Guangdong’s Foreign-funded Enterprises' Number was Ranked the First of China

Guangdong saw a surge in new Foreign-funded enterprises registration after the implement of measures of Guangdong industrial and commercial registration reform, which ranks the first of China, the data of Guangdong industrial and commercial bureau showed.

The implement of registration reform attracts foreign companies to invest in Guangdong. Especially Guangdong loosens the condition of capital registration which does not require the down payment at certain ratio of registered capital and cancel the 2 years payment deadlines of registered capital. There are also some other optimized measures such as loosening the company operation site registration management, electronic version of business license annul inspection change to publicity of annual repost and others which optimizes the business environment and promote the social and economic development. 

By the end of Jun, about 3,625 foreign-owned enterprises have finished registration in Guangdong. The registered capital of these new companies totaled 8.891 billion USD, rising 35.85% from the same period of last year. And the total amount of foreign-owned enterprises has been up to 101,800, which registered capital totaled 315.307 billion USD, rising 1.19% and 3.82% from the same period of last year respectively.

Touch Law Firm has experiences for over 8 years in Foreign-funded enterprises registration, tax & accounting, as well as intellectual property, visa service, offshore business service and legal service etc. If you are interested in our service, please contact our online secretary Ms. Touch ( Wechat ID: Touch-Law-Firm ), call at +8620-8355 5515 or email to info@touchlawfirm.com

Legal Service to Protect Your Profit: China Contracts and the Unknown Counterparty

Whenever one of our China lawyers drafts an agreement for a client doing business in China, one of the first things we ask is the identity of the Chinese counterparty. It’s a deceptively simple question.

The typical Chinese manufacturer (for example) is composed of multiple entities, with complicated lines of ownership. One entity may run the factory, another entity may run the office, and a third entity may serve as a holding company – and is probably based in Hong Kong. Overseeing the entire operation is a controlling shareholder who could care less which entity is the contracting party. And every single person on the Chinese side ignores corporate formalities and behaves as if all the entities are interchangeable.

But the entities are not interchangeable, and the counterparty matters. How it matters depends on your goals and the Chinese side’s corporate structure.

One basic rule is that the counterparty should have financial resources. No rational company should sign an agreement with a counterparty that is effectively judgment-proof. But many holding companies, especially those in Hong Kong, conduct no business other than receiving payments, and their bank accounts are emptied every few days.

Another rule is that the counterparty should be the entity that you pay. In the face of a stack of wire transfer receipts and a signed contract, it’s hard to argue that a business relationship doesn’t exist. This rule is considerably less compelling, however, when the Chinese side insists that payments be made to its holding company.

Meanwhile, if you have any hope of stopping IP infringement, the counterparty should be the entity most likely to steal your IP – the factory. But the factory may be an otherwise impractical choice if it has neither financial resources nor English-speaking personnel.

Similarly, you will need to consider dispute resolution, especially if the holding company is a Hong Kong entity. Where do you want to litigate (or arbitrate)? And where do you need to enforce the judgment?

Regardless of the named counterparty, any contract should reflect the reality of your relationship with the Chinese side. If the factory handles manufacturing and shipping, the office handles communication and orders, and the holding company handles all payments, then the contract should make that clear. The ideal situation, of course, would be for one Chinese entity to handle everything. But reality rarely matches the ideal.

Touch Law Firm provide annual legal counselor service for you. Professional legal advice and solutions can help you avoid all the different risk in China. If you are interested in our legal service in Guangzhou, please contact our online secretary Ms. Touch ( Wechat ID: Touch-Law-Firm ), call at +8620-8355 5515 or email to info@touchlawfirm.com

Do You Change Your Guangzhou Company's Business License to a New Version?

The new licenses will be held by any company founded on or after 1 March 2014, or which has renewed its business license since that time. All companies in China are required to switch over to a new license before 28 February 2015. In the meantime, however, a dual system is in place where both old and new licenses are in circulation.

The redesigned business licenses are in portrait orientation (rather than landscape, as previously) and contain an embedded QR code linked to the company listing in the National Enterprise Credit Registry. Most importantly, however, paid-in capital has been removed from the new licenses—this refers to the percentage of registered capital that a company has actually contributed to its operations in China. The reason why the paid-in capital has been removed is the government protects the information of the company. Certainly, it can still be accessed through local AIC records.

Two other minor changes consist of permitting multiple entities to list the same registered address on their respective business licenses, and switching over from a system of multiple types of licenses for different types of commercial entities to a standardized license including a “Type” criterion.

Touch Law Firm is dedicated to provide you Foreign-funded Enterprises Registrataion, Representative Office Registration, Company Change & Official Approval, and Tax & Accounting service. For further information, please follow our online secretary Ms. Touch (ID: touch-law-firm), call at +8620-8355 5515 or email to info@touchlawfirm.com

Free Booths for the Guangdong 21st Century Maritime Silk Road Expo

"Guangdong 21st Century Maritime Silk Road International Expo" is a valuable cooperation platform organized by China Council for the Promotion of International Trade Guangdong Provincial Committee to further enhance the multilateral investment and trade cooperation with Southeast Asia and China.
Since receiving a good response from first application on August 4, Touch Law Firm would like to provide MORE FREE PLACES for our clients. If you are interested in the exhibition, please contact at 020-8355 5515, or our WeChat online secretary Ms. Touch (touch-law-firm) before 15:00 at August 27, 2014.

Make the application for participation or purchasing via Touch Law Firm. You can get benefits below,
1. Free standard booth (worthy RMB 30,000);
2. Free shuffle bus;
3. Free accommodation.

5 Business Opportunities:
1. Entering China consumer market;
2. Purchasing high quality products;
3. Searching for Chinese investment partners;
4. Investing and business promoting;
5. Racing to control the overseas tourism market.

4 Exhibition Area:
1. Special Competitive Products Trade Cooperation Area;
2. Investment Cooperation Platform Display Area;
3. Tourism Culture Cooperation Exhibition Area;
4. Cross-border Trade E-commerce Exhibition Area.

Venue: Guangdong Modern International Exhibition Center, Houjie Town, Dongguan City
Agenda: October 31, 2014 (Professional Purchase Day)
November 1 - 2, 2014 (Public Days)

More information, please contact our WeChat online secretary Ms. Touch (touch-law-firm), call at +8620-8355 5515 or email to info@touchlawfirm.com

Trademark Registration in Guangzhou: An Idle Trademark Worths 340,000 USD

Recently, French well-known tire manufacturer Michelin signed a contract worthy 340,000USD (2,000,000 RMB) with Jiangyin Boer Auto Parts Industrial Co. Ltd. in mainland China. Michelin got the use right of trademark “PRE-MIER” on the auto tire category. According to Jiangyin Industrial and Commercial Bureau, it is the highest transaction price of trademark transfer in Jiangyin.

In 2005, Boer Auto Parts declared the right to use of trademark ”PRE-MIER” and registered items including tire valve, tire and other 12 categories. But the right to use of trademark of tire has been standing idle all the time. 

Coincidentally, Michelin were merchandizing a tire in same name “PRE-MIER” in North America, and intending to get the right of the brand manufacture and use in China. Last year, Michelin contacted Boer Auto Parts. Both sides reached an agreement of common use of trademark on different categories.

Touch Law Firm is dedicated to providing Trademark Registration in China, Trademark Search service in China, as well as China company registration, tax & accounting, intellectual property, legal service etc. For further information, please follow our online secretary Ms. Touch (ID:touch-law-firm), call at +8620-8355 5515 or email to info@touchlawfirm.com

Read More：
340,000 USD! An Idle Trademark could be Worthy

Things You Should Know about HongKong Company Registration

Due to the simply tax system in Hong Kong, setting up a Hong Kong company is much convenience to all SMEs to extend their business which going to Worldwide or Mainland China both. If you live and work overseas but want to start a business in Hong Kong, Touch Law Firm provides you an available solution.

Hong Kong Company Registration

HK company registration can be done in a short time. Registering of a brand-new HK company takes about 10 working days. You can also buy an existing HK company, namely a shell company. You can also choose the electronic registration by way of e-Registry, which can be done in 3 working days.

Bank Account Opening

Touch Law Firm is honored as valuable business partners by many local or international banks in Guangzhou and Hong Kong. Our consultants’ assistance in the bank account opening and follow up will make you easier to open a bank account for your HK company. We provide bank account opening service for those who register HK companies in our company for free, including recommending banks, making appointment, offering certified true copy by our CPA, useful advices for the whole processing, etc.

Legal Secretary

Although a legal secretary is a must for a Hong Kong limited company required by the local government, a legal secretary would be an alternative offered by Touch Law Firm.

Annual Return

Each year the company must submit an annual return to the Hong Kong Companies Registry and the Hong Kong Inland Revenue. You can hand it over to Touch Law Firm by simply signing back the confirmation letter. We will give you a notice one month before it gets overdue. If failed in doing so, penalties will be implemented accumulatively, you can't expect that the company will be suspended and cancelled eventually as China does, the maximum fine could be as high as several hundreds of HKD per day.

Audit Service

If a company has business running on within Hong Kong, account book should be well kept monthly for an annual audit before you carry on a tax return to the Inland Revenue. We can arrange bookkeeping and auditing for you in time of need. Every company is required to finish tax return annually. Submission of “nil” profit tax return without auditor ’ s report and financial statement would be accepted for the companies without business operation.

Trademark Registration

Trademark registration is deemed to be an effective mean by which the enterprises can protect their own brands. However, trademarks provide regional protections, as different countries and regions impose different requirements and procedures on trademark registration. Touch Law Firm not only provides trademark registration in mainland of China but also in Hong Kong.

Why Choose Touch Law Firm?

Touch Law Firm has experiences for over 8 years in Hong Kong company registration, tax & accounting, audit for Hong Kong company, Hong Kong company secretary and Hong Kong trademark registration, etc. If you are interested in our service, please contact our online secretary Ms Touch ( Wechat ID: Touch-Law-Firm ), email to info@touchlawfirm.com or call at +8620-8355 5515.

Read More:
Things You must Know Before Hong Kong Company Registration
 

Ignore HongKong Company Audit, Your Bank Account would be Closed

Recently, HSBC is checking the audit of HK companies which have HSBC accounts. If the company is operating but can’t provide the last year audit report, the HSBC account will face the risk of being closed.

According to Hong Kong company law, all HK companies should do the audit reports as required and the reports must be issued by international accredited CPA. The government need the audit report as reference when doing company cancellation.

For a new company, it should do the audit for the first time if it is operating after it has been set up for 18 months. After that, the audit should be done annually. 

Touch Law Firm is dedicated to provide you not only the Audit Service for Hong Kong companies but also services for Hong Kong Company Registration, Annual Renew, Tax & Accounting and Deregistration etc. For further information, please follow our online secretary Ms. Touch (ID: touch-law-firm), call at +8620-8355 5515 or email to info@touchlawfirm.com

Read more:
Don't Ignore HK Company Audit! Or Your Account would be Closed