http://www.brandstoday.in/tag/lilliput-kidswear/ http://www.lilliputkids.com/ http://www.lilliputkids.com/about/awards-and-recognition/ http://www.slideshare.net/pujil2009/training-ppt-2192381 http://www.just-style.com/news/lilliput-kidswear-wins-86mprivate-equity-investment_id107470.aspx http://www.scribd.com/doc/50955161/Lilliput-draft http://www.scribd.

com/doc/54279307/lliliput

Name of the Founder: Sanjeev Narula Education: B.Com (Hons.), Delhi University Company: Lilliput Kidswear Ltd. Year of Inception: 1991 (exports) Products/ Services: Manufactures, retails & exports Kids apparels & accessories. Also retails other kids related items like toys, kids furniture, baby feeding range, baby care range, toy cars & bikes et al. Key Clients: Mothercare, Next, Adams, McKays, John-Lewis, Laura-Ashley, Tesco, Asda-George, GAP, Gymboree, Abercrombie & Fitch, American Eagle Outfitters, Hollister, Sears Motto: To provide quality and international styled products at affordable prices Vision: To be a leading world class one-stop shop for kids Topline: Rs. 700 crores for FY 10-11 Bottomline: NA YoY Growth: 40% Investors: TPG Growth, Bain Capital IPO: Not Public Expansion Plans: We would close FY 10-11 at 275 Lilliput & Lilliput World stores occupying 6,50,000 sq. ft. of retail space by the end of this financial year. In FY 10-11, the projected turnover is Rs 700 crore, with 55% year-onyear growth. We are expecting a turnover of Rs 1,600 crore by FY 12-13 and are anticipating most of the growth from tier 2 and 3 cities Biggest Mistake: There has been no mistake as such. There have been only learning experiences which provide us exposure and prepare us for the times to come Business Milestones Lilliput entered domestic retail with the launch of the 1st Lilliput store - 2003 Lilliput forayed into international arena with the launch of first international store in Bahrain - 2007 Launch of Lilliput World in Feb 2010 in New Delhi a one stop shop for kids - 2010

Garnered PE Funding from PE firms Bain Capital and TPG Growth - 2010

About
Lilliput could well be a misnomer, for there is nothing small about this USD 160 million kidswear behemoth which currently spans 700,000 sq.ft of retail area across the country and has inched overseas across the Middle East and Gulf, China, Africa and South East Asia. Lilliputs long journey has been a series of baby steps that began 20 years ago.

In 1991, Sanjeev Narula, a young graduate set up a small unit with 25 sewing machines in Delhis Govindpuri area. He employed four people and hired tailors on contract to take up fabrication work for exporters. It required an investment of USD 2,300 which came from his own savings and as a loan from his father. He closed 1990-91 with a turnover of USD 18,300 and it proved to be a turning point. It was around this time that India also liberalized its export policy and Narula moved to make the most of the booming industry. As most orders had been from companies retailing in kidswear, it had by default, become Narulas expertise. And upon surveying the Indian market he realized that there was a vacuum in

branded garments for kids and the ones which were available were either expensive or tacky. He zeroed in on Delhis Greater Kailash market for his first store, which opened in April 2003. Brand Lilliput was finally born. With a concrete business plan and an aggressive growth strategy, he did not take the franchising route to grow. Booking shops in upcoming malls over the country, in seven years, the number of stores across the country mushroomed to more than 250. From 25 sewing machines in a dingy workshop to five manufacturing units in Delhi/NCR, with over 4000 state of the art machines and over 8500 skilled workforce producing 1 million units per month, Lilliput is all set to uphold its cult status in times to come. Bain Capital & TPG Growth, two of the top PE funds globally, have an undisclosed stake in Lilliput Kidswear Ltd. wherein they invested USD 60 million and 26 million respectively, in April 2010. Lilliput presently operates in 3 formats:Lilliput (EBO) The oldest format spread across an average area of 1000 to 1200 sq ft, exhibiting the complete range of clothing, shoes and accessories. Lilliput World Cradle to Catwalk- Lilliput World is large format chain of stores spread across 7000 to 10000 sq ft of area displaying variety of kids apparels, accessories, toys and more, an ideal place for kids, parents and soon-to-be-parents. The aim is to be the one stop destination for anything and everything related to kids, from new born to managing just about anything till they are juniors. A hub of wide ranged, good quality, internationally styled yet affordable products for kids and parents. LILLIPUT BAZAAR is the newest format spread across 4000 to 6000 sq ft of area, Lilliput Bazaar is a complete store where you can get fabulous discounts on the best of stylish products adding ALL THE MORE value to your money.
Awards and Recognition 1. Bhartiya Shiromani Puraskar to Mr.Sanjeev Narula by the Institute of Economic Studies in January 09. 2. Most Admired brand Kidswear at the Images Fashion Forum 09, for the second consecutive year 3. Retailer of the year- Kidswear at Reid & amp Taylor Excellence Awards 09, for the second consecutive year 4. Glory of India Award Presented to Mr. Sanjiv Narula (Managing Director Lilliput Kidswear Ltd.), at Institute of Economic Studies & amp, (February 2009). for the second consecutive year 5. Rashtriya Rattan Award on 23rd May 09 to Mr. Sanjeev Narula (Managing Director-Lilliput Kidswear Ltd.) for outstanding Individual Achievements by Citizens Integration Peace Society 6. Trusted Brand 09 Award on 28th May 09 by the Readers Digest (Voted by Consumers) 7. Pinnacle Award 09 in August by Shoppers Stop 8. SME of the year by CNBC TV 18 & amp, ICICI Banks Emerging India Awards 2009.

9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Most Promising SME- Retail by CNBC TV 18 & amp, ICICI Banks Emerging India Awards 2009. Brand of the Year 2009 by CMAI Apex, For the third consecutive year. The Pinnacle Award for Best Brand in Kidswear 2008-09, from Shoppers Stop. Brand of the Year 08 Award in the Kidswear category by Clothing Manufacturers Association of India (CMAI). Brand Entrepreneur of the Year 08 Mr.Sanjeev Narula Mr. Sanjeev Narula (M.D., Lilliput Kidswear Ltd.) received UDYOG RATTAN for Excellence in Retail Certified by IES in Feb 08. The most prestigious LYCRA Award for Most admired Brand of the Year in Jan08. Reid & amp;Taylor award for retail Excellence in Kidswear, Presented by Asia Retail Congress 2008. The Pinnacle Award for Best Brand in Kidswear 2007-08, from Shoppers Stop. Kidswear Brand of the Year 2007-08 by Central Icons.

Corporate Information Exports

Besides being a FAMA approved Company, our prestigious clientele comprises of:

In USA: Gap, Carters, Gymboree, Oshkosh BGosh, Macys In UK: Primark, Gap, Next In France: Carrefour, Casino In South Africa: Woolworths In Germany: Otto, Earnest Fam

Retail

Buoyed by international acclaim in the kidswear arena, Lilliput opened its first outlet in Delhi in April, 2003. An early entry into this then untapped market coupled with a superior & trendy range, gave Lilliput an edge over emerging competition. Lilliput is on the forefront of the Indian retail industry and leads the pack in the branded kids wear segment lucratively harnessing the pester power of kids. Considerable market research and insight goes into the product launches so as to maintain the USP of a superior price value equation.
Strength Statistics:

Exclusive Brand Outlets: more than 250 Shop-in-shops in Multi Brand Outlets: Over 400 Distributors: 35 Cities: 153 Points of Sale: 1000+ Lilliput has presence overseas across the Middle East and Gulf, China, Africa and South East Asia.

MANUFACTURING Strength Statistics:

State-of-the-art manufacturing facilities : 5 High-tech Machines : 4000 Workforce : Above 8500 Production Capacity : 1.2 million units per month

Channel Partners

Lilliput has partnered with all the major large Multi Brand Outlets to ensure the products availability to patrons everywhere.
Lifestyle Shoppers Stop Pantaloons Reliance Footprint Metro Chunmun Hypercity Globus

Indiabulls Megastore Spencers Relaince Trends Ritu Wears Mochi Big Bazar Ebony Appeal Regal Central

Lilliput Kidswear Ltd. - Company Capsule

Custom Research
Cannot find what you need? We can tailor a report for you. Complete the Custom Research Form and we will provide a quote.

'Lilliput Kidswear Ltd. - Company Capsule' is a crucial resource for industry executives and anyone looking to access key information about Lilliput Kidswear Ltd.. 'Lilliput Kidswear Ltd. - Company Capsule' report utilizes a wide range of primary and secondary sources, which are analyzed and presented in a consistent and easily accessible format. We strictly follow a standardized research methodology to ensure high levels of data quality and these characteristics guarantee a unique report. Scope Identifies crucial company information about 'Lilliput Kidswear Ltd.' along with major products and services for business intelligence requirements. Details locations, subsidiaries, affiliates and joint ventures.

 Identifies key competitors as well as key employees to assist with key business decisions. Reasons To Buy Enhance your understanding of "Lilliput Kidswear Ltd.". Increase business/sales activities by understanding your competitors' and customers' businesses better. Recognize potential partnerships and suppliers. Qualify prospective partners, affiliates or suppliers. Lilliput Kidswear gets Rs385 crore infusion from Bain Capital and TPG Growth news 20 April 2010 Lilliput Kidswear (Lilliput), one of India's largest manufacturers and exporters of children's apparel and acce Bain Capital will invest Rs266 crore ($60 million) and TPG Growth Rs115 crore ($26 million) for "a significant minority stake" in the company, the New Delhi-based children's apparel maker said in a statement. The investment from Bain Capital and TPG Growth includes Everstone Capital exiting its early stage growth investment in the company. Lilliput said that it aims to use the funds to rapidly expand its operations. Lilliput has been manufacturing and exporting world class children's wear to the top kidswear brands across UK and US since 1991. Gap, Next, Carter's and Old Navy being a part of their clientele. Its domestic business includes presence of its brand in leading stores like Shopper's Stop, Lifestyle, Central, Globus, and Pantaloon. Sanjeev Narula, founder and MD of Lilliput said, "We are thrilled that Bain Capital & TPG Growth have decided to invest in Lilliput. We have had a wonderful investor in Everstone Capital and our experience encouraged us to continue to partner with two leading global private equity players to realize our aspirations for Lilliput." He added, "Bain Capital & TPG Growth's track record in backing world leaders and value creation speaks for itself and their significant investment is a strong vote of confidence in Lilliput's potential". Lilliput, with Rs415 crore turnover in FY 09-10, operates more than 260 stores across the country and nine other nations. Lilliput has a workforce of over 7500 in more than 153 cities in India and has been exporting its kidswear brands to the US and Europe.

Lilliput Kidswear announces upto 50% off !

New Delhi:Lilliput, a dominant player in the Indian kidswear industry, has announced its End of Season sale of upto 50% off. Customers can walk into any Lilliput store and choose from a stylish & trendy range of apparel, toys, shoes, accessories and furniture for kids of age group 012 years. Apparels, Shoes & Accessories:

Lilliput launches Everyday Essentials

New Delhi: Lilliput, a dominant player in the Indian Kidswear industry, has launched their exclusive Everyday Essentials Collection. The collection is the core range duly priced for everyday, anytime wear. The Everyday Essentials Collection has been reasonably priced at ` 125/- onwards for the kids between the age group of 0 to 12 years.

Lilliput Website Terms of Service

The Web pages available at lil2.epixel.in, and all linked pages (Site), are owned and operated by Lilliput and is accessed by you (User) under the following terms and conditions:

1. Access to the Services

Subject to the terms and conditions of this Agreement, Lilliput may offer to provide certain services, as described more fully on the Site, and which are selected by User through the process provided on the Site (Services), solely for Users own use, and not for the use or benefit of any third party. Services shall include, but not be limited to, Lilliput feeds and the Public Application Programming Interface (API). Lilliput may change, suspend or discontinue the Services at any time, including the availability of any feature, database, or content. Lilliput may also impose limits on certain features and services or restrict Users access to parts or all of the Services without notice or liability. Lilliput reserves the right, at its discretion, to modify this User Agreement at any time by posting a notice on the Site, or by sending User a notice via email or postal mail. User shall be responsible for reviewing and becoming familiar with any such modifications. Use of the Services by User following such notification constitutes Users acceptance of the terms and conditions of this User Agreement as modified. User certifies to Lilliput that if User is an individual (i.e., not a corporation) User is at least 18 years of age. User also certifies that it is legally permitted to use the Services and access the Site, and takes full responsibility for the selection and use of the Services and access of the Site. This

Agreement is void where prohibited by law, and the right to access the Site is revoked in such jurisdictions. User shall be responsible for obtaining and maintaining any equipment or ancillary services needed to connect to, access the Site or otherwise use the Services, including, without limitation, modems, hardware, software, and long distance or local telephone service. User shall be responsible for ensuring that such equipment or ancillary services are compatible with the Services.

2. Site Content
The Site and its contents may only be used in accordance with the terms of this Agreement. All materials displayed or performed on the Site (including, but not limited to text, graphics, news articles, photographs, images, illustrations, audio clips and video clips, also known as the Content) are protected by copyright. User shall abide by all copyright notices, information, and restrictions contained in any Content accessed through the Services. Content produced by Lilliput is licensed under a Creative Commons Attribution-NonCommercial license enabling users to copy, distribute, and perform the works on this site as well as create derivative works with proper attribution for non-commercial use. The Site is protected by copyright as a collective work and/or compilation, pursuant to U.S. copyright laws, international conventions, and other copyright laws. Lilliput grants to User a limited nonexclusive, non-transferable, non-sublicensable right under Lilliputs intellectual property rights to copy, distribute, display, perform and create derivative works of the Content with proper attribution solely for non-commercial use. If User wishes to use Content for commercial purposes, User must submit a business inquiry. Copying, using or storing any Content for other than noncommercial use is expressly prohibited without prior written permission from Lilliput or from the copyright holder identified in such Contents copyright notice. Lilliput requests that, according to standard academic practice, if a User uses the Service for any research that results in an article, a book, or other publication, the User lists Lilliput as a resource in Users bibliography. User acknowledges and agrees that if User uses any of the Services to contribute Content to the Site, Lilliput is hereby granted a non-exclusive, worldwide, royalty-free, transferable right to fully exploit such Content (including all related intellectual property rights) and to allow others to do so. User warrants, represents and agrees that it will not contribute any Content that is infringing, libelous, defamatory, obscene, pornographic, abusive, offensive or otherwise violates any law or right of any third party. Lilliput reserves the right to remove any Content from the Site at any time, for any reason (including, but not limited to, upon receipt of claims or allegations from third parties or authorities relating to such Content or if Lilliput is concerned that User may have breached the immediately preceding sentence), or for no reason at all.

3. Restrictions
User is responsible for all of its activity in connection with the Services and accessing the Site. Any fraudulent, abusive, or otherwise illegal activity may be grounds for termination of Users right to Services or to access the Site. User may not post or transmit, or cause to be posted or transmitted, any communication or solicitation designed or intended to obtain password, account, or private information from any Lilliput user. Use of the Site or Services to violate the security of any computer network, crack passwords or security encryption codes, transfer or store illegal material including that which are deemed threatening or obscene, or engage in any kind of illegal activity is expressly prohibited.

4. Warranty Disclaimer
Lilliput has no special relationship with or fiduciary duty to User. User acknowledges that Lilliput has no control over, and no duty to take any action regarding: which users gain access to the Site; what Content User accesses via the Site; what effects the Content may have on User; how User may interpret or use the Content; or what actions User may take as a result of having been exposed to the Content. User releases Lilliput from all liability for User having acquired or not acquired Content through the Site. The Site may contain, or direct User to sites containing, information that some people may find offensive or inappropriate. Lilliput makes no representations concerning any content contained in or accessed through the Site, and Lilliput will not be responsible or liable for the accuracy, copyright compliance, legality or decency of material contained in or accessed through the Site. THE SERVICES, CONTENT, SITE AND ANY SOFTWARE ARE PROVIDED ON AN AS IS BASIS, WITHOUT WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT. SOME STATES DO NOT ALLOW LIMITATIONS ON HOW LONG AN IMPLIED WARRANTY LASTS, SO THE ABOVE LIMITATIONS MAY NOT APPLY TO USER. ELECTRONIC COMMUNICATIONS PRIVACY ACT NOTICE (18 USC 2701-2711): Lilliput MAKES NO GUARANTY OF CONFIDENTIALITY OR PRIVACY OF ANY COMMUNICATION OR INFORMATION TRANSMITTED ON THE SITE OR ANY WEBSITE LINKED TO THE SITE. Lilliput will not be liable for the privacy of email addresses, registration and identification information, disk space, communications, confidential or tradesecret information, or any other Content stored on Lilliputs equipment, transmitted over networks accessed by the Site, or otherwise connected with Users use of the Services.

5. Registration and Security

As a condition to using certain Services, User may be required to register with Lilliput and select a password and User name (Lilliput User ID). User shall provide Lilliput with accurate, complete, and updated registration information. Failure to do so shall constitute a breach of this Agreement, which may result in immediate termination of Users account. User may not (i)

select or use as a Lilliput User ID a name of another person with the intent to impersonate that person; or (ii) use as a Lilliput User ID a name subject to any rights of a person other than User without appropriate authorization. Lilliput reserves the right to refuse registration of, or cancel a Lilliput User ID in its discretion. User shall be responsible for maintaining the confidentiality of Users Lilliput password.

6. Indemnity
User will indemnify and hold Lilliput, its parents, subsidiaries, affiliates, officers and employees, harmless, including costs and attorneys fees, from any claim or demand made by any third party due to or arising out of Users access to the Site, use of the Services, the violation of this Agreement by User, or the infringement by User, or any third party using the Users account, of any intellectual property or other right of any person or entity.]

7. Limitation of Liability
IN NO EVENT SHALL Lilliput BE LIABLE WITH RESPECT TO THE SITE OR THE SERVICES (I) FOR ANY AMOUNT IN THE AGGREGATE IN EXCESS OF THE FEES PAID BY USER THEREFOR; OR (II) FOR ANY INDIRECT, INCIDENTAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES OF ANY KIND WHATSOEVER. SOME STATES DO NOT ALLOW THE EXCLUSION OR LIMITATION OF INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THE ABOVE LIMITATIONS AND EXCLUSIONS MAY NOT APPLY TO USER.

8. Fees and Payment

Some of the Services may require payment of fees. User shall pay all applicable fees, as described on the Site in connection with such Services selected by User. Lilliput reserves the right to change its price list and to institute new charges at any time, upon ten (10) days prior notice to User, which may be sent by email or posted on the Site. Use of the Services by User following such notification constitutes Users acceptance of any new or increased charges.

9. Termination
Either party may terminate the Services at any time by notifying the other party by any means. Lilliput may also terminate or suspend any and all Services and access to the Site immediately, without prior notice or liability, if User breaches any of the terms or conditions of this Agreement. Any fees paid hereunder are non-refundable. All provisions of this Agreement which by their nature should survive termination shall survive termination, including, without limitation, ownership provisions, warranty disclaimers, and limitations of liability.

10. Miscellaneous

The failure of either party to exercise in any respect any right provided for herein shall not be deemed a waiver of any further rights hereunder. Lilliput shall not be liable for any failure to perform its obligations hereunder where such failure results from any cause beyond Lilliputs reasonable control, including, without limitation, mechanical, electronic or communications failure or degradation (including line-noise interference). If any provision of this Agreement is found to be unenforceable or invalid, that provision shall be limited or eliminated to the minimum extent necessary so that this Agreement shall otherwise remain in full force and effect and enforceable. This Agreement is not assignable, transferable or sublicensable by User except with Lilliputs prior written consent. This Agreement shall be governed by and construed in accordance with the laws of the state of California without regard to the conflict of laws provisions thereof. User agrees to personal jurisdiction by the state and federal courts sitting in San Francisco, California. The parties hereby expressly waive trial by jury in any action, proceeding or counterclaim brought by either of the parties against the other on any matters whatsoever arising out of or in any way connected with these Terms and Conditions and agree to submit to binding arbitration. Both parties agree that this Agreement, Lilliputs Privacy Statement, and other policies posted by Lilliput on the Site are the complete and exclusive statement of the mutual understanding of the parties and supersedes and cancels all previous written and oral agreements, communications and other understandings relating to the subject matter of this Agreement. All modifications must be in a writing signed by both parties, except as otherwise provided herein. No agency, partnership, joint venture, or employment is created as a result of this Agreement and User does not have any authority of any kind to bind Lilliput in any respect whatsoever.

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Atlas DMT Bluestreak DoubleClick Eyeblaster EyeWonder Dynamic Logic Klipmart Millward Brown IntelliQuest Unicast

INDIA: Lilliput Kidswear wins $86m private equity investment

Author: just-style.com | 20 April 2010

US-based private equity firms TPG Inc and Bain Capital LLC are to buy a minority stake in India's Lilliput Kidswear Ltd for $86m, the company said today (20 April). Lilliput, which makes children's wear for retailers including Gap, Next, Carter's and Old Navy, intends to use the financing to expand its operations. The firm also sells its own Lilliput Kidswear brand across India where it has 240 stores, as well as in the Middle East, China and Ukraine. The deal will see Bain Capital invest $60m and TPG $26m, and also includes Everstone Capital exiting its early-stage growth investment in the company. Sanjeev Narula, founder and MD of Lilliput, described the investment as "a strong vote of confidence in Lilliput's potential."

PESTEL analysis of the macro-environment

There are many factors in the macro-environment that will effect the decisions of the managers of any organisation. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyse these factors managers can categorise them using the PESTEL model. This classification distinguishes between:

Political factors. These refer to government policy such as the degree of intervention in the economy. What goods and services does a government want to provide? To what extent does it believe in subsidising firms? What are its priorities in terms of business support? Political decisions can impact on many vital areas for business such as the education of the workforce, the health of the nation and the quality of the infrastructure of the economy such as the road and rail system. Economic factors. These include interest rates, taxation changes, economic growth, inflation and exchange rates. As you will see throughout the "Foundations of Economics" book economic change can have a major impact on a firm's behaviour. For example:

- higher interest rates may deter investment because it costs more to borrow - a strong currency may make exporting more difficult because it may raise the price in terms of foreign currency - inflation may provoke higher wage demands from employees and raise costs - higher national income growth may boost demand for a firm's products

Social factors. Changes in social trends can impact on the demand for a firm's products and the availability and willingness of individuals to work. In the UK, for example, the population has been ageing. This has increased the costs for firms who are committed to

pension payments for their employees because their staff are living longer. It also means some firms such as Asda have started to recruit older employees to tap into this growing labour pool. The ageing population also has impact on demand: for example, demand for sheltered accommodation and medicines has increased whereas demand for toys is falling.

Technological factors: new technologies create new products and new processes. MP3 players, computer games, online gambling and high definition TVs are all new markets created by technological advances. Online shopping, bar coding and computer aided design are all improvements to the way we do business as a result of better technology. Technology can reduce costs, improve quality and lead to innovation. These developments can benefit consumers as well as the organisations providing the products. Environmental factors: environmental factors include the weather and climate change. Changes in temperature can impact on many industries including farming, tourism and insurance. With major climate changes occurring due to global warming and with greater environmental awareness this external factor is becoming a significant issue for firms to consider. The growing desire to protect the environment is having an impact on many industries such as the travel and transportation industries (for example, more taxes being placed on air travel and the success of hybrid cars) and the general move towards more environmentally friendly products and processes is affecting demand patterns and creating business opportunities. Legal factors: these are related to the legal environment in which firms operate. In recent years in the UK there have been many significant legal changes that have affected firms' behaviour. The introduction of age discrimination and disability discrimination legislation, an increase in the minimum wage and greater requirements for firms to recycle are examples of relatively recent laws that affect an organisation's actions. Legal changes can affect a firm's costs (e.g. if new systems and procedures have to be developed) and demand (e.g. if the law affects the likelihood of customers buying the good or using the service).

Different categories of law include:

consumer laws; these are designed to protect customers against unfair practices such as misleading descriptions of the product competition laws; these are aimed at protecting small firms against bullying by larger firms and ensuring customers are not exploited by firms with monopoly power employment laws; these cover areas such as redundancy, dismissal, working hours and minimum wages. They aim to protect employees against the abuse of power by managers health and safety legislation; these laws are aimed at ensuring the workplace is as safe as is reasonably practical. They cover issues such as training, reporting accidents and the appropriate provision of safety equipment

Typical PESTEL factors to consider include:

Factor Political Economic Social Technological Environmental Legal

Could include: e.g. EU enlargement, the euro, international trade, taxation policy e.g. interest rates, exchange rates, national income, inflation, unemployment, Stock Market e.g. ageing population, attitudes to work, income distribution e.g. innovation, new product development, rate of technological obsolescence e.g. global warming, environmental issues e.g. competition law, health and safety, employment law

Registrations
When starting a business, there are certain registrations you must apply for before you begin trading. Business registration

You must register your business with the Business Registration Office of the Inland Revenue Department within one month. A Business Registration Certificate must be displayed in a conspicuous place at your business premises. Having a Business Registration Certificate does not imply that you have complied with the legal requirements relating to your business. You may have to apply for other types of licenses, permits, certificates or approvals relevant to your business operations in Hong Kong.

Company registration

Limited companies registered with the Companies Registry are required to observe and comply with the requirements under the Companies Ordinance. Before submitting the documents for incorporating a limited company, you must choose a company name that is not the same as a name appearing in the index of company names kept by the Registrar of Companies. You can conduct a free company name search at the Companies Registry's Cyber Search Centre or at its Public Search Centre on the 13th floor of the Queensway Government Offices, 66 Queensway, Hong Kong. You should use the Exact Name Search mode and input the full and exact company name that you intend to register. You need to submit the following incorporation documents with the required fees to the Companies Registry: o Incorporation Form Form NC1 (for company limited by shares) or Form NC1G (for company not limited by shares); and o A copy of the Memorandum and Articles of Association certified as true by a founder member of the company. For further information, please visit the website of the Companies Registry.

Licensing and Permits

You may need to apply for specific government licences, permits, certificates and approvals to start your business operations in Hong Kong. To check out which specific licenses and permits are required for your business, please visit Support and Consultation Centre for SMEs.

Trademark/patent/design registration

The registration of a trademark gives you the right to prevent others from either using the trademark without prior consent, or using a trademark which is deceptively similar. The Government also has a registration system for patents. A patent will only be granted if the invention is original and capable of being industrially applied. The Intellectual Property Services Centre of the Hong Kong Productivity Council helps companies and individuals register trademarks, patents and registered designs in Hong Kong and via other intellectual property institutions all over the world.

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Compliance
Audit

Statutory reports are required annually for companies incorporated in Hong Kong. The reports must contain audited financial statements for the current year, with corresponding amounts for the preceding year, including a balance sheet, profit and loss account, and a cash flow statement. Audited financial statements must be signed off by a certified public accountant.

Record keeping

The Inland Revenue Ordinance requires you to keep sufficient records to enable your assessable profits to be readily ascertained. All records must be retained for seven years from the transaction date. The Inland Revenue Department has issued guidelines to help small businesses in preparing and keeping their records. The guidelines explain the minimum records for compliance. If your business deals in goods, you must maintain records of all goods purchased and sold. In most cases, the relevant purchase and sales invoices issued for the transactions will satisfy the requirement. If your business provides services, you must maintain records of all services provided in sufficient detail to enable the Inland Revenue Department to verify the entries in your day-today records of monies received and expended.

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Tax laws and regulations

Individuals, corporations, partnerships and trustees conducting any trade or business in Hong Kong are required to pay tax on profits arising in or derived from Hong Kong. All business operators are required to file a Profits Tax Return with the Inland Revenue Department every year. Deductions are permitted for all outgoings and expenses with the exception of: o expenses of a domestic or private nature o capital expenditure, wholly, exclusively and necessarily incurred in the production of the assessable profits o depreciation and other capital allowances in respect of plant and machinery o losses brought forward from previous years of assessment As an employer you must notify the Commissioner of Inland Revenue in writing within three months of the commencement of employment in Hong Kong of an individual likely to be chargeable to tax. You must also provide an annual return of remuneration for employees within one month of the date of issue, which is normally in April each year

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Trade and customs

There are no customs tariffs in Hong Kong. Excise duties are levied only on tobacco, liquor, methyl alcohol and hydrocarbon oil. Import or export declarations are required within fourteen days of the import or export of goods. Import and export licences, and certificates of origin are only required in order to enable Hong Kong to fulfill its obligations under international agreements or requirements for importing countries, and for public health, safety or security reasons. Textiles and clothing products for export to certain markets are currently subject to quota restraint. For more details of licensing requirements, visit www.tid.gov.hk

Disclaimer: This section is intended as a general guide for reference only. The information contained in this section should not be relied upon as a substitute for professional advice in individual cases. Future changes in legislation, tax levels and practice could affect the information in this site. The information shown is based on data or information obtained from sources believed to be reliable but HSBC makes no representation and accepts no responsibility as to its accuracy or completeness and will not be hold liable for damages arising out of any person's reliance upon this information.

Information sourced from Inland Revenue Department, Labour Department, Trade and Industry Department and Productivity Council.