Viewpoints from Kaizen
FIE Post-establishment Procedures – Entry/Exit Formalities
Overseas residents who come to Guangdong for field studies, business talks, factory management, employment, technical consultations or other economic activities in connection with a foreign invested enterprise, processing or assembling for export purpose, or compensation trade, shall abide by entry and exit procedures. 1. Entry formalities for nationals of countries with which China has diplomatic relations Businessmen from countries with which China has diplomatic relations may apply for approval of entry and exit through the Department of Foreign Trade and Economic Cooperation of Guangdong Province, while specific formalities shall be handled by the receiving establishment. The approved invitation shall be issued to the entrant through the receiving establishment. The entrant shall go to a Chinese embassy or consulate, or the visa office of China’s Ministry of Foreign Affairs in Hong Kong and Macao for visa against the invitation. 2. Entry formalities for nationals of countries with which China has no […]
FIE Post-establishment Procedures – Entry & Exit Quarantine Inspection Administration
1. Import and Export Commodities Inspection All the import and export commodities under “the Catalogue of Import and Export Commodities to be Implemented Statutory Inspection and Quarantine by the Entry and Exit Inspection and Quarantine Authorities” (hereunder called The Commodities Catalogue), as well as those stipulated by other laws and provisions, must be presented to the entry and exit inspection and quarantine authorities or their entrusted inspection organizations for statutory inspection. If the imported goods subject to statutory inspection have not been inspected, they are not allowed to be sold or used; if the export goods have not passed the inspection, they are not allowed to be exported. The contents of the statutory inspection of import and export goods include quality, specification, quantity, weight, packaging, safety and sanitation, etc. 2. The Safety and Quality Permits for Imported Commodities For the import of the Commodities that are highly concerned with safety, […]
FIE Post-establishment Procedures – Bank Operations
Upon receipt of a business license and approval by the local AEC, the foreign-invested enterprises shall open a foreign exchange account and carry out other banking formalities with a bank entitled to foreign exchange operations against relevant documents. 1. Opening of Foreign Exchange Account and outward Remittance by a foreign -invested enterprise I. A foreign exchange account shall be opened against the following documents: the approval documents and certificates for establishment of the foreign-invested enterprises; the Note of Opening Accounts and the Foreign Exchange Registration Certificate for foreign-invested enterprises issued by AEC; an application for opening such an account by the foreign-invested enterprises; business license, legal person ID code certificate, contract and articles of association. II. Outward remittance of payments for imported goods, materials and equipment shall be made against the following documents: Import contract, import exchange payment writing-off certificate, invoice, and original customs declaration form and original bill of […]
Exercise of the Right of First Refusal by Shareholders of a Limited Liability Company Incorporated in the PRC
The shareholder’s right of first refusal is established based on the attribute of combination of people of the limited liability companies, and the purpose is to maintain the trust relationship between the shareholders. The direct legal basis is Article 71 and Article 72 of the Company Law of the People’s Republic of China. That is, unless otherwise provided in the Articles of Association of the company, where a shareholder transfers its equity interests to a person other than the shareholder, it shall notify the other shareholders in writing of the transfer of equity interests and seek their consent. Under the same conditions, other shareholders have the right of first refusal. When a people’s court transfers the equity interests of a shareholder pursuant to the enforcement procedures stipulated in law, it shall notify the company and all shareholders, and other shareholders shall have the right of first refusal under the same […]
VIRGIN ISLANDS SPECIAL TRUSTS ACT, 2003
ARRANGEMENT OF SECTIONS No. 10 of 2003 Virgin Islands Special Trusts Act, 2003 Virgin Islands I Assent THOMAS MACAN, Governor. 17th October 2003 VIRGIN ISLANDS No. 10 of 2003 An Act to make special provision for trusts of shares in companies and for related matters, including provision for the retention by trustees of shares in a company irrespective of the financial advantages of disposal, for prohibiting trustees from intervening in the management of the company except in certain circumstances, and for the appointment and removal of directors of the company in accordance with the terms of the trust instrument. [Gazetted 6th November 2003] ENACTED by the Legislature of the Virgin Islands as follows: 1. This Act may be cited as the Virgin Islands Special Trusts Act, 2003 and shall come into force on such date as the Governor may, by Proclamation published in the Gazette, appoint. 2. (1) In this […]
The BVI Business Companies Act 2004 (“the Act”)
Introduction The New Act came into force on January 1, 2005. Unlike the International Business Companies Act (IBC Act), this new act allows for the incorporation of international offshore companies as well as locally owned companies doing business in the British Virgin Islands (BVI). There is a two-year transition period during which both the IBC Act and the new Act will be in force. After the two-year period, the new Act will be the sole corporate statute for the BVI and will regulate all BVI companies. Range of Corporate Vehicles The new Act provides for flexibility and choice in the range of corporate vehicles. Seven different types of companies can be incorporated, namely; companies limited by shares, companies limited by guarantee not authorized to issue shares, companies limited by guarantee authorized to issue shares, unlimited companies authorized to issue shares, unlimited companies not authorized to issue shares, restricted purposed companies, […]
Stamp Duty on Shares of a UK Company
When you buy shares valued above ?,000 using a stock transfer form, you usually have to get the form stamped by HM Revenue & Customs (HMRC) and pay Stamp Duty. The process to follow is explained below. For shares bought electronically, or without a stock transfer form, please read the guide ‘Stamp Duty Reserve Tax’ 1. Share transfers valued at ?,000 or less If you buy stocks and shares for ?,000 or less you don’t normally have to pay any Stamp Duty. You also don’t have to tell HMRC about the transaction. All you need to do is: • make sure the exemption certificate on the back of the stock transfer form has been completed • send the stock transfer form and the share certificate to the registrar of the company you’ve bought shares in The address of the registrar is on the share certificate. The registrar will then issue […]
Shareholding Structure of an Offshore Company
Offshore companies, like onshore corporations, use shares to reflect their ownership. Shares are in essence units of internal accounting, which represent a participation of an owner in the company. Taking (or buying) a share in a company means simply that a person has agreed to invest some of his personal money, or assets, or intellectual rights or property into the company. When he does so, he acquires the right to participate in the profits of the company, in proportion to his share. In addition to the right to receive dividend, the shareholder would also usually have the right to participate in the decision-making process of the company – although this may not be the case with non-voting shares. There are a few different types of capital. Authorized share capital This is the total amount of money that the company has been allowed (by its Memorandum of Association) to cash in […]
SEYCHELLES – AN ALTERNATIVE CHINA INVESTMENT GATEWAY
While Hong Kong remains as the primary conduit for foreign investment into China, Seychelles is an attractive niche China investment gateway; with Seychelles companies increasingly being used as tax-efficient vehicles to hold equity investments in Chinese companies. The Seychelles / China Double Taxation Avoidance Agreement (“DTA” provides for certain China tax relief which is not available under the Hong Kong / China DTA. While the Hong Kong / China DTA caps Chinese withholding tax at 5% if the Hong Kong company owns 25% or more of a Chinese company, it only caps Chinese withholding tax at 10% if the Hong Kong company owns less than 25% of a Chinese company. In contrast, under the Seychelles / China DTA, irrespective of whether a Seychelles company holds more or less than 25% of the issued shares in a Chinese company, Chinese withholding tax on dividends is capped at 5%. Therefore, the Seychelles […]
Samoa Offshore Industry
INTRODUCTION Samoa comprises of several islands situated approximately halfway on a line drawn between Hawaii and New Zealand. Apia is its capital. The population of the islands is approximately 160,000. Originally ruled by Germany from 1889 to 1914, Samoa was subsequently administered by New Zealand until it became the first South Pacific country to gain independence in 1962. Samoa was known as Western Samoa until 1997. Samoa has a parliamentary system of Government with elections every 5 years. There are 47 members of the Legislative Assembly who elect a Prime Minister who, with an eight-member Cabinet and the Head of State make up the Executive Council. Samoa’s legal system has its foundations in English and Commonwealth statutory law. The court system comprises the Magistrates Court, the High Court, and the Court of Appeal. THE OFFSHORE INDUSTRY In 1987 and 1988 Samoa (then known as Western Samoa) passed several enactments to […]