China Updates- Anti-Unfair Competition Law

Proposed amendments to the Anti-Unfair Competition Law were published for comment.

The key area of change is in the proposed new Article 5, which if adopted would prohibit the following acts on the basis that they might cause market confusion:

1. Using identical or similar and well-known commercial logos of third parties,
2. Misappropriating registered or well-known marks as business names, and
3. Misappropriating well-known trade names or abbreviations in trade marks or domain names.

The effect is for this Article to cover a much broader range of IP-related unfair competition acts since the definition of “commercial logo” is proposed to be enhanced to include all features that could distinguish a product or products, such as the shape of the product, and alternative names for the product, enterprise or individual as appropriate (including domain names and websites).

How this will fit in with IP law (including China’s first registration, as apposed to first use, system, which would appear to be in conflict) remains to be seen.

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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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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

Thinking about outsourcing payroll and HR?

There is no doubt that payroll and HR operations are time-consuming. For small companies, they may not be able to afford a payroll and HR department. How could you focus on your core business and manage staff’s payroll as well as provide decent staff perks at the same time? Outsourcing is a perfect option.

There are many advantages of outsourcing your payroll and HR:
1.   Reduce costs
2.   Save time
3.   Increase productivity
4.   Improve Compliance
5.   Increase confidentiality

Primasia provides reliable and secure payroll and HR services:
- Complete Payroll
- Full HR Support including Online
  Leave Management
- MPF Registration and Monthly Filing
- Employer Compensation Insurance
- Working Visa Application
- Employer's Return
- HR Consulting Service

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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

The Primasia Carvery Evening 2016

Primasia organised its annual Carvery Evening on 8th March, International Women's Day, this year at the The Foreign Correspondents' Club, Hong Kong (FCC).

Around 200 professionals from different industries had attended our Carvery. We were happy to see and catch up with all our guests and friends in a wonderful night! 

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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- Capital Contributions

Capital Contributions

MOFCOM has removed inconsistencies arising from previous reform of the rules on the registered capital of corporations in China. (See our earlier Primasia newsletter on this subject where the inconsistencies and uncertainties were highlighted.) In essence, it was uncertain whether the reforms, which appeared to be intended to be applied universally within China, were in fact applicable to Foreign Invested Enterprises.

Now MOFCOM has clarified that.

1. The minimum registered capital requirements on (most) FIEs have been removed, and,
2. Full contribution of registered capital to an FIE is no longer required for its shareholders to invest their equity interests in the FIE into another FIE.

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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!

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

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

Hong Kong Updates- Privity of Contract & Anti-trust

Privity of Contract

The Contracts (Rights of Third Parties) Ordinance comes into force on 1^stJanuary 2016. We will report on this in more detail in our January newsletter but, in summary, the new Ordinance reforms the privity of contract rule that only a party to a contract may enforce it.

Anti-trust
The Competition Ordinance entered into force on 14^th, December 2015.

This new legislation makes unlawful arrangements with competitors which could lead to price fixing, including fixing of wages, or other anti-competitive practices such as boycotting of competitors. A significant aspect of the legislation is its application to employment, rather than just to market fixing on the supply side.

Under the Ordinance, there are two key prohibitions, taking the form of "Conduct Rules".

The "First Conduct Rule" prohibits agreements and concerted practices (i.e. cabal-type behaviour) that restrict competition. 

The "Second Conduct Rule" prohibits a business with significant market power from abusing that power through behaviour that restricts competition.

A Commission will oversee the interpretation and application of the Conduct Rules. 

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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!

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

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- Counter-Terrorism Law

In December 2015, China introduced a new Counter-Terrorism Law, effective from 1st January 2016. Two requirements in the draft have been dropped, namely that ISPs should relocate their related servers and domestic user data to China and allow the Chinese government a backdoor into those servers and hence the data contained therein.

Retained provisions, however, include the requirement that encryption keys be made available to the Chinese government and assistance should be provided by the ISPs to monitor content.

Whether the dropped provisions are a real concession given the ambit of those retained is a matter of debate.

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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!

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

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

Hong Kong Updates- Personal Data Protection & Taxation – Group Loss Relief?

Personal Data Protection

A further conviction has been handed down (end-December 2015) for breaches of the direct marketing provisions under the Hong Kong Personal Data (Privacy) Ordinance (PDPO), following the first three such convictions in previous months. Although the fine was nominal (at HK$5,000) and although one of the accused was convicted, the case was significant in that it was the first conviction against an individual for unauthorised  transfer of personal data to a third party for use in direct marketing.

Taxation – Group Loss Relief?

The Hong Kong Inland Revenue Department (IRD) has issued a guidance note about the tax treatment of profits in a court-free amalgamation, a procedure introduced by the new Companies Ordinance which became effective in 2014. No amendments have yet been made to the corresponding (Inland Revenue) ordinance to cover this, and nor has Hong Kong historically given group relief for losses. The guidance note goes some way to removing the uncertainties this situation has produced.

In (very) brief, losses in a company may be carried forward into the merged or amalgamated entity provided that the IRD are satisfied that the intention behind the amalgamation is not to obtain the loss relief.

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

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