding up of the agent, or insolvency of the principal or the agent.
- Notice of termination. This is only applicable for indefinite agreements and after giving prior notice.
- Termination by cause. For example, for breach of contract.
In addition to the right to terminate the agreement with cause, each party has the right to be compensated for the losses the other party's breaches have caused.
The agent also has the right to be compensated on termination if the agreement has not been terminated by their wilful misconduct or if the agent has assigned their rights and obligation to a third party.
Commercial Concession
The commercial concession agreement is a written agreement under which one of the parties (on its own behalf) agrees to buy and resell in a determined area the products that the other produces or distributes (with a degree of control by the producer or distributor).
Generally, the commercial concession agreement is exclusive, that is the principal can sell the given products in the stipulated area to another party and the concessionaire cannot sell products from the principal's competitors.
A commercial concession agreement can be indefinite, but its duration cannot be less than three months.
The rules on terminating an agency agreement (see above, Agency) generally apply. However, some specific rules set out in the MCC only apply to commercial concession agreements.
Franchising
Franchise agreements are written agreements under which the principal (according to its know-how) in exchange for remuneration, grants the other party the right to produce or sell goods or services in a specific area under the principal's commercial image and control.
In principle, the commercial concession agreement is exclusive. Therefore, the principal cannot be a competitor to the franchisee in the stipulated area and the franchisee cannot produce or sell the products (or render the services) of the principal's competitors.
The franchise agreement can be indefinite, but its duration cannot be less than three months.
The rules on terminating an agency agreement (see above, Agency) generally apply, but some specific rules set out in the MCC only apply to franchising agreements.
E-Commerce
Decree-Law No 64/99/M was (until it was revoked by Law No 5/2005) the only piece of legislation on e-commerce. When it was revoked, Law No 5/2005 was enacted and provides the legal regime for documents and electronic signatures.
Therefore, there is currently no specific legal framework that regulates other e-commerce matters (for example, distance selling). Hence, currently there is no legal distinction between online selling to consumers and online selling to businesses.
Advertising
Direct Marketing
Advertising activity in Macau is regulated by Advertising Law. Advertising is defined as any acts that intend to capture the attention of the target public of certain commercial goods or services that aim to promote them.
Generally, the advertising activity must be legal, identifiable and true, and it must comply with the principles of good faith, fair competition and customer protection. Therefore, advertising that is (or may be) deceitful is forbidden.
Advertising is limited or even prohibited for certain products and services (such as games of chance, alcohol, tobacco, real estate, motor vehicles, medical products and services).
Affixing advertisement messages is subject to prior licensing under the Advertising Law and specific regulations from the regulatory bodies.
Breaching the Advertising Law may lead to administrative fines of up to MOP40,000.
Data Protection
37. Are there specific data protection laws? If not, are there laws providing equivalent protection?
Data Protection Laws
In addition to the general protection of personal data provisions in the Macau Civil Code, the protection of personal data is regulated by Law No 8/2005 (Data Protection Law).
Personal data is defined as information of any nature that allows someone to be identified or identifiable). Generally, all processing of personal data requires the unambiguous and informed consent of the data subjects (unless the law expressly provides otherwise) and must be performed for specific and determined purposes, in good faith, proportionately, and with respect for the privacy of the data subjects and their fundamental rights and interests.
The law recognises a set of rights belonging to data subjects, in particular the right to:
- Be informed when their data is accessed, processed or recorded.
- Demand the rectification, correction or update of their personal data.
- Object to the processing of their personal data.
- Be compensated for losses caused by any unlawful data processing.
The processing of personal data is subject to notification or prior authorisation of the Office for the Protection of Personal Data (OPDP) (Gabinete de Protecção dos Dados Pessoais (GPDP)).
Breaching the Data Protection Law can result in administrative fines (up to MOP100,000) and (in certain cases) criminal charges (up to two years imprisonment).
Consumer Privacy Laws
The main piece of legislation currently in force to protect consumers rights is Law No 12/88/M (Consumer Protection Law) which dates back to 1988.
A new consumer legal regime was approved on 24 June 2021 and will come into force on 1 January 2022 (New Consumers Bill).
The Consumer Protection Law and the New Consumers Bill do not provide specifically for consumer privacy rights.
However, consumer privacy is generally addressed by the Data Protection Law.
Product Liability
Product liability and product safety matters are regulated in the Macau Commercial Code (MCC) (Article 85 et seq).
Under the MCC, the manufacturer (which includes distributors and importers) is liable. This is regardless of whether or not there has been any wilful misconduct for the damage caused to third parties by defects of the marketed products.
There is a defect if (at the point of marketing) the product is not as safe as could be reasonably expected. This is fact-specific, but takes into account the product's appearance, features and expected use.
If multiple persons are liable, the liability is joint and several. However, the different contribution for the defects and damages caused can be taken into consideration and may lead to recovery proceedings between the defendants.
Regulatory Authorities
39. What are some of the key regulatory authorities relevant to doing business in your jurisdiction?
Environment
Main Activities. The Environmental Protection Bureau is responsible for studying, planning, execution, co-ordination and promotion of environmental and energy policies.
W www.dspa.gov.mo/
Financial Services
Main Activities. The Monetary Authority of Macau is responsible for:
- Guiding, co-ordinating and overseeing the monetary, financial, foreign exchange and insurance markets, ensuring their smooth operation and supervising the actions of those operating within them. This is according to the terms established in the regulatory statutes governing each respective area.
- Monitoring internal monetary stability and the external solvency of the local currency and ensuring its full convertibility.
- Exercising the functions of a central monetary depository and managing the territory's currency reserves and other foreign assets.
- Monitoring the stability of the financial system.
W www.amcm.gov.mo/
Other
Main Activities. The Macau Financial Department is responsible for all the local tax matters.
W www.dsf.gov.mo/
Main Activities. The Macau Trade and Investment Promotion Institute is responsible for assisting in researching and formulating economic policies regarding the promotion of external co-operation, introduction of investment, convention and exhibition industry.
W www.ipim.gov.mo/en/
Contributor profiles
Hugo Maia Bandeira, Partner
Manuela António - Lawyers and Notaries
T +853 28 591 592
F +853 28 345 678
E [email protected]
W www.mantonio.net
Professional qualifications. Lawyer, Macau
Areas of practice. Aviation; banking and finance; corporate and M&A; data protection; employment and immigration; gaming; leisure and hospitality; project finance; real estate and construction.
Languages. Portuguese, English
Tiago Assunção, Senior Associate
Manuela António - Lawyers and Notaries
T +853 28 591 592
F +853 28 345 678
E [email protected]
W www.mantonio.net
Professional qualifications. Lawyer, Portugal and Macau
Areas of practice. Corporate and M&A; banking and finance; data protection; litigation and dispute resolution; public and administrative law; intellectual and industrial property; regulatory and compliance.
Languages. Portuguese, English
Daniel da Silva e Melo, Senior Associate
Manuela António - Lawyers and Notaries
T +853 28 591 592
F +853 28 345 678
E [email protected]
W www.mantonio.net
Professional qualifications. Lawyer, Macau
Areas of practice. Aviation; banking and finance; capital markets; corporate and M&A; intellectual and industrial property; litigation and dispute resolution; regulatory and compliance.
Languages. Portuguese, English
End of Document
Resource ID w-013-7754Resource History
Changes Made to This Resource
This resource is periodically updated for necessary changes due to legal, market, or practice developments. Significant developments affecting this resource will be described below.
© 2024 Thomson Reuters. All rights reserved.