Tuesday 27 August 2013

China Updates- Foreign Exchange

The State Administration of Foreign Exchange (SAFE) of China in July issued the Guidelines for the Administration of Foreign Exchange Under Service Trade under Circular 30 (effective September). Circular 30 simplifies foreign exchange rules for the service industry whilst abolishing numerous previous SAFE regulations.

The Guidelines provide that the State does not impose restrictions on international payments in services trade as long as the payments are based upon genuine and lawful transactions. Nor are banks required to inspect and verify the transaction documents for receiving and paying foreign exchange under services trade where the value of such funds is US$50,000 (or equivalent) or less. However, where the nature of the funds is unclear, banks should request the submission of transaction documents. Likewise, where the funds exceed US$50,000 or equivalent, transaction documents must be submitted to banks for approval before the transaction can be processed. In the case of dividend payments, for example, the bank must verify the annual financial audit report issued by a certified public accounting firm, the board resolution on profit distribution, and the company's most recent capitalverification report. 

Tuesday 20 August 2013

Hong Kong Updates- Directors

The requirement for all Hong Kong private companies to have at least one natural person as a director is approaching and it is expected that this will apply to all new companies by 1st January 2014, and to all existing companies after a grace period of (possibly) 6 months.

Primasia Corporate Services Limited will offer a personal director services, subject to due diligence and conditions, to a limited number of companies.

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Primasia will post the updates of Hong Kong and China from time to time. Follow us on our WebsiteBloggerLinkedIn and stay tunned for our updates!
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