Announcement: JC Legal won accolades at Globee Business® Awards 2 years in a row; Janice Chew made it to LexisNexis® 40 Under 40

For 2 years in a row, JC Legal and our Principal Janice Chew are honoured to be recognised at the Globee Business® Awards. We pride ourselves on our bespoke service and are hugely grateful for all the recognitions to enable us to constantly improve, upgrade and evolve. Let’s have a look of our accolades!  … Continue reading Announcement: JC Legal won accolades at Globee Business® Awards 2 years in a row; Janice Chew made it to LexisNexis® 40 Under 40

Caught Between Disclosure for Justice and Customer Confidentiality – The Role of Banks in Cyber Fraud

We read news about cyber fraud much often than we did a decade ago. With the advancement of online bank transfer, a simple click on your smart phone enables instant transfer of monies. A common pattern we observe is fraudsters taking advantage of this technological development to easily access email accounts or instant communications and… Continue reading Caught Between Disclosure for Justice and Customer Confidentiality – The Role of Banks in Cyber Fraud

It Takes Two to Defraud – How to Mitigate Losses and Prevent Receiving Dirty Money

With the advancement of technology, we become more and more familiar with online payment and transaction. At the same time, the convenience of Internet transfer brings along the acceleration in the number of multiple-jurisdictional cyber fraud cases. In this article, we wish to share our observations from cases that we have worked on and provide… Continue reading It Takes Two to Defraud – How to Mitigate Losses and Prevent Receiving Dirty Money

Hong Kong’s Newest Open-ended Fund Companies Regime

In September 2020, the Securities and Futures Commission (SFC) announced changes to the open-ended fund companies (OFC) regime. This provides interested parties with a new option in terms of company structure and could potentially contribute to the provision of a broader range of investment products in Hong Kong. What is an OFC? An OFC is… Continue reading Hong Kong’s Newest Open-ended Fund Companies Regime

What can you do with a Shareholders’ Agreement?

The shareholders’ agreement is a key legal document that regulates the affairs of the company. If you are a founder of a startup that is about to enter its first round of fundraising, you can expect that your investors will be keen to enter into a shareholders’ agreement with you that sets out the roles… Continue reading What can you do with a Shareholders’ Agreement?

Malaysia in Lockdown – What You Need to Know

Malaysia is experiencing a dramatic surge in COVID-19 cases with over 8,000 cases per day recently, and with over 70,000 active cases nationwide. ‘Total lockdown’ Amidst a third wave of COVID-19, Malaysia is under its third round of movement control order (MCO 3.0) since 12 May 2021. In view of the new variant of COVID-19… Continue reading Malaysia in Lockdown – What You Need to Know

Forming a Joint Venture with a Foreign Company

A joint venture (“JV”) is a business entity formed by two parties sharing similar vision and goal to develop a business. This joint entity is usually formed to achieve broader business opportunity. A typical example is where a company with good reputation in the local market envisions to expand its business to a foreign market.… Continue reading Forming a Joint Venture with a Foreign Company

The commercial marriage of starting a business with friends – Are you a director, a shareholder, or both?

With more people feeling fed up with a day job and choosing to create a dream career of their own by entrepreneurship, it also means navigating a very different playing field hands-on rather than having most administration taken care of as an employee. The most common area of confusion for most early entrepreneurs is the… Continue reading The commercial marriage of starting a business with friends – Are you a director, a shareholder, or both?

Malaysia Topping as Cashless Society and E-wallets

In the 21st century, Malaysia is seeing an emerging trend in digitalisation and e-commerce, also and to many as one of the revolutionary catalysts – ‘electronic wallets’ (e-wallets). It is a software-based system that securely stores users’ personal information, account details and payment information. Such information is encrypted and protected with a 24/7 fraud detection engine… Continue reading Malaysia Topping as Cashless Society and E-wallets

Four Things to Note in Equity Financing

Equity financing generally means raising capital through the sale of shares, a stake of ownership in a company, in return for upfront funding, which is one of the common ways for a company to raise funds from investors. Based on our first-hand experience, this article intends to help founders and investors understand four key issues… Continue reading Four Things to Note in Equity Financing

What happens if one of the co-founders of my startup leaves?

Founder fallouts are not uncommon for startups, especially when things don’t go smooth. It can happen to the best of friends. What really happens when one of your co-founders leaves depends on how prepared and how well thought out you are at the conception of your startup company. In short, a carefully devised vesting schedule… Continue reading What happens if one of the co-founders of my startup leaves?

[Utilities] Economic Stimulus Packages in Malaysia

Rental Waivers or Reductions To reduce overhead costs, a 6-month waiver on rental payments has been granted on all premises owned by the Federal Government or their agencies. Similar waivers or discounts are granted to SMEs in the retail sector if they operate in premises owned by a government-linked company. Government-Linked Companies (GLCs) such as… Continue reading [Utilities] Economic Stimulus Packages in Malaysia

[Employment] Economic Stimulus Packages in Malaysia

Wage Subsidy Program The Wage Subsidy Program was introduced by the government under the second stimulus package to prevent large-scale retrenchment by funding a portion of the employees’ wages and to ensure that businesses remain sustainable. Available to all businesses regardless of nature or size, the government will contribute between RM600 and RM1,200 per month… Continue reading [Employment] Economic Stimulus Packages in Malaysia

[Taxation] Economic Stimulus Packages in Malaysia

The Inland Revenue Board of Malaysia has extended the submission deadline for a company’s income tax return form for the year of assessment (YA) 2019 whilst taxes which are due during the Movement Control Order period may be paid by or before 31 May 2020, without incurring any late payment penalties. Revisions to the estimates… Continue reading [Taxation] Economic Stimulus Packages in Malaysia

[Sector Focus: SME] Economic Stimulus Packages in Malaysia

One-off special grant It is proposed that micro-SMEs would be entitled to a special grant amounting to RM3,000. In order to enjoy the above special grant, the micro-SME must be registered with the Inland Revenue Board of Malaysia and a list of eligible micro-SMEs would be obtained from the Local Authorities and Companies Commission of… Continue reading [Sector Focus: SME] Economic Stimulus Packages in Malaysia

[Industry Focus: Tourism and Logistics] Economic Stimulus Packages in Malaysia

The first economic stimulus package sought to alleviate the pandemic’s immediate impact upon the tourism industry. Incentives for the tourism industry include: Double tax deduction on expenditure incurred on training courses for employees 6-month deferral on the payment of monthly income tax instalments 6-month exemption of the hospitality industry from Human Resource Development Fund levies… Continue reading [Industry Focus: Tourism and Logistics] Economic Stimulus Packages in Malaysia

Overview of Post-COVID-19 Economic Stimulus Packages in Malaysia

To date, three (3) economic stimulus packages totalling RM280 billion (USD63 billion) have been announced by the Malaysian government to mitigate the economic risks arising from the COVID-19 pandemic. This demonstrates the commitment of the government in prioritising the well-being of the Malaysian citizens while also ensuring the survival of businesses impacted by COVID-19. The… Continue reading Overview of Post-COVID-19 Economic Stimulus Packages in Malaysia

3 Legal Tips for E-commerce Entrepreneurs

The world of e-commerce has grown exponentially and continues to grow at a rapid rate under the current circumstances. This presents entrepreneurs with opportunities to digitalise their business and expand to the global market. However, regulating a worldwide market means strict enforcement of the law to ensure fair practice and compliance. With that said, entrepreneurs… Continue reading 3 Legal Tips for E-commerce Entrepreneurs

A Glimpse Into the New Limited Partnership Fund Ordinance (LPFO)

Hong Kong’s existing legislation for limited partnerships, the Limited Partnership Ordinance (“LPO”), has not been materially updated since its inception in 1912. It comes as no surprise that industry participants often regard the existing regime as outdated and insufficient to accommodate the operational needs of modern asset managers.  As an initiative to strengthen the competitiveness of Hong… Continue reading A Glimpse Into the New Limited Partnership Fund Ordinance (LPFO)

Leveraging Government Incentives to Grow Your Manufacturing Business in Malaysia

The global manufacturing industry has been developing rapidly in recent years, entering an era of “Industry 4.0” where digital transformation dominates production lines. Malaysia, ranking 17th in the Global Manufacturing Competitiveness Index 2016, is surely a significant player in the game. Since the manufacturing industry is a crucial drive of the country’s economy, the government has launched various incentives to draw and retain foreign investors. The Malaysian Investment Development Authority (MIDA) is the statutory body in charge of foreign direct investment and… Continue reading Leveraging Government Incentives to Grow Your Manufacturing Business in Malaysia

The Practical Guide to Starting a Business in Malaysia

Malaysia, as one of the most open economies in the world, emerges to be an ideal location for setting up a business. Strategically located in Asia, Malaysia has lower start-up costs compared to other Asia-Pacific countries, thus attracting increasingly more entrepreneurs to form their companies there. This article will outline some procedures for setting up… Continue reading The Practical Guide to Starting a Business in Malaysia

Identifying and Navigating Legal Risks for Startups

Legal risks are inherent in the process of running a startup. Yet, for first-time entrepreneurs, it is often very difficult to be cognizant of potential legal pitfalls. It is nonetheless worthy to spend some time and resources to avoid legal complications that may lead to business disruptions in the future. Due diligence is a critical… Continue reading Identifying and Navigating Legal Risks for Startups

Strategising Digital Transformation and Training Data-literate Teams for Business of Tomorrow

In the wake of COVID-19 comes a shower of government-led incentives to accelerate digital transformation in the business world, including the highly anticipated Distance Business Programme with funding worth HK$500 million. While the epidemic as a driving force is a most unfortunate and costly one, it does urge decision makers, especially of small- and medium-sized enterprises… Continue reading Strategising Digital Transformation and Training Data-literate Teams for Business of Tomorrow

Resource Hub on Measures and Funding under COVID-19

Anti-epidemic Fund As our society copes with the coronavirus outbreak, the Hong Kong government has earmarked HK$287.5 billion in three rounds of measures to help alleviate the financial burden of businesses and individuals. Read this booklet with key measures on: Employment Support Scheme (wage subsidies); Distance Business Programme (further details to be announced soon); Subsidy schemes for food licensees and sectors of construction, retail, arts… Continue reading Resource Hub on Measures and Funding under COVID-19

How to start your business in Hong Kong?

Hong Kong is deemed as an excellent place for carrying out business by many entrepreneurs not only because of its status as a leading global financial centre. Hong Kong’s simple tax system with low tax-rate, coupled with its world class infrastructure and proximity to the mainland Chinese market, have attracted numerous companies to establish their… Continue reading How to start your business in Hong Kong?

New Foreign Investment Law to Take Effect in China in 2020

On 15 March 2019, the National People’s Congress of China adopted the new Foreign Investment Law (the “Law”). It aimed to unify and streamline the framework of foreign investment in China, and build a market environment with stability, transparency, predictability and fair competition. The Law will take effect on 1 January 2020. How will the… Continue reading New Foreign Investment Law to Take Effect in China in 2020

Spice up Your Business in Southeast Asia

In light of the rising economic openness of Malaysia, JC Legal joined hands with their associate partner firm in Malaysia to stage a fireside chat on the basics to establish and grow business presence in Southeast Asia. The seminar featured Malaysian lawyers Chai Chuan Long, Partner of real estate practice, Lew Choon Meng and Ong Yee Chee,… Continue reading Spice up Your Business in Southeast Asia

New Collaboration Between the Securities and Futures Commission of Hong Kong and the UK Financial Conduct Authority

On 8 October 2018, the Securities and Futures Commission of Hong Kong (“SFC”) and the UK Financial Conduct Authority (“FCA”) issued a Memorandum of Understanding (“MoU”) pursuant to which certain Hong Kong funds and UK funds may be distributed in each other’s market through a streamlined process. A stated purpose of the MoU is to… Continue reading New Collaboration Between the Securities and Futures Commission of Hong Kong and the UK Financial Conduct Authority

What is a Shareholders’ Agreement and Why Adopt It?

Shareholders’ disputes are one of the most common causes of business failures. It is particularly true when doing business in Asia, where foreign investors often face cultural differences, local commercial practices and specific legal requirements. Adopting a shareholders’ agreement can reduce such risks. Legally speaking, a shareholders’ agreement is a contract concluded between the founders… Continue reading What is a Shareholders’ Agreement and Why Adopt It?

Listing on the Hong Kong Stock Exchange Main Board A Guide for Biotech Companies

Highlights of Requirements for Companies Seeking to List on the Hong Kong Stock Exchange Main Board 1.   Financial Criteria (meet one of the three tests) Profit Test Profit ≥ HK$20 million for the most recent year, and aggregate ≥ HK$30 million for the two years before Market capitalisation ≥ HK$200 million at the time of listing… Continue reading Listing on the Hong Kong Stock Exchange Main Board A Guide for Biotech Companies

Mastering the Game in Asia – Malaysia as an Export Hub

As the third largest economy in ASEAN in terms of GDP per capita in 2017, Malaysia has enjoyed close trade ties with Hong Kong over the years. Bilateral economic cooperation is set to strengthen with the advocacy of the Belt and Road Initiative promoted by the Chinese government starting from 2015, as the country falls… Continue reading Mastering the Game in Asia – Malaysia as an Export Hub

Amendments to Securities and Futures (Professional Investor) Rules Expected to Take Effect on 13 July 2018

The Securities and Futures (Professional Investor) Rules (PI Rules) will be amended to incorporate modifications previously granted by the Securities and Futures Commission (SFC) under section 134 of the Securities and Futures Ordinance (SFO). The amended PI Rules are expected to come into effect on 13 July 2018, subject to the legislative process. The amended PI Rules will… Continue reading Amendments to Securities and Futures (Professional Investor) Rules Expected to Take Effect on 13 July 2018