Gordon Oldham on Forming an E-Business

In an interesting and informative article, Gordon Oldham takes an in depth look at some of the challenges and benefits of forming an e-commerce business in Hong Kong.

His views have been compared with 8 other lawyers from countries such as, Germany, India and the USA.

Questions and Gordon’s answers are below –

While the search for opportunities to cut costs is still a valid motive for e-business activity, the most innovative firms
have discovered and been exploiting the potential of ICT for delivering against key business objectives for some time.
E-business can be exciting and rewarding, that is if the business owner doesn’t make the mistake of overlooking
fundamental commercial and business laws; proper legal, tax and business advice is essential in establishing any
business. The best professional advice is especially needed for internet businesses that are potentially subject to the
taxes and laws of the world! Acquisition International speaks to the experts…

Who is a typical client?
“Our typical ecommerce
clients share in common the desire
to use Hong Kong as a stepping stone to
China. The sometimes heavy handedness of
China in its attitude towards the Internet and
Hong Kong’s position as a leading digital city
in the world together with our low tax, rule of
law and e-business readiness and economic
ties with China put us in the forefront of ecommerce
within the region.”

What are you specific areas of
expertise when it comes to forming
an online company?
“As governments in Europe seem determined
to make the creation of small businesses as difficult as possible. As
governments in the West seem determined to tax its citizens and
its businesses dry, more and more people are discovering what the
smart ones knew a long time ago – Hong Kong is the freest
environment in which to do business its laissez-faire attitude and
low tax rates comes as a refreshing change to the restrictive
practices and suffocating taxes of Europe and allows those who
really want to work and prosper the opportunity to do so.”

How important is it to use an
established professional formation
expert? What are the major pitfalls
for companies entering the realm of
ecommerce?
“We believe that
clients are best suited to concentrating on
their core business rather than having to
spend managerial time and effort on noncore
matters. To this end we can form a
company, provide accounting services to
the same, act in a manner similar to the
bills department of a bank in terms of
opening LCs, invoicing and providing
virtual office facilities and services which
gives our clients a head start in the
establishment of their businesses and
prevents distraction from the reason to be
in Asia in the first dayplace – revenue and
profit generation.”

What are the key pull factors for
companies to form online, rather
than a more traditional approach to
business?
“With a great deal of experience behind us
in establishing HK subsidiaries for European/US corporations and
knowledge of the tax implications in doing so and with several of
our lawyers having IT and Retail experience we have developed a
wide experience in this particular area.”
As we slowly recover fromthe economic downturn, do you
have any predictions for the next 12 months, in terms of
demand for e –formation in your jurisdiction?
“There are very few
businesses who cannot improve their
bottom line with the adoption of an ecommerce
element to their business.
Whether it is the provision of services or
goods Hong Kong has a big pool of
educated, English speaking and tech savvy
young people anxious eager to work and
prosper.”

What are the key differences in
forming a traditional company and
forming an online company?
“Our mantra-
Practical Legal Solutions – On Time – No
Excuses we hope conveys our knowledge of
the practical requirements of businesses
and distinguishes us from the more
traditional law focused attitude of other law
firms unwilling or unable to take a more
entrepreneurial and businesslike approach
that clients really need.”

Do you offer business advice to your
clients?
“With a great deal of experience behind us
in establishing HK subsidiaries for European/US corporations and
knowledge of the tax implications in doing so and with several of
our lawyers having IT and Retail experience we have developed a
wide experience in this particular area.”

http://www.oln-law.com/index.php/en/pz/item/66-gordon-oldham-shares-his-thoughts-on-forming-and-e-business-in-hong-kong