Friday 29 November 2013

China Updates- Company Laws

At the same time as Hong Kong is implementing its reform of its companies law, China has announced simplification of its company rules. 

The main proposed changes include:
  • Removal of minimum registered capital requirements
  • No required schedule for payment of full share capital,or proportion for the initial paid-in capital
  • Relaxation of registration address requirements (Details unclear.)
  • Cancellation of annual inspection and replacement with an annual reporting system
  • Online access to company information such as registration and annual reports

The above proposals reflect the trend to continuing improvement of ease of doing business in China, such as the recent easing of company registration procedures in Shenzhen and in the new Shanghai Free Trade Zone. However, they are only proposals at this stage.

Tuesday 26 November 2013

Hong Kong Updates- Companies Ordinance &Taxation

Companies Ordinance
3rd March 2014 has been named as the commencement date of the new Companies Ordinance.

Although all the 90 or so new forms should be used with effect from the commencement date, as a transitional arrangement, the Companies Registry will continue to accept existing forms for a further three months (subject to exceptions).

Taxation
The Court of Final Appeal handed down a decision favouring taxpayers, clarifying the relationship between business accounting (GAAP) and tax accounting. In so doing, they confirmed that profits can only be taxed when they are actually earned and realised, even if for accounting purposes the losses have been booked.

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