Company News

Jan. 29 – With the aim to modernize Hong Kong’s Company Law and further enhance the region’s status as a major international business and financial center, a comprehensive rewrite to the existing Companies Ordinance was initiated in mid-2006. This long and arduous process began to bear fruit on July 12, 2012 as the Companies Bill was eventually passed by the Hong Kong Legislative Council.

Jan. 23 – Shenzhen’s Social Insurance Bureau recently released a circular concerning social insurance payments in the city, which came into effect from January 1, 2013. The circular provides new policies regarding the payment of pension insurance and unemployment insurance in Shenzhen, and cancels over-age pension insurance contributions for individuals with Shenzhen hukou.

Jan. 16 – From January 1, 2013, foreign visitors in China from 45 countries can enjoy a 72 hour visa-free stay in Beijing and Shanghai.

Jan. 15 – The Supreme People’s Court of China released the “Interpretations on Several Issues Concerning the ‘Law of the People’s Republic of China on the Application of Laws to Foreign-Related Civil Relations’ (I) (fashi [2012] No. 24)” on December 28, 2012, which came into effect on January 7, 2013. Detailed information can be found below.

The Standing Committee of the Fifth People’s Congress of Shenzhen Municipality passed the “Shenzhen Special Economic Zone Population and Family Planning Regulations (hereinafter referred to as ‘Regulation’)” on October 30, 2012, which came into effect on January 1, 2013. The Regulation is the first local law in China that clarifies the issue of violating the State one-child policy by giving birth outside of Mainland China.

China’s State Administration of Taxation released the “Announcement on the Treatment of Remaining Value-Added Tax (VAT) Amounts Carried Over During Asset Reorganization by Taxpayers (Announcement [2012] No. 55, hereinafter referred to as ‘Announcement’)” on December 13, 2012, which addresses issues concerning the treatment of remaining VAT amounts carried over during the asset reorganization process. Key information can be found below.

China’s State Council released the “Opinions on Further Supporting the Sound Development of Micro and Small-Sized Enterprises (MSEs) (guofa [2012] No.14)” on April 19, which puts forward 29 supporting measures in 8 areas for the development of MSEs in the country. Detailed information can be found below.

China’s State Council released the “Decision on Revising and Repealing Certain Administrative Regulations (Order No.628 of the State Council, hereinafter referred to as the ‘Decision’)” on November 9, which revises certain provisions within five administrative regulations and repeals five administrative regulations. Key information taken from the Decision can be found below.

The Hague Conference on International Private Law (HCCH), the world’s leading intergovernmental organization in the field of private international law, established its first Asia-Pacific regional office in Hong Kong today.

China’s Ministry of Finance and the State Administration of Taxation released “The Supplementary Circular on the Scope of Taxable Services and Several Other Tax Policies in the Pilot Collection of Value Added Tax (VAT) in Lieu of Business Tax in the Transportation Industry and Certain Modern Services Industries (caishui [2012] No. 86, hereinafter referred to as the ‘Circular’) on December 4, which clarifies a collection of relevant tax policies regarding the VAT reform in its target industries. Detailed information can be found below.