[Strömberg]: Telephone Call to China

[Connor]

Security Classification: CLASSIFIED
Document Classification and Security Act 1995
Encrypted by the Strömberg International Legal Consultants​

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Following reform within the organisation, a telephone call is put through to the department responsible for business registration in China by Elizabeth Jansson, Regional Manager for Asia from Strömberg International Legal Consultants AB - the call is made from the SILC headquarters in Sweden.

All telephone calls from Swedish landline telephones are made in line with the Document Classification and Security Act 1995.

@Alex

 

[Alex]

Jin Renqing, the most experienced for this type of situation, would answer the phone call via and encrypted line.

"Hello, this is the Ministry of Finance. Minister Renqing speaking. How may I help you?"

@Connor

 

[Connor]

"Good evening, I am Elizabeth calling from Stromberg International Legal Consultants in Sweden, how are you? Is now a good time to discuss business?"

 

[Alex]

"Now is a perfect time to discuss business, Miss Elizabeth. What is it that I can do for you?"

@Connor

 

[Connor]

"In all honesty, Minister, we are looking to register our organisation within the People's Republic of China... Strömberg International Legal Consultants is, well as it says on the tin, an international legal consultancy."

 

[Alex]

"I see. Is Strömberg International Legal Consultants more interested in registering their organisation on mainland China or in Hong Kong? Personally, I would say that when it comes to registering a business; Hong Kong is much more simple, affordable, and quick than registering on the mainland."

@Connor

 

[Connor]

"I understand... well, I hadn't given it much thought, I suppose if you're suggesting we register in Hong Kong then it's be wise to take your advice, you're the experts afterall"

 

[Alex]

"Hong Kong is just far simpler, especially when those registering are not citizens. The greatest part is that you don't even need to live in Hong Kong as there are government funded agencies which provide company secretaries to run the office for you. With that said; will a company secretary be necessary for you or will you provide your own?"

@Connor

 

[Connor]

"No we intend to purchase our own premises and move our own staff to occupy it as a District Office. Whilst the services you explained are interesting it's not a business strategy were eager to explore considering the high level of inter connectivity required in our business area"

 

[Alex]

"Totally understandable! With that now out of the way, let's begin with the registration. There are a few fees that you must pay before the registration goes through, but of course you don't have to pay these fees until you have decided whether or not you wish to register in Hong Kong. These fees includes: 222.00$ company registration and 32.00$ business registration certificate. That would total to 254.00$ for the total registration.

Now, when it comes to having a business in Hong Kong. The taxation in Hong Kong is quite simple; for companies such as yours each year you will have to pay roughly 21,165.38$ for every 2,000,000.00$ that your company makes, or 8.65% of the total sum. This means that, minus taxes, you will keep roughly 1,978,834.62$ of every 2,000,000.00$ that your business makes. If you company makes under 2,000,000.00$ a year then you will need to pay a total of 5% of your yearly income.

Hong Kong is a major banking center and once you have incorporated your company there, you’ll be entitled to open a multi-currency business bank account at a globally recognized bank such as DBS or Hang Seng Bank. This is a key feature if you plan to do business worldwide, which I am more than certain, judging by your company's name and interest in registering in Hong Kong, that you do. Note that if you prefer, you can also open the bank account for your company outside Hong Kong, such as in Singapore or Switzerland.

Furthermore, even if Hong Kong is a province of the People’s Republic of China, its legal system is different from mainland China’s, as English common law prevails. So as a business coming from a European nation, I am certain that this would be an ideal situation.

I believe that that is all I have to say about opening and operating a company within Hong Kong. Have you any questions? If you'd like, I could also point you towards available properties to potentially purchase for your company."

@Conn

 

[Connor]

"With respect Minister, of the three countries we're currently in negotiations with to establish business in their state, the People's Republic of China is the only state actively pursuing our profit margin. As you know the development of private organisations in this economic climate is extremely difficult with corporate tax on private bank accounts and clientele being in limited supply. Whilst out business not only holds the potential to significantly effect your unemployment statistics when we inevitably require more staff, it also looks incredibly fruitful for China's economy having an internationally acclaimed organisation housed inside your borders.

We respect Hong Kong and it's traditions however we're not willing to fork out a small fortune simply to have a district office, we don't believe you have any right to access our profit, especially when a lot of this profit comes from foreign states and could cause significant diplomatic unrest as a result."

 

[Alex]

"Well, Miss Elizabeth, I'm sorry to say that I cannot exempt your business from taxation; regardless of where the money comes from. What I can tell you, however, is that this taxation will only be applied to your potential office within Hong Kong. This means that only the profits made by this office by clients going through this office will be taxed and not the entirety of your business' income worldwide."

@Connor

 

[Connor]

"We can agree on that - the basis that only the profits from the Hong Kong Office are taxed. What's the next step in the process?"

 

[Alex]

"The next step will be to fill the registration form out. I can do that for you by asking you the questions, or I can send you the form directly to you. Whichever you find easier."

@Connor

 

[Connor]

"Let's get this done over the phone, sooner we can register, the sooner we can play a part in growing the Chinese economy"

 

[Alex]

"No worries. I will need an answer to the following questions:

Proposed English Company name? Or in this case; the proposed office name.

Proposed Chinese Company name? If you wish, I can just translate the office name for you.

Will this division be private or public?

What will the proposed address of your office be? If you have yet to secure one, we can leave this one blank for now.

I will need the e-mail address and full name of the owner of SILC.

I will need the English and Chinese name of the one in charge of the office. Alongside their address, country of residence, fax, and telephone number.

Lastly, I will need your signature to assure to me that all the given information is correct. You can fax me your signature to: +852-598-5554-7."

@Connor

 

[Connor]

"In both Chinese and English we'd like to be named Strömberg International Legal Consultants as instructed by our Brand and Contracts Director - this is to build the reputation of the name as well as the business. I must stress that this is not a subsidiary of our organisation and is simply an office to serve the Hong Kong market, I'm not sure what you mean in terms of public or private, but our business is a limited liability corporation. At present we do not have a premises in Hong Kong, I believe you offered to find something suitable on our behalf?

As the Regional Manager for Asia I will be personally responsible for the office. My name is Elizabeth Jansson, I currently live in Sweden. Our Chairman is Mr Mattis Olsson. The best contact address, email and telephone number for both of us is that of the headquarters... +46 8 875 64 21 and office@stromberglegal.se."

A signature would be faxed as instructed.

 

[Alex]

The Minister would remain silent, the sounds of his keyboard in the background, as he typed the answers.

"Wonderful, that will conclude the form. I have made sure to add a note that this will be an office and not a subsidiary of SILC. Furthermore, I have placed your office and company under a private business as I don't believe you would be selling any shares?

As for a suitable office, I can certainly find your company something. In fact, I believe that the current office for sale in the Wan Chai district. It is called Pico Tower; it comes furnished, the office space for sale is on the lower floors, and it has a great view of the city and the South China Sea. It is currently on the market for 78,537,500 Hong Kong Dollars, which is roughly 10,008,712.36 US Dollars. If this doesn't suit you, I could send you a link to a trusted website that lists office spaces for sale throughout Hong Kong and you may search through those to find your most suitable office.

Lastly, there are some governmental fees to register your office - nothing major. These involve the incorporation documents and company kit at 265.77$, the governmental fee for the company registration at 222.12$, and lastly the Business Registration Certificate at 32.10$. Totaling up to: 519.99$, in US Dollars."

@Connor

 

[Connor]

Elizabeth rolls her eyes, tired of attempts to suck money from the business and simply hangs up the phone in pursuit of an alternate Asian country.

 

[Alex]

"What a rude cunt and a waste of time." With that, Minister Jin would hang up his phone and carry on with attending to more mature and professional individuals and entities.