PetroChina Investment (Hong Kong) becomes the first company approved for re-domiciliation under a new law, streamlining the process for firms to reincorporate in the city without changing operations or listing status. The Financial Services and the Treasury Bureau issued the certificate of re-domiciliation, highlighting the high interest from companies.

Previously, companies had to dissolve and shift assets overseas to move domicile, a costly process. Redomiciling to Hong Kong streamlines corporate structure, enhances operational efficiency, and benefits from the city’s tax regime and professional services. Secretary Christopher Hui Ching-yu noted a steady flow of re-domiciliation applications.

The Companies Registry swiftly approved PetroChina Investment’s application within two weeks, indicating strong business confidence in Hong Kong’s operating environment. The FSTB expects more applications to stimulate demand for auditing, accounting, legal services, and create employment opportunities. Changes in global tax laws make traditional tax havens less appealing.

Recent moves of Hong Kong-listed companies and insurers shifting domicile from Bermuda and the Cayman Islands to Hong Kong signal a trend towards the city. The law aims to attract more overseas enterprises by promoting the benefits of redomiciling, such as avoiding double taxation. The Companies Registry and relevant departments actively assist interested companies.

Read more at Yahoo Finance: PetroChina unit first to reincorporate in Hong Kong under re-domiciliation law