Economic substance reporting obligations in the British Virgin Islands

November 13, 2020

Like most other major international financial centres (including Bermuda, the Cayman Islands, Guernsey, Jersey, the Isle of Man and the United Arab Emirates), the BVI has introduced economic substance (ES) requirements for certain entities carrying on specified “relevant activities”.

The Economic Substance (Companies and Limited Partnerships) Act, 2018 was introduced in the BVI, effective 1 January 2019. Related amendments to the Beneficial Ownership Secure Search System Act, 2017 (the BOSS Act) implemented the ES reporting regime.

This article primarily considers the reporting regime. The authors’ general guide to the ES requirements is available here.

Which entities are affected?

All BVI companies and limited partnerships with legal personality must report on their ES position annually (including foreign companies and limited partnerships with legal personality registered in the BVI).

All such entities must identify and report on whether or not they carry on any of nine “relevant activities”. Failure to do so without reasonable cause can result in criminal offences carrying significant penalties (and even personal liability, in limited cases).

What is the timing?

Compliance is measured over “financial periods” (generally of 12 months), with reporting within six months of the end of the relevant financial period.

The first financial periods have already commenced for all relevant entities.

There are default financial periods determined by an entity’s date of incorporation or registration in the BVI as follows:

The ES financial period may well not align with an entity’s financial year for tax, accounting or other purposes (although the two can be altered to match in the future). Unless they have already been altered, the default periods outlined above will apply for the first reporting cycle and then the entity could file an application with the International Tax Authority (ITA) to bring forward the start date of a subsequent period.

The vast majority of active BVI companies were incorporated prior to 2019, so their first reports must be submitted to the ITA by their BVI registered agent (RA) before 30 December 2020. In practice, RAs are setting deadlines to receive the information ahead of the actual deadline, due to the volume of reporting expected. Only RAs can submit information using the BOSS(ES) system – the ITA’s secured confidential database for ES information.

Entities which have not previously considered the ES regime should therefore do so as soon as possible.

Have the deadlines been extended?

The compliance and reporting deadlines were not permitted to be extended by the European Union despite Covid-19. However, the ITA is very aware of the challenges posed by the pandemic. A summary of the ITA’s guidance in this area is available here.

What is the reporting burden on my entity?

In practical terms, the impact depends on the entity’s activities and its tax status. Directors and operators should already be aware of their BVI entity’s obligations and be preparing for reporting, if they have not already reported.

Entities which are part of a group need to ensure that they are considering their individual non-consolidated position and assets and sources of gross income, as intragroup financing or service or other arrangements may be highly relevant to the analysis.

Reporting for entities with no relevant activity or entirely passive entities carrying on “holding business” as a “pure equity holding entity” (as defined) is expected to be straightforward.

However, entities carrying on any other relevant activity – particularly intellectual property (IP) business – or claiming the tax “non-resident” exemption should allow sufficient time to prepare reports, as this can be quite complex and may require input from BVI counsel, accountants and tax advisors.

Entities which carry on any relevant activity also can no longer qualify for exemption under the BOSS Act from reporting on their beneficial ownership as an “exempt person”. This is potentially relevant to listed companies and their subsidiaries, as well as certain other types of entity.

What are the reporting obligations?

Every relevant entity must report at least annually.

Nil returns

Even if no relevant activity was carried on during a financial period, a “nil return” is required.

Relevant activities

If an entity carried on relevant activity during a financial period, it must either (i) submit details to demonstrate how it complied with the ES requirements during the period or (ii) claim and evidence a tax status qualifying it for exemption from the ES requirements as a “non-resident” entity.

Where relevant activity was conducted and the entity is exempt due to its tax status, it will need to submit data which the ITA will use to determine whether it had adequate substance in the BVI throughout the period.

The information required varies according to which relevant activities were conducted, with a simplified compliance and reporting requirement applicable to “pure equity holding entities”.

The table below summarises the reporting requirements for relevant activities other than IP business.

Intellectual property business

There are additional very onerous reporting and evidential requirements for IP business. In practical terms, it may be virtually impossible for some entities to comply with the IP business requirements as they may well be subject to legal presumptions that they are not compliant. There are also increased fines and penalties for certain types of IP business.

Entities with potential IP business should seek legal advice, if they have not already done so.

Tax “non-resident” exemption

In addition to entities which are tax resident outside the BVI, this definition is broader than the name suggests and includes certain entities (other than “pure equity holding entities”) which are tax “transparent” or otherwise subject to tax on their income from relevant activities (for example, due to a taxable branch or permanent establishment), provided that the relevant jurisdiction does not appear on the EU’s list of non-cooperative countries for tax purposes. Evidence complying with the ITA’s guidance will need to be provided in support of the claim.

Such claim will trigger the spontaneous exchange of information by the ITA with the competent authorities in the jurisdiction(s) of tax residence (as well as any EU member state in which a beneficial or legal owner of the entity resides), which may lead to follow-up or investigation to ensure the claim is valid.

Provisional “non-resident” treatment

Generally, evidence of non-resident status needs to cover the entire ES financial period, which may not match the entity’s fiscal period. If more time is needed to supply the evidence required, it is possible to apply for provisional treatment as a “non-resident” in certain circumstances.

Entities considering claiming this exemption or such applications should consider the precise tests and implications with BVI counsel and their tax advisors, if they are at all uncertain.

Can I correct errors in my reports?

If a mistake is made when reporting it should be corrected as soon as possible. The provision of false or misleading information may result in the commission of criminal offences and significant fines and penalties.

If the RA has not submitted the report to the ITA, the RA should be able to assist with correcting the report relatively simply.

If the report has been formally submitted, the RA will need to initiate a correction process with the ITA, which is more complicated and may take time to resolve.

Go to top

About the Authors

Joshua Mangeot is a member of Harneys’ BVI transactional practice group. He regularly advises leading global law firms, businesses, financial institutions and high-net-worth individuals on BVI law. Josh has a particular interest in complex cross-border transactions and has developed a specialisation advising on the implementation of the BVI economic substance requirements.

Amy Roost serves as director of Client Services at Harneys Fiduciary. She provides a wealth of experience in corporate administration and financial services across multiple jurisdictions. Prior to joining Harneys Fiduciary in 2017, Amy headed up the BVI operation of a leading corporate service provider for 13 years.

The Evolution of Cryptocurrency and How it Helps Businesses Thrive

November 13, 2020

Just a little over a decade ago, Bitcoin started out as some weird tech experiment for “nerds” and financial enthusiasts. Nowadays, cryptocurrencies have evolved into an absolute gamechanger.

The impact of the original Bitcoin has left on the market is quite noticeable despite its volatility. What people used to consider a “fad that will go nowhere” has now become a convenient, efficient, and secure method of making financial transactions all over the world.

Cryptocurrencies and the blockchain have since gone on to change a vast number of industries at their core. But to what extent have cryptocurrencies influenced businesses? Let’s take a quick glance through some of the most noticeable changes.

Blockchain Banking

The underlying technology that powers cryptocurrencies is the blockchain. What makes the blockchain so special is its resistance toward hacking or scamming. When you make a transaction with cryptocurrencies, there are multiple nodes through which the data passes. Each node verifies the transaction’s validity in order to approve it.

The nodes that we’re talking about are just other users’ PCs on the network. Because of this, security is highly increased, and the cost of a transaction is greatly reduced. Each user gives out a little processing power to encrypt, decrypt, and more thoroughly secure the transaction when passing it onto the next node. While not 100% unhackable, it’s far safer than other traditional methods.

A Shift in Mindset

Traditional currencies, despite changing somewhat based on several factors, had a course that was fairly easy to predict. Not many international companies would give a person the option of purchasing from them in a different currency format.

However, since the rise of crypto, numerous businesses have shifted their mindset toward a more flexible payment system. Many software platforms, as a result, have started implementing tens, if not thousands of payment methods. In the future, you’ll start seeing the option to pay with cryptocurrencies on more and more websites.

Even services such as engaging live casino games have started implementing a system protected by the blockchain which allows users to deposit through one method and through one currency and then withdraw with a different payment method in another currency. This system works regardless if we’re talking about fiat or cryptocurrencies. It’s an opportunity for businesses to reach out to more customers all around the globe without intimidating them with high transaction fees.

Alternative Currencies and Alternative Currencies and Alternative Currencies

It has been more than 10 years since Laszlo Hanyecz made the first real-world Bitcoin transaction. Since then, numerous other cryptocurrencies have appeared on the market, some reaching high success while others still wallowing in obscurity.

In any case, the rise of new currencies is sure to change how businesses operate in the future. Most importantly, it helps businesses that know a thing or two about investment, risks, and rewards. If you’re one of the people who have invested in Bitcoin back in 2009 and cashed out in December 2017, you know what we’re talking about.

Final Thoughts

If you’re currently running a business that sells digital goods, and you want to reach out to an international market, it might be high time to start implementing multiple payment solutions on your website.

With that said, keep in mind all the advantages that such a system would bring you and your customers: lower transaction fees, less interference from governments, and almost instant receival of money from the end user without having to wait for multiple international banks to process the fee.

Go to top

Is a VPN for iPhone Enough to Keep You Secure?

November 13, 2020

In an ideal world, installing a VPN on your iPhone would be enough to prevent any data security-related headaches. Unfortunately, not even the most secure VPNs for iOS are a catch-all solution against cyber threats. However, they make for a pretty decent starting point, which you can read about below. Oh, and be sure to stick around to see what you can do to cover your VPN’s “blind spots.”

What a VPN for iPhone Can Do for Your Security

The main aspect of any VPN is the ability to encrypt your data. In other words, to distort it in such a way that nobody could read it, even if an ill-intentioned outsider were to intercept it. Below you’ll find the three key ways VPN encryption’s got your back.

1. Secure Your Data from Hackers

A clear majority of web traffic comes from mobile users nowadays. Social media, instant messaging, online shopping and banking, and anything else you can think of in the palm of your hand. And probably under a hacker’s scope at this very moment.

Anyone using man-in-the-middle attacks or other direct hacking techniques can do some real damage. Luckily, cyber attackers will only find an impenetrable wall if you decide to encrypt all your sensitive info with a VPN for iPhone.

2. Protect You on Public Wi-Fi

Free public Wi-Fi is a blessing, especially when you’re on a limited data plan. But you know who else can access those public hotspots just as easily? You guessed it, hackers. The FBI recently put out a warning about the dangers of hotel Wi-Fi in the context of the pandemic. These dangers pretty much apply to any unsecured (read: password-less) networks out there – whether it’s at airports, coffee shops, etc.

We’ve created a separate section about this to warn you of a specific Wi-Fi-related threat called “Evil Twin” hotspots. In short, hackers can create fake hotspots that mimic the real thing – preying on people’s love of free Wi-Fi. Once you’re connected, the attacker pretty much has access to all your data.

Of course, if you use a VPN for iPhone, that data gets encrypted before it leaves your device. Just as before, the hacker will only see a stream of gibberish as he’s trying to record your traffic.

3. Prevent Data Logging from Your ISP

Speaking of network traffic, did you know that your ISP considers your browsing and location data a valuable commodity? Advertisers will pay big money to know all your online habits, where you eat, where you shop, and so on. Just so they can target you with more irritating ads.

Fortunately, an iPhone VPN can prevent both your ISP and mobile carrier from seeing what you do online. Same goes for public Wi-Fi operators, who tend to be pretty intrusive with location-based ads.

What a VPN for iPhone Won’t Do

All that being said, here’s where an iPhone VPN can’t really do much (with some exceptions).

1. Keep You Safe Against Phishing Attacks

Around April 2020, Google was blocking 18 million Covid scam emails every day. Unfortunately, cyber attackers still find ways to exploit peoples’ fears with regards to the virus. VPNs don’t have access to your emails (which would be a massive breach of privacy, regardless of the app) – so not much to do there.

However, some iOS VPN apps automatically prevent known phishing domains (i.e. fake scam websites) from opening. That way you don’t risk handing your sensitive logins or payment info on a silver platter. That’s great and all, but it’s not a perfect solution by any means. You should always make sure you’re on the right page before logging in or inputting any sensitive data.

2. Prevent Malware Infections

While they are malware-proof for the most part, it’s not unheard of for iPhones to get viruses. A VPN is not anti-malware software, but you may find providers that block known malware domains from opening. That’s not what VPNs are built for, so we don’t fault them for it.

3. Stop Other Apps from Spying On You

What’s the worst enemy of your privacy and security? At this point, most would answer hackers, government surveillance, or their ISP. All those answers are fine and dandy, but the apps on your iPhone may end up collecting even more data about you than you realize.

Don’t just tap “Allow” without a second thought whenever you install a new app. Check on your app permissions once in a while, and you may discover what is eating up all your mobile data. Oh, and what’s removing any shred of privacy offered by your iPhone VPN. After all, your VPN can’t prevent other apps from doing what you (involuntarily) asked them to do.

4. Remain Unaffected by iOS Bugs

In March, Apple acknowledged an iOS 13 vulnerability that prevented any VPN from encrypting all traffic. This goes to show that VPNs aren’t immune to issues that can affect any other app. That being said, not using a VPN because of potential bugs is like not locking your car because they can be broken into through other means. Don’t take that chance.

When installing an antivirus, make sure to choose the best malware removal tool, which is compatible with your device.

Go to top

Key things to consider while playing online bingo

November 13, 2020

Bingo has become a popular game of chance. No wonder, in many countries including in the UK there is an increase in people playing it. You can find online bingo games and udenlandske casino at Betfred.com, which are usually based on players trying various things and strategies to win. The reputation of the online casino portal bedtespiludenomrofus.com is known not only in Denmark, but throughout Europe.

To make sure that you stand a good chance of winning, you need to create and implement the right strategies. This post explains some of the key things to consider while playing bingo online.

Play regularly

Whether you want to play for fun or money, it’s important to play an online casino regularly. In this way, you can gain the necessary experience that can help you to stand out among players. Keep in mind that when you play often, you can spread the money in different games which are better than spending all of it in one game.

Therefore, you should always purchase many cards for online bingo when the presence is quite low. This ensures that you have enough cards, though the winning ratio can decrease.

The good thing is that you can win more often, which is a good idea because playing more cards can increase your chances of winning when the presence is reduced. That said, remember that you can also be affected if you keep on purchasing more cards without making any wins.

You should choose different cards

It makes sense for you to do more when the chances of winning are good, meaning you should choose different cards. In this case, you can encounter extreme rivalry, especially when there is big money.

Aside from this, the cost of the cards you decide to buy should also be an important factor you need to consider. It cannot be emphasized enough that you should always be careful when you try to play expensive cards.

If you take long with the prediction, it can take longer for the cards to be called. Also, you should remember that non-duplicate cards’ choice can increase the opportunity of winning and should be elastic in selecting different cards that have identical numbers.

Pay attention

The basic law of probability and your original strategy should not be ignored while playing an online bingo game. For example, out of the 5 numbers, you should remember that any number can be predicted just like any other numbers. So you need to pay attention to the way the game is moving in. You should play regularly and always take a good look at the cards you have.

In a bingo game, you can get 25 seats that are called twenty-five as the center is supposed to be a free zone that is there for everyone. You can find more information about bingo by checking informative bingo portals or online bingo sites.

Since online bingo is considered a gamble, you stand a chance of winning or losing some money. Therefore, you must read the information on the best way to play the game before you decide to play it. Many sites that offer this game offer complete online privacy, the same fun, and pleasures as the land-based casinos.

Go to top

Top 8 Online Casino Software Providers In The World

November 13, 2020

Online casinos are one of the most fascinating technologies that is currently trending in the casino industry. Due to this innovation, gamers can enjoy thousands of games daily from anywhere in the world and all they need to make this possible is a connection to a reliable network and they are good to go. Most top casinos like King Billy have invested a lot in recent years to provide gamblers with the best quality of online casino platforms however; the design of the online casino apps or platforms is dependent on the online casino software provider.

Online casino software providers play a key role in the design and development of an online casino platform. If you have the desire of running your own online casino, once you have gotten the required licensure, the choice of online casino software provider you make will go a long way to determine how attractive your online casino platform will be to customers who will just be visiting your site for the first time. Every online casino user desires an online casino with high quality graphic content, top quality web development features and smooth sound effects and to get these preferred levels of class, you must go for the very best in the business and this article will provide you with a list of top 8 online casino software providers in the world.

Microgaming

Microgaming is a household name when it comes to online casino software provision. It was established in 1994 and the company has carved a reputation for itself in the casino world as the first company to ever develop online casino software. Generally, due to this fact they are regarded as the “father of online casino software providers”. They have improved tremendously in recent years to produce thousands of casino games and hundreds of variant games. Some of the games produced by Microgaming include Mega Moolah, Games of thrones and Jurassic park slot. There are a top online casino software provider and provide casino software that are made of high quality graphics and high compatibility.

Playtech

Playtech is another name that makes it to this list of top 8 online casino software providers in the world and they deserve it thanks to their wonderful reputation for producing up to 600 high quality casino games for mobile gaming sites, live dealers and off course casinos. Many top casinos like King Billy Japan have employed their services in recent years because of their reliability and they are popular for producing games like ipoker, Jackpot Giant and Holy Grail casino games. Playtech is popular for offering deals with high bonuses and incentives.

Net Entertainment

NetEnt is one of the most common online casino software providers in the world today and their popularity is not only built on trust but on a glaring reputation for producing more than 200 gaming solutions. In this year alone, NetEnt created the most popular slot games in addition to more than 25 different versions and models of Progressive Jackpots. Hence, NetEnt is a top online casino provider in the world.

Novomatic

They are popular in the casino industry for developing more than 250 high definition slots for casinos. Furthermore, they produce other games that also offer high graphics quality and smooth sound effects. Most top casinos like King Billy have employed their services in recent years because of the excellence they offer in their services and they produce games like Gold of Egypt, Asian Fortune and Diamond 7.

International Game Technology

IGT is another top online casino software provider that makes it to this honorable list. They are popularly known for producing video slots that have high video and motion qualities. They have produced lots of games in recent years and some of the popular casino games produced by IGT include Monopoly, Wheel of Fortune and Pharaoh’s Fortune.

Evolution Gaming

Evolution gaming is a household name when it comes to providing casino software for live casinos. They offer live dealer Baccarat, Blackjack, Roulette and a host of other games. Many of the top casinos like King Billy casino that provide some of the best live casino experience only employ Evolution Gaming due to the level of class they offer in this particular niche.

Realtime Gaming

Realtime gaming is a top casino software provider that is very popular in the United States. RTG offers more than 300 casino games with high graphic and sound contents. The themes they offer in some of their games are really mind-blowing and some of the games produced by the company are Mid-life crisis and It’s good to be bad.

Scientific Gaming

Scientific Gaming is popularly known for providing arcade and bingo games in addition to a whole lot of casino games. SG is a top brand in the UK and they have worked hard in recent years to produce games like Anchorman, Mighty Black Knight and the Legend of Bigfoot.

Conclusion

Here, you have a list of top 8 casino software providers that are very dependable in the business. However, if you are looking for an online casino that offers some of the high quality games offered by these companies, King Billy casino is a name you must consider. And if you are a non-gamer, but want to make money in the gambling business, King Billy Casino offers an affiliate program for people like you.

Go to top

Ways to Run a Financially Successful University

November 12, 2020

Just like other financial entities, universities are businesses and need to be run in a way that makes them profitable. Top schools work hard to protect their reputations and ensure that they are marketed the right way to attract the maximum number of students. So, if you are involved in the running of your university from a financial standpoint, here are a few top tips that can help you to make it a success.

Get Your Marketing Right

To some extent, the top universities around the world have a lot of their own marketing done for them based on their reputation alone. Therefore, if you run a university that is ranked outside the premier list, you need to work even harder to ensure that it features on the radar of prospective students. As so many people find products and services online these days, you need to ensure that your university ranks highly on search engines, and a university SEO agency service can help in this regard. You also need to ensure that you have an active and interesting social media presence. At the same time, keeping the website updated with fresh content also helps, not to mention having an effective advertising campaign.

Give Employees a Say

The top universities place a high degree of importance on ensuring that they attract and retain the most talented employees. Developing a high-quality reputation means that people actively want to work at the university, and you can be selective about who you hire. When you have the best staff working for you, it makes sense that you ask for their opinion and include them in the process of running the place as much as possible. Ultimately, this should help to create a better atmosphere for the students at the same time too in a virtuous circle that boosts your reputation.

Organize and Structure

The best universities run like well-oiled machines, and this means that they have a clear sense of structure. This also means that you should always be looking for ways that you can make things smoother with the latest technology to help automate tasks that otherwise would have been significantly time-consuming.

Develop a Strong Network

Keeping up a strong relationship with the local community, current students, alumni, and their friends and family can go a long way towards ensuring that you have a new group of students who want to attend the university, as well as people who are willing to make financial donations to the university. Ultimately, a good word of mouth reputation can go a long way towards creating the sort of buzz that you are looking for.

While universities are there to provide an education first and foremost, they also need to be financially viable to ensure that they continue successfully. The above tips give you some idea of how you can create the type of positive financial footing that you can build on, develop a reputation, and create an ever-growing base of students.

Go to top

What to Do When Your Business is Facing Insolvency

November 12, 2020

The coronavirus pandemic has changed the world we live in forever, especially the way that we work. Many people have been furloughed from their jobs, or worse they have been made redundant, and those that still have jobs find themselves working from home, rather than commuting to an office. The virus, however, has not only affected people personally it has also lead to many businesses failing or finding themselves on the brink of collapse. This can be a very upsetting time if you are a business owner because not only do you face the prospect of all your hard going up in smoke, but you also have the worry lingering at the back of your mind that you will be letting down your employees who will lose their jobs.

It needn’t be all bad, though, because if your business is facing insolvency there are still options available to you and it is possible to turn things around despite how things may seem, and there are also various ways of taking your business through the insolvency process which will protect your employees. If you find that your business is in this position, then read on, as we are going to take a look at exactly what you should do if your business faces insolvency.

Contact Your Creditors

Your first port of call when facing insolvency should be your creditors because they are the people that you owe money to, and therefore they can potentially help you out. The majority of creditors will want to help you out because they will not want to face the prospect of not receiving payment from you, which would likely be the case if you went insolvent. Try and re-negotiate payment terms so that you can spread payment over a period of time and always act in an open and honest fashion. If they see that you are really struggling but at the same time you are trying to come up with ways to turn your business around, then they will be much more amenable to changing your payment terms. Obviously, given the current situation, they too could be in a bad position themselves and may not be able to extend credit further, but there is no harm in trying.

Seek Professional Advice

When you are on the brink of insolvency there is no point going it alone as this will get you nowhere. You need to speak to as many people as possible, as every different insight is valuable, and your first stop should be a professional insolvency advisor. Experts from https://antonybatty.com/company-administration/pre-pack-administration/ recommend that an advisor takes a look at your financial position and if it is beyond saving they can help you to enter a pre-pack administration which can keep the majority of your employees in jobs and can keep the company trading. A pre-pack administration will protect the business and the assets and is suitable when you find your business in the situation of having liabilities exceeding assets or are having cash flow problems that mean that you can’t pay your creditors. Despite this, you will face selling some of your business assets or even part of your business to your creditors, but at least your firm will stay trading and your employees will remain in jobs.

Administration

A further option open to your company when it is facing insolvency is what is known as administration. When you start receiving serious threats from your creditors then you are likely to be facing this situation as renegotiating payment terms is off the table, as is entering a pre-pack administration. When you enter full-on administration a licensed insolvency practitioner will take over the day to day running of your business and will look to save the business and will try to stop further deterioration of the company’s financial position.

Effectively you are buying time to try and solve the problems and are putting your faith in experts who have more knowledge about turning around failing businesses than you have. The practitioners may be able to source new finance or will attempt to sell off loss-making parts of the business. If they manage to turn the company profitable again, it will be returned to the directors and you will be left with your business as before, aside from a hefty fee from the insolvency team.

A CVL

A company voluntary liquidation, or CVL, is your last resort. When you and the directors of the firm realize that there is no prospect of you covering your liabilities, then this is the best option. The remaining assets of the firm will be called in and distributed to the creditors in an even manner, and then the firm is closed for good. It will be a sad day, but at least it will prevent you from losing more money.

Don’t Use Your own money

You may have spent years building your business and you may regard it as your baby, however, you should not be tempted under any circumstances to put your hand in your own pocket to bail out the firm, no matter how tempting. The fact that your business is on the brink of insolvency should tell you that all is not right, so there is no point in throwing your hard-earned cash after something that is failing. Much better is to talk to creditors and to advisors about the best steps forward. As long as you own a Limited company you are under absolutely no legal obligation to prop the firm up with your own funds, so don’t do it, or you risk facing personal financial ruin. It will be tough but you have to separate your emotions from the cold hard facts.

As we have learned there are several options open to you if your business faxes insolvency. Your first step should be to talk to your creditors and see if you can extend payment terms, and then you should seek the advice of a professional who may suggest a pre-pack administration, a full-blown administration or even a CVL if your business is beyond help. Remember, however, that you are not personally liable for your businesses’ debts, so don’t be tempted to put your own money in to rescue it, as it will only end in tears.

Go to top

5 Ways to Improve Workplace Culture

November 12, 2020

The term “workplace culture” refers to the behavior, values and attitudes followed by employees working within an organization. In simple terms, the workplace culture is the personality of the company. If you own or run a business and you want to know how to improve workplace culture within the organization, then here are some tips to help you:

1. Transparency is Important

Transparency can have a positive impact on all areas of an organization. For example, employees who are trusted with sensitive or important information about a business are much more likely to feel valued and respected.

If you like the idea of making your business more transparent and open, then you will need to make sure that your employees have the correct collaboration and communication tools to do so. Once you have the correct tools in place, you will need to insist on weekly or monthly meetings with your employees. In these meetings you should:

Talk about the successes – start your meetings by sharing and recognizing the successes of the business and the employees who work there.
Talk about any challenges – once you’ve discussed the challenges your business is facing, you will be able to work with your employees to come up with solutions to overcome the challenges.

2. Be Flexible

Workplace flexibility might mean allowing your employees to work from home, or it could mean allowing an employee to have some time off for a special or important occasion e.g. their child’s graduation day.

There are a number of benefits to providing your employees with more flexibility in their work. Not only can it reduce employee turnover, but it can also increase staff morale. Also, when your staff are able to maintain a good work/life balance, it builds trust and commitment, which in turn can boost productivity levels.

3. Prevent Workplace Harassment

If you own a business then it becomes your responsibility to keep check on the unethical activities at the workplace. Your business should have zero tolerance policy to sexual harassment. You should mandate workplace harassment prevention training for all the employees who become part of your organization. This is how sexual harassment can be prevented to happen at the first place. HR compliant procedures should help with this.

It will also give your employees a sense of safety and build self-confidence to tackle such situations. This way employees feel supported and it leads to growth and success of your business.

4. Appreciate Your Employees

Showing your employees that you appreciate them and that you value their hard work can help to improve the culture of the workplace. Simply congratulating your employees for meeting a production target or thanking them for their hard work dealing with customer complaints can make a huge difference.

You could also think about introducing a reward scheme into your company. You could consider giving your employees an appreciation letter, a small cash gift or a material gift when they achieve a goal or when they work particularly hard. All of this can help to improve employee morale in the workplace.

5. Give Regular Feedback

Business owners should ideally be providing their employees with feedback on a regular basis. During these meetings, your employees should also be able to raise any concerns or ask any questions they may have. If employees receive positive feedback, they tend to feel more motivated and appreciated at the same time. If they feel comfortable enough to discuss what they feel could be improved with their line manager, and feel that their opinions are taken on board, it contributes to their personal growth and improves workplace relationships.

Culture is the personality and character of your business. It’s what makes you stand out from your competition and is the sum of its beliefs, traditions, values, attitudes and behaviors. Positive workplace culture drives engagement, attracts new talent, impacts employee and customer happiness and satisfaction, and can have an impact on employee performance too. This is why it’s so important to have a positive workplace culture in your business. If you want to make some improvements to the workplace culture in your business, then follow some of our advice above. Let us know if you notice the difference it makes.

Go to top

Prospects for U.S.-China Relations in the Biden Era

November 12, 2020

By Mr. He Jun

The U.S. presidential election which will be held on November 3 is drawing ever closer. As the Trump administration performs poorly in response to the COVID-19 pandemic, where the death toll in the U.S. exceeded 210,000, the election trend appears to be very unfavorable for Donald Trump.

According to a recent poll conducted by NBC News and the Wall Street Journal, Joe Biden led Trump by 14 percentage points in the national elections. It is worth noting that retired American generals, who have traditionally been extremely low-key in politics, publicly supported Biden this year, something that is quite rare. On September 24, 489 retired generals and admirals, former national security officials and diplomats signed a joint letter in support of Biden. Among them are Republicans, Democrats, and non-partisans, showing that they have crossed the affiliation, and jointly support Biden to replace Trump. Although the opinion polls do not represent the final election, with the election only being one month away, the widening of the opinion gap is enough to predict the direction of the election.

For the whole world, especially for China, it is necessary to prepare for the advent of the Biden era of the United States. During Trump’s tenure, U.S.-China relations have taken a turn for the worse, and China has been listed as the foremost “long-term strategic competitor” of the United States. This has caused China to have fallen into a difficult situation in the game of geopolitics and geoeconomics and forcing it to readjust its development strategy of opening-up, with China now relies on the “dual-circulation” economy. Therefore, China in particular needs to conduct forward-looking research on the possible Biden era, predict the future direction and development possibilities of U.S.-China relations, and make policy responses in advance.

During Trump’s tenure, U.S.-China relations have taken a turn for the worse, and China has been listed as the foremost “long-term strategic competitor” of the United States.

How will U.S.-China relations develop in the Biden era? To form a more accurate judgment on this question, we must first answer the relevant key question: Will Biden be the same as Trump? What is the difference if there is any?

There is a general view in China that after the Democratic Party comes to power, U.S.-China relations may worsen. The reason is that the Democratic Party places more emphasis on values such as human rights and ideology and is accustomed to using values such as human rights, democracy, and freedom in foreign policies against China. However, as far as U.S.-China relations are concerned, it is too vague to use the simple dichotomic “good” or “bad” to summarize the relationship of the two countries. The relations between these two countries should not be seen from a static perspective as in layman’s view of geopolitics.

ANBOUND’s chief researcher Chan Kung has previously pointed out that what happens today in U.S.-China relations would not be the same as tomorrow. Looking at the election in the United States from this perspective, it is certain that after Biden takes office, his policies will be different from Trump’s. Chan further pointed out that in addition to the traditional political differences between the two parties, an important difference between Biden and Trump is that Biden will follow a certain order and geopolitical discipline to implement his own policies, and he will also seek cooperation with China in certain bottom-line principled arrangements. It should be stressed that it is crucial for China and the United States to reach some principled arrangements in their relations. The so-called principled arrangements are some of the bottom-line principles during the Cold War. If the bottom line is not set, things could very well get out of hand, and the relationship between the two countries might spiral out of control. Chan emphasized that if the United States insists on treating China as an enemy, it is not much of a problem. However, even as an adversary, there are rules, regulations and orders to follow. Judging from the history of the Cold War, there are also communication and channel issues between adversaries, hence it is not something that should be done arbitrarily.

We have noticed that Henry Kissinger, the former U.S. Secretary of State, has also talked about the issue of establishing rules between China and the United States recently. Kissinger, now aged 97, said in a video seminar hosted by the Economic Club of New York a few days ago that China and the United States must establish rules of engagement for the increasingly tense competition between the two countries, otherwise the uncertainty of the global political situation before World War I may repeat itself. He believes that “Our (i.e. U.S.) leaders and their (i.e. Chinese) leaders have to discuss the limits beyond which they will not push threats”. He further stressed that, “they have to find a way of conducting such a policy over an extended period of time.” “the leaders of the two countries must explore beyond which limit they will not further threaten each other, and then they must find a way to implement this policy in a longer period of time.” From the discussion of the ANBOUND to the Kissinger’s concerns, the establishment of bottom-line rules between the United States and China is extremely important, and this is also a major difference between Biden and Trump.

From an economic point of view, we judge that the United States will likely ease its trade policy, which will objectively alleviate China’s trade pressure. Biden has criticized Trump’s trade policies, that Trump identifies products imported from Canada and the European Union as a national security threat, thereby imposing arbitrary and extremely destructive tariffs on them. Biden believes that cutting off the economic impacts between the United States and its partners has weakened the ability of the United States to respond to actual economic threats. It can be expected that the Biden administration may quell the U.S.-China tariff war and adjust punitive tariff policies that lead to “lose-lose” policies. In our opinion, if Biden takes office, he might be more concerned about politics and U.S.-China balance. In terms of trade, although he would continue to stick to the general direction of the past, this would not be the main direction of his governance. Therefore, the U.S.-China trade war could see certain respite and may even stop. In that scenario, China as the largest trading partner of the United States, could hope for the pressures in the trade with the U.S. being reduced.

China must also realize that even if Biden takes power, some key areas of U.S.-China relations will not change, such as the strategic positioning of China as the “long-term strategic competitor” of the United States. This is not something that is decided by the POTUS, but by the national will of the United States, from the strategic judgment of the U.S. decision-making class on the direction of its relations with China. In the current American society, hostility to China has become a social “consensus.” This strategic positioning destined that the future U.S.-China relations will be based on the pattern dominated by geopolitical confrontation. Biden sees that by expanding global influence, promoting its political model, and investing in future technologies, China is engaging a long-term competition with the U.S, and that is the challenge that the United States faces.

Looking back at Trump’s four years in office, it is clear that Trump is basically a person who must have the final say. He does not have a holistic strategic framework, nor a systematic policy system. He basically depends on his individual, personal feeling and the instinct as a businessman to make his decisions and do what he thinks is appropriate. This practice is destructive and does not follow common sense, therefore it cannot be tolerated by the establishment within the U.S. government. Biden has repeatedly stated that he wants to change this position. In fact, he wants to restore the establishment model, not to change the overall direction and trend. Yet, Biden is powerless to do this. For Biden, who turns 77 this year, there is still a lot of uncertainty whether he has time to complete all these within four years. This signifies that we should not be completely pessimistic about the U.S.-China relations, nor should we be overly optimistic about it.

On the whole, if and when Biden takes office, the U.S. government’s domestic and diplomatic practices will be different from those of the Trump administration, although the strategic positioning of China will not change, and neither will it change the U.S.’ general direction of long-term suppression of China’s rise. However, in terms of specific practices, the Biden administration will have its own approaches, and will seek a certain order and geopolitical discipline to implement its policies. He may also seek to reach some bottom-line principled arrangements with China. Under the basic framework, the future U.S.-China relations will undergo changes in many aspects. Instead of the crude “an eye for an eye” rivalry, we will see the return to the traditional systemic competition based on values, alliance interests, and rules. Facing the inevitable changes in U.S.-China relations, China needs to adapt to the new situation, do its due research and make plans early.

Final analysis conclusion:

China must prepare for the upcoming Biden era. The Biden administration’s practices in various areas of internal affairs and diplomacy will be different from those of the Trump administration. Although the confrontation and “hostility” between the United States and China are difficult to change, it is possible to reach a consensus on the rules and bottom lines for the two countries. For the changes that the United States may usher in, China needs to get ready for that as soon as possible.

Go to top

About the Author

Mr. He Jun takes the roles as Partner, Director of China Macro-Economic Research Team and Senior Researcher. His research field covers China’s macro-economy, energy industry and public policy.

How to Sell Workout Plans Online

November 12, 2020

4 Steps to Start an Online Personal Training Business

The year 2020 has been a wakeup call to everyone. It has reminded us all that we should always expect the unexpected. Though we are still getting adjusted to our “new normal” life, we must admit that indirectly this pandemic has had a bit of a positive effect on our lifestyle as well. Being under a worldwide lock-down, for as long a period as this one, people now are making time and are trying to compartmentalize their life in a more productive way. People who didn’t even have time to have a proper, healthy- breakfast have started their journey towards a healthier life. They have started preparing their own meals, trying out healthy diets, practicing yoga and other workout formats at home. In short they are utilizing this time to rejuvenate and revive their health quotient.

Now is the right time for you to venture into the World of Fitness Business. There are innumerable online fitness classes out there. And the major drawback in them is that they will not be able to provide one-to-one attention that the customers require. This negative point can be converted into your strength. Instead of joining a gym and being a part of the coaching herd, you could set your own “personal fitness training” class.

To make it possible here is an article in which we have provided you with some of the best possible steps, and procedures that will help you in setting up your online personal training business in the best possible way.

So, how to sell workout programs online? Let’s take it one step at a time.

1. Study your market and identify your niche:

The first step in any field is to study your target audience. You will first have to know-

What are the ongoing trends? and
What are people currently looking for?

You could either choose a general workout module that is suitable for all your customers, or target a particular segment of people. You could categorize them according to both their age, preferences, goals they want to achieve and many others.

The fitness world does not just consist of a set of exercises, they can be subcategorized based on multiple factors and this classification will provide you a clear picture as to what you want to choose as your area of focus.

As mentioned above you have to first choose a parent market. This is what decides which umbrella of the fitness industry you want to focus on. Eg: Weight loss, general health, bodybuilding, sports training etc.

Once you are sure of which market you want to be in, you can choose a sub-market category. Eg: barbell training, high-intensity exercises, and bodyweight exercises etc

Finding the right niche is of utmost importance for you to have a clear vision on what you want to concentrate and gain the required attention towards your business.

2. Start your own website:

The last step in getting your show on the road is the launch of your own website. Though this process might seem very easy there is a lot that happens behind the screen that doesn’t meet the eyes. But before you plan on how and when to launch your website, you need to know what the basic functionalities are and features a fitness website should have.

Here is a list-

Efficient panels for admin, trainers and trainees
Personal profile pages
Multiple login options
Multiple payment options
Workout listing panel with filter, sort and search options
Site Security
Easy Navigation
Review and rating with FAQ
Customer care with chatbots
Loyalty programs and discount coupons

You will need a lot of technical knowledge in order to develop your website from scratch including all the above. This will definitely cost you a considerable amount of time and money. But, there is another solution to this problem. You can buy a turnkey solution which is a white labeled, open sourced, ready-to use software that can be bought and customized to your needs and launched as your very own online platform. Some of the best in this field are- GoTo Meetings, Pinlearn, WizIQ and many more.

3. Procure content:

There are so many types of workout plans out there. You might want to stick with just one type or mix it up a little; everything depends on what the customer wants. There are many diet regimes that are even added to the workout plans to make it more comprehensive. And according to the needs of the customer the plans can be customized to see which suits them the best. Having a fitness club management will help you provide your clients with a superior fitness experience.

Since this is an online class, you will have to decide on whether you will be doing live sessions or pre-recorded ones. Whichever you choose you need to make sure that-

The surroundings are professional
You have the right equipment’s
Lightings and video equipment’s are well set

Set a framework for your videos before starting to record them. They should include,

Order of workout schedule
The schedule for the week
At least two full reps
The demo should at least be up to 20, 25 seconds long

There is no compulsion that your fitness classes should feature only you. You can also hire or include a guest fitness instructor once in a while to train or give a lec-dem etc.

Once you have your fitness sessions recorded, you can plan a schedule of how to release them. I.e you can release them weekly or even daily depending on the demand. However, you need to be consistent with your schedule. And no excuses!

4. Earn followers:

Before you start off with your own fitness business, it is good to always collaborate with others and gain some experience. This not only helps you gain some hands-on knowledge on how to go about conducting classes, handle a crowd or deal with your students, you will also get to know what goes on behind the scenes of conducting a class. This is also one of the ways to gain a loyal customer base.

To expand your territory more, you can also share your knowledge on social media. Social media is without a doubt the most influential online platform in promoting people and their businesses and gaining an audience. This is a very successful option for you to get visibility too.

Apart from the above two you have other ways to market yourself too. These below methods will come in handy even after you set-up your own online fitness platform.

Email Marketing
Influencer Marketing
Share customer testimonies, reviews and ratings
Blogging
Newsletters etc

Hope this article has helped you gain some insight on building your own online fitness coaching center. Get yourself efficient software and kick off your fitness platform.

Don’t forget to drop in a comment or a feedback!

All the best!

Go to top