Primasia Corporate Services Limited

Tuesday, 29 January 2013

China Updates- Minimum wage & Trademark

The Beijing Municipal Human Resource and Social Security Bureau has increased the statutory minimum wage from 1 January 2013 to CNY8.05 and CNY1,400 respectively for hourly and monthly minimum

wages in Beijing.

Also in Beijing, and following similar comments from the Chinese Trademark Office, the Chinese judiciary has publicly acknowledged the problem of trademark squatting. In a press conference given by the Beijing People's Court, the Court reported on its study into "the cause, characteristic and judicial response to trademark squatting" and stated that the courts should aim to deter squatting in order to enhance IP protection in China. At the same time, the court delivered 6 judgments against trademark squatters.

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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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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

Monday, 28 January 2013

Hong Kong Updates- Minimum Wage

The Financial Action Task Force (FATF) has positively recognised the efforts made by Hong Kong in combating money laundering and resolved unanimously to remove Hong Kong from the follow up process in its Mutual Evaluation.

The Minimum Wage Commission's recommendation to adjust the Statutory Minimum Wage rate from HK$28 per hour to HK$30 per hour has been accepted and the new rate should take effect on 1 May 2013. The HK$11,500 monthly cap (above which it is not necessary to keep a written record of hours worked) will therefore increase to HK$12,300 per month.

Employers should take steps to adjust wages to comply with this change.

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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, 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”

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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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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.

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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, 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.

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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, 30 November 2012

Hong Kong Updates- Employment

Employment

The long-running Cathay Pacific case has finally reached and been decided on by the Court of Final Appeal (CFA).There are two parts to the decision – firstly, clarification of the formula for calculating statutory holiday and annual leave pay under the old (preamendment) Employment Ordinance (EO). But, more importantly, the question was decided of which leave days are included in the calculation according to the statutory formula where payment is made in lieu of the leave being taken.

This affects a large proportion of employers, as the EO prescribes only 7 days’ annual leave and many employers (particularly employers which are foreign-owned) grant more than 7 days annual leave to their employees.

Hong Kong Updates- Stamp Duty

Stamp Duty

The big news in October, at least for Hong Kong residents, was the increase in Buyer’s Stamp Duty (BSD) for non-Hong Kong Permanent Residents, designed to reduce distortions (or to introduce one, depending on your point of view) in the Hong Kong property market and to ease the pressure on the price of accommodation for permanent residents. The BSD is 15% of the price (or value, whichever is higher) and, unlike the existing stamp duty, payable jointly and severally by buyer and seller, is payable by the buyer only.

A number of questions have come up about ways to avoid the BSD, but the government’s immediate response to one such suggestion – to move a property to a subsidiary and for the shares in the subsidiary then to be sold – elicited a swift and clear response that that scheme at least would escape BSD.

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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 January 2013

Monday, 28 January 2013

Friday, 14 December 2012

Thursday, 13 December 2012

Friday, 30 November 2012

Thursday, 22 November 2012