Primasia Corporate Services Limited: December 2012

Friday, 14 December 2012

China Updates- Tightening up of Labour Outsourcing

Tightening up of Labour Outsourcing (“Labour Dispatch”)

New rules in November 2012, but with retroactive effect, include the following provisions where companies use outside companies to provide labour:

(i) Limitations on the scope of positions

(ii) Increase in capital requirements for outsource (“dispatch” companies)

(iii) Protection of employees - “equal pay for equal work”

***
Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

===================================================================

Need more information?
Please contact:
John Barclay -Email
Teresa Tam - Email
--------------------------
Follow us on:
Website: Primasia HK / Primasia China
LinkedIn: Primasia
--------------------------
Primasia Corporate Services Limited
Tel: +852 2882 2088
Suite 1106-08, 11/F., Tai Yau Building, No. 181 Johnston Road, Wanchai, Hong Kong

China Updates- New Rules on Equity Contributions

New Rules on Equity Contributions

The Ministry of Commerce in China (MOFCOM) published new provisions on equity contributions for Foreign Invested Entities (FIEs). These came into force in October 2012 following 18 months of public discussions. These provisions provide foreign investors with more flexibility in structuring

or restructuring their businesses in China.

Key Points.

(i) Contribution with equity is applicable in (inter alia) the following common situations:

incorporation of a new FIE
increase of capital to change the equity structure of an FIE.

(ii) The equity used must be free from any encumbrances.

(iii) The equity used is subject to valuation by a PRC-licensed valuer.

(iv) The aggregate value of contribution with equity and othernon-monetary contributions made by all shareholders is limited to 70% of the total registered capital of the Invested Entity.

***
Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

===================================================================

Thursday, 13 December 2012

Hong Kong Updates- Revision of Trust Law

Revision of Trust Law

The Financial Services and Treasury Bureau has recently published the consultation conclusions on the detailed legislative proposals on the trust law reform. We will report in detail on this is a later newsletter, but we expect Hong Kong to become a more attractive jurisdiction for estate planning as a result of the reforms.

***
Primasia will post the updates of Hong Kong and China from time to time. Follow us on our Website/ Blogger/ LinkedIn and stay tunned for our updates!

===================================================================