Flourished Business Branding Through Licensing Hong Kong for You

Hong Kong has been selected by various international licensors and licensing companies as the tactical base to extend their licensing trade in Asia, specifically in Mainland China. The city offers clear benefits as a perfect platform for license providers, takers, companies and producers to combine that involve intellectual property rights security, respect for business contracts, distribution networks, approach to quality licensees, and accessibility to industrial talent, market sensitivity and close business connections with the mainland.
China is the leading fastest growing market for the licensed materials that has increased significantly within past two years.

Hong Kong is the regional place for increasing the licensing trade and extending the business network of LIMA members in the Southeast Asia’s licensing markets. It is anticipated to strengthen the position of SFC licensing Hong Kong as a local trading hub for license.

Hong Kong has developed into a extensively grown licensing market in Asia. Identical to global and local manner, factors and entertainment hubs from the United States and Japan are famous properties in the city.  The Hong Kong customers are susceptible to the current market trends with the advanced licensed products and potential international brands with a strong local availability. The chief classes of licensed products are food and drinks, toys, books, stationery, electronic equipments and banks. Becoming the reputed location of shopping and entertainment in Asia, Hong Kong has taken interest of several sports companies to introduce their licensing activities.

Hong Kong has comparatively some home developed brands and features for licensing. Yet, several international licensors have selected to set up offices in Hong Kong, most of which also function as the licensors local headquarters in Asia.

Licensing Opportunities in Asia Through Hong Kong

The Hong Kong has positive licensing condition with the best quality licensing agencies and potential ties with the Chinese mainland, Southeast Asia and global licensors, strengthens its hub level in Asia.

External to Japan, sales of licensed products in Asia have developed at a moderate of almost 9% over the recent time. It is in stark difference to the slothful global market and has observed the region emerge as the latest focus for the business opportunities and development for international licensing firms.

In a bid to create an updated understanding of the role of Hong Kong as the recommended licensing centre for Asia, the research conducted covering the various nations in Asia. The approach and methodology of the survey are detailed in the endnotes.

Respondents in licensing business with Hong Kong participated in licensing related business with Hong Kong. The firms engaged in business licensing in Hong Kong refers to agencies taking Hong Kong as a market, taking the city as a gateway to enter the other markets or simply entering into licensing agreements with the Hong Kong based agencies.

However the international licensors and agencies and their peers from Taiwan and Southeast Asia or India, more than half are basically engaged in licensing business with Hong Kong agencies. These affirmative responses are extensively more than those associating to their counterparts on the Chinese mainland with slightly 11 percent engaged in licensing business with Hong Kong. They make a complete sense offered the increase in demand for licensed products in China.

Why Companies Should be Mindful of Their Compliance Unit

We often hear about compliance in context of business terminologies. But what does it really mean? There is usually always a unit or department in every single bank, financial institute, or brokerage firm specifically established for and dedicated to ensuring compliances with all the rules, regulations, and applicable laws. The compliance is a wide and encompassing term. It covers a huge range of responsibilities and roles within a functional establishment.

Depending on the nature of business of the financial institute, the compliance responsibilities in Hong Kong can range from monitoring trading activities, ensuring compliance with regulators, and preventing conflict of interest to avoid money laundering schemes, and possible tax evasion at large banks. It is not very likely that the compliance unit in an establishment is going to be a very popular one. Despite that, this department has a lot of importance and significance in securing and maintaining the overall reputation and integrity of any firm.

The credit crisis of 2008 made it all the most crucial for firms to increase regulatory oversight with the compliance responsibilities in Hong Kong. That crisis has led to great demand for companies to hire experienced compliance managers and staff. Some companies have an entire unit dedicated for it.

The cost of compliance is spiraling upwards; especially during the last few years. The cost of non-compliance can be huge for a financial institute as well. However, non compliance can lead to huge penalties and stiff monetary fines. Let's not forget it can also badly influence the reputation of a firm and may also result into regulatory and legal sanctions.

What is SFC and How it Came into Existence

The SFC or Securities and Futures Commission is an independent statutory body that is functional in Hong Kong. This particular government body is responsible for regulating and watching over the securities and futures market in this city. It is the SFC that is responsible for fostering orderliness and ensuring balance across these markets. It works to protect the interest of investors. It also regulates and implements various SFC compliance to help make sure that Hong Kong continues to grow financially.

It aims to transform this city into the leading international financial center of the world and make it emerge as the key financial market of China. Even though this body is said to be functional as a branch of government, it actually runs independently under law authorization related to the futures and securities.

History

This body was formed in the year 1989 in order to rectify the damage that occurred during the stock market crash of October 1987. After the Asian financial crisis that took place in 1997 the regulatory framework of SFC compliance was further improved. In 2003 SFO was implemented. It stands for Securities and Futures Ordinance (SFO). This framework further bettered and expanded the overall regulatory powers and functioning of this government body.

There are four main regulatory organizations functional in Hong Kong that work as financial regulators. SFC is one of them. This is one of the major financial centers of the world. The rest three are the Mandatory Provident Fund Schemes Authority, Office of the Commissioner of Insurance, and Hong Kong Monetary Authority. Securities and Futures Commissions oversees the activities of Hong Kong stock exchange.  

Qualities, and Knowledge a Responsible Officer Should Possess

The success of an organization depended on the inputs of its employees. Every organization hires a number of employees who specialize in their areas of operation. A responsible officer in Hong Kong needs to administer various synchronized activities of the Securities and Futures Commission (SFC). He or she will have to keep a check over different functions involving the current workflow, and operating procedures so that the organization fulfill the standards of securities and futures markets.

Apart from this, as a responsible office in Hong Kong organization, one has to implement his or her risk managing knowledge in the asset management industry to preserve and build up the inward control and fulfillment capacities for the business. To satisfy the demands of this role, one should have a good understanding of the SFC regulations that satisfy the needs of related fund type. Experience in a similar role with Nonprofessional Investors will be a plus point as one can easily understand the nature of duties, and work assigned to her or him.

The responsible officer in Hong Kong will have to administer the functioning of the company and is a challenging responsibility that can be fulfilled with hard-work, dedication, and of course proper knowledge. He will have to depend on different stuffs to establish an internal workflow that will help improve work efficiencies.

CFTC New Regulation Order Release’s Impact on SFC

The commodity futures trading commission (CFTTC) in America has recently released a regulation 30.10 order to SFC in Hong Kong that will decline the SFC license life or options traders from others following the United States registration criteria. In CFTC 30.4, an individual who asks for or accepts orders from US clients for future trading externally to the country must be registered with CFTC as future commission merchant if not excused.

It is essential to keep in mind that the exemption doesn’t include elongating to rules associated with trading in a direct or indirect manner, on United States exchanges, and does not apply to transactions in exchanges. Additionally, the exemptions also are not applicable to the licensed corporation implemented to combined oversight by HKMA and SFC, or some organization refers to oversight alone by HKMA. Regardless, the exemption for Hong Kong refers to future of the city and alternative traders and brokers a platform to contact American customers in a straightforward manner.

The rule set by CFTC allows individuals resided outside the United States to appeal for release from the criteria made in the regulation incorporating FCM registration needs. The appeal can be registered by overseas regulators for example SFC on the base of its registered companies. The release would be approved in case in the other things in the perception of the CFTC, US clients would be provided a safety level in the overseas law identical to that they would obtain in US so there is a related lawsuit platform to the United States.

Two months ago, rule 30.10 order was released that enables companies under SFC registration to deal with the customers resided in US in the direct manner about trading of future or alternatives on futures and alternative exchange related to the oversight of the SFC without being eligible to be registered with CFTC in the form of a FCM. A corporation licensed by SFC that expects to depend on this release is needed to make an application and register specific illustrations with the American national futures association by the SFC. Various overseas regulators as well as exchangers like Financial services authority in United Kingdom and Tokyo financial exchange in Japan have received the exemption in advance. The regulation order 30.10 released to SFC states that it is identified as a major regulator in the global market with firm regulatory platform and offers a place for registered companies in Hong Kong to connect with US customers in a direct manner. Find more information about the CFTC order and overseas exemption to learn about the SFC exemption.


Search online to access more information about the SFC registration and how the new release order by CFTC will have an impact on SFC licensed corporations. It is expected that the things will go smoothly. For more updates about SFC, stay connected. I will be back soon with more information on SFC. So if you are also one of the SFC registered companies, you should keep yourself updated with the new releases done by CFTC to prevent any unwanted effect as well as enjoy the lucrative and hassle-free facilities to contact with your customers. 

Facts one Should know About Setting a Company in Hong Kong

Hong Kong is an SAR (Special Administration Region) in China. It has its own judicial and legal system as well as own legislature. This region has full economic autonomy. China only takes care of foreign affairs and defense. Hong Kong independently takes part in international trading. It is also a member of Asia Pacific Economic Co-operation as well as WTO (World Trade Organizatoin).

Company incorporation in Hong Kong both for both limited and public companies is regulated by the Companies Ordinance. There are no restrictions on making foreign investments in this region. There is no investment approval procedure either. Foreign investments have full liberty to invest in nay business and have one hundred percent ownership of it. However, the ownership is limited to activities that are state-owned and few other exceptions in which the ownership cannot exceed more than 49%.

No minimum legal reserve or capital is required for company incorporation in Hong Kong. The capital investment has to be in cash which can be used towards the procurement of plants, buildings, purchasing franchise, patents, etc.  The region doesn’t impose any limitations on the amount of issue share capital or authorized capital. Also the shape capital can be in any currency. It is mandatory to get the shares registered.

One shareholder or founder is allowed to form a private company; however the total number of shareholders cannot exceed 50. Although there are no residence or nationality requirements for the board of directors and management, but the secretary of company generally needs to be a resident of Hong Kong or it should have a registered office in the region.

Do you Wish to Start a New Business in HK? Hire a Consultant...

Starting a new business is certainly not an easy decision, and comes with its own set of advantages and disadvantages. However, by utilizing a consulting service in Hong Kong, it becomes easier to decide whether to start a new business or not. Once you have decided to start a new business, there is all the possibility that you ignore the need for licenses and permits. If you fail to take care of this aspect right from the beginning, it may lead to various unprecedented issues.

You need to contact your state’s business license department to find out about getting a business license; The procedure for companies licensing and companies registry Hong Kong allows you to operate in an area. Many areas ask for a conditional-use permit in order to operate.

The best part is that there are various consulting services in Hong Kong that offer complete assistance in licensing, advisory, audit or monitoring, and likewise. For instance, if you wish to start a new business at home, such a consultancy can help you with the Business license, Company Registry, Fire Department Permit, Sign Permit, State Licenses, Federal licenses, Health Department licenses, and likewise. Also, it can help you with your business structure (sole trader; partnership; or company). It can help you in finalizing the most suitable name for your business (a name that is not in use). All in all, it helps you define a vision and set a goal for your business, and leaves no stone unturned to kick start your business...

What is Compliance - Defining Briefly!

The term due diligence and compliance are often heard in the world of business. Compliance is basically a term that explains one’s ability to act as per a standard order or set or rules and follow them. When we talk about compliance in the context of financial service then it functions on two levels:

• The first level is about complying with external set of rules that are imposed on a company
• The second level is about compliance with internal set of protocols and set of rules imposed on an organization.

What are the responsibilities, duties, and objectives of a compliance officer?

Duty of a compliance officer– A responsible compliance officer in Hong Kong will have the duty of working with staff and entire management so as to manage and identify regulatory risks.

Objective – the objective of one such officer will be to make sure that the organization for which he is working has proper internal control and adequate ways to manage and measure the risks that it might face at any time.

Responsibility – general responsibility of a compliance officer will be to offer compliance services to the organization that supports it across areas in ensuring that they are following all the relevant laws, internal procedures, and regulations.

Key functions of a responsible compliance department officer in Hong Kong.

• Identification - To recognize the present risk that company is facing as well as potential ones, and advise the organization on how to handle them.
• Prevention - to lie down and ensure implementation of control measures to safeguard the organization from those risks.
• Monitoring - To see how effectively controls are being implemented by the management against risks
• Resolutions and advisory – to resolve any difficulties and to offer advice about rules and control.

The requisites to get a non permanent license from SFC Hong Kong

If a company that is established and is run on foreign investments does not have any business associates in Hong Kong and is looking forward to continue SFC controlled activities in the city for a short-term, it will be required to apply for a non-permanent license from the Companies Registry Hong Kong. A non permanent license holder may only continue to deal in one or a set of the activities mentioned below.

1. Type 1 - trade in securities
2. Type 2 - trade in upcoming contracts
3. Type 4 - giving counseling on securities
4. Type 5 - giving counseling on future and upcoming contracts
5. Type 6 - giving counseling on corporate finance

The non permanent license holder is also prohibited from keeping client assets while pursuing the above mentioned activities. Another requisite for applying non permanent license is that the applicant enterprise or organization must have their business registered in Hong Kong. This implies that the applicant party must set up an official branch of their organization or an auxiliary company in Hong Kong. A representative office cannot fulfill this requisite for the application of temporary license as it cannot manage or carry out any business activity on its own in Hong Kong. 

Heinbro Consulting Offers Licensing Services in Hong Kong

When you plan to setup a business in Hong Kong, you must understand that you need to have license to operate your business. Many businesses such as retailers, food, beverages or tobacco, and telecommunication providers need proper licensing Hong Kong to operate. Only a reputed compliance solution company can help you deal with licenses and setup your business successfully.

 

To expand your business in Hong Kong, you must have the required certifications, licenses, permits, and approvals. We at Heinbro Consulting help you by offering licensing services in Hong Kong. From filling the required forms to getting license, we help you in every way. Our team assists you with all types of licenses and additional license application to the Securities and Futures Commission or similar regulatory bodies. We work in close association with the regulatory authorities and ensure that licensing process is smoothly handled by a team of experts who specialize in applying for licenses and getting them without any inhibitions. 

We offer ongoing regulatory support to the clients. They need not have in-house compliance to handle the growing needs of their business, as we help them by being a constant support whenever they need it. We add full time resources to the already existing staff of our clients. This helps our clients have dedicated support at cost effective rates. Heinbro consulting adds value to the our clients and streamlines their day to day operations. Besides handling licensing in Hong Kong, the company offers advisory, training, audit and monitoring, investigation, and legal services to the clients. We value our clients and strive to offer them the most dependable services. You can count on us for excellent customer services. 

All the team members at Heinbro consulting are highly qualified, skilled, and experienced professionals who understand the needs of the clients and offer them appropriate solutions. They work with international publically listed companies, state, local, and international governments, and private equity.

Permits and licenses for doing business in Hong Kong

A business permit or license is the one thing that will allow you to legally start a particular type and nature of business activities in Hong Kong. These permits are generally issued by an agency or department of the Hong Kong Government. Fortunately there are only a few types of activities that demand the person to first acquire a license before conducting them. If you want to apply for corporate licensing in Hong Kong then you need to make sure that the company has first been registered with Companies Registry.

As discussed earlier the company incorporation and underlying activities are governed and conducted by the Companies Registry in Hong Kong. However, depending on the nature of actual business activities, it could also be subjected to regulation and control by several other government bodies too. For that, it becomes necessary to apply for a business permit. Before the obtaining of license, the person cannot legally commence his activities.

A few of corporate entities that need licensing Hong Kong before starting operations include: employment agencies, insurance brokers, liquor distributors, lawyers, fund managers, travel agencies, moneylenders, restaurants, childcare centers, banks, etc. Once you have successful incorporated and registered a company you can then proceed ahead to apply for the permit. The success of how easily you are able to obtain the permit would depend on the expertise and knowledge of the corporate logistics company you have hired.

A good logistics firm will guide you through each and every step of license obtainment's in a way that there are no hiccups in the plan. Therefore, hire only best of the best firm to help you in the obtainment of the required permits.

Hedge Funding- Financial Instrument For Sophisticated Investors

An exotic form of mutual fund reserved for only sophisticated and wealthy corporations and individuals, hedge funds in Hong Kong are used for earning profits regardless of market conditions whether bullish or bearish. These funds are mostly unregulated and comprise of less conventional trading activities and strategies such as short-selling. These types of strategies are not available to mainstream mutual funding.  Its history goes way back to 1949 when it was first attempted by Alfred W Jones. He tried to compensate the risk of purchasing stocks by short-selling them. To do that he also increased his portfolio’s leverage. The hallmarks of modern day hedge funding are short-selling and leverage.

Functions

As discussed above this type of funding allows fund holders to earn profits irrespective of how the market is functioning. If the manager of funds feels that real estate is a better investment option than stocks or commodities, he will instantly put money in real estate. However, if he thinks that the market is dropping he will go with short selling to play the downward movement to his own advantage. No type of investment deems too exotic to the hedge fund managers whether it is a financial derivative or any other item.

Investing in hedge funds is becoming a common practice in Hong Kong considering it a fast growing economy. If speculative figures are to be believed than this market is supposed to be of almost two trillion dollars of worth. The figure continues to fluctuate quite chaotically than mutual fund market since it is always going through quick rise and falls. It should be duly noted that this type of funding is only for extremely wealthy individuals and establishments. Most of the funds require an initial investment of around one million dollars or more than that.

Beat The Challenges Of Business Licensing

Running a business is a huge challenge and the bigger challenge lies in getting it started. Regardless of which country or city you want to establish a startup, you will have to deal with countless hurdles. Although the major hurdle is that of procuring enough finances but even after you have procured the necessary funds, you need to take care of all the paperwork involved. You need to ensure that all the business operations are compliant with the state and country’s corporate rules and regulations.

If you break in any of those rules unknowingly it may end-up winding-up your business. That is why businesses need to obtain the necessary permits related to manufacturing and various other operations. For that they need to obtain various licenses. Going for licensing in Hong Kong and everywhere else seems like a nightmare. A newbie who is not familiar with the world of business may not even know where to go for to get a license and what the necessary documents are for getting one.

That is why every business needs help of advisors and logistics experts who guide them throughout the course of company formation and even afterwards. They help companies in proceeding in the right direction. They know which type of business should go for which types of licensing. Their knowledge allows startups to get the right work permit depending on the nature of business.

For example, if the business deals in manufacturing food items licensing services in Hong Kong will get you necessary permits from the food corporation before any operations are commenced officially. These people know the common problems people face in the obtainment of permits. That is why they use that knowledge to get things done without the client facing any troubles.