Shen Wai International School (SWIS) Student Publishes Report on Dachong Reconstruction

SWIS学生Huang Siyi发表大冲改造前后调查报告

Huang Siyi goes to Dachong Village for field work

Huang Siyi goes to Dachong Village for field work

Huang Siyi, a Grade 11 student from Shen Wai International School, recently published a report titled “The inspiration that Dachong Village renewal can give to areas with high density in developing countries.”

Urban village renewal is a key part in city development, and the reconstruction of the Dachong urban village in Nanshan District is one such urban upgrade undertaken in Shenzhen.

An intern at the Shenzhen Real Estate Research Center Urban Renewal and Old Village Reconstruction Group, the 17-year-old described the whole renewal process of the urban village in her report from five different perspectives: business, commercial office, residence, transportation, greening and public facilities. She examined rights confirmation, people-oriented renewal plans, and the close cooperation between the government and project developer as the three criteria for measuring the outcomes. Huang also mentioned Mexico City, Mumbai and Sao Paulo as other examples of the global phenomenon of densely populated urban areas that are resource-inefficient.

During three months of observation and research from April to early July, Huang concluded that the city should be developed continuously alongside population growth, and project developers and the government should play their respective roles. She also stated in the report that supporting facilities and humanistic care are significant, and culture should be integrated with communities during the renewal process.

Her report was then selected and published on the official WeChat account of Shenzhen Real Estate Research Center for its exemplary information.

Explaining that choosing the best information to be included in her research was her biggest difficulty as we live in a society of ubiquitous information, Huang said, “I have a deeper understanding of urban planning after finishing this report. Urban planning is concerned with the comprehensive consideration of many areas and it impacts the future of the city.”

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Born and raised in Shenzhen, Huang said she became interested in urban planning through listening to her parents when she was a little girl. By attending lectures, reading books and doing internships, Huang wishes to learn more about urban planning.

Her dream is to be a great urban planner, like her parents. She hopes she will be able to use her knowledge to improve the health and well-being of people in the city.

“I want build a city that finds a balance between the economic and the environmental,” she said.

Chinese and Pinyin Name: 深圳外国语学校国际部(SWIS)
Place Address: Shen Wai international School, No. 29, Baishi 3rd Road, Nanshan, Shenzhen, China 518053 中国深圳市南山区白石三道29号, 深圳外国语学校国际部 邮编:518053
Place Phone: 86 (755) 86541981/86541963
Past Events of Shen Wai international School:

How To Lose Your Staff in Asia (and Globally)

This article is originally found here: https://www.globalfromasia.com/makingstaffhappy/

Coming to Asia to do business? Hiring staff in Asia?

Then today we will teach you how to lose them as soon as possible. How to get them to quit and tell everyone you are a horrible boss.

Well, sure you shouldn’t do these things – but we want to get the point across by learning what you should NOT do.

Hope this is fun as well as informative.

Lose Your Temper and Yell

I worked on Wall Street for almost 5 years. I know all about high-pressure situations and getting yelled at. As a trading assistant on a junk bond desk, I was often on the receiving side of the yelling. They told me it was good for me to get toughened up.

Also I was in a fraternity in college. As a pledge (trying to join the fraternity) there was “light” hazing. I don’t want to make it seem like those newspaper article horror stories – but there was some sessions that were challenging.

They also said that was to toughen me up.

So when I came over to China and hired my staff in Asia, I was still in this mentality. I was still in the New York mode, fast paced, aggressive.

There were those “China times” when I started to lose my mind. Bank account transfer issues, miscommunication with factories, and countless other headaches. Just some things that a foreigner will face when getting accustomed to China business.

I lost my cool often.

That definitely didn’t make things better. Maybe even when I was on Wall Street that wasn’t the correct way to behave, but it seemed to work.

Not in China. The Chinese staff will see you as an unpredictable and “weak” minded person. And this is a big difference I have seen in business personalities between East and West. Chinese managers do not show emotion to their staff. Or to anyone.

If you look a Chinese boss, most of the time you’ll see they are calm and cool in the office. Never raise their voice, never show anger or even much happiness. It is kind of this calm overtone.

Chinese staff respect that more. This person is in control of themselves and their mind. Maybe it’s the Zen / Buddhist mindset culture. But a leader is more cool and calm in China.

Whereas a lot of leaders in the West (of course can’t say all) are more vocal and “flamboyant”.

Won’t say which is right. But back to this point, if you want to have your Chinese staff, as well as other staff in Asia, lose respect for you – lose your temper. They will get annoyed (whether they say it to your face or not). Especially when you complain about issues doing business in China. They may agree with you that it is cumbersome to do business here, but they don’t like to hear you complain about it over and more.

Take it from me, I’ve learned a lot from my own staff in Asia over the years.

Don’t Care About Their Family Life

I don’t have too much management experience in America in a corporate setting, so this may be true there too. But in Asia, to be a good manager means you care about the team and their personal / family life.

Especially if you’re a Western manager here, they will feel so happy that you even care about them / their family! But once you start to show a little bit of interest, they will share out in the open. You can do this in the workplace or at a company outing. Yet however you do it, even if it is a little small to you – means a lot to the staff.

If you’re in China, some examples are to ask about their hometown. Is their family living with them in the city (assuming your office is in a “big city”) or they are in their hometown “village”. This is a common question because a lot of Chinese moved to the big cities only in the last generation or two. A lot of the “older” family members didn’t have interest/desire to leave their hometown. It can go into some fascinating stories about their complex family structure. Then you can show some interest in their hometown, what kind of food comes from there, what their favorite hometown dish is.

While it might not be a smart idea to ask about their dating life. Yet if you have staff with their own family, it would be cool to know a bit about the family. Do their parents live with them? Will they go to hometown for Chinese New Year? As a new parent myself, I would love to hear how they are raising their children and what is important to them.

You can get creative here, and keep in mind China is a vast landmass! There are so many provinces with various cultures. You’ll start to learn that your staff all come from different backgrounds.

A little tip here, some managers try to hire staff all from the same province. Its not as big of a deal nowadays, but having a team that is all from similar backgrounds can make them work better together. They might have their own dialect (local language), as well as trust each other more than “other Chinese” people. Could be a fun topic to discuss with your Chinese senior management, maybe they’re already doing that and you didn’t know!

Main summary here – “care” about the Chinese culture. Care about where your staff has come from. Appreciate the hardships they have been through to get to the big city and build their career in your company!

Play The Blame Game

This is a tricky one that took me years to master – or well, maybe understand as I’m still a student of Chinese management myself!

Problems and mistakes happen, in life, and especially in a company. Let’s take website design as an example. Your company designs websites, and you are working on a new client’s request. After you make some tweaks, you show the client.

Client sees an obvious mistake in the design and becomes upset. You talk to the client and say you will resolve it. Getting off the phone, you go into the staff area and talk to the staff assigned to this project.

Going up to their desk, you put the paper down and say “this design had X on it, but they wanted Y”. You’re doing this in a public setting, with other staff able to hear (and most likely everyone’s listening to every word). The team member, let’s call him Rocky, gets defensive.

He’ll immediately deny it was his fault. Getting embarrassed as well, and maybe a bit aggressive, he will fight to the bitter end that it wasn’t his fault.

I remember when this happened to me quite a few times, I was so confused. As a Westerner, I’m used to going straight up to someone and saying “this is a problem”. They are quick to say “sorry, my mistake” and fix it. Or maybe it wasn’t their fault and they’d have a counter-argument. But it was pretty painless.

We’re talking about pretty minor issues here, not major company threatening ones.

So when I deal with Chinese staff now in a problem situation, I try my best to make it look like I am not blaming them. I try to be as indirect as possible and show the project and re-iterate what is wrong and not finger point.

I know, you may be saying – but if it is their fault, they should admiit to it.

I think it boils down to culture. And face. Especially if you do it in the room with everone else there, they will defend. They will treat this as a form of demotion. Even if you didn’t demote them, but in the “face score” in the company. Its hard for me to write down in words, but there just seems to be an invisible point system for “face” in the Chinese office.

Heck, maybe there is something similar like this in the Western workplace.

So the summary of this point, don’t blame and to solve the issue, just make it as non-“offensive” as possible. I know, it goes against the way you work, and the way your mind thinks. Just think and plan out the conversation before having it.

Be a Weak Leader

This one is a tough one for me to describe. My style is to be more of an open and level playing field kind of leader. But it is a dangerous act to play in the Chinese workplace.

We covered this a bit in the “Yell At Your Staff” point above, but it is worthy of its own section. On top of being “calm and cool headed”, you also need to show vision and clarity in the company direction and decision making.

If you look wishy washy, or you ask the staff to make decisions, it will not be a good outcome. They want the boss, the leader, to make the decisions.

This is why when you try to do business with a Chinese company, you need to wait for the CEO to sign off on almost everything. It is hierarchal and subordinates are not expected to make big decisions.

Again, this is a mind shift from your Western way of thinking and modern management training. At least for me, I enjoy having my team involved in the decision making process, and I don’t mind to admit I was wrong.

But in the Chinese workplace, if I am admitting I made a mistake, the team will see this as weakness. Just like the “blame” point earlier, if the boss admits fault – then the staff in Asia will question his or her experience and vision.

Tricky one here – and a reason a lot of Westerners don’t end up being the daily operations manager in a Chinese company. Most of the time a you need a local manager or a Chinese partner in the company who manages the staff in Asia. Things like this are so hard to describe – it’s a lot of indirect power measuring and balancing.

Take Positive Steps To Improve Daily

I’m no saint here, I have made many of the mistakes listed above. But the key is to be aware of them. To catch yourself making these mistakes and working towards improving.

Mediations is my favorite thing to do now to ground myself and act better under pressure. Especially away from your home country in China or other parts of Asia – we need to realize this is a foreign place. Respect the land and the people. Take a deep breath.

Or, if you really can’t handle it – hire an office manager and go back to your home country. No shame in that, many great business people have done it.

Neat HK: A Solution for the Hong Kong Banking Nightmare?

Looking for a Hong Kong online business bank account that you can connect your Paypal and Stripe / Braintree merchant account to? Wouldn’t that be amazing, without the utter nightmare Hong Kong business owners are going through now begging these archaic banks to allow them to deposit their money.

Here at Global From Asia – we know the pain our entrepreneur and hard-working global business owners have been going through. As digital nomads and e-commerce sellers and FBA business owners, we feel the pain ourselves. This is why our clients for our corporate services enjoy working with us – we understand you.

And we know the biggest pain point for almost 2 years now has been – such a basic need – a business bank account solution in Hong Kong.

One with credit cards – for you and your staff. One that can link to your Paypal and Stripe.

We’ve been testing so many and talking to so many – and today we’re talking about one we’ve been following for years.

Neat.HK Business Banking for Online Business Owners

So I am focusing today on their business banking product – Neat Business Account. I know exactly what you guys are looking for – and here is a list of their features:

* Unique Account / IBAN number – you will have your own dedicated account number with Standard Chartered. This isn’t like some other solutions where you have a sub-account and need to put in your TT (telegraphic transfer) banking notes your sub-account number. This is a dedicated account number ONLY FOR YOU And your business. I’m not sure the technical way they got this – but this is the amazing part – that allows you to do the following

* Connect /Verify your Paypal Hong Kong – we have a Paypal Hong Kong guide that gets a lot of attention on how to verify your Paypal. You need a “unique” or dedicated IBAN number. This Neat Hong Kong business solution give you that – unlike other online / virtual banking solutions I have come across.

* Connect / Verify your Stripe HK or Braintree merchant account – similar to Paypal, you need a unique bank account in your company name in order to get Stripe and any other merchant account setup. Don’t worry – this will work here too. We have a full list of merchant account comparison here that is popular as well.

* Issue Company credit cards – You can order credit cards! Yes – finally – you can see a company credit card in your company name here in HK without having to sign your life away and deposit your life savings! Seriously, readers know it is hard to get a Hong Kong credit card.

* Deposit paper checks – many ask how to deposit checks (yes, Hong Kong does still use quite a bit of paper checks). This works too. You need to go to Standard Chartered Bank – in person – and deposit. Can’t do it at the ATM.

* English, Online Banking – and of course, it has online banking. Well, that is actually something we need to write as a bullet point, as some banks we are forced to work with in our partner corporate services agency, don’t have online banking. Or it takes forever to get issued. And the banking is in English.

I think this has huge potential, and I may finally be able to rest well at night when we get new clients for a Hong Kong company (read our Hong Kong registration guide here) setup and – yes – their request to get a local HK bank.

Big Plus – Don’t Need To Come To Hong Kong To Apply

Here is the big – big one – that I know our readers at Global From Asia will love – you can apply and get approved online. So now, once we get this moving smoother – we can help clients open a HK company and HK bank account without needing to fly here.

Can you say…

Game changer!?!

Wow, Hong Kong may be back open for business. It’s been a rocky road since March 2016 but we may be out of the ice age and entering normal business climate.

How I Came Across Neat

I met David Rosa, the founder of Neat.hk a couple years ago when they were in their early stages. He visited me in my TST office and we chatted about the struggles of banking in Hong Kong and Asia in general. I had been doing my podcast already for a couple years then and was helping clients open up companies and banking. I explained the utter nightmare it was to beg a bank like HSBC to please let us deposit money with them.

At that time Neat was focused on the consumer banking side (individual accounts) but he said once that was going he’d work on their business banking solution and let me know.

I also have gotten to know others on his team, and he had been merging with other local Hong Kong fintech startups I had been following.

It’s true – Global From Asia is a great blog and media source for Fintech in Hong Kong and Asia. So I am always getting startups trying to solve this nightmare banking issue find me and send me their new products and solutions.

It is my biggest pleasure to be able to blog about this and give everyone hope. There is light at the end of the tunnel and I really hope this disrupts these archaic banks who destroy small business owners livelihood.

Let’s give power back to the SME and let’s leverage online banking – who needs to visit a corporate banking branch anyway?

Can You Trust This New Fintech Startup?

As I have been telling clients about this new banking solution – some are still a bit nervous. A startup holding your funds is a big ask, not as simple as a social media app where you share what you ate for dinner.

True, I always have to disclose you need to use any financial solution at your own risk. But they are recognized in Hong Kong as an accredited Fintech company and work inside Cyberport. I should get him on the podcast as well.

Ready to go and get this new Hong Kong Business Banking solution? How To Signup?

So I probably have you on the edge of your seat (I hope!) and I have you excited to apply.

If you are starving and about to die of starvation as you have a HK company already and just need a freaking bank account – you can browse over to Neat Business Account and get on their waiting list. I do have a special code that can help you get expedited but am not allowing to link it publicly so if you’re a client of our corporate services division (Unipro) then talk to our client services department to get that going.

Don’t have a HK company yet and now feel more confident you can get a HK company and bank account together – then let’s work together. Check out our HKVIP package and let’s do some business together.

This may have just re-opened the doors to doing business in Hong Kong for online business owners. That plus the corporate tax rate has been dropped to 8.25% (from 16.5%) for SMEs with less than 2 million HKD in revenue. Ice age in HK may be past us, let’s hope and we will keep you updated as this progresses.

Ears On The Ground

Here are some messages we have been hearing on the web that we believe is helpful

have you succeeded with HSBC ? [Surprise] A lot of variables will come into play, especially fiscal residency and company’s “establishment” location. Generally speaking, will be harder for countries like me France to apply in today’s banking conditions. Anyways, NEAT business is good although they are launching and still developping. However pay attention -> they have merchant limits as they are NOT a bank, they can only hold funds under a 2million HKD limit. This means, if you generate large amounts of revenue, you won’t be able to store all of your funds with NEAT, you will need like a traditional bank account for savings for example. I currently work it out this way : 1/ I use sendwyre to do as much as I can with supplier payments and other online payments then send the remaining to NEAT 2/ I use NEAT for other purposes like the mastercard to purchase stuff online, also will do HK based transactions or other operational stuff I may need on a week to week basis. 3/ I have a traditional bank account I was able to open after almost a year of issues and 3 banks denied. This one is not being used right now and I unfortunately pay fees to keep it opened. However the aim is to keep this bank account in order to have a back up plan in case NEAT goes bad + it allows me to grow my business where when I will cross the 2million HKD in balance on NEAT, I start sending over to my bank. Remember -> you may have sometimes over 2million HKD for just couple weeks , in that case NEAT won’t accept your funds. So long term wise, you need a traditional bank too and play around those limits.mobile online forum

Input from Neat, March 2018

Here’s an update from Andre in our GFA Community Wechat group who has this update on the Neat bank situation for HK:

“Ok guys so answers from neat: still no multi currency accounts, cannot currently deposit cash, to withdraw cash standard neat charge of 2.5% is charged, the main partner bank is standard chartered. So currently it’s best just for users purely doing online business.”Andre

Can I wire in USD or other foreign currencies?

Yes, you can wire incoming currencies no problem.

Can we transfer money to EU banks?

For wiring out, you can only send money within HK. But you can use a cross border payment company such as Aurelia Pay.

Check our blog on cross border payment companies.

What’s the account limits?

2,000,000 HKD (a bit over $250,000 US dollar) as of March 2018.

A question from a Client

“I have a question, we set up the neat account and everything went smoothly and the account is open and active now.however, it shows the account only accepts incoming wire.

Is there anyway you can help us with that? I tried looking for information on how to contact the bank directly but they only have a q & a with 15 questions.

the main reason we wanted an account was to pay our supplier in China to expedite the process of importing our product to USA. Can you please give me some information and also if you can let me know how we can open account with a better bank.”

We suggest using a cross-border payment service provider in the middle.

Information You’ll Need to Apply

Here is a copy/paste of their latest application form

This form collects information about your company so that we can complete the application without the need to travel and visit our office.

We will gather information about:

  • Your company
  • Directors
  • Shareholders
  • Ultimate Beneficial Owners (natural persons who ultimately own or control the company)

In order to complete the application you will need the following documents:

  • Valid Business Registration Certificate – example – (or equivalent for companies not incorporated in Hong Kong)” – example
  • Photo ID of Directors and Ultimate Beneficial Owners

Neat HK will also help you to generate a Board Resolution that authorise you or one of the directors to open an account with us on behalf of your company.  The form is pre-filled and requires just a signature.

NOTE: Please be as accurate as possible – this will speed up the review process and increase the chances of your application being successful.

P.S. You can save your application work at any time and come back to it later on. Just click on the “Save” button and input your email.


Input from Neat, March 2018

Here’s an update from Andre in our GFA Community Wechat group who has this update on the Neat bank situation for HK:

Ok guys so answers from neat: still no multi currency accounts, cannot currently deposit cash, to withdraw cash standard neat charge of 2.5% is charged, the main partner bank is standard chartered. So currently it’s best just for users purely doing online business.Andre

What is Neat HK?

Neat is a mobile current account that makes everything accessible and at ease. It only takes 10 minutes of your time to have a Neat account. You do not have to worry with your local and international purchase, with over 50 currencies available with Neat, they got you covered!

With Neat, you can manage your money anywhere, receive salary and make payments, and send money to your friends.

There is also an available Neat Card for free. It is a prepaid MasterCard issued by ePaylinks. Browse the following incurring fee before you avail a Neat card.

What are the fees needed to acquire Neat HK?

There are no reflected monthly or annual fees and for acquiring a Neat Prepaid Mastercard. However, a lost or stolen card of Neat HK will cost HK $50 for a card replacement.

Each ATM withdrawal with a minimum fee of HK $25 will have an incurring fee of $25. Transaction refund is for HK$4. Those merchants in Hong Kong who are under an international brand is included with 1.5% fee in HKD Transaction Foreign Merchant. When you inquire for your balance on an ATM, there is a fee of HK $4.

Also, a consecutive six months of inactivity will be charged HK$12.5 a month. Unless, the balance is zero.

How to get the Neat HK application?

Neat application is available for both iOS and Android devices. You can just download the app at their respective app stores.

How to get a Neat HK Card?

To have a Neat HK Card, complete the registration process on the Neat Application. The only requirement you need is a passport or a Hong Kong Identity Card.

Is there a Business Account offered by Neat HK?

Yes, there is a current business account offered. There are number of benefits for your business when you use Neat HK for your business!

  • An increase in productivity will be achieved with Neat Business HK. They offer you tools that can help you operate your business efficiently. The dashboard can give you the insight and control of the progress of your business finances.
  • Just like the personal subscription, business account is a quick setup. You have the access of your bank account anywhere and anytime.
  • The offered business account is timely. There are integrated features that automatically organize admin tasks. This feature will help you focus more on your business.
  • You will be assigned with a dedicated Hong Kong bank account number. Neat supports many e-commerce platforms. This allows you to receive payments and manage disbursements.
  • More so, business accounts offers a feature that can easily pay invoices and employees.
  • There is an expense card available to enable your employees make purchase online and offline, and withdraw cash at ATMs.
  • Now, lost receipts are not a problem anymore. Its feature has an ability to add pictures of receipt.

This business account is still developing. There are two features to be added on its update: powerful reporting and automated accounting.

How to apply for Business Account?

Neat Business Application

You have to fill out the Neat Business Application, information about your company are collected. The catch is, you do not have to travel to Hong Kong to apply for a business account. Filling out this application will only take you 10 to 15 minutes. If you have some things to do, you can save the application any time and finish it later.

Informations regarding the company, the ultimate beneficial owners, shareholders, and directors. The said ultimate beneficial owners are those who naturally owns or controls the company.

The following documents are needed to complete the business application:

  • Valid Business Registration Certificate (see example)
  • Passport of Directors and Ultimate Beneficial Owners

Neat also helps you produce a Board Resolution that will authorize you or one of the company directors to open a business account in behalf of the company. The form will be pre-filled and it will only require a signature.

Before you plan to fill up a business account application with Neat HK, please check whether your company meets the compliance requirements.

List of Restricted Nationalities

  • Afghanistan
  • Bosnia and Herzegovina
  • Central African Republic
  • Democratic People’s Republic of Korea
  • Democratic Republic of the Congo
  • Eritrea
  • Guyana
  • Iran
  • Iraq
  • Lao People’s Democratic Republic (Laos)
  • Lebanon
  • Libya
  • Somalia
  • Sudan
  • Syria
  • Uganda
  • Vanuatu
  • Yemen

List of Restricted Industries

  • Adult related
  • Antique Dealers
  • Arms Dealers
  • Auctioneers
  • Cryptocurrency Dealers
  • Defence System
  • Foreign Exchange Dealers
  • Gambling and Casino
  • Jewel, Gems, and Precious Metals Dealers
  • Nuclear Power
  • Pawn Shops
  • Plane Dealers
  • Products and Services Illegal under Hong Kong Law
  • Pyramid Selling Schemes
  • Stock Securities Companies

If you think you meet the compliance requirements, start filling out the application.

What are the features of Neat Business?

Neat Business is yet only dedicated to Hong Kong dollars current account and a local bank account number. However, the company plans to offer a multi-currency account wherein it will support a multi-currency account.

Payments made from anywhere around the world will be received to the business account. Any outgoing payments from local third-party banks in Hong Kong are also supported. However, the outgoing payments to international banks is still about to be offered.

It is also planned that Neat HK and Xero Cloud accounting should be integrated. This is to enhance online banking through seamless accounting and account reconciliation.

Why choose Neat?

Neat is a highly secured mobile currency account that you can fully trust, either you will use it for your business or for your personal use.

You can manage, operate, and send your money anywhere in the world.

Neat may be developed at Hong Kong, but you do not have to go to their office to acquire an account and a card. More so, there are no requirements needed for personal use. Receive payments and send money to your friends

Neat HK is a revolutionized and patented account opening process. .

Get your mobile app at the Apple Store or Google Play!

Shenzhen’s 40th Anniversary Light Show

Shenzhen Special Economic Zone established the 40th anniversary of the light show. This year marks the 40th anniversary of China’s reform and opening-up. It developed from a small fishing village to metropolis. The show was held near civic center and lotus park. We are so lucky to celebrate the success with this energetic city. Happy birthday Shenzhen!

Full version on Tencent: https://v.qq.com/x/page/i07069nqjd7.html

 

Buying a Hong Kong Owned Chinese Company Out of the Box

We have heard a lot about buying a shelf company in Hong Kong, this is common talk in the blogosphere. But have we heard about buying a Hong Kong company that has a Chinese WFOE (Wholly foreign owned entity) with it?

Today, we will dig into this, why you would consider it, and what you need to do

Getting More and More People Approaching Me To Buy / Sell Their HK/ China Business

As the Global From Asia blog gets out there more and more, we get emails from people for all kinds of things. One has been people who are looking to buy or sell their businesses here in Hong Kong and China. It is a pretty complex process, and there are a few different case studies we can cover in future blogs.

One I received recently is interesting. The client has a couple of Hong Kong company businesses that each own their own Chinese WFOE company, all setup and operating. He would be open to selling and transferring it to a new buyer.

He sees that there is more and more discussions about buying companies here. Getting plugged in fast with the China market for those who still haven’t tapped in yet.

Why Buy a HK / WFOE Combo?

So as part of the sale, it would not include the customers or supplier database. It would be the structures set up with their licenses and banking accounts. So you’re not buying this business for the customer assets or any IP – but instead to:

  • Save time. Getting banks in HK has become slow and tedious. China is also, and has been like this for quite some time.
  • Business in a box. All the banking arrangements are setup, and the licenses you need for an import / export company are ready to go.
  • Aged company. These are older businesses. Having some years already put away for the company history always helps out. Use it when applying for financing or other “intimate” business relationships.
  • Get all the licenses you need, right away. Many people want to do business in China, but aren’t sure if they are getting all the licenses and paperwork they need. This will make sure you have it all, used for years that way.

How Would a Transfer of a Hong Kong Company with a Chinese WFOE work?

Ok, so you’re interested in this and still with me here – great!

Because the Chinese company is 100% owned by the Hong Kong company – all the activity would happen at the Hong Kong level. You would become the new owner and director of the HK limited company. Then you would automatically own the Chinese subsidiary because it is owned by the HK parent company.

There would be transferring of bank account signers on the Hong Kong side as well as the Chinese side, and that would do in person.

There would also be some updating of the legal representative in the WFOE side, which the seller can help you with.

So, you will then be the owner of an optimized and functional trading company. That is, without the months of headaches and the current issues with banking.

How Much For What You Will Get

You’re now asking yourself, ok, how much? The price won’t be less than if you started one from scratch – but this shouldn’t be the reason you’re doing this. This is to get an operational and functional import and export business without the headaches.

This is for trading and manufacturing WFOES with full import-export rights. This means you can use it for VAT rebate facilities and even domestic sales.

The price is negotiable for how much involvement you need from the seller, and we will take serious inquiries if you contact us.

The price range is starting at $200,000 US dollars to $350,000 USD. The range is dependent on your specific terms and requirements.

Sound Feasible?

I’d love to hear your feedback and comments on buying a full on HK/China trading company operation. This is for serious business owners who are doing serious business in their home countries and want to plug right into the Hong Kong and China market fast and seamlessly.

Will keep people posted on the progress, in the meantime please leave comments or questions about this in the comment section below.

Differences in Corporate Tax vs Personal Tax for International Entrepreneurs

This post is originally found here: https://www.globalfromasia.com/internationalbusinesstax/

Taxes, yay! We all love taxes, right?

Well, I can’t imagine anyone jumping up and down saying “me, me, I love taxes”. But I do feel quite a few people want to have a deeper understanding of how taxes work. This is especially true when doing international business.

First, it is a dynamic and complex specialty. I am not a tax lawyer and my tips and opinions you should verify with your tax professional before implementing.

Ok, done with the disclosure. Read on to learn more about differences between corporate taxes and personal taxes.

What Is Company (Corporate) Tax?

First, let’s define what is tax for a company. The most easy way to envision this is picture a company as your baby. You gave birth to a new life, and this company has a new identity. Thus you need to report to the government about its “health” and its taxes, just like a baby will as he or she grows older.

You as the parent (shareholder and director) will be responsible for its upbringing. You need to now make sure this baby company is filing its paperwork and paying its taxes.

Following along now?

So, where you choose to give birth to this company (register or incorporate) is where you will be reporting taxes for it.

People like Hong Kong because it has a low corporate tax rate of 16.5%, and if you qualify 0% on offshore status. But let’s keep it simple and say 16.5%.

At the end of the year, your company earns $100,000 US dollars. You will need to pay 16.5% taxes on that, or $16,500 US dollars, and the company keeps the rest.

So that takes care of the company (corporate) tax. You also need to make sure you play salary tax on employees, government fees, keep the bookkeeping in order, and do the tax audit. But we’re focused on taxes today.

Now we need to talk about your taxes, as an individual.

What is Personal Tax?

Now we have finished the taxes for the company. But there is you, the “parent” of this baby company. Are you taking money out from this baby company to pay for your living costs? Or will you keep the money in the baby company’s bank account so that the company can grow faster and use that money to invest.

This is something that is tricky and we need to think about. I always like to re-invest money back into the company, but at the same time, we as the “parents” of a company need to make a living.

So, now its time to take money out of the company. And the money we take we need to pay taxes on, as a human being, as an individual.

We can take the money out as a salary or as a dividend.

If you take it out as a salary, you would hire yourself by the company and issue yourself an employment contract to work for the company. You would then need to pay salary tax on that income.

If you take it out as a dividend, it is easier. The main difference with a dividend is that you need to divide out by the percent shares you own. So if the company is 50% yours and 50% another partner, then you need to split the dividend by the percentage breakdown.

So, for example, let’s look at that $100,000 USD profit we mentioned earlier. Say you decide to issue $50,000 USD as a dividend, and keep $50,000 USD in the company for re-investing in growth. That $50,000 USD dividend would have to be an equal split between the owners at $25,000 and $25,000.

So maybe one of the owners doesn’t want to take the dividend, and the other needs the cash to pay his or her bills. Then it might make more sense to hire one of the owners to run the company and to take a salary.

This gets tricky at the personal tax level, let’s go through some things to consider next.

Where Is Your Citizenship?

What passport are you holding? Are you an American? If an American, your life just got more complicated as an international business owner.

Americans can get exempt from taxes up to a certain point if they qualify. But you will always need to file. So you’ll need to report that you have a Hong Kong company. You will need to report that earned income in the company that you will take out as a salary or dividend. Talk to your USA accountant about how you will treat this. There is different tax rules for salary vs dividend.

And if you’re an American residing somewhere else, you may also be subject to paying taxes in that country as well.

Other passport holders, let’s look now at a second criteria.

What Is Your Country of Residence?

Where you are a resident also comes into account when dealing with personal tax. If you’re a German living in Thailand, just because you live there doesn’t make you a resident. Are you on a tourist visa, which governments consider…being a tourist! Or are you on a work permit, which is the assumption that you are working in Thailand and earning an income and paying taxes.

Most places in the world where you have a passport and citizenship (except USA, see FATCA infographic). If you are a bona fide resident of another country, then you are exempt from paying taxes in your home country.

So the dividend or salary you took from your Hong Kong company, you would need to pay taxes in the country you are a resident.

The main point is, you need to pay taxes somewhere in the world. Either your “place of birth” or where you hold your passport and citizenship, or if you can qualify as a resident somewhere else.

Think About It On a Larger Scale – Multi-National Corporations

You are a bit confused. I like to step back and think about it from a big company perspective to give it the complete picture. Let’s say that a massive company has a company in Hong Kong. They have shareholders and directors and it is thousands of different people involved.

Let’s go point by point:

They would have income in their company. Same as you.

Costs, yup. Same as you – marketing, software, payroll, contractors, etc.

Directors – May have a few more than the typical small to medium sized business. This could be the C level executives or the Hong Kong company General Manager.

Shareholders – Quite a few, could be a publicly traded company. It may be 100% owned by a company in another country.

Like anywhere, this multi-national company has income and expenses. The company can try to adjust that in various countries where they have their different entities setup. This is transfer pricing. It can also transfer price by invoicing other companies in its network.

At the end of the day, they will need to report their yearly books to the Hong Kong Inland Revenue Department. The company will pay taxes based on how much it earned in the Hong Kong company.

How about the directors and shareholders of this large company? Most likely the shareholders don’t expect to live off the dividends of the company. Instead want to keep the earnings in the company to reinvest in growing the company even bigger. These shareholders are most likely hands off. They want to see their investment make a long-term return on investment. The directors, let’s say there is a CEO and a COO, will get a salary and bonus. The shareholder’s board of directors approve the salary for the directors. Lots of times there may be stock options and bonus of cash payments based on performance of this executive team.

But in a large company, the owners do not live and depend on the dividends coming out of the business.

So, just like you – the company is to make money. But it is more clear that in a larger company there is a clear separation of shareholders and directors. Yet, smaller businesses the shareholders are the same as the directors. The directors need to earn a living and also optimize their taxes.

But how does one pay this dividend and/or salary to the director is a **Personal** tax event, not the same as corporate tax event.

Worth Noting – Do All Shareholders & Directors Agree on the Payout Structure?

Since we’re on this topic it’s worth sharing. Many times people get into business partnerships and they didn’t first discuss the money! How much of the money remains in the company versus how much will the company pay out as a dividend (or salary) to the shareholders.

**Discussing this with your business partners before the company is set up is critical**. This is a critical element. When you have this discussion you will find out if all other business owners in this venture are on the same page as you.

Based on my own experience, I have been in business ventures where my partners needed to take the cash out of the business ASAP. They needed this income to pay the bills. Whereas I was more focused on reinvesting this profit back into the business to grow it.

This difference in viewpoint and goals caused a lot of tension, as one may imagine. Each side has a fair argument. My partners in the deal said that if they don’t see the money coming out of the business they’ll lose focus. They want to benefit them in the short term to help focus on building this company. I much prefer the other side of doubling down the profits to quadrupling the investment of profits.

Which do you prefer? This should definitely be a topic you discuss with your partners as soon as possible. You should cover it in your shareholder’s agreement. Or at least noted as a mutual understanding document somewhere – a piece of paper or back of an envelope on the plane ride!

Big Companies – Keeping Their Corporate Profits Overseas

It is always a hot topic in American news. Massive comglomorates who make tons of money “offshore” or in international markets. These companies keep this millions (or billions) of dollars earned in these foreign companies. Then rather than sending the cash back up to the US company, the invest it overseas to delay the American taxs.

Again, we’re separating our personal taxes from company taxes. Remember, it is like a separate person. So Apple is earning tons of money in China on iPhones and other products. The company earns this cash from sales in China, but their headquarters is in California wants the tax money. The US government would love for them to wire transfer those billions to their USA bank account. This would then create a huge bump in revenue in their USA company, which translates to tax liabilities.

How This Applies To A Small Business Owners

Don’t have businesses setup around the globe? So you don’t have the leisure to decide where to report your billions of dollars of earnings, poor you! And poor me! There are things you can learn from this though. If your company makes money, it doesn’t mean you as the shareholder or the director are making money – at least in the short term. If your company is reinvesting the profit and not sending you the cash, you can wait. At least for that tax year – then you will not be liable for those taxes – as an individual.

Make sense? Again, it is critical that you separate your personal tax from your company tax situation. Company may earn a profit this year. But if it doesn’t send the money to the shareholders, or pay out as salary to the directors, then those individuals won’t be paying personal taxes on it that year.

Hope this helps. The laws and the places in the world where you are a resident or citizen may make this a different situation. So please ask a licensed accountant in your country where you file your taxes as an individual.

Focus On Building Your Business – Not Tax Shelters

I want to end today’s guide with a reminder. A lot of tax specialists always stress that the business exists to get customers and earn profit. It is not about spending all your time trying to avoid taxes.

Think of Google or Apple. They started in garages in California with a few people. I can’t imagine Larry Page or Steve Jobs sitting in their garage discussing how to setup offshore corporations. They’re not focused to avoid paying taxes on the small or non-existent revenue they were making.

That was all setup later, but expensive CPAs and corporate lawyers.

So if you’re reading this and at the early stage of your business, please save your brainpower. Put that energy on building your product and getting customers.

If you’re already past the early and middle stages of your business and want to get more advanced, sure, let’s talk!

How was this guide, please let us know by sharing your comments or questions below!

Features to Look For In Your Hong Kong Bank

This article is originally found here: https://www.globalfromasia.com/hkbankfeatures/

Which Hong Kong Bank Features To Look For When Selecting a Bank Account

As the global banking system has gotten more selective and difficult, more and more people are contacting me when they got rejection letters. A lot of times this is HSBC HK as everyone goes there first.

Are you one of these people getting the rejection letters? Or maybe your account closed?

You have a Hong Kong company setup, but without a bank account, how can someone do business? Crazy right.

So the scramble for bank account alternatives to HSBC comes up.

Today I’m going to go through the various features you want in a bank account, and give some other banks to look at.

Multi-Currency Account

Because we are global business people, we need to handle multiple currencies. The thing people love about Hong Kong is the ability to hold so many currencies. Many countries force clients to convert into their home country currency such as US dollars or Chinese Yuan.

But having a multi-currency bank account in Hong Kong is a feature you need to request when applying.

And there are a few small differences:

  • Multi-currency savings
  • Multi-currency checking

The line between savings and checking accounts have blurred over the years. But the main difference is a checking (also called “current”) is that you can access it from an ATM account. Sure, there are some ATMs that let you choose between checking or savings. But when you’re traveling internationally or not at your home bank, you don’t have that choice always.

But multi-currency is a key feature in a bank account, and let’s use this as top criteria in selecting top bank accounts to apply for here.

Online Banking

Yes, I’m typing this in in the year 2015 and still there are many banks with none or limited online banking. I hate to say it, I have to say a decent amount of Hong Kong banks that leave a lot of room for improvement for online banking. HSBC has the best for online banking, and that is still nowhere near as convenient as international and American banks.

But besides HSBC, which banks have good online banking?

First, let’s define good online banking.

  • Able to view your account balance and activity
  • Able to send payments and international bank transfers (wires)
  • Email alerts on various types of account activity (incoming deposit, outgoing wire, bill payment)
  • Multiple user login, with various account level access to allow your bookkeeper access and not able to send outbound transfers.
  • Download / Export transactions as a CSV file or Excel.

Think these are the core functions of online banking. Other things I would classify as “nice to have”, but these you need to use online banking.

Visa / Mastercard Debit Card

Custom Headline

Have you seen bank cards that you are not able to use when buying things online or at shops?

Yes, those exist.

They are only valid at the banking ATMs inside Hong Kong, either in their network or other Hong Kong banks. They will not work outside of China, even in Mainland China.

This is a big problem for global business people like us right?

We need a bank account that gives us a Visa or MasterCard “backed” debit card. So we can use them at ATMs around the world. But not just the basic function as getting cash from an ATM, but also the ability to make simple daily business purchases when out and about.

While this may seem like a basic function, we may need to ask for this feature when applying to a bank. And they may not have the option! Or, they will charge a one time, or monthly fee to have this functional debit card.

Reasonable Monthly Fees

No one is a fan of bank fees.

Yet around the world, bank fees have been creeping up more and more. I predict it is due to low interest rates. As higher overhead costs the banks need to follow with international regulations.

So these costs get passed down to the user, us, in the form of monthly fees or all kinds of crazy transaction fees.

So our alternative Hong Kong bank account needs to have reasonable bank fees.

What is reasonable? Well, let’s baseline it to HSBC HK, which is 50 HKD (approximately $6.50 USD) per month. The bank can waive this fee if you maintain a monthly average balance of 50,000 HKD ($6,500 USD) as of writing today’s guide.

I’ve seen monthly fees as high as 300 HKD ($40 USD) from certain HK banks. You can avoid it by having a minimum balance of 200,000 HKD (approximately $25,500 USD).

So we need to be cautious of bank fees when selecting a bank account.

Custom HeadlineLow / No Application Fee

In all my years with Hong Kong business, I have not seen application fees for banks. But lately I have seen them pop up more and more.

The banks require you to pay the fee upfront and non-refundable even if you get rejected. The justification for these fees is that nowadays there is more and more “red tape” or paperwork due to FATCA regulations for all clients. This is a lot more paper that you need to fill out, mailed around, and warehoused for years.

Who is going to pay for that?

Banks seem to want to pass this down to clients.

So let’s be weary of these new application fees for Hong Kong banks. These are popping up all the time, so keep your ears open when going to your bank account opening interview.

Also, I may miss some of these over the years and months, so if you can leave a comment to help me and others out, that would be amazing!

Decent Customer Service

Customer service, that is decent.

I’m not going to get into cultural differences and customer service in today’s article. But I will just say, that we want to have basic and polite service when dealing with our banking needs.

I’ve been in bank account application interviews and the account representative is…not engaged with the client. They say that this is the way things are, and that if they don’t like it they can apply somewhere else. This comes out a bit rougher when typed out today, they say it in a more soft tone.

But because bank accounts have gotten more “exclusive” to get, the bankers feel that we should be happy they are talking to us and considering our applications.

Let’s vet out banks who have poor customer service. I’m hoping today’s guide can keep up to date with other people’s experiences.

What Is Your Hong Kong Banking Plan?

Hope this helped you out. Hong Kong is a great place to do business. Once you get the bank account! While the banking solutions on the market today may have some things left to be desired, it is much better compared to other options in Asia.

What is your next step?

The team at Global From Asia is offering a full service banking application service. We understand your current business and banking requirements and work alongside you. As the banks around the globe get more challenging to apply for and get approved for, it is more of a headache than ever! We have worked with many clients to get the banking application and approval process streamlined and would love to work with you!

Apply now for the banking application service.

Getting To Know Shenzhen

Shenzhen is in the top ten cities for international tourism on the Euromonitor top 100 city destinations ranking list staying at #9. It is a new and energetic city which soon became travelers’ best-in-class embodiment of their values and interests. Economic, political environment, public transportation and etc. have been intensively improved over the past few years.

If you want to get to know more do check out Nico’s video about “Getting To Know Shenzhen’ or read her article at  GETTING TO KNOW SHENZHEN

 

ISNS Scholarships: The Opportunity of a Lifetime

The International School of Nanshan, Shenzhen campus
The International School of Nanshan, Shenzhen campus

The International School of Nanshan, Shenzhen, is an exceptional school. Established in 2002, ISNS has grown from only 118 students to over 800, all of whom graduate and get accepted into top universities around the world. The graduating class of 2018 includes students who have acquired scholarships at such institutes as the University of Ottowa, York University and Queen’s University in Canada, and School of the Arts Institute of Chicago, Seton Hall University and the prominent institutions Stanford University, Northwestern University and University of California, Berkeley in the United States. Cumulatively, the ISNS class of 2018 has obtained over US$554,000 in scholarship offers up to April this year, which is testament to the outstanding academic achievements of the students.

In order to give back to the community which plays such an important role in the life of the school, ISNS has decided to continue their scholarship program for the upcoming academic year. There will be five scholarships available: four will be available to prospective IB Diploma Program (DP) students, and one will be available to a current student for the Diploma Program. Successful applicants will receive a full-ride and full-tuition scholarship at ISNS for the two years of the course, providing academic standards are maintained during the first year of study. This is a wonderful opportunity for both existing students and those considering a change of school for Grades 11 and 12, or for students new to Shenzhen.  

ISNS is renowned for being the first full continuum International Baccalaureate school in Shenzhen. Throughout Grades 1 to 5 (the Primary Years Program or PYP) and Grades 6 to 10 (the Middle Years Program or MYP),it provides a unique combination of the New Brunswick curriculum from Canada and the world-recognised IB framework. Students completing the Diploma Program also have the opportunity to complete a New Brunswick Diploma as part of their studies. The key difference between a regular IB school and ISNS is that New Brunswick curriculum topics are used as the focal point for the IB units of enquiry, thereby expanding the areas covered to include provision towards the NB diploma.

The scholarships and bursaries provided by ISNS this year have been increased to an incredible total of RMB3,000,000. The school fosters a culture of inclusivity and cultural diversity, and by providing this service they ensure that their program is available to as many students as possible.

One of the fantastic aspects of ISNS is that all educational visits outside of the school are included in the tuition fees – or, in this case, within the scholarship funding. Every year groups from Grade 6 to Grade 12 take part in Service as Action and CAS trips (MYP & DP) or Education Outside of the Classroom (PYP) residential trips outside of Shenzhen. Destinations include Foshan and Yunnan Province in China as well as places which are further afield, such as Indonesia and Japan. These trips give students the opportunity to learn outside the school environment and help them to become true world citizens.

The students also plan and carry out a project to help the local or wider community as part of the ‘Service’ aspect of the IB framework. In Shenzhen students have worked with Captivating International, a charity based in Hong Kong and Shenzhen who support poor families and girls in rural China, and the Sunshine Academy which cares for and educates abandoned Chinese children. One project by Grade 11 students involved the students visiting Cambodia and building a house to help deprived local families. Other projects have included helping farmers in rural areas of China and discovering the culture and communities in different regions of China and South-East Asia.

In addition to the excursions away from Shenzhen, students also have the opportunity to take part in activities both within and after school. An extensive Arts program includes more than 23 different arts activities such as choir, dance and visual performances; sports choices are just as wide ranging, with the school participating in various inter-school events organised by Shenzhen International Schools Athletic Conference (SISAC). These events and activities are complemented by the state-of-the-art facilities at the ISNS campus in Nanshan, including a 200-metre outdoor track, a fitness centre, a 300-seat auditorium, libraries, fully-equipped science laboratories, art and music centres, wireless connectivity in all classrooms and interactive learning resources.

This year the International School of Nanshan, Shenzhen, will celebrate the significant milestone of its 100th graduating student. ISNS wants to give back to the students and give parents and wider families the opportunity to become part of the school community. Scholarships for academics, athletics, most-improved, all-rounder, and demonstration of the IB learner profile provide the perfect chance to join ISNS and grow to be one of their successful alumni.

For more information about the scholarships visit the scholarship and bursary section of the ISNS website or call the Admissions office. Alternatively, email the ISNS Admissions team at admissions@isnsz.com.

Applications close on 31st May 2018, so get your applications in quickly for this once-in-a-lifetime opportunity.

Chinese Name: 深圳南山国际学校
Place Address: International School of Nanshan Shenzhen -11 Longyuan Road, Taoyuan Sub-District, Nanshan District, Shenzhen 518055
深圳市南山区桃源街道龙苑路11号
Place Phone: +86 (755) 26661000

Using a Hong Kong Company for Your Chinese Factory

This article is originally found here: https://www.globalfromasia.com/hkcompanyforchina/

Tired of sourcing from factories and want to setup your own manufacturing operation? Searching for the best corporate structure for a new Chinese factory?

Look no further, today we will dig into Hong Kong being a great place to open your factory under.

How To Open A Factory?

I remember when I first visited a factory in China. I became shocked to think it isn’t as complicated as I had thought. There are three main factors:

  •  Big Open Space

    Need a big building with lots of open space to set up the operations.

  •  Machines

    You’ll need the equipment to prepare the materials. This can be all sorts of machines but let’s stick to the most common: plastic injection machine. These are the most common in a Chinese factory. They will take the manufacturing mould, and then inject the plastic inside and pop out a bunch of the plastic parts. Significant size and definitely a big upfront investment.

  •  Labor

    You’ll need people to put together the plastic parts once they came out of the machines. Debur, check for any defects, assemble. Check the quality. Package. You get the idea.

Of course there is a lot more skill and magic to the process, but these are the main pieces of the puzzle you’ll be dealing with.

Is Hong Kong A Good Place For Your Factory Business?

A lot of people ask me when they’re searching on Alibaba should they pick companies that are in Mainland China or Hong Kong. Yet I don’t know any factories still located in Hong Kong – they are all in China. What is in Hong Kong is the sales office, or even just a virtual office for the parent company.

That’s not to say having your factory established in Hong Kong as a business entity isn’t viable. It is something common. It can be with anyone, Americans, Europeans, Local Hong Kong people, or Mainland Chinese who open the HK limited company. It will not be too easy for the general public to know the nationality of the owners (though there are ways to do company research in Hong Kong). Once you’re a Hong Kong company, you can then open a Mainland Chinese WFOE (Wholly Foreign Owned Entity) that will be where the factory operates from.

You can have a local Chinese partner in the factory with you, and you can both own the shares in Hong Kong. Once that is setup, you will then be “foreign” to the Chinese government even if half the company is Mainland Chinese owned. So you’ll open a Chinese subsidiary that is the fully owned by Hong Kong company. Have the IP owned by the HK parent company, and now you have the benefits of HK’s English legal system while able to operate inside China.

While any company could be the foreign owner of a WFOE in China, Hong Kong is a good choice as it is so close and so common. Hong Kong banks, and other banks and legal entities will be familiar with how to file the documentation. Thus the WFOE won’t have as much of a headache as having it owned by a company elsewhere.

Make sense?

What Things You’ll Need For a Hong Kong Parent of a Chinese Factory

So what are you going to need for this Chinese factory owned by an HK limited company?

It depends, will you have a physical office in Hong Kong? To do sales, meeting clients, trade shows, etc? Or will you work close with a serviced office in HK that will help with the mail from the governments and banks.

I’m going to assume you’ll be living and working in the Chinese factory, and that will be your base. You won’t need the overhead of a Hong Kong office and will instead invest in Mainland China operations.

Thus, you won’t need many things in the Hong Kong company, most operations will happen in Mainland China.

But you’ll definitely need:

  • Hong Kong Bank – Goes without saying. Any company operating needs to have a bank account. You’ll use this to receive money from customers, and send in money to Mainland China for the production and the rent and staff costs.
  • Hong Kong Credit Card – To keep your life a bit more simple, you’ll need a credit card to put the expenses on. You’ll be traveling to trade shows, clients, and having certain online software packages.
  • Paypal. If you’re selling B2B (manufacturing orders) then I don’t recommend having clients paying you by Paypal. But you may like to have this to buy things online and for small sales. This could also come in handy buying things online if you don’t get a credit card.
  • RMB (Chinese Yuan) Currency Option – Make sure you tell the bank you’ll need a RMB currency account. This will come in handy for managing the risk in currency fluctuations. Plus you can save time at the Chinese bank when you send over Chinese Yuan instead of USD or other foreign currency. It’s much easier to convert to RMB in Hong Kong than it is in Mainland Chinese banks. You can test for yourself, and you can thank me later 🙂

So Here’s How Operations Will Go

So now you did it, you setup a Hong Kong company and then a Chinese WFOE subsidiary. Good job! That took at least 4 months, but more likely 6 months. You may have done some operations already, but now you’re fully legal to do it.

You’ll rent a big space in the outskirts of Shenzhen or in Dongguan. You have your sales team there – and the internet speeds are reasonable for dealing with foreign clients. You have orders coming in. Once the money is in Hong Kong, you can either wire the money on demand to China. A lot of companies work out a monthly invoice for costs of operations and production.

Once you send the money to your Chinese bank from your Hong Kong bank, you order the raw materials and get the factory workers trained up to handle the production. You may need to hire more staff or scale down when production is low. I hope you have a core manufacturing team in place with good experienced factory management.

You process the order. You finish mass production and then send remaining funds to your Hong Kong parent company’s bank from the client. You need to get more cash over to China to finish the deal and get it to the port, FOB Shenzhen.

You will keep some money in China, but you hold your money and IP in the parent company in Hong Kong.

This is the basic idea. Sure the factory can be over in Shanghai, or deeper into Mainland China as well. Where you choose the factory location should base on the type of product and industry you’re in. There are cities who specialize in certain areas.

So What Do You Think? Hong Kong Perfect For Your Factory?

Hope this guide was helpful for you! Where are you opening up your own factory. Often the order of events is a USA import and export company grows bigger and bigger. Getting more clients and specializing more, they want to go even more direct. Since they know their product so well and their customers too, they can invest in a factory themselves.

Sure, this will have more fixed costs and more risky, but you’ll have full control. The trickiest part is to managing the staff and the quality control. All that complaining you did to those factories you bought from before will now be your headache! Its not always the factory owner who does the bad quality on purpose. It takes good management skills to keep things in order and deliver top quality.

So I’d love to hear your experiences and tips about Chinese factories from a Hong Kong company. Please leave comments and questions below!

Shen Wai International School Hosts IB Regional Workshop

The International Baccalaureate® (IB) Asia Pacific Regional Workshop was held in Shen Wai International School (SWIS) from the 20th to the 22nd of April. This is the first time the IB chose Shenzhen as a host city.

The International Baccalaureate® (IB) offers a continuum of international education from Primary Years Programme (PYP) to the Diploma Programme (DP). The programmes encourage both personal and academic achievement, challenging students to excel in their studies and in their personal development. The IB offers an education for students from the ages of 3 to 19, comprising of four programmes that focus on teaching students to think critically and independently, and how to inquire with care and logic. The IB prepares students to succeed in a world where facts and fiction merge in the news, and where asking the right questions is a crucial skill that will allow them to flourish long after they’ve left our programmes. There are around 5,000 schools in over 150 countries around the world that implement the IB programme(s). The IB DP is widely recognized by most universities around the world.

These 3-day interactive workshops include Introduction to the IB Programme Standards, PYP and MYP Curriculum Model, the role of the coordinator and librarian, concept-based Learning; living and learning globally, and investigating inquiry. IB teachers from Asia Pacific regions including Singapore, Malaysia, Philippines, Thailand, Hong Kong and Taiwan attended the workshops with great enthusiasm. They live and breathe the IB’s philosophy of being lifelong learners.

As a host school, SWIS treated such an event with great priority. More than one month prior to the event, a committee which included School Director, Ally Wu and Deputy School Director, Mingshan Li, formed to prepare for the event. They looked into the venues for the workshops, equipment required, lunch and snack menus, which included special dietary requests for some of the attendees, bus pickups and drop-offs, and on spot troubleshooting.  From the IB organization meetings to the end of the workshop, all the committee members had been on standby and responded promptly to all requests. Their work was highly commended by the IB officials.

The fact that the IB chose Shenzhen, as a host city, is evidence of the high standards upheld in International education here in Shenzhen. Moving forward, SWIS would like to see more and more international education conferences, forums and workshops taking place in Shenzhen, so the world can know more about Shenzhen as a reputable city in regards to education and continue its journey towards the international arena.

Chinese Name: 深圳外国语学校国际部(SWIS)
Place Address: Shen Wai international School, No. 29, Baishi 3rd Road, Nanshan, Shenzhen, China 518053 中国深圳市南山区白石三道29号, 深圳外国语学校国际部 邮编:518053
Place Phone: 86 (755) 86541981/86541963

Rugby vs American Football

They’re both called ‘olive ball’ here in China. But what are the differences between rugby and American football? 

在中国它们通通被称为『橄榄球』,但是究竟英式橄榄球RUGBY和美式橄榄球(又称为美式足球)究竟有什么区别呢?

Most people will point out that American football players are covered in armor whereas rugby players simply wear a mouthpiece. Both are full contact sports which require intense ball carrying and tackling but there are many differences that make each sport quite unique. 

人们通常都会指出,美式橄榄球运动员通常全副武装,而英式橄榄球运动员仅仅一个牙套就够了。实际上这两项运动都是完全的接触性运动,需要有密集的传球和铲球。但二者又大径不同使得这两项运动都独一无二。

First off, rugby is older and American football evolved from rugby’s core. So basics like tackling and scoring are similar. American football terms such as touchdown and field goal came directly from rugby in the 19th Century.

首先,英式橄榄球历史更源远一些,美式橄榄球后根据英式橄榄球的核心发展而来,所以他们的基本规则和得分是十分相似的。例如美式橄榄球中的触地得分和射门得分则早在十九世纪由英式橄榄球规则当中直接演变而来。

Here are the key differences:

Rugby is played by 15 per side. That’s 30 players on the pitch with only one referee. Players stay on the pitch the entire match playing offense and defense until they are taken out of the game. Once a player is substituted he cannot rejoin the match.

以下是英式和美式之间的关键不同之处:

英式橄榄球每队由15名球员组成,场上一共只有三十名球员和一名裁判。在比赛结束之前,所有的球员都在场上进行防守和进攻,一旦球员被替换下场,他将不能重新参加该场比赛。

Football is 11 per side. Players are specialized and play only certain plays, can come in and out every play. 

美式橄榄球每队由11人组成,除了特定的比赛需要,场上可以随时替换或全部的球员。

Rugby players run forward and pass backwards to advance the ball. No blocking or running out of bounds is allowed.

Football players can run forward or pass over the defense to advance the ball. Blocking assists the runner and running out of bounds allows the offense to retain possession of the ball.

英式橄榄球球员通常是向前跑和向身位靠后的球员传球来推进战线,进攻方的其他球员不可以超过持球球员,也不可以冲撞和阻挡不持球的球员或者持球出界。

美式橄榄球的球员则可以向前跑或者通过穿越防守方传球来推进防线,进攻方球员可以帮助持球者冲撞防守方球员为其打开进攻空间,即便持球者跑出界,仍旧保持球权。

Rugby players can kick as an attack and retain possession.

Football players usually kick to surrender possession.

Rugby is nonstop with quick restarts.

Football is full of stoppages, timeouts, and long breaks for quarters and injuries.

英式橄榄球球员可以进攻踢球并保持球权。

而美式通常踢球后需交出球权。

英式橄榄球通常开赛后赛程紧凑,没有计时暂停,而美式则有很多暂停, 超时,或者四分之一赛时后和有受伤时都将暂停比赛计时。

Scoring by touching the ball down in the end zone in rugby is 5 points followed by a 2 point kick.

Scoring by crossing the goal line of the end zone in football is 6 points followed by a 1 point kick.

英式橄榄球的在对方得分区持球触地(达阵)得分5分,达阵后还可以踢射门一次,射中2分。

美式橄榄球可直接带球穿越得分线达阵,达阵得分6分,完成达阵得分后可踢射门得分1分。

A rugby penalty kick is 3 points and a drop goal taken during the play is also 3 points. Any player can kick.

An American football field goal is 3 points and is taken by the kicking specialist who usually does nothing else but this.

英式橄榄球罚踢得3分,或在比赛过程中直接射门同样得3分。场上任何球员都可踢射。但在美式中射门得分同样3分,但不同的说通常都会有特定的踢射球员,而这个人除了射门也只有射门而已。

Rugby tackles turn into rucks and play continues.

Football tackles end the play and everyone has a chance to reset before the next play.

英式橄榄球在比赛过程当中,如果持球者被扑搂(Tackle)摔倒,双方球员上来抢夺地上的球时形成RUCK,比赛继续。而在美式中,持球者被扑搂摔倒后,比赛暂停,而所有人都有机会在比赛继续时重新调整战略甚至是球员。

Rugby offers the defense many chances to win back the ball. After every tackle a ruck is formed where both teams try to force each other backwards to win the ball. Scrums and lineouts restart the match when the a foul has been committed or the ball has gone out of bounds. These both also allow the defense a chance to win the ball back. 

英式为防守方提供了很多赢回球权的机会。每次铲球后,两队都试图互相迫使对方后退以赢得球权。当出现犯规或者出界时,Scrum(俗称斗牛)和Lineout(列队争球)是最常见的两种重新回复比赛的形式。这两种方式都让防守方有机会赢回球权。

Play is restarted in American football by snapping the ball to the quarterback. Referees reset the ball after each play.

在美式当中,任何开球都必须首先传给四分卫。每次恢复比赛后由裁判重新设置开球。

Rugby players run around for 80 mins, tackle, kick, pass, and run. This means all sorts of body types are needed- tall skinny players, short round players, light quick players, etc. There is a position for everyone.

Football positions are specialized. A player who catches almost never will be asked to tackle. A passer will never have to kick, etc. There are positions that rarely have to run and most defenders never have to run with the ball, pass, catch, or kick.

在英式橄榄球80分钟左右的比赛中,所有球员都有可能需要完成扑搂,传球,射门,带球等动作,这就意味着无论你的体格如何,高矮胖瘦,英式橄榄球总有一个属于你的位置。

而美式就稍稍有些不同了,基本上来说每个人都有自己特定的位置和任务。例如接球者不会安排扑搂的动作,带球者可能永远不用踢射等等,例如这些特定的位置很少需要奔跑,并且大多数的防守者都不需要有带球跑,传球,接球或者踢射这些动作。

Rugby games are 80 mins long with a short halftime and a running clock.

Football games are 60 mins long with breaks for each quarter. The clock stops for numerous reasons and each team can call time outs.

英式橄榄球大约时长80分钟左右,中场休息非常短暂,而比赛开场后计时不会停止。

美式橄榄球赛时实际只有60分钟,比赛分四个赛节,每四分之一(15分钟)比赛休息一次。但总有诸多原因会暂停比赛计时,因此看球赛的人永远不知道这场比赛会进行多久。

Overall, rugby is for all-around athletes where teamwork and on-field decision making win or lose games.

Football is more of a chess match between two coaches who call plays executed by specialized players good at their positions.

总体来说,英式橄榄球是一个全能运动员的运动项目,团队合作和赛场决策都有可能赢得或输掉比赛。

美式橄榄球相对于来说更像两队教练之间的抉择,他们的球员则像是这场体能国际象棋赛中的棋子,球员的安排甚至决定了比赛的结果。

Come experience rugby in person here in Shenzhen. For more information please subscribe Shenzhen Dragons Rugby Club Wechat. 

欢迎大家加入我们体验一下英式橄榄球的魅力吧。有关更多信息请访问深圳龙队英式橄榄球俱乐部或关注我们的微信公众平台。

Place Phone:

+86 13823544352

Can You Get a Job from a Hong Kong Company Overseas?

This article is originally found here: https://www.globalfromasia.com/workingoverseas/

Do you have a job from a Hong Kong company full time? But living in America most of the time?

When did this insanity start?

Life used to be so simple. We would all stay in our own countries, have our address in the same town as the company we worked in, and pay taxes to that city / state / country.

Nowadays it seems so complex.

But it is awesome. And I get to hear great questions from readers like today’s post.

Let’s share the question here:

(Disclosure: we are not tax professionals, just making a conversation and thought process for your own situation and to ask your own tax professional before making decisions)

Today’s Question

The last two years or so I have been consulting for an American pump manufacturer. Helping them with supply chain and other issues in China, Hong Kong and even Vietnam and India (haven’t been to India physically though).They are now talking about hiring me full-time. It seems that for budget bucket reasons, they want to hire me via their 100%-owned Hong Kong trading company. I would be the first employee there. I really just have one big question set:

How much time would I need to spend in Hong Kong physically to be counted as an employee? And, of course, pay Hong Kong’s beautifully lower income tax rates. My wife and kid are now in California and I would want to spend time with them but if I could do that AND spend time in HK (for the lower taxes) that would be ideal. I am going to be going much more often too — so might as well place me as an employee over there.

Mike – I would really appreciate your time and thoughts on this. Let me know
(Reader’s name removed upon request)

Factors To Consider

As almost all advice, please do you own due diligence. I’m not a lawyer, and am sharing as best to my knowledge and research can provide. Disclaimer, don’t blame me if I am wrong!

Are You American?

I think first question is, are you a US citizen? Believe this will make things more complicated.

Especially if you are living and residing in California, the most expensive state in the United States. They will want your tax income. I believe you are still seen as a California resident, and have to declare this income to the state and pay taxes on it.

Tricky one, as it’s not a US based company.

Where Do You Spend Your Time? Where Do You Deliver The Work / Value?

So, where are you going to be most of the time? Still in California? If you are in USA more than 330 days a year, you fail the exemption status for foreign earned income.

If you are to be outside of America, especially California, for more than 330 days, as an American, this foreign earned income could be exempt from taxes.

But I can’t imagine the US tax department liking you getting paid offshore and sitting at your home office in California most of the time. Make sense?

The Hong Kong Company is Giving Your Proper Employment Contract

They intend to hire you full time, right? So then I would assume you would get an employment contract from them, in Hong Kong.

As an employee in Hong Kong, you would need to then get a Hong Kong ID card. That isn’t a bad thing, it has a lot of perks and advantages. But HK immigration will want the company to see if the company can hire someone in Hong Kong locally first. That is just normal immigration things, Hong Kong is seriously overcrowded and they are getting strict on who they allow to come into the region.

In Hong Kong, to get a job from a Hong Kong company, you’d need to get a proper employment contract as well as a HKID card.

Then, of course as an employee, you and the Hong Kong company hiring you would need to pay the associated taxes in Hong Kong. Which, you mentioned are much lower than in USA and most other parts of the world.

Hong Kong employment tax rates.

How Will The Hong Kong Company Pay You? HK Bank?

How will this company be paying your salary? I would assume you have to have, or setup, a personal bank account in Hong Kong. Then they would setup payroll and have the funds deposited to your bank account either every couple weeks or monthly.

Will you need to access these funds right away? Will you use these funds to pay for your cost of living in California, USA? If so, I would then imagine you’d have to wire transfer the money from Hong Kong into your American bank account.

That money would then be treated as income in America? You will put those transactions in your personal bank statement. At the end of the tax year you’d have to figure out how to classify that to your tax accountant.

But, to stress, you can’t hide your money in Hong Kong from the US tax authorities anyway. You were never supposed to, but nowadays it is impossible. So you’ll have to declare this income to the IRS and explain that it comes from Hong Kong and that you’re hired by a Hong Kong company.

If you are doing it this way, you’ll be paying monthly bank wiring fee, and then declaring taxes in America as, a sole proprietor? Not sure to be honest.

How Big Is This Company?

The next point to look at, how big is this company? And when I say company, I mean the entity registered in Hong Kong. Doesn’t matter if this company is a massive conglomerate registered in the UK. What matters is how big the company is in Hong Kong.

That means, how much revenue. How big is the “real office” (not a serviced address or virtual office). How many full time staff, located in Hong Kong, and a legal hiring with employment contracts are there. Also, there is a difference between how many local Hong Kong people have jobs as a percentage of how many foreigners have jobs.

Any company that has a lot of locals hired, and is doing a lot of payroll tax is contributing to the local economy. Governments love job creations – for their people.

So these kinds of figures will help in your case as a foreigner in a Hong Kong company.

This is a Local Hong Kong Limited Company (Not Offshore Elect)

I am assuming that this Hong Kong domestic company (as opposed to offshore elect) and paying the 16.5% corporate tax rate on earnings. If you think you can get the 0% offshore election option and you can still get a local job in the company, you’re a bit mistaken.

You can’t have your cake and eat it too.

If you’re an offshore company, that means you have no local Hong Kong operations. One of those factors being a Hong Kong employee – which you are trying to become.

What’s Your Salary? Above or Below Market Value?

Another thing the Hong Kong government looks at, as well as any government, is it is a fair salary? That means is your salary what a local Hong Kong person would be in this same position? If you’re the director of the company trying to give yourself a lower salary to avoid taxes, may not work.

Other cases are if you give a lower salary to yourself or your foreign staff in exchange for support on the employment visa. Some people are willing to take a lower salary just to be able to stay legally in Hong Kong. But this will also raise flags and be problems.

You need to pay what the market will bear for someone in your exact position, in Hong Kong.

Has The Company Tried To Hire a Local?

Are you trying to use this salary and income as a way to immigrate to Hong Kong? There may be instances where the immigration department wants to see if the company has put out a job advertisement to place this position in the job market. That means, give a chance to the local Hong Kong market to get this job if they are capable and willing to accept that salary level.

You may say, why does that matter, the owner and director of the company picked me! Again, this depends on the case of how hard it would be for the company to find a local person to do the same role as you. Maybe you’re so special that no one else in Hong Kong can do this job? There are of course cases where that is true, especially in computer programming and technical roles. There is a big shortage of supply in the job market for this job speciality.

So if you’re working in a position that is in short supply in the Hong Kong job market, you’ll have a better chance of this Hong kong salary scheme you’re working on.

What’s Your Long Term Goal with this Job?

So you need to ask yourself, you’re living in California, you’re American. Your family is there too, you’ll be flying back and forth between the 2 continents. Where do you want to spend your time?

Do you want to immigrate to Hong Kong? Bring your wife and kids here, go through the education system here? Or is this just a temporary income stream at the current employer. You want to use it to get more cash, save some taxes, and build some international experience on your resume.

Nothing wrong with either case. But of course, if your long term plan is to relocate to Hong Kong, going through these hurdles will be more logical. If it is a short term play, you may re-consider all the paperwork and hassles your employer and you will have to go through.

Do You Need / Care About a Hong Kong ID?

Another thing, from the email I got – it seems there is no interest in getting a Hong Kong ID (HKID).

A HKID is a pretty valuable thing to have, wherever you are in the world.

As a local resident in Hong Kong, you will get access to the medical system. Sure, public hospitals are not as good as private – but if you’re in a bind, you can always rely on public hospitals taking care of you.

Related: We talk about Hong kong medical options and insurance plans here.

You’ll also be able to cross into Mainland China much easier. Take it from me, as someone without a HKID, my friends who have it zip past me on the borders. If you’re an international business person going between USA, Hong Kong, and Mainland China – you’ll like to get this ID card if you can.

What Do you Think? Get The Job contract in Hong Kong?

So that covers my points. What do you think?

There are other options for how you’re compensated. You can always be an independent contractor and get paid in cash / wire transfer. You’ll file with your US taxes as an independent contractor and your US tax accountant will be able to classify this.

Disclosure, I am not a tax specialist, and this article is a general guideline and free help for those curious on the topic.

Feedback, comments, and hate mail is welcome!

Amazon + Hong Kong – Match Made in Heaven

This article is originally found here: https://www.globalfromasia.com/hongkongamazon/

Are you an e-commerce expert, or maybe just getting started out? You should get serious and check into leveraging the power of Hong Kong. For your global business, and Amazon USA sales and supplier center’s headquarters.

Today we’ll dig into why Hong Kong is such a great place to base your Amazon business.

Notice – This Is for Everyone Except US Citizens

This article is only applicable for those who are non US citizens. If you’re a USA citizen, Amazon will enforce that you use your US personal tax ID or a US company.

The rest of the world, you can choose where to establish your company and have your Amazon sales go. Just keep that in mind. When you are setting up your Amazon seller central account, it will ask if you, or anyone in the organization is American. If it is 10% or more owned by a US citizen, Amazon will tell you that you must have misunderstood the form. You’ll get sent back to the beginning of the setup process and open a US-based Amazon account.

Benefit 1 – Corporate Tax is 16.5%, And Can Also Apply For Offshore Status

So, as a global business owner, you can choose where you setup your business. In Hong Kong, even the “normal” corporate tax is at a global-low of 16.5%. There is an offshore elect option that you can file. (Plug- we can help you with offshore status) If you qualify you can get a 0% exemption.

So ya, Amazon sellers can enjoy this lower tax.

Benefit 2 – Still The Same as a USA Based Amazon Seller

If you’re selling on Amazon USA marketplace, they don’t make the sellers look any different, based in America or not. So you don’t have to worry at all about your sales and marketing being at a disadvantage because you’re not registered in US.

Many people don’t understand this and think they need to be American or they need a USA based company to sell on Amazon USA. Nope.

If you’re interested in digging in more, we have a good podcast with Wilson Blues on selling in Amazon USA from Mainland China. This applies to not just Mainland China, but Hong Kong and other places as well.

So if you’re European, you could just sell from your European company in Amazon USA. But the trend I see is a lot of European entrepreneurs re-structuring their businesses over to Hong Kong. For their Amazon businesses, as well as many business types in general. So why not just start fresh with your new Amazon business? 🙂

Amazon handles the payments to Hong Kong by Payoneer and will deposit it to your Hong Kong bank account.

Enjoy USD Accounts and Multi Currency Accounts

Here’s another big benefit- multi currency bank accounts. A ton of people. The Australian dollar currency volatility is crushing Australia business owners. They don’t have a choice to get a multi-currency account. (Not sure if that is true for all Australians, there must be some multi-currency banking somewhere in the country, no?) So they are getting destroyed when Amazon USA sends them their sales proceeds.

When they register in Hong Kong and get the bank account all setup, they can then get the payouts in USD. This means no more currency risk, and they can convert to any currency they so desire, when they are good and ready. Maybe you can pay in Chinese Yuan to your Chinese factory, or keep that in USD too.

Tons of entrepreneurs I work with are so happy they don’t need to deal with the currency of their home country. They are international business people, traveling the world. They don’t want to worry about the risks in the country they were born in having currency fluctuations.

In today’s world, we are free to do business anywhere we like, and Hong Kong allows us to choose the currencies we hold our cash in. Should be like that everywhere, by default. But until that day, Hong Kong is a good place for you to set up!

Easy to Buy from Chinese Factories

For decades business owners from around the world have benefited from Hong Kong when doing business in Mainland China. Counterintuitive I know, many of us think we should just go direct to Mainland China. But Hong Kong is where it’s at, and even Chinese factories have HK businesses with bank accounts.

So rather than wiring the money from your home country of Europe, Australia, etc, you can save money! Just doing a HSBC Hong Kong bank transfer to your supplier’s HSBC HK account. Free transfer, settles there in an instant.

Easier Legal Contracts

Like buying from Chinese factories, it is also easier to make business deals with them. Because they may have a HK company, a contract such as a sales contract, NDA, or even an invoice is easier to arbitrate if both companies are in the same country!

And even if the factory is only set up in Mainland China, there is a special relationship and understanding between HK and CN. It’s just closer, and the factory will respect you more. Plus they will see you are more serious and long term committed to Asia, China, and business on this side of the world.

As most buyers are still just using their home country’s business structure, you will stand out from the rest! Take this extra time and do it right – factory owners will take your business more serious!

Banks Are Fine With E-Commerce Business Models

We all worry these days about banks approving our accounts and keeping them in good standing. Don’t worry about the banks flagging you as a high risk business if you’re selling on Amazon USA. Banks in Hong Kong know this is a gold mine, because it is!

Come to your bank account interview and application day with your Amazon sales records. Show them the volume you have been generating and the revenue you have. Show the screenshots of the product listings and that you have your own brand.

I’ve helped a lot of Amazon seller clients who have set up their bank account with HSBC and not had a problem. Just be confident and transparent about your business model, Hong Kong is the right place for you to set up your global Amazon business.

It makes sense to do it here – buying from China, selling in USA. This is the trading business of the past, just now re-built for the new technology age.

What Do You Think? Will You Establish Your Amazon Empire in Hong Kong?

There you have it, brain dump of why Hong Kong is the right place for your Amazon USA sales business. As I meet these sellers on at least a weekly basis. I am confident to say that this is the right destination for your long term e-commerce business.

What are you thinking, do you have a company setup yet? A lot of clients started selling on Amazon through their personal accounts and it is getting bigger and bigger. Take that big step and make it formal. It will feel a lot better and REAL.

Or you already have a company setup in your home country for this Amazon business? Restructuring is a bit of a hassle, but you can get through it. Start the HK company and re-work everything around Hong Kong, step by step. The Amazon sales, the supplier orders, a new Paypal HK account.

Any questions or concerns, please leave a comment below! And if you like this article and want to setup in Hong Kong, I’d love to work with you.

Hotels To Stay in Hong Kong (From Backpacker to Baller)

This article is originally found here: https://www.globalfromasia.com/hongkonghotels/

Welcome to Hong Kong! The first thing a new client asks us is – what is a good hotel to stay at in Hong Kong? With so many choices and price ranges, it is a difficult answer to say in 1 email! So we have taken parts from various posts and made today’s guide list a full range of options for different locations and price ranges.

Related: check our Hong Kong traveler guide for some highlights.

This guide will be ever evolving, and if you have places to suggest – please contact us or leave a comment below.

Also, if it is your first trip to Hong Kong – check out our complete (and free) Hong Kong Business Traveler’s Guide.

Where in Hong Kong?

Hong Kong isn’t the biggest place – so even if you pick a hotel far from the center it is possible to get there and back for meetings and conferences.

Going to Global Sources Trade Show

Many come to Hong Kong for the Global Sources Trade Show. This is a bit far from downtown, so you need to decide if you want to visit popular bars and restaurants at night or not.

While there are some nice hotels at the airport and near the Asia World Expo (where the Global Sources Show is) – most people stay at a hotel in Kowloon or Hong Kong island.

Why? Two reasons

  • There is a free bus or Airport Express for Global Sources Attendees. During the trade show season, they worked a deal to give you a free pass to the Asia World Expo from Kowloon or Hong Kong station. Just show your badge or registration papers and you’ll get a pass.
  •  There are more things to do at night – Just like any city, the airport is not downtown! Hong Kong is the same. So if you want to get some nightlife in and nice restaurants, it’s best to find a place in Central, Wan Chai, or TST districts (as well as quite a few other central hubs).

Going to the HKTDC Trade Show

There is another trade show happening in Hong Kong as well – the Hong Kong TDC show, or HKTDC for short. This is on the main island of Hong Kong, aka Hong Kong island, so you can just take a MTR to Wan Chai station and it’s about a 7 minute walk to the HK Exhibition Centre.

Many people go to both the Global Sources Show as well as the HKTDC show. Each are a few days long, and have just a little overlap.

So if you’re looking to do both, and want to reduce the commuting and have a hotel in the downtown area – look for places in Wanchai, Causeway Bay, Admiralty, or Central. Sheung Wan is another good one.

Always Check The Address On MTR Map

So a good rule of thumb is to ask the hotel what the nearest MTR station is. Then, find the MTR map and look at it.

Downtown is the blue line on the bottom of the map. That is where the “action” is. The bottom left is the main spot, with Central as the hub. If you’re near Central, you can also take the Airport Express right up to the Global Sources show, so it is easy to get there and to the HKTDC.

A newer MTR map will show you more stops on the blue line to the left (West) of Sheung Wan (and left of Central). These are “up and coming” districts with this new metro line expansion, so you may be able to get cheaper hotels and better value for money there.

Also, if it is far up north or far to the east – that is about a 45 minute to 1 hour MTR ride from downtown. I learned the hard way “back in the day”. Plus I have had clients in town who book a nice hotel there but it is just so far from everything. You’ll save money, but spend more time in taxis or more time in the subway.

What’s Your Budget?

Hong Kong is one of the most expensive places in the world! And no matter how much you spend, you will probably have a much more compact room than anywhere else in the world! Space is such a valuable asset here it is unbelievable.

So when someone asks me for a hotel recommendation, I would ask:

  • What is your budget?
  • What are your expectations?
  • What location do you want? Central? Or Willing to Travel more?

If you want a 5 star hotel in downtown, you’re talking around 500 US dollars per night. If you can deal with a 3 star in a downtown area, you can get by at $200 USD a night. Then there are the 1 – 2 star that you can find around 100 to 200 USD a night. If you’re willing to go to Kowloon side or even further into New Territories you can get better quality at a better rate.

Hong Kong is really all about location. And size of the room.

AirBnB + Hong Kong

AirBnB. An obvious one, but less choices here as the Hong Kong government is strict about businesses listing here – https://www.airbnb.com/s/Hong-Kong. Over and over again this topic comes up – Airbnb is technically not allowed in Hong Kong and the government has forbid people to use it. You can list there, but to list, you need to be a business with a license to sell a short term stay.

To legally list on Airbnb in Hong Kong as a person / individual, the listing has to be for at least a 1 month stay. That is what the government allows for personal to personal renting.

Yet I have friends from NY and other places who have still found amazing places to stay through it, as recent as a couple months ago right in Mid-Levels in Central. Check it out, and see if you find any apartments you can rent. The risk if there is a government crackdown at your apartment is that you would get your money back and have to find a new hotel. I haven’t heard reports about it – and so I wouldn’t worry too much renting on Airbnb for a short term stay, but listing is another matter.

Yes Inn

Backpacker Looking For Value For Money?

One I am safe to recommend is called Yes Inn. This is a hostel, pretty clean, and a bunch of my friends have stayed here. They have two locations on the Hong Kong Island side – Causeway Bay and Fortress Hill. There is also one on the Kowloon side in Mong Kok (check an MTR map to learn about specific districts). You can share a room with other travelers, or get your own private room. Below is a pricing table:

Standard mixed dorm suite HKD $179-419 (USD $22-56)
Private room suite HKD $199-459 (USD $25-59)

This seems to be the best value for a bootstrapping entrepreneur. They have a few locations in Hong Kong; the better location is in Causeway Bay, but there are also locations in Fortress Hill and Kowloon. Rates start at about 200 HKD a night (28 USD). Obviously check their website for the latest prices, but in my opinion the lowest cost for the value and location you can find! http://www.yesinn.com

Butterfly Hotel

Butterfly hotel is a bit more expensive. But again, you get what you pay for. Rates from 1,000 HKD to 2,000 HKD a night (140 to 280 USD), but you have your own room, there is wifi everywhere, and they have locations throughout Hong Kong. Check out the Butterfly hotel in Central here.
http://butterflyhk.com/eng/our-hotels/on-hollywood/index.php

King’s Inn

I think this is a mix between the two choices above, both in price and in service. The rate when I have stayed here is about 300 to 400 HKD (40 to 50 USD), and you’ll have your own room. But there is only one location right in Wan Chai. The website is a bit hard to use, but then again this is why the price is more reasonable.
http://www.kingshotelhk.com/hotel/location

Next I am nervous to even mention it here – but I think a guide about Hong Kong hotels wouldn’t be complete without at least mentioning it:

Chungking Mansions is the building having about 80 low cost accommodations (guest houses) located on Tsim Sha Tsui (Kowloon district). I have stayed here at least 5 or 6 times, as well as countless numbers of my friends. You can get a room for as low as 100 HKD a night, though more realistically 200HKD. A lot of Indian restaurants that second as a hostel overnight – I have slept to the strong smell of curry at least a couple times there. An adventure to say the least. If you are looking for the lowest cost choice, take a trip over: 33-44 Nathan Road, Tsim Sha Tsui, Kowloon, Hong Kong… but don’t say I didn’t warn you first!

The funny thing is – our office is across the street! Yet none of our clients have opted in to staying there!

Want To Stay Near The Global From Asia Office?

Coming to Hong Kong just for us! Wow, we are honored. So many clients ask us what are some good hotels nearby the office. Let’s list out a few. We also link them to booking.com search results, as you can put our company address (found at globalfromasia.com/contact/) and get search results by distance.

Holiday Inn TST District

A big brand and one many Americans know well, Holiday Inn. They have one Holiday Inn that is 1 block from my office: http://www.booking.com/hotel/hk/holidayinn.html and have had people stay there plenty of times.

How much is it? Of course it varies by season and supply demand, but I would tell you about the $200usd per night range.

Sheraton Hong Kong

And Sheraton is a block away from the office too. http://www.starwoodhotels.com/sheraton/property/overview/index.html?propertyID=482

Prices here start at about $3,100 HKD a night (about $400 USD), and are high class.

Peninsula Hong Kong

Another 5 star hotel right around the corner from our office. Also has a great view of Victoria Harbour (for an extra 100usd/night fee on average). The rates here start at 4,000 HKD/night ($500usd) but it is an amazing experience.

http://hongkong.peninsula.com/en/default

Also, if you’re up to see Hong Kong from the sky, they have a helipad on the rooftop!

Intercontinental

This is a hotel I stayed in for about a week when doing a business deal with a European investor back in 2009 – 2010! It is a good hotel and also a bit more reasonable price than some of the other hotels with a room rate starting at $250 USD / night.

Still not for the backpacker’s budget, but for a business person who wants a good mix of class and value, this is an option. It is just a few more blocks away from MTRs, but still right on Victoria Harbour on the Kowloon side with some amazing views. I enjoyed working in the lobby with a massive 2 – 3 story tall window overlooking the harbor.

What Is Your Experience With Various Hong Kong Hotels?

Hope today’s guide on accommodation in Hong Kong is helpful! This could be a book – there are so many hotels and places to stay, this is only a brief overview to give you some ideas of price ranges, locations, and levels of service.

It is probably going to cost you around $150usd a night for a “normal” hotel room, can go as low as $50usd, and as high as $500 – or even more. As everything in Hong Kong, the sky is the limit!

Now it is your turn! Please share your experiences and recommendations in the comment section below. Let’s help each other out!

Cheers to our international business success!

Kidz With Heart Mini-Olympics

The Kidz With Heart event presented by Captivating International and Shenzhen Charity Federation was a resounding success. Celebrating its 10th year, Captivating International has grown from strength to strength, developing charity projects around the world. This successful organisation was started in 2008 as a Hong Kong Charity with partnership links to Australia and the US. From there, founders Andrew and Julie Colquhoun, took the idea of helping impoverished children from remote villages in China, and over the years this charity work has extended to include seven different provinces throughout China as well as Kenya and Nepal.

The first of two annual events, the 7th annual Kidz With Heart event held at Shekou International School’s Jingshan Villa campus on Saturday 17th March, had more than 175 children from 29 countries taking part in a fantastic day of sports. A range of different events comprised the mini Olympics for children aged from 5 to 11 years old, with each child taking part in seven activities. Basketball shoot, soccer shoot, long jump, bean-bag toss, 3-legged race, a limbo competition and archery were a few of the exciting events on offer. Children and adults alike cheered on the participants and everyone competing received a T-shirt, a medal and a goodie bag for their efforts, as well as a great sense of achievement. The winners of each event also had the chance to display their country’s flag on the winner’s podium while being presented with their gold, silver and bronze medals at the end of the event.

In addition to the brilliantly organised events, delicious food was also on offer. Trafalgar from Shui Wei, Futian, provided hot dogs, burgers, kebabs and fries; Artisans Pizza provided – yes, you guessed it – pizza and Maximo provided creamy gelato, all at reasonable prices. You had to be an early bird to sample the ice cream though as it sold out before 11.30am! What was even better is that each of these sponsors donated 60% of their sales from the event to Kidz with Heart, and considering the roaring trade they did this should be a substantial contribution to a really worthy cause. Next time, which will be at SWIS on 24th March, Trafalgar and Artisans Pizza will be back with more savoury delicacies, along with ice cream from Alexander’s. Make sure you bring an empty stomach and a full wallet to sample one of everything and contribute further to Kidz With Heart.

To accompany the great food, the first Kidz With Heart event this year was sponsored by a plethora of other companies, including Raffles Medical who also hosted a first aid station at the event. The silver sponsors were AMROSIA Global Sourcing and Inspection and KidKraft; while Five-Star Sports, GPA Global, QSI, JEC British Early Learning Centre, NVD New Vision Display and First Code Academy were all Bronze sponsors. Of course, none of this would be possible without a location, kindly provided by Shekou International School with China Merchants Shekou Holdings and Jingshan Management Group. The next event will be sponsored at gold level by WIK Development and Manufacturing Service, making it WIK Kidz With Heart, and will be sponsored at silver level by ISNS and AMROSIA Global Sourcing and Inspection. Bronze sponsors will be GPA Global, NVD New Vision Display, Five-Star Sports and JEC British Early Learning Centre.

The second-to-none organisational skills of the volunteers organised by Gary Ellis from Shenzhen College of International Education (SCIE) at this first event ensured that everything ran swimmingly. Special thanks to Tom Simpson and Jenny Wu from SCIE who were MCs for the day. The next event will have volunteers from Shen Wai International School (SWIS), International School of Nanshan Shenzhen (ISNS) and The Academy, with Tim Mitchell and Chu Qi starring in the role of MC.

We haven’t got the final figures yet, but Kidz With Heart is hoping to raise around 350,000RMB over both weekends this year. All funds raised go to a range of charity projects run by Captivating International, with a focus on helping impoverished children in China reach out for a better tomorrow. These projects are the Healthy Village Program which provides health information, medical checks and basic healthcare supplies to remote villages; Greenhouses for impoverished families; Vocational High School Scholarships which sponsor girls to finish high school; My First Job Program, sponsoring girls who never had a chance to go to school to become a chef or home services worker; and Pig Project where two breeding pigs are given to a single-parent family or families with physical disabilities in remote villages.

This is such an important cause that it’s worth popping along just to eat pizza or a burger and cheer on the children competing – even if you don’t have children yourself! And if you missed it on 17th March don’t worry, the next one is 8am-1pm Saturday 24th March at Shen Wai International School, Shekou. Registration has closed for this event but make sure you put it in your diary for next year – kids only!

Hong Kong Visas & Immigrations with Stephen Barnes

Listen to the podcast here: https://www.globalfromasia.com/hong-kong-visa-immigration/

Today we sit down with Stephen Barnes from Hong Kong Visa Centre and discuss how business owners should consider the visa and immigration process in Hong Kong. Is it right for them? Will they be registering a HK Limited and planning to remain in Hong Kong, or working “offshore”?

Its a rather complex topic, and we’re lucky to have the “Hong Kong Visa Geezer” break it down piece by piece to help get our heads around it and deal with it properly!

Topics Covered in this Episode

  • Brief introduction of Stephen Barnes and his Hong Kong Visa Service company
  • Entrepreneurs in Hong Kong and out of Hong Kong, thought process of considering a Hong Kong visa
  • Investment Visa, what it is and who its for.
  • Comparing an Investment visa to an Employment visa to a Student visa, and a Tourist visa. Putting it all together, which one is for who, and why.
  • Those Hong Kong companies in Mainland China (Like me) or in Southeast Asia or other countries, how they are treated
  • Diving Deeper into the Investment visa for entrepreneurs and small to medium sized businesses
  • Newbie tip for a Foreigner in USA or Europe looking to make the move to Hong Kong to startup.

People / Companies Mentioned in this Episode

Episode Length: 21:44

Podcast Transcription

Below we had this podcast converted to text, as it is a top listened episode, enjoy!

Introduction: Welcome to the Global From Asia podcast, where the daunting process of running an international business from Hong Kong is broken down into straight up actionable advice and now your host, Michael Michelini.

Mike: Okay. Thank you everyone for tuning in to Global from Asia episode 4. I’m here with Steve Barnes from Hong Kong visa center. Thank you for coming, Steve.

Steve: Mike, it’s my pleasure entirely.

Mike: Okay. Great! So let’s just jump right in. Maybe you could introduce yourself and your company to our listeners today.

Steve: Steve Barnes, been in Hong Kong for 27 years, started immigration practice in Hong Kong 20 yrs ago. I’ve been practicing ever since.

Mike: Okay, great! Yeah, I met you actually at a seminar where you were sharing your knowledge and appreciate you being on podcast for everybody today. It’s a hot topic, visa and immigration…

Steve: Yeah.

Mike: For expats here in Hong Kong. So I think a lot of our listeners are sometimes in Asia where they are coming through Hong Kong, doing their either startup or their entrepreneurial endeavors as a small business or medium sized business. What do you kinda advice them for immigration or visas in Asia or in Hong Kong specifically?

Steve: Well, I’m just telling that my expertise is Hong Kong. I’m gonna limit my comments to Honey Kong, it is an immigration opportunity for anybody who want to established a joint business here but effectively, if you’re a foreign national and you want to reside in Hong Kong to promote, pursue your business activity, you need to make an application for an investment visa, which is an employment visa a credit cases on you undertaking an active investment in Hong Kong and probability test. Together this institution show that you are in a position to make a substantial contribution to the economy of Hong Kong. Now, in many ways, everyone asking how long is visa strings, right? But there are certain things that run a bit advice around every investment visa application that goes on to get approved. The things that you need to show through your planning and through your, through early months of your operation that you are in a position to create local employment opportunities. Don’t get any local jobs on day 1. If you have a business plan that you put into immigration department for investment visa application and there is no opportunity to locally create a local employment, then you’re going to travel together and the second thing that the immigration department are looking for, a suitable business premises and there is a premises that kind of vibe for who you are and implementation direct going to time of your plan. You can kick off with a mere virtual office, which you borrow to cheap place, but the expectation is, then your course, sooner or later, once your business plan arrived at point where you’re hiring your first employee. That first employee will have some more sensible to report, to work to each day, because you can’t expect this person to going that, fulfill their employment duties where employee from your kitchen table or a spare bedroom so no matter how economically to have any kind of bring some quality time, place for your employees to work, you need time to spare and prepare the pre-requisite for a proper engine course. The 3rd leg of approvability still is actually divided into two parts, the first is cash and the second is resources. Cash million dollar question everybody asked me is literally how much cash you need. It all depends on the circumstances. in my experience, if you have less, less than 500,000 Hong Kong dollars, you may find that your application could be compromised, so deem to be weak especially with the other aspect than your plan is a little bit marginal but if you got a half a million or more, it’s reasonable to achieve that you can go on, to expect the consideration of the immigration positively approved rather than negatively think if you haven’t enough cash. So half a million can do it but I’ve seen in application they approved less cash as well but it’s not hard and fast. The trick is to understand that you shouldn’t be really thinking that the immigration department gonna buy into your startup laying type activity which is fine without at least having some cash because you know, laying doesn’t mean cashless, laying means having a money and spending the right kind of money so that’s an important consideration. The max and the more have the issue, it is swiping very smartly got to eye level funding so that’s always good. So that deals with cash and the other element is resources, Now resources are usually all the kind of things that are driving you to make a decision to pursue investment will come in the first place. So if you got a bit of code and you already developed, you wanna use new investment in Hong Kong to be able to build on that. The fact you’ve got a basic version of your product written already. It’s a resource for first of your application if you’re coming to Hong Kong and youre general trading, and you’ve got some kind of clientele that are already in place, that’s all good. Any other resource will allow the immigration department to objectively conclude that your business, if you use those resources together with the cash that you’ve got will eventually go on to results in a solidly and commercial enterprise, that’s the challenge.

Mike: Okay, got it. Thank you so much, Steve. So I just like to recap. He mentioned 3 points. That you’re going to employ local Hong Kong residence or Hong Kong people in the business.

Steve: Anybody in Hong Kong includes lawful employable but without further promiscuous of the immigration department

Mike: Lawfully employable.

Steve: Those people are account as well for persons for the purposes of local employment

Mike: Okay, got it. And that was not to be immediate but yeah to have convincible, clear playing that you will do that. I mean what time of year, 1 year?

Steve: That’s what your plans is, right? I always say to clients, “dont think about structuring your business around immigration, think about structuring your business and ask yourself actually what does this business works for immigration purposes and you will find that there is a quite close-call relation doing business that you will expect to be successful`and those businesses which immigration department approved.”

Mike: Got it. Okay. And then second point is the office, for when you’re employing the workers that is suitable location.

Steve: Suitable environment for them to work. That’s correct, yes.

Mike: And the 3rd is the cash and the resources. I think I just like to kinda some like convert to dollars when we talk, so he’s saying, of course it is always hard, I knew everyone asking how much money.

Steve: Let’s say $75000 – $80000 US dollars into Hong Kong business bank account. Interesting there is you don’t actually need to have all the money in the business bank account. You can have enough money in the Hong Kong business bank account to finance first 6 months of cash flow, and the rest of the funds is you can attest in your personal account anywhere in the world. So you can show you’ve got the money ready to deployment into the business. You need loan those funds by the way then efficiently through at least 2 years it means before you make out a purchase so the best part would good confident proof that you are not just borrowed money and shot fine it back which is always just the perks of visa application. They all know the tricks. They’ve done it.

Mike: Yeah, I can imagine. Okay. So those are the 3 main points. I kinda a lil bit follow up the resources, so code, I mean your degree, or like education…

Steve: Yeah, your service, yourself is also a resource, your background, what you bring into, you got to have a good track record and business in the past, if it becomes successful, they come through all those types of businesses. All that stuff.

Mike: Okay. So then I think some people used a trick of employment visa even though maybe they are not familiar or for a small business. I know you don’t that more greyer.

Steve: This is an old guess not. People think that you can somehow separate ownership from your business vehicle and become a third party and also an employee, You can’t. So during the currency of the application if its a new business situation, you’ve come to this interaction, that the existing composed interaction they’ll going to look to say who the owners and director of the channel is are. i would say that you putting yourself as an employee but you’re actually own the company and director of the company. You expected on how you dresses up. They are going to comply the investment visa probability test here. that’s the hard to test of substantial contribution to the economy rather than the lesser test which is do you personally possess special skills and and expected knowledge that are not already available in hong kong . So your personal skills in the contacts of business that your shares it will be seeing merely as a resource and they will apply an investment visa approval test on you but if you’re making the application for an employment visa, and you don’t have an interest in the business and then address you will just apply special skills and obviously, experience to anyone move so much to the ability of the business to substantial contributions to the economy of Hong Kong.

Mike: Got it. So there’s a 3rd option I heard of, student visa?

Steve: Well, student visa will get you on ground of Hong Kong but you not lawfully employable, you can’t join a business of your own based on Hong Kong, you can only study and thats it.

Mike: Okay, okay. Thank you for that. Lets, so we talked about, this is kinda recap, I think there’s a three even four I mean, technically there’s a tourist visa, to make on your passport. I am on my US passport holder. I have 90 days stay.

Steve: Yeah.

Mike: So I actually never legally work in Hong Kong. I’m an offshore Hong Kong company.

Steve: RIght.

Mike: So, I sometimes visit Hong Kong, sometimes working up a coworking space, gather some meetings. I’m okay, right?

Steve: Well, they say, it’s all about residing. So if you, as I know you are living in China but you spent most of your time in Hong Kong and pursue some business you establish here and your status is visitor, if your intentions to reside, it’s crystallize, then visiting days are just actually suitable in various before, because you’re effectively directing, controlling, employees of your company and visiting is not what it intend to do. the visitation is supposedly to come, interaction with Hong kong as a regular visitor and you gonna depart again. So, when you end up spending a great deal of time in your visiting days status instead in reality your intention is to reside is crystallized then you need to change your status from visitor to investment that you’re running in Hong Kong.

Mike: I understand. So, yeah. I mean, it’s actually complicated for me, so we talked about it, i think the correct way is, I, as entrepreneur and I wanna reside in Hong Kong as an investment visa.

Steve: Absolutely. You need to incorporate a company, get a business registration, you need to have a really good business plan which doesn’t actually need to be reflective in form of document cause in many ways immigration department normal one want to register their business plan that you might have write to an ipad. So if you’re self funding your business, there’s no formal need of business plan that might be a good practice to crystallize your thoughts and the immigration department will look at your stories as whole. They need to see that you got all the resources that you just discussed. They need to be satisfied that there is no security objection to you being granted decision to reside in Hong Kong to employ your business plan. When you have a good story, you carry can the arguments, you can tickle the bosses and you got the right level of money and there’s no security reason for you not being granted a permission you’re looking for, there’s no reason to expect, the immigration department will give you what you need.

Mike: Okay ,time frame normally?

Steve: 6 – 8 months.

Mike: 6 – 8.

Steve: 4 – 6 months, I’m sorry.

Mike: 4 -6 months.

Steve: If you’re not a resident in Hong Kong, you live somewhere else like, you do, when you want to make an application it’s going to take 4 – 6 months. If you presently reside in Hong Kong and you’re actually working for another employer and you want to stop working for another employer and start up for yourself, you still need to pass in investment visa probability test. Thus an existing residents that application dealt with different section of immigration department. It applies the same criteria but it’s a different team that handles the work. And because you’re an existing residents, that thing will finalize your application 6-8 weeks not 4 -6 months.

Mike: Okay, got it.

Steve: Make sense?

Mike: Yes. Thank you so much. So yeah, to kinda recap. Even if, so if you are working for a company in Hong Kong and you’re a resident of Hong Kong, when you wanna start your own business, apply for an investment visa, it’s a little bit shorter a month, two month and a half, still have to the money in your control.

Steve: Yep.

Mike: Either a company account or personal accounts.

Steve: Yep.

Mike: But if you’re doing it offshore or like me on China or others in Southeast Asia or West or as a visitor, so then if I came on 90 days stay and i’m staying in a hotel.

Steve: You can apply for guest status while you’re here but the immigration department dont allow the fact that you have a pending investment visa application to somehow advantages you in relation to 90 days of your stay. You have to leave before the 90 days are up and make a re-entrance some station if you want to comeback as a visitor before the immigration department approve your investment visa application.

Mike: Got it and really, really viable information, Steve. So again, I like to always ask on this talks. One kind of tip for newbie listener. I think a lot maybe don’t have the 500,000 Hong Kong Dollar but they are educated hustler entrepreneur. What kind of information would you give them?

Steve: Well, bear in mind that the visa class by definition called for active investment. So the fact that you may be a viable entrepreneur and you can you know, duck, dive and wave above by the best of it, that’s all well and good but you gotta understand that immigration department applies to the security of you that are mandate to make sure that they don’t approve foreigners who set up business here that have access to red label broker credit terms that you can find in Hong Kong and basically you know spend your way to disaster, trail of Hong Kong creditors on your way so even though you may have,maybe you made a license peripheral stuff to crack on with it, with very little capital using all year, argument and natural skills the immigration department don’t actually do not place a great deal creations on that. You still have to have a body of cash behind you to support yourself while doing this.

Mike: Got it. It kinda gives me a followup question. So if I answer investment visa issued, do I have more advantages on business?

Steve: Well, once you get investment visa, the immigration will approve you initially for 12 months to undertake the work you’re planning to do to promote that business as reflected in your business planning that you’ve told the immigration department is going to do on how you gonna spending your time in the context of that company and that company so you can get approval but just to do that business nothing else. Now, if opportunity put the things developed that perhaps you need to private half way through you often do something else because 1st activity is not working, that’s okay. Bear in mind that some point you even have to report that to the immigration but you won’t have to report that, the point where you privative but if, as they usually do this type of start up scenario, they grant you an approval subject to business reviews at the end of the first 12 months, so then the first 12 months immigration department will going to lift up the full and everything you’re doing in the business so if you privative in the meantime you have to explain to them. The more importantly they’re looking to see that through the lackluster performance that you have in fact been engaged in the activities that they can objectively conclude, willing to you to make a substantial contribution to the economy of Hong Kong. So you get the approval to performance, saying ok, we like your story, we believe you, see to it at 12 months mark, 80% of new business situations do not very well capitalized, tend to get approve subject to business reviews 12 months will lift up. If they do not subject to business reviews, if they really like your story from get go, then you will get what I call a freeing clear approval which means that the 12 months mark, the process to get your first extension is really just manage to get bags and you can expect that you’ll can go on to get 3 limits of stays and then you go and get numbers 1- 2, 2 -3 years pass which gives you a potential full 8 years in Hong Kong, to managing, directing, control that business. At the seventh or most people do taking constant history in temporary residents here, they want to application for permanent residency and up there absorbs same responsibility to have keep working in that business because this is a permanent residency and actually you can employ or engage your own business without further reference in the immigration department.

Mike: Got it. Wow! That’s a lot of information. So just to recap, after you get an investment visa, even if you passed, another 12 months later you’re gonna have to fly, go back,

Steve: There’s an 80% chance that they will subject your initial approval to business review.

Mike: Okay and then if you passed that usually, you have 2 years.

Steve: And if marginally, strike through that 12 months then you’d expect to business review, if you have created local jobs if you don’t have much cash in the tank. If you have been able to meet your revenue projection whatever it is, you know, just be in reasonable milestone in the first 12 months. If you have achieved that, you may find immigration department really extends you up to 2 years but then they can give you 12 months and that is subject to business approval again at the end first 12 months. But if you have a good story and slippy on the text phase and halfway supply of cash there’s no reason to expect that they respond and they will say no based in my experience.

Mike: Great! Okay. Lastly, there’s a lot of listeners that wanted to contact you. We’ll put your website upon the website too but what’s your…

Steve: Oh! We have a number of websites. We have a website which is called the HongKongVisahandbook.com and that’s basically our foundation content. It’s a DIY definitive guide to Hong Kong process. No singing, No Dancing completely free of charge, no registration required and textbook if you will, although it got videos, screencast, podcast, templates, the whole shooting match, all completely free of charge, hongkongvisahandbook.com. Tthen I do daily immigration content of the site blog called hongkongvisageeza.com and I post on that 4, 5 actually on my mind 7 times a week i don’t usually plan this so that feeds you sorts of updates of information, all completely free charge.

Mike: Great! Yes, it’s really great and we will linked that on golbalfromasia.com/episode4.

Steve: I have a, I’m gonna be Shenzhen, a week on Friday, you might put on your show notes at the boathouse. I think.

Mike: Oh, yeah.

Steve: I’m giving a talk. Oh! Not Friday, Thursday it is.

Mike: Okay.

Steve:At the boathouse, yeah.

Mike: Yeah.

Steve: So perhaps if you put the link in your show, the people listening to me, I’ll talk about my favorite subject live.

Mike: Okay. You’re very passionate and you’re also good Internet Marketer. Your blog and your content and your handbooks, you also know a lot of listeners are Internet Marketers too. So we like the, you are also up in the game.

Steve: Our marketing was built in by design and our product is driven from marketing of inspector.

Mike: Great! That’s definitely the right way to do it. So alright. I guess if there is any last points right before we end here.

Steve: Right. I wanna, just so basically, carries anyone that is thinking about Hong Kong to understand that Hong Kong is very open. W are set and very welcoming and what might have been your early experience from the immigration agency if been to either Thailand or China, don’t expect that you’ll have that kind of experience in Hong Kong. We have very rule of law, incorruptible public service at the immigration department. We have a customer service mandate, very open, accessible and friendly but there’s a lot of stuffs that you can have access to because the immigration department play the role of gamekeeper and coucher at the same time at their website is designed to inform and not give you advice and the immigration department shows to inform and decide not to advice. So a lot of people look at Hong Kong immigration department website, they look at investment visa category and they say “Oh just get to put these document, fill this forms and i’m home and hopes.” It doesn’t work like that. There’s a 4 -6 months interrogative process where you have to show that you can make that substantial contribution to the economy of Hong Kong and if you can do it, clean and honest enough, you got the money, you got the will, you made a right entrepreneurial stuff, you have 95% chance of getting what you’re looking for and that’s how it works.

Mike: Great! Okay. Thank you so much. I’m sure we, I enjoyed you talk a lot. Thanks, thanks a lot.

To get more info about running a business via Hong Kong please visit our website at www.globalfromasia.com that’s www.globalfromasia.com. Also be sure to subscribe to our iTunes feed. Thanks for tuning in.

Hotels to Stay in Shenzhen for Your Business Trip

This article is originally found here: https://www.globalfromasia.com/shenzhenhotels/

Looking for a hotel to stay in Shenzhen?

I remember those first trips over to Shenzhen, China all the way from America and I had no idea where to stay. Lucky for me I had some friends in Hong Kong who had contacts in Shenzhen (I mis-spelt it Schenzen back in 2007!) and they helped arrange a hotel for me.

They also warned me not to answer the door at night! I was so scared.

Shenzhen has improved so much and there are top notch hotels to choose from in the city – a bit overwhelming.

So today, I’m writing this guide for someone like me – on their first trip to China and having no idea which kind of hotel to stay in!

This post first started for our Cross Border Summit as attendees asked for hotels near the venue, and that is how it will start. We will add more hotels as we go along, so check up on this same post in the future!

And as always, if you have recommendations or feedback on certain hotels, please leave a comment at the end of this post!

Now let’s go through some hotel options, go!

Hotels Near Shekou IT Torch Park (Netvalley)

These hotels were near our first Cross Border Summit conference in Netvalley. These next few hotels are within a block or two from our summit, and will “take care of ya”. Mention Cross Border Summit and you’ll receive a discount as well.

Here’s a list of the names, then you can scroll down to find the details for each of these.

If it’s not on this list, then it is a bit further (taxi ride) away, which may or may not be an issue for you.

Cross Border Summit 2018 Hotels

These are the 2 closest hotels to this year’s Cross Border Summit 2018

Day Hello Hotel

This is a private hotel, but a well decorated and right in the middle of the Netvalley complex.

Located at No. 1059 Nanhai Road, Nan Shan, Shenzhen
Tel.: 0755-26800000
Fax: 0755-26890999

Self-booking Pricing:

DAYHELLO HOTEL
Room Type Rack Rate(RMB) Global From Asia Rate
Buffet Breakfast

Superior Room
608 (normal)
438 (GFA rate)
One Breakfast ticket

Deluxe Room
708 (normal)
538 (GFA ratE)
One Breakfast

Executive Room
808 (normal)
638 (GFA rate)
One Breakfast

Address: No.1059 Nanhai Road, NanShan District, Shenzhen China
酒店地址:深圳市南山区南海大道1059号
Tel: 0755-26800000

Ino-Le Inn (i-Noble Inn)

This is a new hotel I’m not familiar with, but exactly across the street from the venue. Its its own building, and the management has been pretty friendly with us as we discuss hotel rooms with them. The pricing is:

Self-booking Discounted Pricing:

Room Type /Rack Rate(RMB) /Global From Asia Rate / Buffet Breakfast

Superior Room 608 / 388 One Breakfast
Deluxe Room 708 / 458 One Breakfast

Address: No.6 Industry 6st Road, NanShan District, Shenzhen China
酒店地址:深圳市南山区工业六路6号
Tel: 0755-26766833

Website: bemytour.com/sz226

7 Days Inn

This is a big chain throughout China. Some friends even have VIP member cards. Its a budget hotel for business travels. Rates currently range around 200 to 300 Chinese Yuan (about 50 to 65 USD) per night.General Membership Pricing:

Regular Twin Bed 229 RMB (without breakfast)
Business Twin Bed 282 RMB (without breakfast)

The closest one to our summit would be at the Crossing line of Nanhai Avenue and Industry Seventh Road, (gong ye 7 road)
Nanshan District, Shenzhen 518054, China

There are a couple of these near the venue, and plenty throughout Shenzhen (currently 19 in this city alone) and the rest of China!

Hilton Shekou


A top of the line hotel, my friend and podcast guest Steve Marsh says this should be a 6 star hotel if there was a rating! Right in the heart of Seaward in Shekou, top of the line rooms, pool, etc.If you are good at searching for deals the price can be as low as $150 USD a night.This is about a 5 minute taxi ride from our venue, and will be by far one of the highest class there is in town!You can find details and bookings can on their website.

Motel 168

This one feels like the equivalent of Motel 6 in America. I feel like there should be a sign “we’ll leave the light on for ya”. When I first came to China, the 168 meant that there was always a hotel in there that cost 168 RMB. This is back in 2007, that was about $25usd at a 7.4 exchange rate. And the more premium hotel in this chain called Motel 268, meaning rooms started at the 268 rate. Pretty easy to remember and clear before entering.

The number 168 also represents “work” in Chinese. So this chain is also targeting the business traveller.

Nowadays this has turned into just a number in their brand. Tates have increased about the 168 rate and people are still filling the place up! I’d say it is fine to stay in, but will have the simple essentials.

Hanting Hotel

Another big chain throughout China. Like 7 Days Inn and Motel 168, it is for the busy business traveler who is on a budget. Rooms pretty straightforward and basic. They have locations across Shenzhen and other parts of China. I do have friends who have VIP cards and get deals at these places.

They don’t seem to have an English website that I can find.

Hostel in OCT (Overseas Chinese Town)

This one is popular with a lot of entrepreneurs I have known who are passing through.

OCT is a pretty artistic (can we call it hipster?) area in Shenzhen, and will allow you to
You can find their website can at http://www.yhachina.com/ls.php?

Residence G Shenzhen

The latest lifestyle Serviced Apartment and Hotel – Residence G Shenzhen has debut in Shenzhen on 25 March 2017. The property is complete with a two-floor dynamic community hub; G Club. Part restaurant, part community centre; G Club is the first space of its kind in a hotel or residence in Shenzhen’s Nanshan District. Residence G Shenzhen will cater to the needs of business travelers as well as families looking for a modern hotel or fully equipped serviced apartment with ideal location. The complex will host 178 stylish rooms and serviced apartments ranging from studios to 3-bedroom residences. The rooms and apartments feature modern European design, range from 32 to 174 square metres and combine functionality with high-tech style including complimentary high speed WiFi and user-friendly Internet Protocol televisions with E-readers.
Address: 4078 Dongbin Road, Shenzhen 518054, China
Tel: (86) 755 8663 7888
Mobile: (86) 180 7884 6665Website: residencegshenzhen.com

Check Shenzhen Party’s hotel Listings

And of course, our friend and ally, Shenzhen Party is another good source for English information. They have the latest hotels in Shenzhen, China. So if this short list doesn’t help you out, I’d suggest you hop on over to their website and browse around. They work hard to add all the hotels as they come (and go)

Plenty of Local Choices

The tricky part is – if you’re on a real budget, where to stay can get complicated. There are a lot of great deals, but they don’t have English websites, and you can’t book in advance – at least not overseas.

What I did was I had my Chinese assistant book for me before I flew over. She searched for hotels near the factories and venues I was looking to stay, and reserved. Many times the hotels won’t need money up front, and will hold your reservation for most of the evening.

Though it was a funny story: one of my earlier trips (think my second trip to China) I had a delay with my flight and finally got to the hotel at about midnight. They didn’t hold my reservation! They didn’t think I was showing up – I think they waited until about 9pm, then released it for other guests. So just find out the terms and conditions of the reservation and how long they will hold it for you. Especially if you’re flying in from overseas – flights are often delayed. Plus you can get a bit lost finding the place, so have a back up at least or a local Chinese assistant to help you out.

Your Favorite Shenzhen Hotel? Any Tips?

Now it’s your turn! Have you stayed over in Shenzhen before? Where did you stay? Was it a good deal, good price? Helpful staff. I’d love to hear all your feedback and ideas. We will work to add good hotels to this list and help new travelers to this unique and growing city called Shenzhen

To our mutual international business success!

Can You Apply For A HK Bank Account Online?

Want to open up your bank account remotely for your Hong Kong company?

Today, let’s go through this. It’s such a hot debate going on, let’s use this post to make a difference!

You Can’t Open Your Bank Account Without Being in Hong Kong

The quick answer is, you need to be in Hong Kong to open your bank account. They want to meet all the directors and significant shareholders of the company to know who the client is.

I’ve talked to almost every bank in Hong Kong over a 2 day full time effort, and all needed the directors to come in person.

But there are some ways around it, I’ll dig in a bit today.

HSBC in Mainland China Works

So for those entrepreneurs in Mainland China with Hong Kong companies, you’re in luck. They will allow you to apply for a Hong Kong business account from a HSBC in Mainland China.

There are fees, and in 2016 these fees are going up. From what people have told me who did it, it’s about 2,000 Chinese Yuan range. They choose to come to Hong Kong instead, as that is about the same fee as an airline ticket.

So maybe you need to come to Hong Kong anyway. Let’s say your passport visa is running low on time. So make a visa run and then also apply for the bank account.

Don’t have a reason to come to Hong Kong and you’re in North China? It may make sense to pay this extra fee to do a remote bank account opening. I’d love to hear people’s experiences in the comments of today’s post (thanks in advance!)

HSBC Premier Customers

So, I’m putting this in here because this is one I hear over and over. As far as my research and network of people tell me, it is not possible in today’s environment, (yes, we’re in 2016 now), to open a Hong Kong business bank account from non-HK or non-Mainland China HSBC branches.

In the past years, people told me that premiere level (minimum deposit of 1,000,000 USD) could open bank accounts in other countries. Maybe that was for personal and not business, and maybe that is still active up into today. But I have asked bankers, who have become somewhat of my friends, and they assure me you cannot open a business bank account for HSBC HK outside of Hong Kong or China.

Again, please prove me wrong! You can leave a comment below or send us an email.

DBS Hong Kong Has a 20% “Application”

Few have mentioned that you can apply for DBS bank online. So I was like, heck let me try this. They call it an application, but in my opinion it’s more like a lead capture form.

They asked me a few questions about me and my business, and once I did that, the site said they would email me later for more details about applying.

Not sure if my case was that horrible, but I never got a response back! Still seems to me I need to go there in person. And now their new SME bank application fee (upfront, no refunds) is 10,000 HKD! Insane right?

Anyway, so that is what DBS calls applying online.

Why Is It Not Possible To Open An Account Online or Remote?

So you may be wondering why it’s not possible to apply online.

There are 2 possible reasons:

  •  They are afraid of fraud

    The financial industry has been getting tougher and tighter lately. Government regulators are slamming banks with fines. If they feel the bank didn’t do a good enough job in verifying the banking client (KYC – Know your Customer). It’s the job of the bank to ensure the client isn’t a terrorist or a money launderer.

    The banks need to make sure they don’t “slip up”. If they let a “bad egg” who says they’re a trading company for t-shirts get by but in reality is doing drug trades, slip through the cracks. Uh-oh, bank is in a big problem.

    So what’s happening is the government regulators are pushing the job of being a policeman to the banks. Seems kind of smart for the government. They don’t need to hire more people to dig into the banks and can instead put the responsibility and overhead onto the banks.

  •  They don’t want to invest / embrace technology

    Another reason is, I’m interested in opening a bank in Hong Kong. I talk to tons of people frustrated with the current banking options there and lack of customer service.

    In a normal business industry, a new tech company could come along and disrupt the old players. But banking, in Hong Kong at least, is so sealed – when has a new bank opened here? I’ve heard it was in the 1970s!

    So what is the incentive for the banks to innovate? They’d need to spend a lot of time and money. Plus they’re not good at the internet, they’re better at crunching excel formulas and clearing cash trades.

    As far as I understand, the Hong Kong banking association allows digital signatures for online banking. That means that at the least, for account maintenance items such as updating details on your bank, you are legally able to do online. But most banks still want you to come in person or mail a hand signed document to do that.

Some Have Opened Banks Outside of HK (Offshore)

So one thing I have been learning is that some who don’t get a HK bank end up using their HK company to open a bank account in Europe or in an offshore island. Seems a bit strange to me, but it is a business account and not a personal account, so the owners limit their liability in the business. Would need to dig more into this, some use it to receive money from customers in those regions / countries.

A Tip – Add New Owners / Directors Later On

So what some do, to avoid having to have all the owners come to Hong Kong to open the bank account, is keep it simple to start. Maybe one or two directors when filing the new company and applying the bank account.

Later on, once things are operating and stable, then you can update your company documents and add the new shareholders and directors.

This is one tip that has saved a lot of travel time and headaches for many clients.

Sure, those owners not on the original company documents are taking a risk. But they also need to be aware if they can’t all fly to Hong Kong together, this is the most reasonable option. You can have a personal contract between the owners that can help ensure you will get your shares in a future date. You should trust your business partners that much anyway.

This Is What We’re Working On – To Make It Easier

As Global From Asia has converted from a podcast and blog into a full service agency, we have picked up more and more cases like this. We are building one big strong case and talking to the Hong Kong government about it.

In order for Hong Kong to stay ahead of the game in the global business space, they need to work on being more online friendly.

If you want to get involved, please let us know! Hopefully this blog post can spawn some new ideas and get some change to happen!

Why Do you Think It’s So Hard To Apply For Banks in HK Online?

So I’d love to hear from you! Please leave your comments and thoughts in the comments section below. Let’s help each other to figure this puzzle out.

I’m curious if you have had any problems applying for a new HK bank account. What happened, why did you get declined? Let’s help each other and see if we can fix this for the long term.

Best of luck on your global business domination! Original: here

Setting Up Your Bookkeeping in Hong Kong

This article is originally found here: https://www.globalfromasia.com/hongkongbookkeeping/

Many entrepreneurs cringe when they hear the word bookkeeping and accounting in Hong Kong. To be frank, I used to, and in some ways still do. But rather than running away from it and hoping it will go away – it’s best to suck it up and take charge.

Today we’ll go through the thought process of organizing your bookkeeping for your HK Limited company.

Get a cup of coffee, jot down some notes, and get inspired. Now let’s go!

What Your Business Type Matters For Bookkeeping

Not all bookkeeping is the same. There are a few different criteria to consider:

  • Products Business, Service Business, or Mix of Both? Are you a business that earns money by selling products (hard goods), or are you making money by providing a service. You can sell online or offline, as in bookkeeping terms it doesn’t matter (of course the technical method for online and offline is a bit different).
  • B2B or B2C? Buzz words you probably hear quite a bit. B2B means you are selling from your business to another business (business to business). This means that your customers (oftentimes I call them clients when they are a business account) are companies, not an individual. B2C is the opposite, you’re selling to end consumers, often called retail customers. These people are individuals making decisions for their own benefit and use, or as a gift for a special someone. You might say “well, I do both B2B and B2C”, so don’t get stressed out, but be aware that you are doing both.
  • What Is Your Industry? Various industries have a lot of different ways to have their businesses operate. Normally when you do accounting, it will only really let you put in 1 or 2 different industries in the system.

Create a Chart of Accounts

Cringe. Yes, this is overwhelming for newbies. But this is the center of your business. Here is how your accounting and business will flow. Many accounting software packages will help auto-generate them based on your industry and other questions you answered above. Yet I would still recommend working with your bookkeeper to ensure nothing is missing.

Here are typical accounts that you would list on a chart of accounts:

Income

Services
Parts / products sold
Sales write offs

Cost of Goods Sold

Materials
Labor
Outside services/Subcontractors
Supplies
Small tools

Expenses

Advertising
Marketing costs
Inventory used for promotion
Automobile Expense
Bank Service Charges
Cleaning
Contributions
Depreciation Expense
Discounts Taken
Dues and Subscriptions
Insurance
Subaccounts:
Auto Insurance
Business Liab & Contents
Disability Insurance
Life
Medical

Interest Expense
Licenses and Permits
Maintenance & repairs
Meals & Entertainment
Merchant credit card fees
Office Expenses

Subaccounts
Computer expenses
Postage and Delivery
Office Supplies

Other Office Expenses
Payroll Taxes
Professional Fees
Rent
Salaries -Office
Salaries – Officers
Telephone
Travel
Utilities

Other Income

Interest Income

Other Expenses

Don’t stress too much if you miss something or want to remove something later. Of course it’s ideal to have it all set from the get-go, but you can go back to this as your business develops.

Add Your Products & Services

Once you have the chart of accounts setup, now it is time to add in the data you’ll be working with to buy and sell. This is a strategic event and you should do it before you start to enter all your transactions.

You can use the template spreadsheet in Quickbooks and download it to your desktop. There you can match up the products in your shopping cart or your service offering page. The more details you put in here the better, as it will save you time from entering it one by one each time you put in a new transaction.

List Out Client and Supplier Accounts

Next you will want to write out your customer accounts and supplier accounts.

Now this is when B2B or B2C comes into play. If you’re doing B2C, yes it’s a lot of transactions! You will not manually type in each individual’s name, address, and contact details in your accounting system. That is insane! So you can call them “Retail customer” as a general journal entry. Another way is you will integrate your ecommerce or POS system to your accounting software.

If you’re doing B2B, you may want to spend time putting in your bigger clients company name, contact person, address, email, and phone number. This way when you create an invoice to charge them for a product or large product order, it will auto-fill. And you can also run reports to see who your top clients are, as well as those who are late on paying you.

Do the same thing for supplier side. This is again up to you how detailed you want to get and how many suppliers you want to input. If you are buying from a supplier on a regular business and the monthly or yearly amount is significant, take care. I would recommend to invest the time to put their full company contact details there.

You can also use an Excel spreadsheet and then if you have software bulk import it to save time.

Start Entering Transactions

Now that you have the charts setup and the client/supplier information prepared, next you should start to put in some transactions.

This is where the magic happens! There are a few ways to get you transactions into the system:

Manually Create Invoices and Purchase Orders

This is the traditional way, and if you’re a B2B business, might be the main way you will enter your business transaction flow.

When you want to receive money, you will create an invoice. You can then export it as a PDF and email it to the client. Many times accounting software has the ability to send the email right inside the system. As you have the customer information already entered in it’s easy! The invoice will auto-complete their contact details in the invoice.

If you have products or services already created, you can then choose them from the dropdown menu. Either it will auto-fill the price and description, or you can manually type in what you need.

On the supplier side, for the most part it’s the same thing, except you make a PO (purchase order). If you have their contact details and what you’re buying pre-defined this is fast as well.

Once you make the payment, or the client pays the invoice, you can mark it as paid, and it will balance in the accounting system.

Import via CSV (Excel Spreadsheets)

Most online banks now allow you to export your transactions. Normally they let you do as a PDF, as a Excel, or as a CSV (comma separated values) file.

Most accounting software systems work with CSV format. Let’s hope your online banking system supports it.

You’ll then download the file from the online account and the import it to your accounting system.

You may need to make sure the “mapping” is correct. This is where the “First Name” field in the excel spreadsheet connects to Fname in the other system (it’s what the database calls first name, for example).

It is nerve-racking at first, and normally it will ask you for your confirmation before doing the import. I’ve had some messy times trying to undo imports when the mapping was wrong – so be a bit alert, especially the first couple times you do this.

Automatically Pull From Online Banking & Merchant Accounts

Are you a B2C business, selling on Amazon, eBay, or other e-commerce shopping carts? There is no way you can have the time to have a team member entering in all these transactions. That’s because you’re doing high volume (you and I both hope!) and making tons of money selling lower priced items.

This is where the magic of technology comes into play!

You’ll look into integrating your business with an accounting software solution. Check if it works with Paypal, eBay, and whatever e-commerce provider you have. The more the better, so that you can avoid having to deal with

Make Sure It’s In Sync

Once you do link up the various third party integrations, you’ll need to check on a regular basis to make sure they stay connected.

Why do they disconnect? This is for your security, and different systems have different lengths of times. The better ones will let you set the length depending on which service you integrate with – for example 30 days, 90 days, 1 year, or indefinitely.

But alas, all these systems integrating together each one has their own preference. Just be ready to get an alert that you need to re-authorize the connection. Your bookkeeper may help check it for you, but it is still best you as the owner and director check it on a monthly basis, or even more often.

Pick Reports You Want To Read

Now, time to reap the rewards of keeping your books in order – reports! Quickbooks and any accounting software loves to take the data you’ve been entering it and give you a bunch of summary reports to see.

Some of the more popular reports you may access:

  •  P&L (Profit and Loss)

    This is the most important one in my opinion. This will take the total amount of each transaction classification and then take a total for the time period you are running the report for. Looking at this report will see if you have made or lost money during that period.

    It’s hard to hide a loss here, if you’re sales are less than your expenses, it will be an ugly and scary red loss or a negative number.

    But this is why having books will help! Double click on one of the numbers and it will run a report of all the transactions there. See where you’re spending your hard earned dollars. Knowing where your inflow and outflows go is essential in the success of your business. Don’t delegate this to anyone, this is the key role of a business owner.

    Tip – I like to run this report for the past 12 months, and to have it divided up by month. That way I can quickly see which months the business is making money, losing money, or has high / low margin times.

  •  Balance Sheet

    Another critical report, this shows you how much cash you have in the bank. How much debt do you owe? Who owes you money. This report will show you how much money you would walk away with if you closed up shop today. That is, paid off your debt holders and took out all the money from your bank. There is also Shareholder’s Equity, which you consider as intrinsic value of the business. It is taking A-L (assets minus liabilities) and becomes the third part of the balance sheet.

    This report will show you how “strong” your business is if things start to get difficult going forward.

  •  Aged Receivables

    Do you let your clients pay you later? Such as Net 30 terms, which means they pay you a month after they receive the goods. Then you should keep a report like this bookmarked. Here it will show you which of your customers are late paying you and maybe get you off your butt and making calls to remind them to send the money in! The longer it waits, normally the lower the chances are of you getting it. Business moves fast, and maybe they will shut down – the more old receivables on this report, the more nervous you should be!

  •  Expense Reports

    Here is where you should look at the monthly breakdown. Check which vendors are getting a lot of your money. Also look at the report by type of transaction, such as office expenses. Maybe don’t be such a detail freak that you count how many reams of paper you bought, but at least be aware what your average cost is on those accounts. And question some people sometimes, keep them in check. Make sure your team knows you are running these reports and analyzing the numbers. Also shows them you are being responsible and care!

  •  Budget vs Actual

    A cool feature of accounting software is you can put in your monthly budgets. If you have an expected amount of money you’ll be spending each month, or a target for your sales team, put it in here. In this report, you can get a better idea if your company is staying on track of what it said at the beginning of the year. Way off track? Schedule an executive meeting scheduled ASAP! Decide do you lower your forecasts going forward or is the team able to bring things back up to where they predicted?

I’m sure you’ll have more reports you’ll want to run. Each business is different. The main idea is you should have a good grasp of what money is coming in, what’s going out, who owes you money. Check on a regular basis and ensure you are on track from what you predicted at the beginning of the fiscal year.

Keeping Things In Order For a Smooth Auditor’s Report

Another benefit of keeping on top of your books throughout the year is when you get your Profit Tax Return from the HK IRD, you’ll be ready. Just run the latest reports from the software and submit to your HK CPA auditor.

Not many people enjoy digging into the numbers, but we need to take responsibility as business owners. Hope today motivated you.

Any Questions or Need Help?

So that’s all we have for today. Get to it, and start entering those transactions into your favorite accounting software. Need help? We offer full bookkeeping services and you can check out our plans and pricing.

If you enjoyed this article, feel free to leave a comment below. Let us know how you are keeping on top of your books.