Hong Kong

HONG KONG

HONG KONG

COMPANY DETAILS

Amway Hong Kong Limited

Room 801, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Causeway Bay Hong Kong
Republic of China

Phone: 852-2969 6333
Fax: 852-2807 3920

www.amway.com.hk (Public Website/MultiLingual)

ahkinfo@amway.com (Email)

Opened October 1974

Plan Basics

Overview

Purchasing Products
All Distributors purchase products directly from Amway.

Bonus Payment
Bonuses will be paid directly to the Distributor who has earned the bonus. Bonus payments will be paid by the 25th of the month. Distributors will receive their bonus payment as an autopay into their bank account or by a check in the mail.

PV/BV Transfers
PV/BV transfers are not available.

Performance Schedule

PV Performance Bonus
10000             21%
7000               18%
4000               15%
2000               12%
1000                9%

PV/BV Ratio
The PV/BV ratio for Amway products as of September 2016 is 1 to 16.0.

Retail Margin
Retail margin or mark up for Amway products averages about 30% but varies with each product. The average retail margin for this market is 30%.

Starter Kit Purchasing
The Sponsor can purchase the Starter Kit for the new distributor.

Cost of Starter Kit

Distributor:
380.00 Hong Kong Dollars

Privileged Customer:
100.00 Hong Kong Dollars
Literature Kits will be given to the new Privileged Customer while application form has been submitted.

Sponsoring
Purchase a Starter Kit at HK$380 from a local sponsor.

Business Type

Distributor
- Given two product coupons of HK$100.00 each in return
- Purchase products at distributor price
- Sponsoring and retailing are allowed
- Can participate in the Amway Sales & Marketing Plan

Privileged Customer:
- Given a product coupon of HK$100.00 in return.
- Purchase products at distributor price
- Sponsoring is allowed
- Retailing is prohibited
- Can apply to become a distributor by purchasing a starter Kit at HK$380.00.

Privileged Customers / Distributors must be at least 18 years of age.

Establish a Second Busines

International Sponsoring
International sponsoring is always an option and an excellent means of expanding your business while avoiding many of the costs and complexities associated with establishing a second business. Please note: For those markets where foreigners are able to establish a second business, they must be the international sponsor of their second business in another country.

Privileged Customer
Anyone who is a Hong Kong resident aged above 18 can sign up as a Privileged Customer.

Distributor
Subject to obtaining the appropriate visa (see below), you may establish and operate a No. 2 business either as a sole proprietor, partnership or a limited company. You will want to consult with a Hong Kong attorney for advice on what would be the most appropriate vehicle for your business goals.

Every business carried on in Hong Kong is required to be registered with the Business Registration Office. The annual registration fee is HKD2,000 (waived for fiscal year 2012/13) and business registration levy is HKD450. This certificate is issued by the Hong Kong Inland Revenue Department and must be renewed annually.

Tax obligation
Distributors are liable to pay taxes. As a distributor carries a business in Hong Kong, you have to file profit tax returns to the Hong Kong Inland Revenue Department every year. Profits are taxed at a rate of 16.5% for limited companies and 15% for sole proprietorships and partnerships.

Key conditions of a limited company:
Registered office, a company must have a registered office address in Hong Kong. This serves as the company’s legal address for notices and proceedings and can be different from the business address.

Directors:
One is sufficient unless the company is part of a listed group. Directors may be individuals or corporations of any nationality, domicile and residence.

Company secretary:
A company must appoint a company secretary (to ensure compliance with ongoing legal returns, accounts, audit and other requirements) who must be resident in Hong Kong.

Share capital, the prescribed fee of HK$1,720 plus capital duty of HK$1 for every HK$1,000 of share capital up to a maximum of HK$30,000 of this will be refunded if applications are unsuccessful.

Business registration, before making application for a Business Registration Certificate, a limited company must first be registered with the Companies Registry. Applications should be made within 1 month of the date of incorporation.

Alternative to incorporating a company:
Buy a company off the shelf, i.e. a ready made company that is already incorporated but is dormant. Shelf companies provide an immediate solution although if you are required to change the company name and specific provision in its constitution.

Form a limited company in Hong Kong, you may not be familiar with the procedures, it is advisable for you to contact some local professional solicitors, accountancy or secretarial firms for their advice and behalf to set up the company in Hong Kong.

Key conditions of a partnership/sole proprietorships:
The partners or sole proprietor have unlimited liability for the debts and liabilities of the business.

If the sole proprietor (or all the partners in the case of a partnership) is not residing in Hong Kong, he/she has to appoint an agent who is residing in Hong Kong to act on his/her behalf for the purposes of business registration. An appointment letter in favour of the agent and a copy of the agent’s Hong Kong Identity card must be submitted together with the business registration application form. In the appointment letter, full particulars of the agent must be stated including his name, Hong Kong identity card number and residential address.

Note:
Amway Hong Kong and ACCL are two separate markets and operate under different modes. Sign up in Hong Kong does not give one a right to access the China market automatically.

Click the link below to display additional details on how to start a multiple business in this market.

Market Framework Requirements

Ordering

- At Merchandising Centres
- Phone: (852) 2512 0101 Monday through Friday 9:00 a.m. to 5:00 p.m.
- Fax: (852) 2414 8033
- Complete Delivery Order Form
- Am@net (www.amway.com.hk)

Payment Methods

- Cash on delivery
- Direct debit
- Visa or MasterCard
- POS Machine
- Cheque payment from Direct Distributors and Up will be accepted

Returns/Refunds
Starter Kit returns will be accepted for a full refund within 12 months from the month of signing up.

Products may be returned under the Customer Satisfaction Guarantee policy.
Distributors/Privilege Customers can return merchandise directly to any of Amway Merchandising Centres by completing an SA112HK Returned Merchandise Authorization Form. All goods returned need to be accompanied by the Order Receipt, which certifies its date of purchase. The guarantee period for consumer is limited to 30 days

The Buy-Back Rule
Resigning distributors can return all current saleable items (including non BV items) accompanied by the Order Receipt. A 10% handling fee is chargeable.

 

Access Information

- Phone-in hotline inquiry (852) 2969 6300
- On-line inquiry computer terminals at Merchandising Centers
- Monthly performance reports
- On-line inquiry via Amway web-site

Receive Bonus Payment

Distributor:
- Autopay into their bank account
- Bonus cheque will be mailed out with HK$10.00 handling charge

Renew
Please note: Renewal is only necessary in one market for Hong Kong / Macau

Four Categories:
1) Local Platinum (Auto-renewal) - HK$180 deduct from performance bonus
2) 5,000DP - one year free and get HK$100 gift coupon (if personal purchased $5,000 DP & up)
3) Direct Debit Authorization - HK$180 for Distributors & HK$100 for Privilege Customers
4) Initiated by distributors & Privilege Customers - fill in the Renewal Form

Renewal Methods & payment
1) Amway process renewal for Platinums automatically and deduct the renewal free of HK$180 from their performance bonus.
2) Amway process free renewal for all distributors and privilege customers who has personal purchased $5,000 BV & up
3) Regarding the authorization of distributors and privilege customers to deduct renewal free from their savings A/C, current A/C, Visa or MasterCard.
4) Instant renewal process at any Amway merchandising centres. Mail in cheque with completed renewal form, phone in Amway Inquiry Hotline at (852)29696300/ Amway Ordering Hotline at (852) 2512 0101 or send a e-mail to ahkinfo@amway.com authorized Amway to deduct relevant renewal free from self Visa or MasterCard.