Welcome to another Hongda Business Services roundup!
It has been another busy week at our offices in Shenzhen and Friday is a welcome sight! We have a bunch of great posts lined up for you all that include tips for HSBC current bank account holders, the kinds of trademarks one can register in China, why China may bring all the BRICS tumbling down and whether or not Xi Jinping will investigate China's role in the Panama Papers...
Let's jump right in!
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What kinds of trademarks in China may businesses register?
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How China Will Bring All The BRICS Tumbling Down
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Will Xi Jinping investigate Chinese tax havens?
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5 HSBC Hong Kong business banking tips for current account holders
Let's get right to it!
1) What kinds of trademarks in China may businesses register?
The are many reasons for foreign companies to register trademarks in China, most notably that it protects your intellectual property (IP), such as your brand name, from abuse within China.
Since China has a 'first-to-file' system of trademark registration, it is quite possible for other people or organisations to register your trademarks in China before you have a chance to. >> Tweet This <<
Once this 'squatting' occurs, you will be left with the difficulty of not being able to trade as your brand, needing to undergo expensive litigation to reclaim the IP, having branded products set for export seized by customs, or having to settle with whoever has squatted your trademark.
We can all agree that none of these above options are particularly appealing, and therefore that China trademark registration is a good idea, but before we register anything we need to know what kinds of trademarks may be registered in China.
Keep reading as we explore...
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2) How China Will Bring All The BRICS Tumbling Down
The concept of the BRICs isn’t heard much these days beyond some cooperative institution building efforts. Originally a Goldman Sachs authored attempt to identify growth opportunities for investors (referring to Brazil, Russia, India and China), it was picked up by those countries to symbolise a hoped-for rotation in the world order: away from the old hierarchy of the West and the Rest, towards a more balanced configuration of global economic progress. For inclusiveness, the ‘s’ was eventually capitalised into ‘South Africa’ so that the African continent was not left out.
With hindsight, it remains curious that the idea was ever taken seriously beyond the confines of investor advice. The nominated states have little in common, although the public diplomacy of developing economy cooperation has a lingering appeal. The Russian economy was always based largely on hydrocarbons, and Brazil’s expansion was a broader commodity play. Each, therefore, nurtured an important relationship with China. Now, though, as commodity prices have sunk, China is the only buyer left and has no qualms about driving a hard bargain.
3) Will Xi Jinping investigate Chinese tax havens?
Typing the phrase “Panama Papers” into Baidu (China’s equivalent to Google) will yield a message: “The search results may not meet the relevant regulations, and have not been displayed.”
The millions of emails leaked from a Panamanian law firm revealed information on client investments in the country’s tax-haven investments, including those of high-ranking Chinese officials (and their relatives).
While many or all of these investments may not be illegal, the question is whether Chinese President Xi Jinping will investigate and bring to light who used these offshore investments.
4) 5 HSBC Hong Kong business banking tips for current account holders
Hong Kong has long been one of the most, if not the most popular business hub in Asia with its world-class infrastructure, low tax rates and ease of company setup, but when it comes to banking this is becoming a thing further removed from the truth than one would imagine.
The time it takes to open a bank account has become ridiculous (anywhere between 1-4 months, if at all), more accounts are being systematically closed down and HSBC is unfortunately on track to making life even more difficult for account holders whether by their own hand, or due to the pressure of the US regulator for them to better understand their clients’ business to aid in the fight against money laundering and terrorist financing.
According to a report from Howard Winn, sources from inside HSBC have said that the bank is introducing much stricter requirements for businesses looking to open bank accounts. Some of these new requirements include:
- New accounts in Hong Kong can only be opened by Hong Kong ID holders
- Where there is no HK ID, companies will have to show a minimum annual turnover of HK$15 million
- Any aspiring Hong Kong company will need to have been incorporated and active for over a year
Howard goes on to point out a bit of a catch 22 for those looking to set up a company in Hong Kong, which is how is it that a business can be set up and active for more than a year without a bank account (when opening a bank account is the prerequisite for setting up a company in the first place).
If, however, you are one of those companies/individuals that still count yourself lucky enough to have an operational account, Hongda Business Services has 5 HSBC Hong Kong business banking tips to share that will help to keep your account operational and off the bank's radar.
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Please let us know about any of your thoughts regarding some of the topics we recapped this week in the comments below, or let us know about any other topics you'd like for us to cover.
Have a relaxing weekend and travel safe if you are heading out anywhere! See you next week for more of the same...
