Review:HIBC – Laws and Policies of Foreign Investment in China

HIBC – Laws and Policies of Foreign Investment in China

As China’s economy continues to grow, more and more people are looking towards this industrious country to take advantage of its investment prospects.

Entrepreneurs and investors alike are crowding to park their wealth here and get in on the high growth opportunity. Hosting this event seemed to us like the perfect opportunity to help interested parties learn more about how to make this desire a reality.

Thank you to all the business professionals and aspiring entrepreneurs who took advantage of the valuable information provided by Anita Wang and her team of highly skilled legal consultants. Much was learned from the hour long presentation on legal policies foreigners must recognize prior to business set up in China, business cards were exchanged while new alliances were created during the networking session, and those questions that have been keeping you up at night were finally answered during the Q&A segment. Some key takeaways from this event include; best practices for setting up WFOE, labor laws and tax considerations.

Our guest speaker, legal expert Anita Wang, is a Senior Partner Lawyer at P.C. Woo and Zhonglun W.D. LLP. She graduated with a Masters in Law and is a Certified Tax Agent practicing in Guang Dong Province. The insights she provided during this event were extremely relevant to anyone serious about setting up business in China. The following points are just a summary of the information received during the event. If you have any questions about how this information relates to your business; more detailed information can be received by reaching out to our supportive team here at HIBC. Our door is always open!

What type of business entity is usually best for foreign investment? Well… a WFOE of course! With the right guidance, WFOE setup can be easy as there is currently no capital requirement for setting up this type of business, except in  some special fields like banking or insurance industries relating with finance.  We suggest having a minimum of 100 – 150 thousand RMB available for your business endeavor to give yourself adequate room to operate, but you do not need to have these funds in your Chinese business bank account all at once. One common misunderstanding of the WFOE is that a Chinese partner is required for incorporation, which is untrue as a WFOE can be set up without a Chinese national. But maybe you do have a Chinese friend you know would make an excellent business partner… Great! The other common type of business structure that many foreigners also undertake and with a Chinese person is a Joint-Venture. Now that you have your business structure set up, it’s time to think about hiring the right people for the job.

Another major area touched on by Anita was labor law, where she raised some interesting points one must acknowledge. A commonly overlooked requirement of a Chinese labor agreement is that an employer must provide social security insurance for all employees. Anita noted that if you want to end a labor arrangement, you are responsible for paying the employee a severance of [n+1 (n= years)]. For example, if an employee works for the company for 3 years, to legally terminate the employment contract, you must pay the employee a severance of 4 months wages (3+1). Anyways, the severance is up to 13 months wages (12+1).   So now you have your business structure in place AND you have a team behind you BUT are you operating within policies set in place by the government?

The final key point Anita discussed with the group was tax considerations. As she points out, the majority of businesses are taxed at an Enterprise Income Tax rate of 25%, unless operating as a Micro business enterprise or certifited Hi-tech enterprise. Other major taxes to consider are the Value Added tax and the Withholding tax. Failure to comply with appropriate tax obligations can result in some severe punishments, such as lifelong imprisonment and enormous fines. HIBC can help set up and operate your business legally to ensure proper tax obligations are met so that you can focus on what you do best, expanding your business and brand.

The Q&A session was particularly constructive as attendees raised their concerns with Anita and Cassie (Founder of HIBC). The duo took turns filling the audience in on their areas of expertise, and often the whole group converged on a topic together. These are some of the questions that were answered during this productive session.

Digant Lakhani (Manager at Kiran Gems) asked:  “When can we inform employees if we want let them go before their contract ends?”HIBC: The employee can be fired anytime during probation, if they breach the rules of the contract such as: they are found to be doing another job that seriously impacts their formal work as a consequence or they commit a crime. Due diligence must be performed to make sure the employee cannot perform the job as specified. 
Pavel Drbalek  (Purchase Manager at Evrazio Center) asked: “Is it okay to register a WFOE with a virtual office?”HIBC: If the virtual office space can provide a leasing certificate (known as Red Book), as proof that business is operating within governmental jurisdiction. At HIBC, we provide the leasing certificate to purchasers of our virtual office space, giving your business a legitimate registered address from which to operate from. 
Mathew (Founder at Pandora Parties) asked: “Can my business be registered in Qian Hai Free Trade Zone but my office location be in another area?”HIBC: Yes, this is legal for companies registered in the Qian Hai Free Trade Zone as registration in this particular area provides special allowances. Setting up business in districts such as Luohu or Futian is perfectly legal despite the business being registered in Qian Hai.
Pax (Office Manager at BM1 Trading) asked: “Why do you need a Fapiao?”HIBC: A Fapiao is proof that a transaction took place and the tax has been paid. Unlike a regular receipt that anyone can write up, a fapiao contains the official seal of the government and registers that transaction within the tax system.
Yogev (Vice-general manager at Yuan Quan Hui) : “Why have I been advised that I should first register my company in Hong Kong and then use that company as the investor company to open a WFOE in China?”HIBC: Setting up a company in Hong Kong provides many benefits which include ease of startup, proximity to mainland China, a business-friendly tax system and the ability to easily receive payments from overseas. HIBC provides business setup services for both Hong Kong and mainland China. 

Remember that laws and policies in China are constantly changing, so be sure to stay up to date when new information is available or hire qualified professionals that will keep your business in compliance so that you can focus on what you do best. At HIBC, we strive to provide our customers with a work space tailored to fit their needs and provide the best possible resources to promote and grow their business. We are happy to provide our members with exclusive events that integrate with global business trends and client interests. We hope to see more of you entrepreneurs with exceptional motivation to succeed at one of our upcoming events. Stay posted for information regarding our upcoming events by following our official WeChat account.

At HIBC, we aim to create an inclusive ecosystem that acts as a catalyst for your business. With people from diverse backgrounds and sectors all under one roof, special ideas turn into special projects. We are proud to host unique events for our members that dive deep into the latest social, cultural, technological, and business developments. That way, our community constantly stays informed and at the front of the pack as well as becoming connected with new friends and partners that attendWe hold your start-up’s hand every step of the way and supply all the tools necessary for it to grow; from company set up,  tax accounting, IP rights and strategic partnerships.

    What we do:

– Co-working space/ Serviced Office/ Co-living space

– Relocation service

-Company Registration ( WOFE & HK company)

-Accounting and Tax

-HR Service

-Law Advice

Please scan the QR code to contact us!

Contact:

Tel/联系方式:+86-755-23823860

Email/邮箱:info@hibcsz.com

Web/网址:www.hibcsz.com

Weibo/ 微博:弘夏国际HIBC

Add/地址:

Room 3807~3809/1601, Block A, Xintian CBC building, Fumin Road, Futian,

深圳市福田区福民路新天世纪商务中心A座38楼3807~3809/1601

HIBC promotion 

Prmotion 1

Co-working Space Buy 1 Get 1 Free

HIBC Co-working Space

Limited Time Special Offer

Buy One Get One for Free!

1500rmb/desk/month

√ Pay for 1 desk get another desk for free.

√ Pay for 1 month get 1 month for free.

(you can enjoy one of the promotions above.)

 Promotion 2

Private office for 3 desks

¥4,800

Now is only ¥3,680/month  ALL FEES INCLUDED

( can provide Rental Certificate)

Prmotion 3 

20% OFF Address for registration &WOFE registration

 (All fees included + Rental Certificate)

Come here, you can make friends with people from different industries all over the world. We will hold an international business event regularly to make you work and networking together.

√ Futian CBD location, 1 min to 2metro lines, close to coco park

√ Large window, bright light, amazing view

√ Brand new western decoration,fully furnished

√ Free coffee, tea, High-speed Wifi support

√ 24/7 access

√ Flexible lease term, all fees included

√ One-stop expat business services: registration, administration, finance and tax, translation services.

Nadagogo Japanese Restaurant Pre-Opening at Wyndham Grand Shenzhen

Step through the double doors on the right of the Wyndham’s Grand Kitchen and you will be greeted by a resounding chorus of ‘Irasshaimase!’ – ‘Welcome’ – to Nadagogo Japanese Restaurant.

Tastefully decorated to give an authentic Japanese feel, Nadagogo is unlike any other Japanese restaurant in Shenzhen. The opening ceremony was certainly an occasion to remember. The pièce de résistance was a 70 kilogram Yellowfin tuna, which was expertly prepared in front of a rapt audience. Costing roughly 30,000 RMB for the whole fish, this was an amazing treat for connoisseurs of exquisite foods.

The chef gave a running commentary on how the fish was being prepared and the uses of its different parts, one of which was for the sashimi course of the celebratory dinner. Dinner also included other delicacies such as slow cooked lobster with black truffle egg yolk paste, robata-yaki A5 Miyazaki Wagyu beef and minced shrimp wrapped with perilla leaf tempura.

In contrast to other Japanese restaurants which usually specialise in one type of cooking, there are five different cuisines and atmospheres in Nadagogo. Select your area depending on your mood and dining preference. Each section has its own specialty chefs ready to prepare your food as you order it.

Kushiyaki consists of grilled skewers of a variety of meats, vegetables and seafood, including the famous ‘yakitori’ – grilled skewered chicken Japanese style. You can choose to sit at the bar and watch the food being cooked, or sit at one of the tables and enjoy the friendly, relaxing ambiance.

For a more intimate experience, the teppanyaki room can seat up to ten people. You will enjoy your personal chef displaying his culinary skills on the iron hotplate that is ubiquitous with teppanyaki. Here you can share tastes of your favourite dishes – and perhaps try a few new flavours – with your friends, family or colleagues.

If a more formal dinner is required, such as for business meetings or special occasions, a special kaiseki menu is available in a private room. Here a more traditional Japanese style of cuisine is engaged. There will be several courses of haute cuisine and you can expect to see excellence in every detail.

Of course, no Japanese restaurant would be complete without fresh tempura, cooked to perfection while you watch at the bar. Sushi and sashimi is currently prepared behind the scenes, although in the future there will be a sushi counter for customers to enjoy the skills of the chefs up close.

Nadagogo also specialises in robatayaki – Japanese ‘fireside cooking’, similar to barbequing yet with that authentic Japanese style. Every dish is prepared with the utmost care as the chef carefully monitors the heat of the charcoal to bring out the best flavours of the food with the minimum of seasoning.

To accompany the sumptuous food is the best range of sake in Shenzhen. Nadagogo has roughly 130 varieties of sake in specialised dispensers, ready and waiting for you to try. This may seem a little daunting, especially if you know very little about sake; however, the restaurant sommelier is on hand to explain the different types and recommend pairings with particular dishes.

If you wish to try your hand at finding your perfect combination there are descriptions to accompany each bottle, along with a brown, green, blue or red character which indicates the main flavour. You simply have to top up the exclusive card at the cashier desk, insert it into one of the nine machines housing the sake and choose your desired beverage.

Top chefs from Japan, Hong Kong and mainland China, many of them having trained in Japan or at well-known Japanese restaurants, bring their talents to the table here. Nadagogo brings the perfect combination of Japanese cuisine and sake culture to Shenzhen.

Opening hours:

Lunch 11:30-15:00

Dinner 17:00-23:00

Address: 

3rd Floor, Wyndham Grand Hotel, 2009 Caitian Road, Futian, Shenzhen

深圳温德姆至尊酒店三层,中国广东省深圳市福田区彩田路2009

To reserve a table call: 0755-88398330

Merchiston International School (MIS): The Future of International Education in Shenzhen?

Merchiston International School (MIS) is the first of its kind in Shenzhen. Priding itself on providing a British education and boarding system, MIS is the first overseas campus of Merchiston Castle School, Edinburgh, Scotland, UK. With a history of over 185 years, MIS combines experience and knowledge with modern facilities and up-to-date technology, creating a unique setting for students to fulfil their learning potential.

Having only opened in August this year MIS already has around 200 students currently on roll, with the capacity for up to 1,200 students. The specially designed building is spacious and airy, centred around The Colinton Atrium that stretches to the seventh floor. This provides an area for the whole school to congregate and joins onto The Castle Hall auditorium where assemblies and presentations are held.

Extensive sports facilities include a basketball court, badminton courts, tennis courts, a fitness suite, an indoor swimming pool and a running track which starts inside then leads out of the building and around the football pitch. These facilities are used for a range of extra-curricular opportunities as well as Physical Education lessons which follow the English National Curriculum. MIS sports teams are already taking part in local competitions against other schools and will likely follow the example set by Merchiston Castle School in having a fantastic sporting reputation.

Sweeping staircases and a bank of glass elevators lead students, staff and visitors to the other levels of the school. Here can be found Science laboratories set up with state-of-the-art equipment, Design and Technology rooms, a Dance studio, a Music suite with individual practice rooms and a black box theatre for Drama. This is alongside the school library which – although already substantial – is still a work in progress. When complete it will be on two floors: one section for the Juniors and the other section for the Senior students. The library has several spaces for quiet study which the students are welcome to use whenever they need to. The Librarian and Library Assistant are always on hand to help students with any request they have.

Enticing murals decorate the corridors leading to the Art rooms, produced by the students from various classes. Each classroom has a wall of windows facing into the corridor along which students’ work is displayed and it’s easy to see the light open rooms waiting to be filled with eager children. The classrooms are all multi-media with either interactive whiteboards or interactive televisions set up for use by teachers and students alike. All students in the Juniors section of the school get a tablet to use in lessons and for their studies; students from Year 7 upwards have a laptop each.

The youngest members of the school, aged 5-7, have open classrooms leading out to an enclosed play area, suitable for outdoor learning as well as playtimes. Colourful and useful displays decorate the walls, interactive televisions are ready to be used by teachers and students alike, and up a spiral staircase is a mezzanine floor waiting to be converted into a habitat for the latest topic.

Once students reach Year 3 they usually board at the school during the week, and from Year 7 it is compulsory. This is what sets MIS apart more than anything else – it is the only British International boarding school in Shenzhen. From Year 5 students are allowed to stay at school during the weekends and can take part in the numerous activities on offer; everything from tree climbing and slack-lining to French cooking classes to visits to Window of the World. Sundays are more relaxed and students focus on completing their homework while being supervised by the teachers on site.

The curriculum at Merchiston International School is based on the English National Curriculum. At the Juniors level this is integrated with the International Primary Curriculum and Merchiston Castle School Edinburgh Juniors Curriculum. This ensures that every student develops valuable learning skills, creativity and international-mindedness which are then extended and enriched. In the Seniors, Years 7-9, a program is being developed based on the English National Curriculum with a focus on cultivating English skills to ensure students will be ready for the IGCSE exams at the end of Year 11. In the final two years at MIS students study for Advanced Level (A Level) examinations. This curriculum gives students an ideal starting point for their future prospects, especially for those wanting to study or work abroad in the future.

MIS goes a step further than most schools when welcoming prospective students. Not only are they given a full tour, they are also given the opportunity to take part in school activities for a day or even two. Students from Year 3 upwards are able to board at the school; this can be daunting for children who have never stayed away from home before. To show potential new students that living at school can actually be great fun whilst also being a valuable learning experience, they are invited to spend a night at school and take part in the usual evening activities. This way they get a real feel for the school and what it would be like to attend, as well as having the opportunity to make new friends from all over the world.

Outside of lessons MIS prides itself on the extensive program of Co-Curricular Activities (CCAs) on offer. There are two sessions every day at the end of lessons and after a short break. The youngest students choose from options such as gardening, cooking club, board games, tennis, Maths, gymnastics, martial arts and Chinese culture and language clubs. Students in Years 3 to 6 have a wider range of activities, including calligraphy, swimming, French, Spanish, yoga, IT and multi-sports, as well as the opportunity for the same clubs at a higher level than the younger years. Seniors students have a more challenging range of options: Science, creative writing, jewellery making and drama, to name a few, alongside external competitions like the Mini United Nations (MUN) and activities with a whole school impact such as the School Yearbook Club.

MIS ensures that parents are also involved with the school as much as possible. To this end there are Parent Forums once a month on a variety of topics, such as Learning outside the Classroom, Inclusive Education and Additional Support, and Boarding Life. There are also regular tours of the campus for prospective parents.

For further information or to visit Merchiston International School please see the contact information below.

Chinese and Pinyin Name: 深圳曼彻斯通城堡学校 shenzhen man che si tong cheng bao xue xiao

Address: No. 12 Shilongzai Road, Dalang Sub-district, Longhua District, Shenzhen

深圳市龙华区大浪街道石龙仔路12号(大浪时尚小镇)

Website: Merchiston International School, Shenzhen’s Website

Phone: +86 400 867 0177

Email: admissions@merchiston.cn

 

 

Wyndham Grand Kids Puppy Activity

The second season of the Wyndham Grand Kids Activity was a howling success. With a theme of puppy dogs plus scrumptious food, games and competitions, the children who attended had a ‘pawesome’ time!

There was even a real live puppy to greet the children as they arrived!

Puppy balloons surrounded the outdoor garden of the lobby lounge and decorated the tables. To top it off, a stage was set up at the front with a huge ‘Discover the Cutie Doggy moment’ display.

Exciting objects and gifts could be found on every table, including pots of modelling clay in a range of bright colours for the children to play with. Wyndham Grand mugs were carefully wrapped as an additional gift for the adults at the event, although some of the children were so excited they unwrapped those as well!

One of the competitions was for the best clay model made during the afternoon, which almost all of the children (and some of the parents!) took part in.

The models showed off some very creative skills and great imagination. Puppies, chicks, ladybirds and snails were just a few of the creations displayed for the competition – it was very difficult for the judges to decide the winners!

The prizes were giant soft toy dogs, ready and waiting for a new home. They found their new homes with a green dinosaur, a multi-coloured hedgehog and a lime with a tiny hedgehog and carrot on top.

Even the food was puppy themed. Doggy-licious desserts – some in the shape of the most popular dog breed in China, the Shar Pei  – made a mouth-watering display.

Mini plant pots filled with sponge cake, crunchy flakes, fruit and chocolate, complete with a tiny spade; heart shaped chocolate truffles; all kinds of macaroons; puppy-shaped biscuits; mini waffle cones filled with fruit cream; chocolate, fruit and nut balls covered in purple chocolate; and frozen lime and pineapple-shaped desserts were a selection of the delights on offer.

The dessert display was completed by a pink chocolate fountain with marshmallows, jelly sweets and fruit skewers all ready to dip.

As for the main courses, every appetite was catered for. From finger sandwiches and BBQ chicken wings to kung bao chicken and sushi, an eclectic mix of Chinese and Western cuisines was on offer.

No kids’ activity would be complete without a ball pool, and the Wyndham Grand was no exception. Kids of all ages had a pawsitively fantastic time playing with the inflatables, balls and balloons.

The final competition was a ‘fetching’ game where the children had to find and retrieve small blue boxes. Each box contained a piece of paper with a number which could result in a prize – from small red puppies to giant 2m long soft, fluffy dogs all ready and waiting to be taken to their new home.

As usual the Wyndham Grand staff were ever present, helpful and involved with the event and the children.

Look out for the Third Season of the Wyndham Grand’s Kids Activity, coming early next year. An event definitely not to be missed!

Address: 3rd Floor, Wyndham Grand Hotel, 2009 Caitian Road, Futian, Shenzhen (深圳温德姆至尊酒店三层,中国广东省深圳市福田区彩田路2009 )

Tel: +86 755 8299 8888 (EXT 8560)

Grand Halloween Tradition at the Wyndham

The Wyndham Grand, Futian, doesn’t do events by halves, and Halloween this year was no exception. The Grand Kitchen, the Wyndham’s buffet restaurant, was host to the Halloween Buffet Dinner. No word could be used to describe it other than ‘spectacular’.

As soon as the elevator doors opened on the third floor, you were greeted by Halloween decorations and spooky sounds. Cobwebs were draped over light fittings; staff were dressed in cloaks and witches hats, with the occasional addition of scars, vampire teeth or dripping blood; skeletons and skulls caught your eye in every direction.

The most remarkable aspect was the amount of effort that had obviously gone into the Halloween themed food. Even the bread was shaped like ghostly faces!

From 6pm to 9.30pm over 100 people came to spend Halloween eating sumptuous savouries and delectable desserts. Appetizers included a selection of Asian-style and Western-style salads, as well as ‘design-your-own’, sushi, sashimi and an array of imported seafood – the Grand Kitchen’s specialty.

Everything from New Zealand scallops to oysters from Iceland, Alaskan salmon to South American shrimp, was available for the guests’ delight.

At the opposite side of the restaurant, a wide variety of Asian and International dishes greeted guests.

Alongside the usual dishes such as beef brisket, braised noodles with seafood, fried sole fish with cream sauce, Chinese BBQ chicken and pork, and Guangdong-style soup, the food was accentuated by Halloween specials.

A ‘Terrorist Mummy’ of BBQ pork rib with sausage was the centrepiece, complete with ketchup blood, laid ready and waiting to feed hungry guests.

The pièce de résistance of the whole experience was – without a doubt – the desserts. This is where the Halloween theme really came alive – or undead! A human brain, a bleeding heart and a dismembered arm were proudly displayed, surrounded by tombstones, spiders and skulls.

Luckily they were filled with delightful flavours like chocolate cake with raspberry and cream filling, almond cake or Swiss roll. They looked so good people were almost afraid to eat them!

As well as these masterpieces there were over 30 different types of dessert, all designed and made by the bakery chef.

Eyeballs filled with chocolate truffle and nuts, honeycomb witch hat cupcakes, Halloween sugar cookies, sweet witch poisoned soup, 3D spider puffs, fruit tarts in mini white chocolate coffins and chocolate spiders were just a few of the petrifying puddings on offer.

The treats didn’t stop at food either. Free-flow soft drinks and beer were also included with the buffet, along with a complimentary glass of wine and exclusive Halloween mocktails.

Free face paint, stick on scars and wounds, hats and masks were provided for anyone who wanted to embrace their inner scariness.

To top off a spectacular evening, what Halloween celebration would be complete without a pumpkin carving competition!

Eight guests took their places in front of fresh pumpkins, ready and waiting for life to be carving into them. Two children joined in, although after a while it became clear that their parents were doing most of the work as the children decided to go elsewhere and play!

After intense concentration and hard work from the participants, the restaurant manager chose a winning pumpkin. All pumpkin carvers received a Wyndham Grand mug as a special gift and the winner also received an exclusive bottle of house wine. The decision was very difficult to make as a lot of thought and effort had gone into every Jack o’lantern.

This was the third consecutive year the Grand Kitchen has put on a special Halloween Buffet and Mask Party, ever since the Wyndham Grand opened in 2015. If you can’t wait until next October, the international seafood buffet is also available every day for lunch and dinner!

From Monday to Thursday the buffet is RMB268, and RMB318 between Friday and Sunday. All diners are also welcome to enjoy one complimentary glass of wine. Prices are subject to 10% service charge and 6% VAT.

Address: 3rd Floor, Wyndham Grand Hotel, 2009 Caitian Road, Futian, Shenzhen (深圳温德姆至尊酒店三层,中国广东省深圳市福田区彩田路2009 )

Tel: +86 755 8299 8888 (EXT 8560)

Divali Celebrations at Green Oasis School

Green Oasis School is committed to delivering a British Curriculum that recognises and celebrates different cultures from around the world. Our Guiding Statements include:

-Green Oasis School’s commitment to internationalism and intercultural understanding is explicitly embedded in the Guiding Statements.

-GOS believes strongly in educating our students to appreciate, understand and respect all peoples both from within China and abroad. 

Part of this education is to celebrate and acknowledge different festivals from around the world, so on Wednesday 7th Nov. staff, students and parents celebrated the Indian ‘Festival of Lights’.

This festival is held each year in India and other parts of the, it is celebrated with feastinggifts, and the lighting of lamps

Here at GOS we celebrated by creating a Rangoli art piece for our reception area. This beautiful peacock was made with coloured rice and flour. Rangoli patterns are created in courtyards and foyers during festivals and often are regarded as bringing luck for the year ahead.  Students, staff, parents and alumni helped to create a beautiful peacock complete with lanterns and candles.

Students and staff were encouraged to come dressed in traditional Indian costumes, and as the pictures below show our Year 1 students embraced this with delight with many of the girls coming dressed in Indian attire. 

Staff and students were also treated to Indian sweets at lunchtime made of crushed cashew nuts. These proved to be a great hit with both adults and children!

With people in the world traveling more than ever before and more of us living outside our own countries, GOS is proud to be able to celebrate with our community a little part of another culture, to educate and delight our students and our community. 

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Chinese Name: Green Oasis School Shenzhen 深圳市福田区城市绿洲学校
Place Address: No 4030, Shennan Middle Road, Tianmian, Futian District, Shenzhen 广东省深圳市福田区田面村深南中路4030号
Place Phone: +86 (755) 8395 9000

Improving Food Quality at Dream School – Green Oasis School

As part of our work in PSHE, looking at our dream school, we have focussed on the food we eat at lunch time. We have spoken with many people – students, the caterers, teachers and the Principal as well as our parents.  

The reason we were doing this was to find out if we could improve the quality of food in the canteen. 

We also wanted to make sure that we had enough nutrition in our lunch so we have enough energy to learn in the afternoon. 

We began by discussing the problems we saw in the lunchroom and then split into groups – one looked at nutrition, one our favourite foods, one our least favourite foods and one looking at potential menus. 

We created questions for a survey.  We considered the different methods of cooking – when Ms Anne did not know exactly what was in the back kitchen, we asked to go and look (we enjoyed that).  

We then went to speak to the Principal about meals in her previous school (they sounded delicious) and her ideas for a rotating menu. 

We then spent lunchtime gathering evidence – so much evidence. After that, we discussed biased data and collation. Collating data simply means putting it into groups and working out what we have between us. 


Favourite foods:

We got a lot of answers for this – some were ingredients and some were meals.  The top 5 answers were: 

Ms Anne said no to all of the sugar and fast food☹ So we kept looking till we found something that did not contain sugar. 

We took this information and gave it to the menu group. We then looked at the least favourite foods.  These were so many that we could not come up with a top 5.  Included were vegetables, sweet things, and carbohydrates. 

We also looked at textures to make sure that our food was exciting.  The most popular was cold – not many people liked wet. 

Menu 

When we looked at the menus, we considered that many of us like food from other countriesWe knew that there were a few problems for us.

Problem number 1: The catering

We need food that can be prepared off-site, brought at school and served to us. 

Problem number 2: the choice 

Currently we have a choice of four mains, two sets of vegetables, bread or potatoes and a sweet item.  The Principal and Ms Anne suggested that we cut down the number of choices so that the money would go further and we could have better quality and selections. We considered an option of a meat main or the vegetarian version and also a spicy option and a non-spicy option.  

We made these suggestions and gave it to the menu group. These are what they came up with: 

We are going to meet with the caterers to try and help them make food that we like.  We will not change things quickly but we are hoping that they will listen. 

 

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Chinese Name: Green Oasis School Shenzhen 深圳市福田区城市绿洲学校
Place Address: No 4030, Shennan Middle Road, Tianmian, Futian District, Shenzhen 广东省深圳市福田区田面村深南中路4030号
Place Phone: +86 (755) 8395 9000

Difference Between an Accountant and a Bookkeeper

 

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

All too often we can’t wait to get our Hong Kong limited open.

You’ve been enjoying the Global From Asia podcast and blogs here on the site. Now you are looking into what are the ongoing costs.

We had a popular post for the Upkeep for HK company, today we are going to focus specifically on:

What is the difference between an accountant and an auditor?

Drink so coffee (or tea) and don’t sleep on me here. Yes, this stuff can get dry – but the more we understand it, the better business owners we can be!

Accountant Definition

What is an accountant?

Think there are 2 cases.

Case one is the accountant as a bookkeeper. He or she will receive all your financial statements, either by paper or online access. They will setup your books and chart of accountants. You will then watch in awe as they classify your transactions in different income and expense accounts.

Bookkeeping should be upkept throughout the year. Ideally real time. Of course there are many of us with not tons of activity on a daily basis and we can’t afford to have a full time accountant. So I recommend weekly.

It’s not just for the work, but also for you as a business owner. To look at the numbers, the reports, the summary and see your business as a dashboard.

So this type of accountant is a bookkeeper.

The second option is the accountant as a tax form filing specialist. They specialize in a certain geography / government. Let’s say for here its Hong Kong. They know what all the different tax forms are, how to fill them out. Also, if they have experience, they will be able to tell you how to best keep the forms filled out. How to optimize your tax strategy.

This type of accountant is I believe what most of us think of when we hear a tax accountant. Having a good grasp of that government’s tax law and advising clients how to file for their personal and/or businesses.

Auditor Definition

Auditor, for many Americans (myself included) will cringe. We all hear about an IRS tax audit. The mental picture I get is a group of government officials in suits pounding on your office door to do a sudden check on your books. The business owner rushing to shred all the documents before they break the door down.

Do you get such a dramatic mental picture as that?

Well, that isn’t what we’re doing here – at least in the Global From Asia – Hong Kong tax sense. An audit here is one you pay a Hong Kong CPA (certified professional accountant) to check your books.

This auditor is the same as those who are rummaging through your shredded documents but this time you pay them to do it. Or at least you’re required by the Hong Kong Internal Revenue Department (IRD) to do so.

They will not enter your transactions into an accounting system or excel. That you should have done already. What they will do is check over your financial statements such as your profit and loss statement and balance sheet. They’ll see if it makes sense. Such things as your margins, your expense account sizes in comparison to your revenue numbers. Are you hiding something.

They are to snoop around in your financial statements, and your transaction history looking for things that may not add up.

This is their job. And they are using their expertise – AND LICENSE – to do it.

You may ask yourself, why would they dig into it if I’m the one paying them. Wouldn’t they want to keep me as the paying client happy?

You would think so – but the Hong Kong government gives them a license. Their job is on the line. If they don’t do their job and the IRD checks it later and feels the CPA was negligible, they jeopardize their license.

Make sense?

An Accountant Can Also Be An Auditor

You can use the same person to do both of these tasks. They will accept it, because it means more money for them!

It may make sense too. They will understand the books as they have been working with you on entering the transactions and speaking to you throughout the year on questions you have. You should have a good regular communication flow with your accountant. Alert them of new products, services, and other financial related changes in your business. Taking a new business loan? Might be a good time to alert your accountant, so they can add that as a new account in your bookkeeping system.

Will You Save Money If You Use An Accountant As Your Auditor?

I’m sure you’re wondering, will you save money if you combine your accountant and auditor? I would say yes. There are a few ways you can say it will save you money:

1) They can give you a lower bundle price than separating the services.
2) They can save time in the audit as they know the books already.
3) You will spend less of your own time re-explaining the situation 2 times.

But, you also need to remember, for a Hong Kong company audit, you need a Hong Kong local accredited CPA. Hong Kong, as we have found out from these blogs in the past, is not the cheapest. Check out cost of living in Hong Kong article for examples. So of course those costs will reflected in your pricing.

You can use an accountant anywhere in the world. you may save money on the accounting side if you outsource or have your own staff do it. Then you only use a local Hong Kong CPA to check over the books and submit the auditor’s report.

Doing that may save money as a total bundle price – but dollar for dollar – the coordination and back and forth of your own time may drag you down a bit.

It comes down to how well organized you can be.

What To Look For In An Accountant for your Hong Kong Books

So we discussed the differences, now what should you look for in an accountant. I’ve seen some people I have worked with who use an American based accountant to do it.

You can use an accountant based anywhere in the world.

While we can provide this service and would love to work with you on your case. Yet to be clear, your accountant can be someone you find on Upwork. You pay to have someone do your transactions entry in Xero or Quickbooks. Also we’re a Certified Quickbooks Advisor in Hong Kong, so look for that from others you may hire.

Some tips in looking for your accountant:

  • Multi-currency experience.

    The beauty of Hong Kong for your global business is the multi-currency accounts. But for accountants, that is an added complexity. Ask your accountant if he or she has ever done bookkeeping for someone who has a wide range of currencies, and multi-currency bank accounts.

  • Do you have multiple entities in other countries?

    Do you also have a USA company or mainland Chinese company? Maybe you have an outsourcing center in Philippines. Who is doing the accounting there? What is the relationship of those companies to this company? Will you have those books done by this same accountant, or will you have a separate bookkeeper for that country? This is something the accountant you are looking to hire will need to know.

  • Do you have a lot of transactions?

    Are you an online based business with a lot of Paypal and merchant account transactions? Especially in B2C, you will have a lot of small purchases. Do you expect your accountant to have experience with these e-commerce payment systems? Many accountants are not familiar with this and you should keep on top of this before it gets out of hand.

  • Do you expect them to be “online” based or “offline” based?

    As mentioned in point 3, many accountants still haven’t fully embraced the internet and computers. Don’t laugh! At least in Hong Kong, many still are getting a grasp of keeping on top of their email inbox! In your communication with the potential accountant, see what types of communication methods they prefer.

  • Can they work direct with your online banking systems?

    When doing the transaction entry, can they work direct with your online banking systems? Again, technology. I imagine if you’re reading this blog post – then you are tech savvy. More than many of the accountants you may find out there! I am not trying to make a jab. Spoken from experience, do you expect the accountant to be able to login to your online banking with their own logins? Will you be OK with sending them a bunch of PDFs? Heck, maybe some will even want you to mail them the physical paper statements!

This is just a small list. Of course you have to trust them! And you have to agree with the way to communicate. Don’t get into the deal to only get frustrated with them later on when they are slow to respond to your emails. The only way I can reach a lot of accountants is to call them and schedule an appointment at their office in Hong Kong!

The Traditional Flow of Accountant And Auditor in HK

So let’s put this into context. You have a new Hong Kong limited company, and it’s B2B import export trading. You opened the company and then got approved for an HSBC Hong Kong bank account.

Your agency got you to sign up for their bookkeeping service, and you may send them your bank statements. You don’t have too many transactions, so you just send it to them monthly when you get the statements.

They enter the transactions into their accounting software. Many of them do not use online based accounting software and it will be locally stored on their computers in their office. A lot of times it isn’t even on a computer but instead written down on paper! Yes, this blog post is being written in the year 2016!

After about a year, you fly into Hong Kong to do some banking updates, maybe go to a trade show or 2, and check in with your accountant. You hand them a stack of receipts and your paper statements that the bank has been sending you. If you elect to pay the extra fee for the paper statements rather than e-statements, or you can print them out.

They prepare the books, and the accountant may have a few questions about some transactions in your business. You also want to make sure that your accountant understands all parts of your business, and also any kind of shareholder loans or special cash accounts, etc. If they are good, they will give you some ideas on how to better maximize your tax preparation, and other tips to optimize your company financials.

The first year you have a few extra months to file your audit, so let’s say you wait until the 18 months past. The accountant can also act as the auditor (If they are an accredited HK CPA) and they will prepare the auditor report and profit tax return. They will present it to you and show you your tax liability. You’ll then accept it by signing off, and then submitting everything to the Hong Kong IRD (Internal Revenue Department)

Then you go about your normal business life for the next 12 months, until you need to repeat the process above.

Moving to More Online Based Accounting Flow

So, we’re all lovers of the internet age. We are reading this guide online, off our mobile phone, listening to a podcast while in an airport in Dubai.

The internet is good.

So we work with an accountant who is more online based. We find one online, not based in Hong Kong, and work out a monthly payment plan. Maybe they offer packages. You signup, and get a renewing credit card transaction agreement going.

Talking to an account rep on email, they tell you to pick an online accounting software of your choice. Xero, Quickbooks, or the many others. You will also need to get a plan that works with multiple currencies, so they are normally a bit more than the basic software. You’ll get setup and link your online banking (HSBC HK supports Quickbooks), Paypal, and other systems. This can be tricky, and hopefully the accounting agency can work with you to make sure it all syncs up.

Once the initial setup is going, you have them enter the transactions manually that may not come from Paypal and online merchant accounts, such things as petty cash. You’ll also probably have times you need to explain certain transactions so they are classified correctly.

The year goes by, and you need to prepare for your HK audit.

Your Hong Kong company secretary will email you that you received a profit tax return from the HK IRD. You’ll have a few months to prepare your books and prepare the auditor’s report. This can be done with the referral of the company secretary, or you can use another accountant, CPA – auditor. Up to you.

The auditor will check the books, and ensure that you have properly accounted for revenues and outflows and he/she is willing to sign off that the books are legitimate. This is the risk of their certification and relationship with the HKICPA – Hong Kong Institute of Certified Public Accountants. If later the books seem “Cooked” – I’m sure the HK tax department will question the auditor on why they didn’t find this issue at the audit step.

Once you agree with all the books, the auditor report, you’ll need to sign and submit the profit and tax return. Write the check, and you’re done.

How Much Does This Cost? Comparison

So let’s think about how this all comes together. There are a few different things you need (recommended to get)

  • Accounting software.

    In today’s online world, and the fact that you’re reading this blog post off your computer monitor instead of a printed newspaper, you need software to balance things. Most choose Xero or Quickbooks. Maybe also better to ask your bookkeeper what they are familiar with. Cost – 20 to 40 US dollars a month. If you have an international business, you’ll need the more expensive multi-currency account options.

  • Bookkeeper.

    You can outsource this, with a HK accounting firm, with your own staff, or you can do it yourself! It is best to have someone on call in case there are questions or issues that arise later. Plus when there is a transaction you are not sure how to classify, the bookkeeper and accounting specialist is there to help out.Cost. Depends on how much activity you have. Let’s say from the $150 USD to $400 USD a month. Again, you can always opt to do your own bookkeeping, or have someone in your organization do it.

  • Audit.

    Yes, this is where people wonder how much will it cost. And online you won’t find anywhere that has a standard table of prices for a Hong Kong auditor’s report. Price depends on the amount of transactions, how many revenue streams, how good your books are kept, and how familiar the auditor is with your type of business.Cost – Depends on how many transactions, how active, etc etc. But I know you want a range. Low is 900 US dollars and high is up to $2,500 USD. The higher range is when you’re in the millions of dollars in revenue and it shouldn’t be as big of a cost as a percent of your profits. The lower range I have found is harder for the smaller businesses still finding their traction.

  • Signing and mailing the profit tax return

    This will need to be filled out and signed by you, or one of the directors.Cost. The courier fees from Hong Kong and back. This needs to be mailed to your Hong Kong address, and if you’re living and working overseas, it will need to be signed by you. Or you can always take a trip to Hong Kong for this process. I always recommend meeting your company secretary, accountant and auditor yearly. Make sure you are comfortable with everything. Check in with the year in the past, talk about the future year.

Remember – Accountant Can Be Anywhere, CPA For Audit Must Be in Hong Kong

So we have drove this topic home for you. You can do your bookkeeping and accounting data entry from anywhere in the world. This person should have experience balancing company books, general ledgers, and online accounting software.

You, as the overachiever entrepreneur, may want to learn to do this yourself. I respect that. Heck, I remember learning it on Sunday afternoons back in 2004 with my first e-commerce business! Taking a Quickbooks training seminar in NYC and trying my best to classify everything. It is a good skill to have, to understand the inflows and outflows of your business.

Yet I can imagine it may not be your favorite task to do. Find someone in your company, or a trusted accounting firm to take care of it for you.

But, as skilled and knowledgeable about this as you are – you cannot do your own audit. A Hong Kong licensed CPA must do it. And, I know it is frustrating – the price is not black and white. Budget around $1,500 USD for it, a bit more if you’re in the multi-millions in US dollar revenue.

Have the books as “Clean” and prepared as possible for the auditor. The price will be lower than if it is just a big pile of financial statements.

How About Your Experience?

How has your experience been dealing with accountants and auditors? Of course I’m more focused on Hong Kong today, but even if its in America or other places- any tips for dealing with these consultants?

I’d love to hear it, as well as other readers – so please leave your comments below!

Also, our company offers bookkeeping services and audit reports – we’d love to work with you!

New Tax Laws for Foreigners in China

This post is originally found here: https://www.globalfromasia.com/china-global-tax/

China is the world’s largest manufacturer and it has the second largest economy next to the United States. For this reason, China plays an important role in the global economy. Unsurprisingly, many expats relocate to China for business purposes. China’s financial capital is very attractive that many expats move in for incredible opportunities. From a survey conducted by HSBC, an expat in China earns $170,970 average gross personal income per annum, compared to the global average expat income of $99,900. Interesting, right? However, taxation in China is very complex that many expats find it difficult to comprehend. Just recently, a draft amendment to the Individual Income Tax Law was proposed and expats will surely be affected when the basket of changes take effect. What’s in the draft law? And what are the new tax laws coming for expats in china? Read on to learn more.

China’s Draft Amendment to the Individual Income Tax Law

1. Revision on determining tax residency status. Foreign nationals who have physical presence in China for at least 183 days would become liable for Individual Income Tax (IIT), unlike before when non-residents have one full year year before he/she be subject to IIT. Its purpose is basically to protect national tax rights and interests. Whether the income is sourced inside China or not, the tax residency status will be based on how long an individual resided in the country.

2. New tax system, rates, taxable income brackets

Current IIT Law Draft Amendment
Categories Tax Rates Categories Tax Rates
Income from wages and salaries 3%-45% 7 brackets of progressive tax rates
Comprehensive
income
– 3%-45%
7 brackets of progressive
tax rates
– Adjusting the taxable
income brackets of lower
tax rates (i.e., 3%, 10%,
20% and 25%)
– Taxable income brackets
of higher tax rates
unchanged (i.e., 30%,
35% and 45%)
Income derived from
remuneration for personal services
20%- 40%
3 brackets of progressive
tax rates
Income derived from
remuneration for manuscripts
20%
Income derived from royalties 20%
Income derived from
production and business
operations by individual
industrial and commercial households
5%-35%
5 brackets of progressive
tax rates
Business operation
income
5%-35%
5 brackets of progressive
tax rates
– The minimum threshold
applicable to 35% tax rate
increased to RMB
500,000
Income derived from
contractual or leasing
operations of enterprises or institutions
5%-35%
5 brackets of progressive
tax rates
Category removed with relevant income
incorporated into comprehensive income or
business operation income respectively
Income from interest,
dividends and bonuses
20%
Unchanged
Income from lease of property
Income from transfer of
property
Contingent income
Other income

Source: PwC Global

3. Anti-avoidance Rule. Anti-tax avoidance rule was introduced in the draft law – wherein authorities are strengthening tax collection especially to individuals having cross border transactions and tax plans. Its main purpose is to avoid multinationals to transfer or move profits to affiliates in low-tax havens and to tighten the IIT’s overall application and enforcement.

4. Additional special expense deductions including children’s education, major illness medical expenses, continued education and housing loan interest and rent. Its purpose is to reduce the amount of income subject to income tax therefore raising the taxpayers’ income and boosting household consumption.

5. Tougher stance on foreign companies. Foreign companies should pay special attention to changes affecting the timing of the tax levy on foreign employees, foreign labor costs, contract profitability, and budgeting requirements, as well as the rippling effects they have on withholding and tax equalizations.

6. New Tax Brackets that would benefit middle and low-income groups.

Current Bracket (RMB) Proposed Bracket (RMB) IIT Rate Effect
< 1,500 <3,000 3% Widened
1,500 – 4,500 3,000 – 12,000 10% Widened
4,500 – 9,000 12,000 – 25,000 20% Widened
9,000 – 35,000 25,000 – 35,000 25% Narrowed
35,000 – 55,000 35,000 – 55,000 30% Unchanged
55,000 – 80,000 55,000 – 80,000 35% Unchanged
> 80,000 > 80,000 45% Unchanged

Source: China Briefing

Apparently, high-income earners don’t really benefit so much from this amendment. So, basically, if an expat in China earns USD170,970 average gross personal income per annum or around 95,000RMB per month, no matter where that income was sourced and regardless of where the payment is made, he/she would be subject to 45% IIT tax.

China is indeed a booming economy with unending opportunities. The proposed tax reform simply relieves the tax burden of small and medium sized enterprises as well as middle and low-income individuals while optimizing the business environment through higher consumption.

Disclaimer: if you’re an expat in China, it’s best to consult a taxation specialist in China to help you more understand the country’s upcoming overall tax amendment that is expected to take effect on January 2019.

The First Day of Merchiston International School, Shenzhen

The First Day of MIS 深圳曼彻斯通城堡学校开门迎新

Monday 27 August 2018, the first day of Merchiston International School. 2018年8月27日,深圳曼彻斯通城堡学校迎来首批预训新生。

 

Head of School Mr Chris Lynn and Educational Consultant Mr Andrew Hunter greeted all students and parents in the school atrium.

校长Mr Chris Lynn 及校监 Mr Andrew Hunter 在学校中庭内向学生及家长表示欢迎。

“Yes, this is an exciting day. We are all gathered here for the very first time, for the first day in the life of this amazing new Merchiston International School. Wherever you go in your future academic lives and your careers, you will be able to look back and remember that you were here for that first day.” Said Mr Chris Lynn, the Head of MIS.

“这是激动人心的一天。我们第一次集聚在这里,见证深圳曼彻斯通城堡学校的启程。无论将来你们的学业和职业生涯将你们带到何方,你们都将记住这一天,在曼彻斯通的第一天。” 深圳曼彻斯通城堡学校校长Mr Chris Lynn说。

Learning at MIS:

在课堂上:

In the library:

在图书馆里:

Students playing and enjoying sports:

在体育活动中:

In the dining hall:

在餐厅里:

FOLLOW US IN WECHAT

Chinese Name:

深圳曼彻斯通城堡学校 

Place Address:

No. 12 Shilongzai Road, Dalang Sub-district, Longhua District, Shenzhen

深圳市龙华区大浪街道石龙仔路12号(大浪时尚小镇)
Place Phone:

+86 400 867 0177

Shen Wai International School (SWIS): The school of choice for IB continuum education

Rae Johnstone 

Established in 2011, Shen Wai International School (SWIS) is one of the fastest growing international schools in Shenzhen.  Next year the students who attended the school in its founding year will be the first graduating class, having completed the International Baccalaureate Primary Years Program (PYP), Middle Years Program (MYP) and Diploma Program (DP).

SWIS is purposely built to be an IB continuum school, which means that everything from the staff to the building itself are designed with that goal in mind. Staff are employed from all over the world; what they have in common is that they all have valuable experience teaching the IB program.

For such a young school, SWIS has achieved an incredible amount.  They have world-recognised accreditations from the Council of International Schools (CIS) and the Western Association of Schools and Colleges (WASC), and to add to this prestigious list they have recently been granted accreditation with the East Asia Regional Council of Schools (EARCOS) and the Association of China and Mongolia International Schools (ACAMIS). These international achievements are representative of how far the school has come in such a short period of time.

Being the only government invested, non-profit international school in Shenzhen, SWIS accepts students from the expatriate community as well as children who are permanent residents of Hong Kong, Macau and Taiwan. This leads to an eclectic group of students who come together to build a community in which they can learn and grow together as well as forming life-long friendships.

Shen Wai International School follows the IB mission statement of aiming to ‘develop inquiring, knowledgeable and caring young people who help to create a better and more peaceful world through intercultural understanding and respect.’ This is followed through the range of student-led projects at SWIS, particularly throughout the Middle Years and Diploma Programs.

The Middle Years Program has a real-life approach to learning, founded in the cross-curricular units which make up the core of the program. Students are taught to become independent, organised and creative, with a focus on critical thinking and reflective learning. In Grade 8 students work together on a community project, designed to give back to the community they are part of – locally, regionally or globally. Following this students plan, design and carry out a personal project which is also based on the Service learning area of the IB program. This enables students to become more internationally-minded and aware of their role as global citizens.

After School Activities (ASA) play a significant role at SWIS, providing students with the opportunity to take part in activities and projects external to lessons. One example of an ASA project at SWIS is fund-raising and support of QianZhou Primary School. As well as donating money to the school, SWIS students have also taught children at the school, helped to build a new playground and have visited in their own time to help out. This has provided invaluable support to a school which has very few students and even less facilities.

During Grades 11 and 12 students take the IB Diploma Program at SWIS. Here the focus changes, as students now need to prepare for university and the wider world. Students choose topics within six courses: Studies in Language and Literature; Language Acquisition; Sciences; The Arts; Mathematics; Individuals and Societies. For the Diploma Program, assessment of the courses is through external examination as well as teacher assessment. Across and alongside each course, students study the Theory of Knowledge (TOK) and Creativity, Activity, Service (CAS); In addition, they have an extended essay to write on a topic of their choosing. TOK provides the glue to make connections between all disciplines and develops students into enquiring and reflective global citizens. CAS provides students with the opportunity for non-academic pursuits, often extending outside of school hours, and can be connected to ASA projects. The extended essay gives students an idea of university-level research and preparation for college assignments.

Learning at SWIS doesn’t just take place on the state-of-the-art campus. Learning Beyond the Classroom (LBC) is an integral part of the curriculum throughout the PYP, MYP and DP, and includes educational trips to Hong Kong and Cambodia as well as other parts of mainland China. Here the students have the chance to experience other cultures and ways of life, and they can see how they fit into the global community.

Why choose SWIS? Shen Wai International School is purpose-built to be an IB continuum school. It is ideal for expat families new or returning to Shenzhen, as students become incredibly internationally-minded. This is demonstrated through how they see the world and the service projects they come up with both within and beyond school life. Small class sizes, experienced staff and a balanced program of academia, sports and other activities simply add to the attraction of attending SWIS.

If you would like to find out more information about Shen Wai International School (SWIS), simply visit their website www.swis.cn and book a school tour.

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

 

Tailor-made Perfection

 

Something that is often associated with China – and with Shenzhen in particular – is tailor-made clothes. Many people visit Shenzhen from Hong Kong and further afield specifically to get top quality and reasonably priced clothes made to fit. One of the best tailors to be found in Shenzhen is Calvin’s Tailor Shop.

Situated in Commercial City, Luohu, on the 5th floor, Calvin’s is easy to find as it’s not far from the escalators. Here Calvin will greet you in English or Chinese, depending on your preferred language. This sets him apart from many other tailors in Luohu as he will understand everything anyone, whether Chinese or foreign, would want.

Calvin comes from a family of tailors going back three generations. Originally from Shanghai, he has worked as a tailor for 25 years and has had the same shop in Commercial City since 1999. He will guarantee anything he makes for you; however, his clothes are made to such detail that customers rarely – if ever – need a second fitting.

Sewing handmade clothes.

You have different options when choosing how your clothes will be made. You can either bring an item of clothing you want copied or a picture of the item of clothing you want and Calvin will reproduce it. Alternatively, if you’re not sure exactly what style you want Calvin can make items based on designs he has in store. He understands which styles and fabrics will suit which body types and skin colours and is an expert at recommending the perfect cut.

What sets Calvin apart from the numerous tailors you can find in Shenzhen is not just the outstanding service and attention to detail. Calvin also provides personal service to travellers: he will visit you in your hotel to take your measurements and show you a selection of fabric to choose from, and then your handmade clothing will be delivered to your hotel 24 hours later. Perfect if you are making a whistle-stop visit to Shenzhen, and amazing considering the usual turnaround time is one week. Don’t despair if you live elsewhere, or if you don’t have the time to wait in Shenzhen for 24 hours, as Calvin can arrange to have your clothes delivered anywhere in the world purely for the cost of the delivery.

Calvin’s business has grown since he first started fixing hems and sewing buttons when he was only 17. He now has 18 reliable staff working for him, many of whom have been working for him for over 20 years. This means you don’t need to worry that Calvin will be too busy to give you personal service, and you can expect the same professional service and standard no matter how many items you want made.

Men’s suits and shirts are Calvin’s favourite things to make as this is what he started with all those years ago. Men’s shirts usually cost around RMB 200 and suits vary in price depending on the quality of the fabric, ranging from RMB 750 up to RMB 2,500 for imported fabric from Italy or England. Ladies’ suits are also a specialty of Calvin’s with prices from RMB 650 to RMB 1,200. Calvin can also personalise your clothes by embroidering your name or initials on the cuffs of your shirts or inside the jacket to add that extra touch.

Whether you want a high-end suit or a one-off outfit for a special occasion, Calvin’s Tailor Shop is the ideal place to get perfectly-fitting quality clothes at a reasonable price.

Business Hours: Open 7 days a week 10am-8.30pm

Place Name: Calvin’s Tailor Shop

Place Address: No.5049 5/F,Luohu Commercial City Shenzhen (Luohu metro station, exit C) 深圳罗湖商业城5楼5049号 罗湖地铁站C出口

Phone/WhatsApp/WeChat: +8613682435489

Email: tailor-calvin@163.com

Website:  www.chinesebesttailor.com

 

 

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.

Ain’t no time like tonight, Singapore is calling

With service to more than 55 cities in domestic China and a flourishing global network, China Southern Airlines Shenzhen Branch will add a brand new route to Southeast Asia on July 13th, 2018.  

If that is your biggest concern, China Southern Airlines can provide a solution! The Shenzhen-Singapore flight departs daily on 22:10, so just grab your bags on Friday night and enjoy every second in a passionate land, then return to Shenzhen at 06:55 in the morning. Then take a shower and go straight ahead to your work two hours later on Monday. 

Reasons to choose China Southern Airlines:

1. Safety First

Up till now, China Southern Airlines has retained the best safety record in China. Passengers’ safety will always be our best concern.

2. Great Deals

Round-trip ticket (tax excluded) for individual traveler is 400 RMB only.

Great deals sale from 2249 RMB, including one tax-included round-trip ticket and two night’s hotel price, best designed for round-trip individual traveler who wish to stay in Singapore for two to fourteen days.

3. Transfer Advantages

China Southern Airlines operates its flight network covering 55 waypoints. There are 164 flights connecting to Shenzhen and Singapore in total. 

4. Make the best of your day off

This trip connects Friday nights with Sunday/Monday morning. Time is money, thus every seconds of the weekend is effectively spent up. 

City Transportation Guidelines: 

Night Tour Guidance

The night is about to begin!

1. CHANGI AIRPORT

It’s an airport bearing world’s prizes and frame. From 24-hours customer’s relaxation services to a four-floor-high slide, you get whatever you imagine here. 

2. NIGHT SCENERY

Enjoy the city of lights. Ferry wheel, Garden by the bay and infinity swimming pools, they make life like a reality coming out of a fiction. 

3. NIGHT SAFARI

Singapore’s nightlife is more than bustling. It has the night safari where kids and adults have chances to explore the other side of wild animals. You can take a gourmet car and experience the wild with the company of animals.

 

4. RECOMMENDATION OF BARS

In the list of world’s 50 best bars 2017, six of Singapore bars are nominated.

“Manhattan” in The Regent Singapore hotel is the best bar in Asia. The interior design imitates the impression of the New York City in its 19th century. On the menu, to everybody’s surprise, cocktails are classified by periods of time. Each cocktail has its own story. 

Tippling Club is also listed among the best bars. Auras of lights and stylish decorations make here a place full of elegancy. All of the delicacies are created by talented chefs and bartenders. Guests will never get bored because these “artists” always come up with new dishes and cocktails.

If you like electronic music and glamorous lights. “Attica” of Clarke Quay is the most famous place among all. For fans of DJ music, “Club Kyo” will be the best place. 

A fancy romantic date can be held at the “CÉ LA VI. This bar is at the top of Marina Bay of Sand located at the big SkyPark. Just get a drink, take a walk and enjoy the fascinating CBD skyline. 

5. SEEKING FOR LOCAL FOOD AT MIDNIGHT

Has the chicken rice or the chili crab left you a deep impression? It is time to satisfy your stomach. Come to Geylang Street, Orchard Road or Satay Street in Lau Pa Sat! You will find out more about the tastes of Asia.

   

Festival and Events

THE GREAT SINGAPORE SALE

(June-August)

From cosmetics to hotel prices, you can find out more unbelievable bargains in the sale.

SINGAPORE’S ANNUAL FOOD EVENTS

(13th JUL-29th JUL

You will find new dishes combined both local flavors and inspirations of talented chefs’!

INTERNATIONAL CHAMPIONS CUP SINGAPORE

(JULY)

Get a chance to watch the best European football teams in Singapore National Stadium.

GREAT PRIX SEASON SINGAPORE(08sep-17sep)

Singapore is the first to hold Formula 1 at night. Come and experience the passion in this competition.

This year, China Southern Airlines Shenzhen Branch connects Shenzhen with Singapore, adding the new destination to its grand map of Southeast Asia flight routes. The existing flights include destinations to HO Chi Ming City, Ha Noi, Bangkok, Phuket, Bali Island, Phnom Penh and Jakarta. Come and find out which trip is your favorite! 

Order your ticket now by scanning: 

Chinese Name: 中国南方航空股份有限公司深圳分公司
Place Address: Civil Aciation Building,No.2006 Nanshan road ShenZhen P.R.China
广东省深圳市南山大道2006号民航大厦
Place Phone: 95539
China Southern Airlines Wechat: 

Unlimited World Cup BBQ & Beer at the Wyndham Grand

The Wyndham Grand is a well-known international 5-star hotel. Open in Futian CBD, since January 2015, the Wyndham Grand never ceases to impress, and this summer is no exception. To celebrate the FIFA 2018 World Cup beginning on 14th June, the Wyndham Grand is hosting a summer barbeque buffet with free-flow craft beer for the bargain price of RMB188 per person.Wyndham GrandWorld Cup BBQ

Situated in the picturesque outdoor garden of Vintage Bar on the ground floor, the barbeque buffet offer will begin on 13th June and run until 15th July when the World Cup ends. Matches will be shown live on televisions in the only outdoor hotel garden in Shenzhen. What better way to enjoy the game than with unlimited glasses of ice-cold craft beer and a never-ending plate of tasty barbeque food?World Cup Combo at the Wyndham Grand

As well as free-flow craft beer or soft drinks, there is a delightful range of barbeque foods cooked fresh to order. Shrimp, squid, oyster and Japanese mackerel are the seafood delicacies you can sample, along with a variety of beef, lamb, chicken and pork barbeque dishes, all seasoned deliciously. If vegetables are more your style, try the barbeque corn-on-the-cob or roasted garlic eggplant. All of these dishes will be cooked as you order them to ensure the freshness of the food and that they are prepared to your requirements.

Before and between the matches there will be the opportunity to play games and win prizes. For every match you can predict who you think will win and each entry will have the chance to win a voucher for RMB500 that can be spent in any of the Wyndham Grand’s bars or restaurants. Whoever predicts the winner of the final will be in with a chance to win RMB3000 voucher plus free-flow beer at Vintage Bar until the end of 2018! A fantastic prize, by any standard. In addition, there will be smaller prizes on offer for customers who score a goal in the Wyndham Grand mini-goal.

Vintage Bar outdoor garden

Director of Food and Beverage from the Wyndham Grand, Shenzhen, Roy Huang has worked in the hospitality industry for more than 15 years and joined this hotel about 2 years ago. He shared with us his aim is to have the best outdoor bar in Futian CBD, and he understands that the key element is staff. To that end, all new staff have at least two whole day’s training in the first month before they are assigned to the appropriate position to provide quality service. All employees also have training once a month to ensure the highest standards are maintained. This process is obviously working as there has been an excellent retention of staff since opening.