Primasia Corporate Services Limited

Friday, 29 August 2014

China Updates- Shanghai Tax Free Zone

The State Administration of Taxation (SAT) announced measures to support the innovative tax service in the pilot trade free zone. The most important of these is the automatic allocation of a tax registration number through the Internet. This is the first such trail of this.

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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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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

Tuesday, 26 August 2014

China Updates- State Administration of Foreign Exchange (SAFE)

A new State Administration of Foreign Exchange (SAFE) circular (Circular 36 on "Relevant Issues Concerning the Pilot Reform in Certain Areas of the Administrative Method of the Conversion of Foreign Exchange Funds by Foreign-invested Enterprises") came into effect on 4th August 2014. Circular 26 allows increased flexibility to foreign-invested enterprises (FIEs) in some locations in China to convert the foreign exchange in their capital account into RMB (i.e. for use as working capital in the 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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Friday, 22 August 2014

Hong Kong Updates- Privity of Contract

The Contracts (Rights of Third Parties) Bill was introduced to the Hong Kong legislature. If it is passed (i.e. if it becomes an Ordinance), Hong Kong will, like several other common law jurisdictions, have reformed the long-established common law doctrine of "privity of contract".

Rather than pre-empt the legislation, which will likely not be effective until 2015, we will provide more information on the effects of this legislation once it has been passed.

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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, 30 July 2014

China Updates- Shanghai Free Trade Zone

Revised Negative List for Shanghai Free Trade Zone

The list of prohibited industries in the Shanghai FTZ has been reduced from 190 to 139.

However, most of this has been achieved either by consolidation of industry categories or removal of activities (such as pornography) which are prohibited under the general law. As so often with the FTZs, there is less in the changes than meets the eye. Nevertheless, there are some genuine relaxations- further detail is available from Primasia on request.

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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 July 2014

China Updates- Changes to Capital Requirements for FIEs

On 17th June, MOFCOM removed the Capital Contribution Restrictions on Foreign Investments in China. This confirms that the company registration reforms (reported in our newsletter earlier this year) also apply to FIEs (Foreign Invested Enterprises).

These changes, effective from March for domestic companies, include:
(i) Change from a paid-in capital to a subscribed capital system,
(ii) removal of minimum registered capital thresholds,
(iii) removal of the statutory timeline for capital contribution,
(iv) removal of the 30 percent minimum cash contribution requirement,
(v) removal of the capital verification requirement, and
(vi) removal of the annual inspection requirement.

At the time of the original changes, it was unclear whether or to what extent they would apply to FIEs, MOFCOM's notice provides official clarification that they do apply to FIEs,

Thus:
(a) There will be no specific requirement on the form or the timing of the capital contribution.
(b) Minimum registered capital requirements are (with exceptions) henceforth removed.
(c) Change from "Paid In" to "Subscribed" capital: and no further verification by the authorities of "Paid In" nor any requirement to register this with SAIC

But:
1. Filing of investment certificated and supporting documentation with the local authority is required once the capital contribution has been completed.
2. The total investment and registered capital of the FIE is unchanged, including the capital ratio,
3. The changes do not apply to FIEs approved before 1st March 2014 unless separate approval is obtained.

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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, 25 July 2014

Hong Kong Updates- Display of Company Names

The new Companies Ordinance has relaxed the rules on the display of names at companies' places of business, including a specific relaxation with respect to corporate services providers such as Primasia Corporate Services Limited. Where 6 or more companies have their registered office at a single location, rotating electronic display of the companies' names is now permissible.

A further, rather strange, clarification has been given to the effect that a company with a bi-lingual name may display either the English or the Chinese name. Although the Companies Registry says that it has taken legal advice to arrive at this position, it had previously been the accepted position that a bilingual name was regarded as a single indivisible name, at least for name registration purposes.

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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, 24 July 2014

Hong Kong Updates- Company Incorporations

95,408 local companies were newly incorporated in the first half of 2014, 7.16 per cent higher than 2013. At end-June 2014, the total number of live local companies registered was 1,233,780, up 70,849 from the end of 2013.

393 non-Hong Kong companies established a place of business in Hong Kong in the first half of 2014, down 8.18 per cent from the second half of 2013. The total number of registered non-Hong Kong companies reached 9,432 by the end of June 2014.

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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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