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Companies comparison and how politics affect them

A lighthearted look at the effect different political systems (and countries) have on the same situation – a tale of two cows.

SOCIALISM

You have 2 cows.
You give one to your neighbour.

COMMUNISM

You have 2 cows.
The state takes both and gives you some milk.

FASCISM

You have 2 cows.
The state takes both and sells you some milk.

NAZISM

You have 2 cows.
The state takes both and shoots you.

BUREAUCRATISM

You have 2 cows.
The state takes both, shoots one, milks the other, and then throws the milk

away.

TRADITIONAL CAPITALISM

You have two cows.
You sell one and buy a bull.
Your herd multiplies, and the economy grows.
You sell them and retire on the income.

ROYAL BANK OF SCOTLAND (VENTURE) CAPITALISM

You have two cows.
You sell three of them to your publicly listed company, using letters of credit opened by your brother-in-law at the bank, then execute a debt/equity swap with an associated general offer so that you get all four cows back, with a tax exemption for five cows.

The milk rights of the six cows are transferred via an intermediary to a Cayman Island Company secretly owned by the majority shareholder who sells the rights to all seven cows back to your listed company.

The annual report says the company owns eight cows, with an option on one more. You sell one cow to buy a new president of the United States, leaving you with nine cows.

No balance sheet provided with the release. The public then buys your bull.

SURREALISM

You have two giraffes.
The government requires you to take harmonica lessons.

AN AMERICAN COMPANY

You have two cows.
You sell one and force the other to produce the milk of four cows. Later, you hire a consultant to analyse why the cow has dropped dead.

A FRENCH COMPANY

You have two cows.
You go on strike, organise a riot, and block the roads because you want three cows.

A JAPANESE COMPANY

You have two cows.
You redesign them, so they are one-tenth the size of an ordinary cow and produce twenty times the milk. You then create a clever cow cartoon image called a Cowkimona and market it worldwide.

AN ITALIAN COMPANY

You have two cows, but you don’t know where they are.
You decide to have lunch.

A SWISS COMPANY

You have 5,000 cows. None of them belong to you.
You charge the owners for storing them.

A CHINESE COMPANY

You have two cows.
You have 300 people milking them. You claim that you have full employment and high bovine productivity.
You arrest the newsman who reported the real situation.

AN INDIAN COMPANY

You have two cows.
You worship them.

A SPANISH COMPANY

You have 2 cows but owe Santander for 6.
Nobody drinks milk.
You have a siesta and read about the collapse of the Euro

A GREEK COMPANY

You lease 2 cows and pay somebody 3 times the going rate to milk them using borrowed money. You refinance the 4 cows to secure the services of Goldman Sachs. They sell the future milk production of the 60 cows and fund your lifestyle. You retire to anywhere that doesn’t use the Euro.

A BRITISH COMPANY

You have two cows.
Both are mad.

AN IRAQI COMPANY

Everyone thinks you have lots of cows. You tell them that you have none. No one believes you, so they bomb the crap out of you and invade your country.

You still have no cows, but at least you are now a democracy.

AN AUSTRALIAN COMPANY

You have two cows. Business seems pretty good. You close the office and go for a few beers to celebrate.

A NEW ZEALAND COMPANY

You have two cows.
The one on the left looks very attractive.

AN ARGENTINIAN COMPANY

You don’t have any cows.
But you claim sovereignty over the ones belonging to your neighbour.

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How to register a company in Hong Kong as a Foreigner?

Posted By Fu Manchu On In Company formation | No Comments

How to register a company in Hong Kong as a foreigner?

It is relatively easy for a foreigner to set up a business in Hong Kong, even if they are the only director and sole shareholder. A local director is not required and shareholders can be from anywhere. The company secretary would normally be our office as we take care of annual returns and similar.

 

One of the significant benefits is that Hong Kong is not generally considered an offshore jurisdiction which means, while you can do business with mainland China, you can also trade with areas such as the EU and USA. 

Three steps in opening a Hong Kong company

This is a relatively straight forward process:

  1. First, you need to choose a company name and ensure that it is not already being used in Hong Kong. We will check this for you.
  2. Each member of the company, including shareholders and directors, will need a copy of their passport and proof of their address.
  3. We will then prepare the relevant documentation, e.g. a form NNC1 for incorporation, a form IRBR1 for the Business Registration and file it with the Hong Kong Companies Registry.

Assuming the information provided is complete, incorporation will normally be complete in a few days.

How easy is it to open a bank account in Hong Kong?

Formerly, companies incorporated in Hong Kong were able to open accounts at a number of major local banks. However, in recent years, opening a conventional bank account in Hong Kong has become far more complicated and time consuming.  Currently, only local and/or known customers can easily open  a conventional Hong Kong bank account.


As an alternative, we recommend opening an e-wallet account.

Which e-Wallet account do we recommend?

It is rare for one provider to offer ALL the required services and we would often recommend to open two accounts with different providers to get the best combination of services. In terms of costs, it is almost always free to open a basic e-Wallet account, although some services e.g. a prepaid card will incur a modest fee. Although no minimum balance is required it is necessary to use the account periodically to avoid dormant accoutn charges.

For companies formed by us we can advise you on the various e-Wallets which will be suitable for Hong Kong company.

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Why it is often cheaper to pay consultancy fees

Posted By Ania On In Banking,Company formation | No Comments

Why it is often cheaper to pay consultancy fees

So you have decided to set up your offshore company. You think you know where to incorporate. You know how to form the company. Correct?  Well, maybe.  You did your research, you gathered all the information, and you think you possess the “know-how”. 

But do you know what you don’t know? In other words, are you aware of the things you did not even think about?

The best way to illustrate what I am talking about is to give a working example.

 

A couple of years ago, one of our clients set up a company in the Emirates – an IBC (International Business Company) incorporated in Ras Al Khaimah (RAK).   His two main reasons for setting up the RAK company were:

 

(1) RAK companies do not have a public register, so the names of the shareholders and directors are not available to public searches and

(2) he did not have to file accounts.  

 

The client did not feel he needed our consultancy services. He decided a RAK company would be a good choice, and the company was formed.  Then came the problem he had not thought about. His business was going to be fully ‘on line’, and he wanted to receive payments via PayPal… Fine, until he discovered that PayPal insists that the company and the bank account must be in the same country.  Banks in the UAE are not opening accounts for RAK IBC’s (even now).  The UAE bank turned him down.  Therefore, the company was rendered largely useless for his purposes.    

 

The above example illustrates why we recommend clients to consider our consultancy services.

We offer structuring advice based on your circumstances and your business plans. By ‘structuring advice’ we mean consulting you on choice of jurisdiction and whether it is suitable for your business, our advice on the most suitable bank/e-wallet, payment processor, general advice on setting up your business. 

Where do we start?

  1. First, we offer a 20 minute free – no obligation – consultation either by email or a scheduled call by Zoom or Skype.
  2. If you decide to go ahead with our structuring advice, we will go through your requirements step by step taking into consideration all the important aspects of your proposed business.
  3. We will then prepare and send you a detailed report for action or further discussion.

In summary, you can save yourself time and effort as we will do the research for you,  and we will recommend a practical and workable solution and structure.