Regulations on Doing Business in Hong Kong Mr

Free Economy n Free trade & free enterprise n Little government interference n Free import and export of capital funds n Free repatriation of funds n No foreign currency regulations n USD 1 pegged at HK$ 7. 8 2 2

Corporate vehicles n Unincorporated vehicle –sole proprietor n General Partnership or Limited Partnership n Limited Liability Company n Foreign company registered at HK Companies Registry, Branch office or representative office. 3 3

Registering Company n Constitution of Company –Articles of Association n Company names and restrictions. n Form- details of directors, shareholders, secretary (must be individual or HK Company but not sole director), share capital, registered office. n Business registration application. n Fees n 24 hour on line portal 4 4

Buying a Business, business model n Buy the shares- beware liabilities n Buy the assets only n Joint venture n Agents, distributers, franchise- no regulations n Pyramid selling Prohibition Ordinance 5 5

Registrations n Business registration within 1 month (for limited Company automatic) n Opening Bank accounts- KYC n Mandatory Provident Fund n Employees Compensation n Appropriate insurance n Appointing auditor n Annual Return to Companies Registry 6 6

Tax n Salaries tax progressive rates 2 -17% (15% max) n Profits tax 16. 5% n Stamp duty on sale of land n Stamp duty of tenancy agreements & Licenses. n Stamp duty of transfer of shares 7 7

Employment n n No closed shop trade unions. n Employees must be locals holding HK identity card n No-local employees need visa- local sponsor required n Minimum wage n No prescribed hours- but one day holiday. n Basic minimum annual leave 7 -14 days depending on length of service n 8 Employment Ordinance applies to all workers except family members working in business and merchant seamen. Mandatory MPF 8

Employment (cont’d) n No social security payments. n Maternity leave 10 weeks, Paternity leave 3 days 4/5 pay. n Sick leave pay 4/5 (Max 120 paid days) n Four Discrimination laws • Sex discrimination • Disability discrimination • Family status • Race discrimination 9 9

Employment (cont’d) n Severance pay after 24 months by redundancy n Long severance pay after 5 years n Probation period n Statutory Holidays in Hong Kong 10 10

Employment - TERMINATION n Probation 1 st month no notice n Probation 2 nd month onwards 7 days notice n Renewal contract with 7 days termination clause – 7 days notice n Other renewal terms 1 month notice n Continuous contract – 7 day notice. n Payment in lieu of notice 11 11

Immigration n Visa on arrival- check from time to time. n Visa applications for business –business model- Good Education Background, professional abilities and background n Workers need to apply for visas through sponsorship and lack of availability of skills in Hong Kong (i. e. Polish and Russian languages skills)- Good educational background n Import from Poland US$80 million, exports to Poland US$317 million 12 12

Immigration Arrangements for Non-local Graduates (IANG) n Non-local graduates may apply under the IANG to stay in Hong Kong for one year to look for a job. Key requirements include － • Obtained an undergraduate or higher qualification in a full-time locally-accredited local programme in Hong Kong • Job offer not required upon entry (for fresh graduates) • Job is at a level commonly taken up by degree holders and is remunerated at the market rate (for returning graduates) 13 13

Other laws n Anti- competition law (Competition Ordinance 2012) n Anti-bribery and corruption laws (ICAC) n FATCA n FATAF – Anti- Money laundering n No double tax treaty -as no tax information exchange agreement can be signed in absence of available HK law to sign same – (1 st agreement with USA in March 2014) 14 14

Poland creativity n ESTIMOTE- Beacons -creating magical experiences in the real world n Nicolaus Copernicus n Fryderk Chopin n Henryk Sienkiewicz n Marie Curie n Wladyslaw Reymont n Czeslaw Milosz n Lech Walesa n Wislawa Szyborska n Karol Wojtyla John Paul II 15 15

Corporations n Arcelor Mittal Steel Poland n Asseco n CD Project RED –game development n Techland –game development n LEOPARD – Roadster car 16 16

Intellectual Property n Copyright n Trademarks- from EU registered mark or separate n Patents n Design Registrations n Trade Secrets (undisclosed business secrets) n Layout-Design (Topography ) of Integrated Circuits n Plant Varieties Protection (Plant Breeders’ Rights) n Company names are not protected (Passing off action may fail) 17 17

Patent n A standard patent application in Hong Kong, China is made in two stages by filing: • a request to record a designated patent application (stage 1) • a request for registration and grant (stage 2). 18 18

Registered Design n Appearance of product (e. g. : Orange juice extractor) n An application for registration of the design. n a representation of the design suitable for reproduction. n applicant's name and address. n fees. 19 19

Copyright n Copyright Ordinance and common law n Right to original owner (literary and other works) n No formalities required n Works of authors from any place in the world, or works first published anywhere in the world, also qualify for copyright protection in Hong Kong. (through ratification of international conventions) n Civil sanctions and criminal (Customs and Excise Department enforce) n Parallel imports beware. 20 20

Copyright (cont’d) n Distinctive n Descriptive of goods and services n Well known term in your line of business (difficult) n Similar trademarks to others (difficult) 21 21

Notarization n Polish Consulate in Hong Kong n Poland is signatory to Hague Convention- documents can be notarised an apostille applied for recognition in Hong Kong. n Hong Kong Notary can sign and apostille affixed for use in Poland. 22 22

Entertainment n Dacha Restaurant – Russian cuisine n Hire a junk boat and see the islands n Go hiking 23 23

SEE YOU IN HONG KONG 24 24