Hong Kong

1. Introduction The new Hong Kong Companies Ordinance (the ‘New Ordinance’) was passed by the Legislative Council on 12 July 2012. The last major review and amendment of the existing Companies Ordinance (Cap 32) (the ‘Existing Ordinance’) was undertaken in 1984. The majority of the provisions of the Existing Ordinance originated from the UK Companies Act 1929 and the statute was generally felt in need of overhaul. From the Commencement Date, the concept of authorized capital and nominal value will be abolished. All company shares will cease to have a nominal or par value, whether issued before or after the Commencement Date. Any provisions in a company’s constitution which state the amount of the company’s authorized capital and the nominal or par value of its shares will be regarded to have been deleted from the constitution. The nominal or par value amount of issued shares, together with the amounts standing […]

  1 When will the proposed SSD be effective?   2 Under what circumstances, will SSD be payable?   3 Would the SSD apply to confirmor sale of property which was acquired by the seller on or after 20 November 2010?   4 Who will be liable to pay the SSD, the vendor or the purchaser?   5 Would it be unfair to apply SSD to buyers who have entered into provisional agreement before 20 November 2010 and signed formal agreement after that date?   6 For the purpose of SSD, how to define the date of purchase and sale of the property?   7 What are the rates of SSD and how it is calculated?   8 Why the buyer has to be held liable for the SSD?   9 Would the SSD apply if a property is transferred to me by way of gift on or after 20 […]

Audited financial statements, which have been prepared by an independent Certified Public Accountant (CPA) on behalf of a business or non-profit organization, are used to provide financial accountability and accuracy to a company’s stakeholders and people with a vested interest in the company. In order for an accountant to properly prepare an audited financial statement, the CPA needs certain financial reports from the company. The company needs to provide their income statement, balance sheet, and statement of cash flows along with financial documentation to support these reports. A company’s income statement can also be called the P&L (Profit and Loss) and Statement of Operations. The income statement demonstrates how revenue earned (the top line) from the sales of products and services before expenses are taken out is transformed into the net income (bottom line), the end result after revenue and expenses are accounted for. The income statement documents whether the […]

A Comparison of Subsidiary Company and Branch Office and Representative Office in Hong Kong Entity Subsidiary Company Foreign Company Branch Office Representative Office Entity Name Need not be the same as parent company Must be the same as parent company Must be the same as parent company Business Activities Allowed Can conduct all business activities Must be the same business activities as the parent company Can only conduct market research or coordinating activities Suitable For For local or Foreign Companies who wish to expand their operations in Hong Kong For Foreign Companies who wish to expand their operations in Hong Kong For Foreign Companies who wish to set up temporary vehicle in Hong Kong to conduct research and act as liaison office Disadvantages Continuing Compliance Obligations E.g. Financial Reports, Audit, AGMS, Annual Filings, etc. Continuing Compliance Obligations E.g. Financial Reports, Audit, Annual Filings, etc. It is a temporary vehicle and […]

Hong Kong is an international metropolis city in Asia and has a port for international trade. Hong Kong has an excellent legal foundation, strict law, and a strict judicial justice that is trusted by the world. Hong Kong becomes an international commercial, trade, and financial pivot, not limited to the above-mentioned reasons. They have a great transportation facility for sea, land, and air, the international circulation network, diversified financial and bank service, etc. Besides, the cost of operating a business and setting up a company in Hong Kong is low, and the procedures are simple and convenient. People from all over the world (including natural persons and legal persons) can register a company in Hong Kong, in order to develop and operate international businesses in Hong Kong. 1. Hong Kong’s Tax System The tax system in Hong Kong is simple, and the tax rate is low. Hong Kong adopts a […]