Hong Kong and Macau-Based Companies Allowed to Set Up Mainland Medical Institutions

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Dec. 19 – China’s Ministry of Health and the Ministry of Commerce jointly released the “Circular on Issues Concerning the Establishment of Medical Institutions in Mainland China by Hong Kong and Macao Service Providers (weiyizhengfa [2012] No.72, hereinafter referred to as the ‘Circular’)”on December 10, which permits Hong Kong and Macao-based service providers to set up medical institutions in the Mainland.

According to the Circular, Hong Kong and Macao service providers are permitted to establish medical institutions in Mainland China in the form of sole proprietorships, or through joint ventures or cooperation agreements made with medical institutions, companies, enterprises or other economic organizations in the Mainland.

The Circular also provides that Hong Kong and Macao service providers shall establish the joint venture medical institutions, cooperative medical institutions, or solely-invested medical institutions (other than solely-invested hospitals and solely-invested sanatoriums) according to the standards and requirements of setting up medical institutions by entities or individuals in the Mainland.

The Circular is scheduled to take effect from January 1, 2013.

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