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Importance of Audit and assurance

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Audit and assurance play important role, so that the capital market and the economy of the company work effectively. It provides confidence to the present stock holders of the company in its future.  The further investment by the stock holders depends on this report. Hence it can rightly be said that the company success depends on the report of audit and assurance. The report is formed by the auditor.

Purpose of audit and assurance

The message from the auditor of the company is given in plain words to the stock holders in audit and assurance report. The report represents the financial status of the company. This helps them in making decision regard their share in the company. This procedure needs to be updated from time to time.

Who needs the access to the financial information?

The stock holders of the company are different from the management, owners and administration of the company. Hence they need an independent source to know about the financial status of the company so that they can assess the performance of the management. Besides share holder the lenders, staff, market analysts, creditors, government, perspective stock holder and the public also need asses to the financial information of the company.

Why is it required?

Audit and assurance increased the credibility of the information in the final financial statement. Thereby it increases the confidence about the company among the people. There are many level of assurance that the practitioners perform. They lead to different level of

Absolute assurance: it consist of guarantee.

Reasonable assurance: this is the audit of the financial statements where details of the testing, evidences that are gathered and the required support are given in the conclusion. It represents the true and actual view of the financial condition of the company. The auditor provides it according to the accounting standard. This type of assurance is difficult to get as it is not practical for the auditor to investigation and audit every transaction.  The report consists of opinion on the financial statement that mostly cannot be accurately determined by an individual and might be dependent on the future events.

Limited assurance: it is the review of the financial statements and consist primarily enquires and analysis. Less detail of the procedure is given. There are no evidences to believe that the conclusion is false, hence people can take it to true and rely on it.

No assurance:  this report consist of financial statement.

What to consider when registering for a trademark in Hong Kong

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A trademark is a basically words or a symbol registered to represent a certain company or business. The main aim of a trademark is to allow the consumers to be able to differentiate one company from another. When it comes to trademark registration, different countries have different registration processes. In Hong Kong the registration process is really simple. The main advantage of using a trademark is that it gives you the right to use the trademark on your goods and services. This allows the consumer to know that the good or service provide is yours. When applying for trademarks in Hong Kong there are several factors that should be considered.

What to consider

All these factors should be taken into consideration in order to be assured that the trademark passes the registration process. The registration process is readily available from the government site. This is one of the reasons as to why it is really easy to apply for a trademark in Hong Kong. Some of the main factors that should be taken into consideration before you start the application procedure include;

  • Distinctive- you should ensure that your logo or word clearly defines the services and products you offer. It is advisable to ensure that you use unique trademarks in order to ensure that it passes. The logo or words should not be the same as any other company in the market.
  • Generalization- Ensure you avoid using general words when creating your trademark. The trademark should describe the services and products you offer and not generalize the product. For instance you should not use general logos like “quality belts”. Creativity is highly important when it comes to choosing a trademark.
  • Line of business- keep in mind some of the common phrases in your line of business and avoid them. Some business lines have common phrases and they should not be used when creating your trademark.
  • Uniqueness- the trademark registration of Hong Kong will reject any applications that have trademarks that are already in use by other registered individuals. It is necessary to research and find out whether your desired trademark is already in use or not.

These are the main factors that should be considered when submitting your trademark application. It is important to note that once the application is submitted and denied one will have to start the application procedure again. In order to avoid this it is advisable to take the above factors into consideration.

Why opt for shelf companies in Hong Kong

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Why opt for shelf companies in Hong Kong

Compared to other regions, starting up a business in Hong Kong is a highly simple process. One of the areas that most people tend to deem as complex is business registration. Hong Kong Business Registration is actually simple and direct. Once you have all the required documentation, this is a highly simple and fast process. Though simple, it might take some time for all the necessary registration procedures to be completed. One of the simple ways to start a business in the region is by opting for shelf companies. Shelf companies are companies that already registered companies that are for sale. Once you buy the shelf company all you need to do is to change the ownership for the process to be complete. This is the fastest way opening and registering a business in Hong Kong.

What to know about shelf companies

Starting the registration from scratch consumes a lot of time. Shelf companies simplify this whole process since they are already made and registered. You can find these companies in a list provided by the Hong Kong registry of readymade companies. The registration procedure will only take place after the proper transfer of shares. One of the main advantages of this method apart from time saving is that you can be able to do this online. All other processes like changing the name are simple and direct.

It is however advisable to hire a business consultant in Hong Kong in order to make the process move in the proper manner. All features of opening a business in Hong Kong will be fast tracked once you opt for this method. For instance opening up a business bank account will be done immediately since you already have a registered company. It may be done in only two business days. New companies will have to wait for all the government documentation to be processed in order to open up a business bank account.

The best part about buying shelf companies is the fact that you will be able to buy a business in any category. The registry has several listed business in all the company categories available. This makes it easier to choose which business to opt for. It is important to ensure that you avoid scams at all costs. This is why it is necessary to choose a registered business consultant in order to receive the right form of advice. Always ensure that you buy the company from the government registry.

Company Setup Procedures within Hong Kong – How to setup Your company inside Hong Kong

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Hong Kong (HK) is actually well-known for opportunities and offshore business  that is first place in your “Index of Financial Freedom” fifteen many years in a line (until 2009). The catalog takes into account aspects such as company independence, investment independence, property privileges and independence from problem. Along with one of the cheapest corporate tax prices on earth (16. 5%) along with zero taxes on foreign found earnings, HK can also be the perfect jurisdiction with regard to tax-efficient company, without being regarded as an international taxes destination. Setting up a business within HK usually takes less than 4 business days along with using an expert services organization is easy. The task is as comes after:

- The organization services business gathers the necessary due diligence along with verifies the required providers
- Lawful, accounting along with tax ramifications of business incorporation usually are settled using the professional providers organization
- Company title availability is actually examined
- Professional providers organization, and the customer, discuss along with agree ideal required corporate framework for new business

Including how many shareholders and company directors
- Incorporation paperwork usually are delivered with regard to signing and delivered to business support business for running
- Service expert handles the work incorporation using the relevant regulators
- Business incorporation inside HK is full
After developing a company within HK, new agencies often encounter other essential requirements within new business setup. These range from opening the corporate banking account, obtaining business and industry finance along with vendor accounts, and discovering a local work place or virtual business office.
World-class multi-currency balances and net banking services are plentiful within HK. Business owners can choose among leading worldwide banks which function within HK, to open up their business bank account for fresh Hong Kong company, and will appreciate having no foreign currency controls or limitations on medially and facing outward opportunities -a selling point for working worldwide company from a HK workplace.
Advertising components like the company web site, search engine marketing and the logo design are additional factors which play an important role within the success of the newly set up business.

Minimal requirements to setup business inside Hong Kong:
- One shareholder
- One overseer, virtually any nationality/residence
- Business assistant, possibly HK citizen or HK business
- A listed HK office deal with
- Auditors, through firm involving HK accountants
- Company Enrollment Certification
- Anyone can behave as movie director, shareholder along with assistant, unless sole overseer, he/she can’t act as assistant
- Absolutely no minimum reveal funds needs

How To Register A Company In Hong Kong

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Businessmen around the world are getting serious to know about how to register a company in Hong Kong. In this age of globalization, businesses are no longer confined within any geographical restrictions and Hong Kong is becoming a more popular place for doing business of almost any types. Both Asian and European businessmen along with some other countries have found Hong Kong as the right place to expand their business and take it to the next level. It is obvious that, the businesses need to fulfill some prerequisites in order to form a company in Hong Kong, as like as any other country in the world.

According to the official company formation law of Hong Kong, both public and private limited businesses are allowed to open their branches and continue their business activities. Yet, most of the businesses preferred to start as a public limited company, as this is one of the most flexible options of doing business in Hong Kong. Doing business as a public limited company is a common practice for many businesses around the world, and there are some specific rules and regulations which the businesses must follow while doing business in Hong Kong.

There should be at least one shareholder of the business, who could either be a local Hong Kong residence or a foreigner. There is only one restriction on the age of the shareholder, and he/she must have the age at least 18 years and above. There is no particular limit for the minimum share capital in order to register a company in Kong Kong, and this is another big reason for why both investors and businessmen prefer doing business from Hong Kong. But, there is common practice according to which companies are getting incorporated in Hong Kong with an authorized share capita worth of ten thousand Hong Kong Dollar.

It is compulsory for businesses to have a local address (registered) of Hong Kong, as it is not possible to register a company in Hong Kong just by using any PO Box number. The company must also appoint a company secretary, as it is another prerequisite to register a company in Hong Kong. There is a restriction that none of the shareholder can act as the company secretary as per the rules and regulation. These are some common and general terms, which must be followed by any company to start and doing business in Hong Kong.

Something You Need to Know about China Trademark Registration

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The behaviors of copycat are widely existed in current market, such as “the free-riding against the well-known brand names” and “the imitation of famous brand-name”. The existing of copycat not only disrupted the market order, but also brought the economic and reputation cost for many consumers and enterprises due to its quality issues. Especially in manufacturing countries like China, an enterprise can be widely accepted by majority relying on the important role of trademark. Enterprises registered trademark needs to be approved by the China Trademark Office, the applicant can obtain the exclusive rights of the trademark.

 

In accordance with the provisions of “China Trademark Law”, non – Chinese people can register trademarks in China can gain their trademark rights in accordance with the law protected by Chinese law. In recent years, due to China’s rapid economic development and the magnetic properties of the Chinese market, the number of registered trademarks in China by foreigners is also on the rise. According to statistical data of Trademark Office of the State Administration for Industry and Commerce, the trademark applications were more than 154,000 registered by foreigners by the end of 2010, the registration amount was far more than the Chinese enterprises in overseas trademark application. Only in the year of 2010, foreigners have submitted 98727 trademark applications in China. Obviously, applying for trademark protection for their own brands in China has been attached more and more the attention from the global enterprises.

 

Those enterprises wish to register trademarks in China, they need to understand and be familiar with the rules and precautions of Chinese trademarks, to avoid the lack of specificity in the registration process as well as the cost waste for individual or enterprises due to the blind registration.

 

Rules you need to know for China Trademark Application:

  1. Where two or more applicants apply for registration of identical or similar Trademark for the same or similar merchandises, the trademark will be given to which preliminary approval, after examination, is obtained and to which the announcement of the application therefore is made first. Where applications are filed on the same day, the trademark will be given to which preliminary approval, after examination, and to which the announcement of the use thereof is made first. The dismissal of the applications of the Trademark by others will not be announced.
  2. Any person may, within 3 months from the date of the announcement, file an opposition against the trademark that has, after examination, been preliminarily approved. If no opposition has been filed after the expiration of the announcement period, the registration will be approved and the trademark will be issued a certificate of trademark registration and announced. Where an application for trademark registration is dismissed and trademark will not be announced, the Trademark Office will notify the trademark registration applicant in writing.
  3. If the trademark registration applicant refuses to accept the dismissal, he may apply to the Trademark Review and Adjudication Board for review within 15 days from the day on which the notification is received, and the Trademark Review and Adjudication Board will decide and notify the applicant in writing.

 

Moreover, you can enjoy the right of Priority of China Trademark Registration meet following requirement:

  1. Where an applicant applies for registration in China of the same trademark for the same merchandises within 6 months from the day on which it first filed an application for registration of the same in a foreign country, he may enjoy the right of priority in accordance with any agreement entered into between that foreign country and China or any international treaty to which both countries are parties, or according to the principle of mutual acknowledgement of the right of priority.
  2. Where a trademark is used for the first time on the merchandises displayed at any international exhibition sponsored or acknowledged by the Chinese Government, the applicant applying for registration of that trademark may enjoy the right of priority within 6 months from the day on which the said merchandises are displayed.
  3. Any applicant requesting for the right of priority shall file a written declaration when submitting its application for trademark registration, and shall provide copies of the application documents submitted when it first filed the registration application for the trademark or the name of the exhibition at which its merchandises are displayed, the evidence proving that the said trademark is used on the displayed merchandises and supporting documents for the date of exhibition within 3 months; the applicants who fail to file written declarations or provide copies of the application documents for trademark registration within the prescribed time limit shall be regarded as not having request for the right of priority.

Foreign Enterprises How to Register Chinese Trademark

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With booming economy and huge consuming and manufacturing markets, China has great appeal to global investors and enterprises. Therefore, entering into Chinese market has become one of the goals for many enterprises, especially the multinational enterprises. Meanwhile, the brand strategy to develop trademark registration in china is also favored by the many famous enterprises.

 

The International Classification of Goods and Services of China trademark registration is a total of 45 categories, in which there are 34 categories for goods and 11 categories for services. Designated trademarks used on merchandise are product trademarks, and designated trademarks used on the service are service trademarks which means any person or business or other organization used trademarks for its production, manufacture, processing, selection or distribution of goods or services provided need to obtain trademark rights. They can apply for an application for registration to the State administration for Industry and Commerce.

 

The required documents of applying for register your trademark in China:

  1. Stamped official seal on the application;
  2. Authorization of agency on behave;
  3. Copies of business license / ID card of natural persons (the copies should be complete, the writing should be clear.)
  4. Other proving evidences (such as: the “legalization” of trademark portrait, collective, certification of trademark.)
  5. Logos should be clear in pattern, the length and width of specifications should be not less than 5 cm and not longer than 10 cm; If specify a color, the pattern color should be attached , cross coloring pattern together with the black and white drawings.

 

Specific requirements for trademark application:

1、According to the provisions of Article 15 of “Regulations for the Implementation of the Trademark Law”, trademark application for registration and other relevant documents shall be typed or printed. Trademark Office shall not accept handwritten applications for trademarks;

2、The applicant’s name and address of trademark registration to be filled in documents should be in accordance with the subject qualification. If the principal qualification did not have detailed information of the enterprise is located, the applicant should remark before completing its address in detail. On behalf of the applicant’s official seal should be exactly the same with the name of registered business on file of subject qualification;

3、The project of goods or services should be completed in accordance with the “goods and services classification list” or “similar goods and services distinguish Table” to fill canonical name of an application. One application can only fill in a category of goods or services. Trade names or service items are not included in the classification, which shall be attached to a description of goods or services.

4、Completing the application for trademark registration, you should indicate clearly the collective marks, certification trademarks, three-dimensional marks, color marks as well as other information.

5、Please check the application carefully before submitting the application, which can’t be altered after submission. The applicant, goods or services and logos can’t be replaced as well.

In addition, the applicant needs to provide other relevant information in accordance with the relevant provisions of the China Trademark Office. It is noteworthy that, foreigners or foreign enterprises in China for trademark registration must entrust a trademark agency agent, except for those habitual residence or business by foreigners or foreign enterprises in China.

IMPORTANCE AND PROCESS OF TRADEMARK REGISTRATION IN CHINA

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Trademark can be considered as an important part of a business. It is an intangible asset but despite of this, many businesses pay enough attention on this kind of asset. This is because any kind of asset brings economic benefits to a certain company and having a trademark is really beneficial.

One of the benefits of having a trademark registered is that one’s product can be properly protected. Infringement and fraudulent acts can be avoided when you are able to register your trademark. Another significant benefit is that one can gain goodwill or popularity to customers. An established trademark can facilitate on gaining popularity although this might take time.

Because of the importance of trademark, one must be able to protect it from infringement and other similar acts. One can do this by registering the trademark of your business. Although most of the registered trademarks are owned by businesses, trademarks can also be owned by individual.

In a country like China which has a fast growing economy, a lot of trademarks are being registered. For this reason, one must have the necessary information with regards to trademark registration in China.

The first step on doing so is to prepare all the necessary documents. These include a copy of current Business Registration Certificate of the applicant (if the applicant is a corporation) or a copy of Identification documents of the applicant (if the applicant is an individual person), a list of goods or services and a clear image of the trademark. Having all of these documents is very important on registering one’s trademark and one shall make sure to provide all of these documents.

The application for obtaining a trademark in China is relatively similar compare to other countries. One of the similarities is that the trademark being registered shall not be in conflict or similar to an existing trademark.

In China, there is a database for all the registered trademarks. This is to facilitate better accumulation of data and even easier registration of trademarks in China. When one is applying for a trademark registration, there is a preliminary screening and this may take a three month period which is applied for objections. If there are no objections within the time allotted, the trademark is registered.

BOOST COMPANY SECURITY IN CHINA WITH TRADEMARK REGISTRATION

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CHINA TRADEMARK In an established company, they do account for the properties, equipments, cash and receivables they have. Notice that they are all tangible and the benefits the stakeholder could derive can also be touched and seen.
However, assets which are intangible should also be given importance. For example is the trademark. As defined in the accounting world, trademark is a symbol, sign, slogan or name used to mark a product to distinguish it from other products. This is market-related intangible asset. Your company or your product gains popularity and acceptance with the help of trademark. Also, the characteristics and specifications of your product are protected by having trademark.
In China, lots of products have been introduced. Lots of names have been used and lots of product definitions have been created. In applying for the registration of trademark, the following documents should be prepared:
• A copy of current Business Registration Certificate of the applicant, if the applicant is a corporation.
• A copy of Identification documents of the applicant, if the applicant is an individual person.
• List of goods or services.
• Clear image of the trademark.
In processing you application to obtain trademark, five steps would be performed. First is trademark search. Your proposed trademark would be tested if it is already existing or not. Next is the initial application. Third is substantive examination. Further tests would be done to assure that your trademark is unique from other existing names. Next is publication, if the proposed trademark has proven legality, non-functionality, and distinctiveness and conflicts no prior right. Last is the issuance of certificate.
Trademark is necessary, thus, a company must have it registered. Here are some other benefits your company could have if the trademark has been properly registered:
• Your product can be protected. It will be detected if other company are imitating your product and sells it at lower prices. The authority will inform you of such fraudulent act, thus, giving you more time to do the necessary steps to save your company.
•  Gaining popularity. Once you have an established trademark, customers will become conversant with the characteristics your product has. Trademark is not an expense. It is an investment that can give you more and more benefits as time goes by.
Trademark is an asset. May it be intangible or not, it can still give you economic benefits in the future time. Registration is just a single investment yet can help you be exposed to lesser risks and more rewards.

China Trademark Registration- The Registration Process

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As soon as a business is established and the trademark designed, the next important step is to ensure that it has been registered so as to protect it. Below are steps to follow when it comes to registration of trademarks;-

Registration of trademark in China ensures that is it protected in China hence no other business entity can use it while in China. However, a foreign entity registering their trademark in China cannot claim infringement in instances that it is used by another Chinese company.

If a business is 100% sure they want to operate their business in China, they should ensure that they register their trademark in the inception of the business. With this the Chinese is able to withhold any counterfeit trademarked products from exports hence gives you a guarantee of protection.

You should be aware of the type of trademarks acceptable in China, the requirements of Chinese trademarks is similar to those governing other international countries such that it is mandatory to register all services, goods, certification marks as well as collective marks.

China like any other country has a database for all the registered trademarks at a central place, once a trademark is registered, it is printed and left for three weeks giving room for objection. If there is no objection in the stipulated period then the trademark automatically becomes registered. A Chinese trademark office has the power to object the trademark application and also an applicant is allowed to appeal for the same.

A trademark helps to protect the name of your company; a foreign company is fully protected by the Chinese government making it easier to carry out trade without any fear of another Chinese company stealing your trademark. In case there is any infringement of a company’s trademark then there are various actions to be taken against it.

      Once a trademark infringer is caught the next step is to file lawsuit against the person who has infringed the trademark to try and stop him from carrying out business using your trademark. The Chinese trademark laws are applicable for both Chinese companies and foreign company’s hence when such issues have been raised it is easier to get the ruling on your favor.

      This is a system that you can trust without any fear of bias, hence be assured that there is a conducive business environment for all foreigners who chose to invest in China and their rights are well protected.