How to Get a Faction Icon
In order to get a faction icon that will be displayed next to your faction name by your members, your faction must be a level 3 faction and the faction name must follow the correct naming conventions (letters, numbers, underscores, slashes, & backslashes only). If you are the leader of your faction and meet the previous requirements, you can get a faction icon by following these steps:
1. Log in using your Perfect World Account.
2. Click Faction Icon Submission in the "Profile" category.
3. Follow the instructions on the page and upload your icon! (See below for how to create a transparent icon.)
Please allow a few weeks for processing, as there are numerous internal steps that must be completed to install your icon. Faction icons are updated as a part of the (usually) weekly maintenance.
NOTE: Some character names, such as those with a leading slash, may not be able to use this system. If the system fails to recognize you after you log out, clear your browser cookies, and log back in, you may need to submit a support ticket to get your faction icon.
(Source)
How to Get Transparency Using Photoshop
1. Create new file 16*16 with a transparent background.
2. Design your logo.
3. In "Layers" window, hold down the CTRL key while clicking on the thumbnail of the layer to select just the logo.
4. Switch to "Channels" menu and press "Save selection as channel" button.
5. You will see a new alpha channel.
6. Choose "File" -> "Save As..." from the menu. Select the BMP filetype and the "alpha channels" checkbox must be on. Now click "Save".
7. Click "Advanced Modes" to get the "BMP Advanced Modes" window, and then select "A8 R8 G8 B8" and click OK.
And you now have your transparent faction icon ready for submission!