China Regulatory Brief: Simplified Company Name Pre-approval Rules, 2015 Hangzhou Minimum Wage Levels

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China to Implement Simplified Company Name Pre-approval Rules

On October 15, the Administration for Industry and Commerce (AIC) released an announcement which allows companies to complete name pre-approval procedure online starting November 1, 2015. Newly-established companies may submit an application for name pre-approval online via the AIC company registration system and upload photocopies of required documents. After approval, companies can get a “company name pre-approval certificate” at the local AIC office and finish the company registration. Furthermore, the procedure for changing the name of a company has been simplified as well. A company’s name approval is the first step in establishing a company in China. Previously, companies were required to go to the State AIC bureau and submit the materials in person. 

Stricter Requirements for Hong Kong Residents to Claim Tax Treaty Benefits

China’s State Administration of Taxation (SAT) recently issued Announcement 60, which states that self-assessment procedures will be imposed on a non-resident person claiming benefits provided under a comprehensive income tax treaty with mainland China. Specifically, all Hong Kong applicants will be required to obtain a certificate of residence (CoR) issued by Hong Kong’s Inland Revenue Department (IRD). This means the IRD will be involved and take charge of examining an applicant’s Hong Kong residency status. Meanwhile, both the IRD and SAT shall examine whether the applicant is the beneficial owner of the income and whether the applicant is abusing the terms of the tax treaty. The new procedures will become effective for applications made on or after 1 November 2015.

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China and Singapore to Strengthen Bilateral Relations

China’s Vice-Premier Zhang Gaoli made a three-day visit to Singapore from October 12 to 14 to promote bilateral ties between China and the Southeast Asian nation. During the visit, Zhang and Singaporean Deputy Prime Minister Teo Chee Hean co-chaired the 17th China-Singapore Joint Steering Council Meeting for the Suzhou Industrial Park and the eighth China-Singapore Joint Steering Council Meeting for the Tianjin Eco-city. The two sides made a commitment to speed up the negotiations of a third intergovernmental project in West China and are hoping to launch the construction as soon as possible.

Besides this, China and Singapore have also agreed to deepen cooperation in areas such as trade, finance, tourism, science and technology, education, environmental protection and human resources. China was Singapore’s largest trading partner in 2014, with bilateral trade (in goods) of US$121.5 billion, up 5.4 percent from the previous year. 

Hangzhou Adjusts its Minimum Wage Levels for 2015

On October 13, the Hangzhou Government released its monthly and hourly minimum wage levels for 2015, which will take effect on November 1, 2015. Accordingly, the monthly minimum wage in Hangzhou will be adjusted to RMB 1860 from RMB 1650 (12.7 percent growth), while the hourly minimum wage will be adjusted to RMB 17—both are the highest in Zhejiang province.


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