China is a “first-to-file” jurisdiction, it means you have to register a trademark in order to obtain proprietary rights. So, if you are planning to start your business in China, Centre O would strongly recommend to register your China trademark as soon as possible. As it’s mostly ended up with squatters, counterfeiters, or grey market suppliers.
What supporting documents are needed
Application
Firstly, you have to prepare your Business Registration Certificate. At the same time, you have to prepare the short essay to introduce your company. Including what is your business about, mission and vision. Then you can illustrate the idea, origin and the concept of the design. For instance, how it relates to your company.
Besides explaining your concepts, then you have to show the evidence of using the trademark. That is, you have to prepare the time line of your mark. When did it finished, when did you start to use and pictures or promotion materials during publication of it. Also, the pictures or promotion materials which printed the mark on it.
Appeal
Unfortunately, if your application is rejected and you would like to appeal. Then you need to provide the prior trademark registration certificates or preliminary publication materials. Additionally, the evidence for registration in other classes and in other countries or regions. It would be great if you can provide any other information or photos which you can support the use of the it.
Apart from the time line from born to first launch to the market. Then you have to show the evidence and expenditure of promotion of the mark in difference regions. For example, promotion materials such as packaging, leaflets with use of it.
Other than the printed materials, you need to provide the photos of attending different exhibitions and business activities involving the trademark. And the expenditure of promotion and then sales agreement, sales performance in difference regions in recent 5 years prior to application date.
If you used your mark for newspaper, magazine, journal or social media, then you should provide:
Agreement of advertisement and payment copies
Advertisement Agreement / Contract with marketing agents
Press releases, reports, recommendations, certificate, prizes by difference media or organizations
The British Virgin Islands (BVI) is one of the most popular places to create an international business company. Since it’s well-known as being a tax haven. Hence, BVI company registration is no doubt practical, making it one of the offshore tax havens. BVI is no corporate income tax, zero tax on capital gains, or value-added tax (VAT) for offshore BVI companies. However, is it still favourable to setup BVI companies nowadays? Or let’s Centre O talk about the pros and cons as reference for you.
Increased Transparency
Global anti-money laundering (AML) and combatting financial crime regulations have become stricter. Jurisdictions like the BVI have faced pressure to enhance corporate transparency, which means more rigorous due diligence requirements and increased reporting obligations for clients.
The British Virgin Islands Country-specific Regulations
Depending on the countries where you operate, governments might be tightening regulations around the use of offshore entities for tax avoidance or evasion purposes. Some jurisdictions may now require additional scrutiny or even discourage the use of BVI companies for legitimate reasons.
Public Perception
The growing awareness about tax havens and their role in facilitating financial secrecy. This may affect the reputation of British Virgin Islands companies, particularly if they are perceived as being used for illicit activities.
The British Virgin Islands Tax Implication
Although the BVI itself does not tax its residents or corporations, changes in tax laws or international tax agreements might impact how their structures are treated by other countries, potentially leading to double taxation concerns.
Complexity
As regulations evolve, maintaining a British Virgin Islands company might become more complex and costly, especially if compliance becomes more burdensome.
Setting up a business in the BVI is not the same as it once was. However, navigating your business in certain ways can make it still a better choice than many continental registration alternatives.
2024-2025 the Business Registration Levy HK$220 will be waived per annum. While the registration fee will no longer be discounted. Starting from 1 April, 2024, the Business Registration fee is HK$2200.
How much you have to pay in 2024-2025?
Checking back, the calculating of 2023-2024, the amount of total business registration fee HK$2000, plus levy HK$150. Total of HK$2150. While in 2024-2025, the update fee is HK$2200 plus levy of HK$0. The total amount is HK$2200. So, if the commencement date of your company is on or after 1st April. then then you have to pay extra HK$50 when renewal of your registration.
Hong Kong is one of the top cities World-wide to set up businesses. Getting started is relatively quick and easy, setup costs are low and the overall environment encourages businesses to thrive. Centre O is here to assist and to facilitate businesses in both Hong Kong and China.
Reasons for being relatively easy to set up businesses in Hong Kong
Simple Registration Process
Hong Kong has a reputation of a straightforward and efficient business registration process. Moreover, the Companies Registry which oversees business registrations, offers online services that streamline the registration process. In fact, if all required document is ready, the business can complete within 3-5 days.
Minimal Regulatory Hurdles
Hong Kong has a business-friendly regulatory environment with relatively few bureaucratic hurdles compared to many other jurisdictions. The city operates under the principle of “positive non-interventionism”. In short, the government intervenes minimally in the affairs of businesses unless necessary. This policy fosters a conducive environment for entrepreneurship.
Low Taxes and Duties
Hong Kong imposes low taxes on businesses with a simple and transparent tax system. For example, corporate profit tax is capped at 16.5% and there is no value-added tax (VAT) or sales tax. Additionally, there are capital gain taxes or withholding taxes on dividends and interest. These favourable tax policies attract investors to set up businesses in Hong Kong.
Strategic Location and Access to markets
Hong Kong’s strategic location in Asia provides businesses with access to the vast Chinese market and other Asia-Pacific markets. Its well-developed infrastructure, efficient transportation networks, and world-class logistics facilities further facilitate business operations and trade. For instance, Hong Kong has extensive traffic networks connected to Mainland China and all over the world.
Strong Legal Framework
Hong Kong has a robust legal framework based on the rule of law, providing businesses with a predictable and stable environment for operations. Contracts are enforceable, and intellectual property rights are protected, giving confidence to entrepreneurs and investors.
Access to Talent
Hong Kong boasts a highly skilled and diverse workforce, with proficiency in multiple languages, including English and Chinese. The city’s universities produce a steady stream of qualified graduates, and its open immigration policies allow businesses to attract talent from around the world.
Supportive Government Initiatives
The Hong Kong government actively supports entrepreneurship and innovation through various initiatives, including funding schemes, incubation programs, and resources for startups. These initiatives help entrepreneurs navigate the business landscape and access the support they need to succeed.
As you can see, the combination of the rules and regulations, policies and environment, all makes Hong Kong as an attractive destination for entrepreneurs to start and grow their businesses quickly and efficiently.
Everyone knows there are 365 days in a year. Besides the weekend off, an employee does have annual leave. Also, paid annual leave is part of the compensation. Then what should an employer be aware of?
Who can entitle a Paid-Leave?
According to the Employment Ordinance, employees who have been employed under a continuous contract for 12 months are entitled to annual leave with pay. An employee’s entitlement to paid annual leave increases progressively from seven days to a maximum of 14 days according to his length of service.
Can an employer pay in lieu of Leave?
According to the Employment Ordinance, regardless of whether an employee is entitled to holiday pay, an employer should grant his employee a statutory holiday, or arrange an “alternative holiday” or “substituted holiday”. An employer must not make any form of payment to the employee in lieu of granting a holiday. In other words, “buy-out” of a holiday is not allowed. However, an employee may choose to accept payment in lieu of the part of his leave entitlement which exceeds 10 days.
For example: An employee who is entitled to 12 days of paid annual leave may choose to take only 10 days of paid annual leave and accept payment from the employer in lieu of 2 days of annual leave.
How to calculate if paid annual leave is converted into the payment?
The daily rate of annual leave pay is a sum equivalent to the average daily wages earned by an employee in the 12-month period.
Current staff
Employment
More than 12 months
Previous 12 months average daily wage X no. of annual leave
Less than 12 months
Employment period average daily wage x no. of annual leave
For example: Ada worked for your company more than a year. And her total salary is HK$200,000 (Included salary and commission etc). Total work days are 240. If Amy takes 7 days annual leave. The calculation is
HK$200,000 / 240 x 7 = HK$5,833.33
Termination of Employment Contract
Period of Employment
Annual Leave Entitlements
Less than 3 months
0
3-12 months
Work days/365 x Entitled Annual Leave in the current leave year
12 months, less than 3 months in the current leave year
Annual leave not yet taken
12 months, 3-12 months in the current leave year
Work days/365 x No. of Annual leave + Annual leave not yet taken
What is the consequence if an employer denies an employee to take annual leave?
An employer who does not allow employees to take annual leave is liable to prosecution. And, upon conviction, to a fine of $50,000.
