Primasia Corporate Services Limited

Friday, 28 September 2012

Hong Kong Updates- Trade Descriptions Ordinance

Amendments have been passed to the Trade Descriptions Ordinance.These amendments will be effective in 2013 and include:

i. Expanded definition of a trade description, to include such items as availability of what is being offered.

ii. Bringing services into the scope of the legislation.

iii. Including “misleading omissions” as an as well as outright dishonest practices, such as bait-and-switch, or so-called “bait advertising”, or even merely overly aggressive practices.

iv. In our own industry, we believe such practices would include quoting a low headline fee for provision of a Hong Kong company secretary, without mentioning additional fees for other annual duties of a company secretary, such as preparation and filing of the Annual Return, preparation of the AGM, and forwarding of official correspondence, e.g. from the IRD.

Primasia Corporate Services Ltd. is pleased to confirm that our charges for company secretarial and other services have always been fully compliant with the proposed law, and are completely transparent.

v. Factors to be considered in determining whether there is any offence include any exploitation of the

consumer's circumstance, such as (in our view) unfamiliarity with Hong Kong, as is usually the case when a potential investor is considering setting up in Hong Kong.

vi. The offences will be applicable to a trading practice targeting consumers outside Hong Kong if the trader is physically in Hong Kong or has Hong Kong as its usual place of business.

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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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Follow us on:
Website: Primasia HK / Primasia China
LinkedIn: Primasia
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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, 29 August 2012

China Updates- Foreign Exchange

The State Administration of Foreign Exchange of the PRC (SAFE) has issued a notice allowing Chinese domestic companies to use foreign currency loans obtained from domestic banks to fund offshore subsidiaries. Previously, such companies could only use their foreign currency reserves, foreign currency purchased with RMB or foreign currency pools approved by SAFE to fund offshore subsidiaries.

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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, 23 August 2012

China Updates- Labour Law

Draft amendments for discussion include the following provisions to improve protection of workers. (Some employers have been abusing the use of labour outsourcing services.)

(a) Stricter restrictions in use of labour outsourcing services (restrict to genuinely temporary arrangements)

(b) Stricter requirements (such as higher capital requirements) for labour outsourcing service providers

(d) Tougher penalties

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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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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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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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