Officers in HK:                         Ms. Leslie Stojanov, Mr. M. Clermont-Desforges, Mr. Jean-Paul Benoit

 

 

The certificate of bank deposit expired.  Please make sure that the certificates of deposit are renewed and are valid at the date of interview.

 

The PA did not have the original property title deed because there’s a mortgage and the bank keeps it.  However, the PA obtained a photo-copy with bank seal and a certificate from the bank showing balance of mortgage to the officer.

 

The PA has one property which is still under mortgage.  The officer said the PA would be required to submit mortgage agreement and letter from the bank stating the balance of the said mortgage (notarized and translated).  These documents could be easily obtained by the PA.  For future clients, please remind them to bring to the interview.

 

The officer was of the opinion that it’s not clear that the difference of cash at bank came from the undistributed profits for the last year.  The financial statements (the PA is a shareholder) did not show that the company is profitable.  The PA agreed that these financial statements showed a loss.  Since the company was founded in 2005, it has account receivables and stated that the company bought a factory.  The PA could provide the factory’s financial statements showing profit.

 

The properties are under the names of the PA + spouse + child.  The officer looked at the mortgage and said that the total mortgage was undertaken by the PA.  So, the officer could not consider that the PA was responsible only for 1/3 of the mortgage.  The PA has enough assets to quality.

 

The officer had a problem with the original of funds of RMB 8M which was invested in the current company.  The officer understood that it was a return from the PA’s contribution in the company but he/she still had some concerns on the provenance since it was offered from the PA’s family.  In addition, it was not clearly stated in the CVR that the increase of registered capital was from the assets appraisal.  The lawyer explained to the officer that the company’s equity increased more than RMB 40M since 2000.  Even if the officer withdrew the RMB 8M, the PA’s part of owner’s equity through business activities has increased and the PA still has enough total assets to qualify.

 

 

The officer doubted the income statement that was signed by a person whose authority in the company was not clear.

 

The officer stated that it was not possible, according to him/her, to draw the line between the Company, the shareholders and their representatives in the absence of any official document.

 

The officer noticed the business license of the representative office was established in 1997 (the PA was employed in 1994).  The PA explained clearly that he/she was employed directly by the Hong Kong company (its business license photo-copy was shown to the officer) and that the registration process was not completed.  The officer wants the PA to submit after the interview business license of HK company, certificate of income signed by the legal representative of the HK company with company seal (notarized and translated).

 

Fixed assets of the factory were used to invest in the limited company.  The officer indicated that she would like to have some documents, e.g. purchase contracts of equipments to prove that the PA owned the fixed assets.

 

The officer would require a recent proof from ABIC to confirm that the PA has 30% of shares.  The BIQ obtained information that the spouse and son are the only shareholders.

 

 

The officer was suspicious as to why the PA could not retrieve the financial statement (1993-1999) if the PA was acting as the GM.

 

The internal financial statements 1997-2000 were not audited and proof to support the distribution of profits (RMB510,000) was weak.  At the end of the interview, the lawyer talked with the officer considering that the PA only distributed RMB510,000.  The factory was cancelled to set up limited company but no document from the ABIC about factory cancellation.

 

The PA had provided audited report which showed distribution of profits.  The officer wanted more to support the origin of funds (distribution of profits).

 

 

As the PA has to demonstrate 3 years of management experience, the older officer expressed some doubts as to the scope and importance of management decision before the PA became the legal representative and shareholder since 2004.  The PA answered in an exemplary manner.  The officer still expressed concerns that it was not likely that the PA would be in charge of any of the financial decision.

 

The officer examined a few business contracts signed by the PA before the PA became a shareholder.  The officer disregarded them because in his/her opinion, the contracts did not make clear that the PA had the approval/authorization from the legal representative to sign those contracts.

Management Experience (cont’d)

The PA was excellent and gave complete and lengthy answers to describe management responsibilities.  That was quite impressive.

 

The officer would require more proof of 3 years’ management experience, especially control over finance, e.g. important amount of expenses authorized by the PA.

 

 

The officer would have liked to see more documents, specifically proof of income, e.g. bank deposit history, receipt of money.  The PA, who previously worked in a branch of a big bank, showed reference letter, certificate of income with bank seal, deposit entries in securities trading account.

 

To prove at least 3 years’ managing a profitable business, the PA was very good at demonstrating and talking the audit reports.  For proof of income, income certificate, resolution of the board, receipts of money (signed by the PA) and bank deposit records were presented.  The officer said that he/she was very impressed by the PA’s performance and accepted his/her immigration application.

 

The officer considered the proof of income was weak (PA received 1.8 M since 1991).  The lawyer intervened to explain that the PA had worked 15 years in the company and the important amount of dividend was distributed in 2004 which is proven by the fixed deposits.

 

The PA made RMB 2M from the Chengbao (1992-1994).  There’s nothing to prove the income received (bank records, receipts, financial statements) besides the chengbao agreement and reference certificate.  Again, the officer would have liked to see receipts and bank records for the proof of income after the PA owns his/her company.

 

The PA explained that he/she received profit distribution (RMB 11.9 M) in several payments and then put the money received in the spouse bank account.  The officer would probably ask for bank proofs from the spouse.

 

The company manufactures some specialized products and therefore enjoys tax benefit for corporate income tax.  The officer needs a document from the tax bureau to prove the fixed tax.

 

The officer mentioned that he/she would like to have all income tax vouchers (2004 and 2005) to verify the reliability of the financial reports.

 

The corporate income tax was pretty small in comparison with the gross profit.  The PA’s company can enjoy preferential tax rate because the company uses recycled materials in the production.  The officer would request a certificate from the tax bureau to confirm such tax benefit.

 

 

The PA was great and gave a flawless performance that was very impressive.  The officer signed the transfer of fund letter and gave it to the PA on the spot.

 

The PA was not very good during the lawyer briefing.  It was good to see the PA worked hard to improve and performed fairly well during the interview.

 

Despite very long discussion at the lawyer briefing on the issue of giving complete answer, examples at work and not just answering “yes” or “no”.  The PA was disappointing when it came to questions on management experience.

 

Prepare an organization chart (with department name and number of employees in each department) for future clients.  One officer would ask client to explain.

 

Though most of the questions are asked to the PA, the spouse should be prepared to answer some questions on personal information, e.g. employment, income, personal reason for immigration to Quebec.  It’s because the officer noticed mistake on the spouse application form and wanted to verify during the interview.

 

The PA was calm and relax during the whole interview.  He/She did a very good performance and answered the questions well.

 

 

The new director was present in the interview as an observer at the interview conducted by Leslie Stoianov, then, Jean-Paul Benoit.

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