Primasia Corporate Services Limited

Thursday, 23 August 2012

Hong Kong Updates- New Companies Ordinance

New Companies Ordinance passed on 12th July

Key points include:

(a) Abolition of par value for shares

(b) Restricting corporate directorships of private companies: each private company will be required to have at least one director who is a natural person, to enhance transparency and accountability. A grace period of six months from the commencement date of the new ordinance will be given.

(e) Strengthening enforcement: lower threshold for prosecution and a new definition of “responsible person” (who can be prosecuted).

(f) Simplified reporting for companies that meet specified size criteria

(g) Strengthening of auditors’ rights to require a wider range of persons to provide information or explanations.

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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!

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

Wednesday, 25 July 2012

China Updates- Personal Tax

Personal tax

A State Administration of Taxation notice issued in June allows for preferential individual income tax treatment for Hong Kong and Macau residents working in China. This may in include time apportionment of salary income.

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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!

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Tuesday, 24 July 2012

Hong Kong Updates- Tax

Tax

The Court of Appeal confirmed that unrealised gains are not chargeable to profits tax (under Section 14 of the Inland Revenue Ordinance).

New legislation:

(i) The Competition Bill received its final reading in LegCo and will become law, largely unchanged. It includes two ‘Conduct Rules’, which prohibit (1) agreements and behaviour which restrict competiton in Hong Kong and (2) abuse of substantial market power with the same effect. Fines (amongst other penalties) can be up to 10% of the turnover of the group of which the offending company is a part.

(ii) The Mediation Ordinance which aims to encourage mediation for the resolution of disputes in Hong Kong enhancing existing rules requiring arbitration to be attempted prior to commencing court proceedings.

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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!

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Friday, 29 June 2012

China Updates- Protection of female employees

New rules (the “New Provisions”) on protection of female employees have been introduced. These cover the following areas:

Prohibited work for female employees – now divided into four categories as: "under normal conditions", "during pregnancy", "during the nursing period" and "during the menstrual period". More types of work have

been classified as "prohibited", such as work in confined spaces (for pregnant employees).

Maternity leave has been extended from 90 days to 98 days.
Maternity benefits have been redefined.
Sexual harassment provisions - employers must take precautionsto safeguard female employees from sexual harassment in theworkplace. This provision is a general one and more detailed rules are expected soon.

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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!

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Monday, 25 June 2012

Hong Kong Updates- Companies Registry

Capital duty

The Companies Registry has announced that capital duty on the share capital of Hong Kong companies is abolished with effect from 1st June. This means that Hong Kong companies may incorporate with higher share capital without incurring this duty. Previously, most private companies in Hong Kong have been incorporated with a standard share capital of HK$10,000, which attracted minimal capital duty.

Electronic form submission

The Companies Registry has uploaded the requisite form to allow electronic submission of annual returns of local private companies having a share capital. In addition, 6 further forms have now been digitalised to allow electronic submission, including those for returns of allotments, notification of increase in nominal share capital and those relating to reserve directors.

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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!

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Thursday, 31 May 2012

China Updates- Employment Contract Law

A foreign national’s severance claim has been upheld under the Employment Contract Law (ECL) by a Shanghai court. Thus, the general employment law has been applied to foreign nationals rather than only, indeed in preference to, the separate national regulations on employment of foreigners. The decision by the Shanghai Jing’an District People’s Court in April 2010 was based on the principle that the ECL did not exclude foreigners and hence should be applied to them, assertions of freedom of contract notwithstanding .

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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!

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Tuesday, 29 May 2012

Hong Kong Updates- Anti-Money Laundering Ordinance

The Anti-Money Laundering Ordinance came into effect on 1st April.

The key features include:

i. Supervisory and enforcement powers to four regulatory authorities (RAs), the Securities and Futures Commission, the Hong Kong Monetary Authority, the Insurance Authority and the Customs

and Excise Department.

ii. Codification into statutory obligations of previous due diligence and record-keeping obligations.

iii. Supervisory and criminal sanctions for non-compliance with the statutory requirements.

iv. Creation of a licensing regime and anti-money laundering framework for remittance agents and money changers.

The four RAs had already published (in January 2012) the Guideline on Anti-Money Laundering and Counter-Terrorist Financing. Each of them has a slightly modified version. The Inland Revenue Department (IRD) has imposed a new reporting requirement for employers in respect of payments in lieu of notice made to employees on or after 1 April 2012.

In other words, they are now being treated by the IRD as taxable: previously, the IRD treated payments in lieu of notice as not taxable and therefore did not require them to be reported.

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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!

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