All you need to know about Hong Kong payroll
Agenda: 1. General knowledge 2. Setting up a company and types of structures
General Knowledge
Facts about Hong Kong
• Hong Kong’s literal translation is “Fragrant Harbour” which it gained from the historical incense traders. • It has 2 official languages. English and Chinese (Cantonese dialect). • Located at the southern coast of China at the Pearl River Estuary and the edge of the South China Sea. • Population of 7.18 million, of which over 300,000 are expats. • Hong Kong is a highly autonomous territory and one of two Special Administrative Region’s of the People's Republic of China (SAR). • Its currency is the Hong Kong dollar.
• Under transfer of sovereignty the region agreed to retain its currency (Hong Kong dollar), legal system, and parliamentary system for a period of fifty years. • The economy is export oriented and in spite of small size is the 9th largest trading entity in the world. (Source, Trading Economics) • Independent member of APEC, IMF , WTO, FIFA and International Olympic Committee.
Business Culture
Business Culture – Fun Fact § In business when dealing with Westerners, the Chinese often chose a nickname. Don’t be surprise if during your business dealing with the Chinese they ask to consult with a fengshui man (a geomacer). § A fengshui man may be brought in determine good luck dates or the proper special arrangement for a building or office. This individual's opinion should be observed.
Business Culture – Appearance & Behaviour The color red is considered a lucky color in Hong Kong. When • dressing for a business meeting select a red tie to impress your host. The color white is synonymous with death. • It is common in China to show one's surprise or dismay by sucking air in quickly and loudly through the lips and teeth. If you have been shown this gesture, it would be advisable to modify your request. Your host is obviously displeased.
Business Culture - Behaviour • Drinking helps to relax the host and is an important part of the relationship building phase in Chinese business culture. • Gift giving is a very important part of Chinese culture. • Bar hopping and karoke are standard means of entertainment. Be prepared to be taken out on the town almost every night during your stay in Hong Kong. • At close of trip, have a dinner for your host as show of respect.
Business Culture - Communications • The handshake is fairly common in Hong Kong, however a slight bow will show a sign of respect. • Because Hong Kong is so densely populated the Chinese tend to converse very closely together. • Silence is held in high regard in Hong Kong. Allow your host to contemplate without interruption. • Names are usually written in the following order the last name first, middle name second and the first name last.
Business Culture - Communications • Use titles with names whenever possible. Appointments are recommended. • Punctuality is expected. • Use only black and white materials for presentations, as colors are very • significant. Patience is important. The Chinese do not make business decisions quickly. •
Business Culture – The Concept of Face Face is an intangible quality that reflects a person's reputation, dignity, • and prestige. You may lose face, save face, or give face to another person. • Companies as well as individuals have face and this is often the rationale • behind business transactions.
Business Culture – Confucianism/Hierarchy/Family Values The teachings of Confucius describe the position of the individual in Hong • Kong Chinese society. Confucianism is a system of behaviours and ethics that stress the • obligations of people towards one another based upon their relationship. Confucianism stresses duty, loyalty, honour, filial piety, respect for age and seniority, and sincerity. These traits are demonstrated by the Hong Kong Chinese in their respect • for hierarchical relationships.
Business Culture – Meeting and Greeting • The handshake is commonly used when greeting westerners. The Hong Kong Chinese handshake is rather light. • During the greeting, many Hong Kong Chinese lower their eyes as a sign of • respect. There is no need for you to emulate this gesture, although prolonged eye • contact should be avoided during the greeting. • If you are at a large function, you may introduce yourself to other guests.
Business Culture – Meeting and Greeting • At smaller functions, it is polite to wait for your host or hostess to introduce you. • The Chinese traditionally have 3 names: The surname, or family name is first and is followed by two personal names. The first personal name is their father's name and the second personal name is their own name. Address the person by an honorific title and their surname. • If they want to move to a first name basis, they will advise you which • name to use. Some Chinese adopt more western names and may ask you to call them by • that name.
Business Culture – Dining Etiquette Table manners are rather relaxed in Hong Kong, although there are • certain rules of etiquette. When in doubt, watch what others do and emulate their behavior. • Wait to be told where to sit. There is often a seating plan. • Wait for the host to tell you to start eating or for him to begin eating. Food is served on a revolving tray. • You should try everything. • Never eat the last piece from the serving tray. • • Burping is considered a compliment.
Business Culture – Building Relationships Although businesspeople in Hong Kong do not require long-standing personal relationships to do business, many businesses are family- owned, so personal relationships are an integral part of the enterprise. • Once you have begun to work with a Hong Kong businessperson, it is important to maintain the relationship. When you first meet, expect a fair amount of small talk. Your Hong Kong • colleagues will want to get to know you well enough that they are comfortable working with you. • Do not be surprised if you are asked questions that might be considered extremely personal in your home country.
Business Culture – Building Relationships The Hong Kong Chinese take a long-term view of business relationships. • • Hong Kong Chinese are direct communicators, although they also make use of non-verbal communication. In general, businesspeople are non- confrontational and will never overtly • say no, so that they do not embarrass the other person.
Business Culture – Meetings and Negotiations Appointments are necessary and should be made between 1 and 2 months • in advance if you are travelling to Hong Kong. Avoid trying to schedule meetings during Chinese New Year (late January • or early February) as many businesses close for a week during that time. • You should arrive at meetings on time. There will be a period of small talk before getting down to business • discussions. • When meeting your Hong Kong business associates, allow the most senior person in your delegation to lead the group and be introduced first.
Business Culture – Business Card Etiquette § Business cards are exchanged after the initial introductions. § Have one side of your business card translated into Chinese, with the Chinese characters printed in gold, since it is an auspicious colour. § Business cards are exchanged using both hands. § Hand your card so the typeface faces the recipient. § Examine business cards carefully before putting them in a business card case.
Setting up an Entity in Hong Kong
Hong Kong Companies • All companies must be incorporated through the Companies Registry by lodging online. https://www.eregistry.gov.hk/icris- ext/apps/por01a/index?locale=en_US This process will also provide the business with a Business Registration through Inland Revenue for tax purposes.
Hong Kong Companies The Companies Registry (“the Registry”) administers and enforces most • parts of the Companies Ordinance. The Registry registers local and non-Hong Kong companies and statutory • returns, de-registers defunct solvent companies and provides the public with services and facilities for inspecting and obtaining company information kept by the Registry. They administer and enforce several other ordinances, including the • Trustee Ordinance (insofar as it relates to trust companies), the Registered Trustees Incorporation Ordinance and the Limited Partnerships Ordinance
Hong Kong Companies • The Companies Ordinance (Chapter 622 of the Laws of Hong Kong) and its subsidiary legislation came into effect on 3 March 2014. • The new Companies Ordinance provides a modernised legal framework for the incorporation and operation of companies in Hong Kong and reinforces Hong Kong’s position as an international financial and commercial centre. The website below contains useful reference materials on the Companies • Ordinance and other relevant Ordinances to facilitate compliance. http://www.cr.gov.hk/en/home/
Setting up a New Company Hong Kong
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