Viewpoints from Kaizen

It is worth for you to consider forming a company in Hong Kong especially if you are engaged in trading business in Asia. The jurisdiction of Hong Kong has the following major benefits: Freest economy in the world, Legal system based on English Common Law, Excellent geographic location, being gateway to China, No foreign exchange control, Low taxes and simple taxation system, Free flow of information, World class infrastructure Small and medium-sized corporations and individuals can enjoy the privileges of large multi-national corporations by setting up their companies and bank accounts in Hong Kong and reducing their taxation expenses. After you set up your company in Hong Kong, it is not obligatory for you to stay physically in Hong Kong while you can have remote control over your Hong Kong company. You do not need to employ any staff or rent an office. Your operating costs are reduced substantially while […]

The New Ordinance was published in the Government Gazette in August 2012. It will become effective on 3 March 2014. From the Commencement Date, all the provisions in the Existing Ordinance will be repealed and replaced by provisions in the New Ordinance, except for the prospectus, and winding-up and insolvency provisions. These two areas will remain in the Existing Ordinance which will then be renamed the Companies (Winding Up and Miscellaneous Provisions) Ordinance. The Securities and Futures Commission has indicated that it will lead the review of the prospectus regime and plans to move the prospectus regime into the Securities and Futures Ordinance (Cap 571). Separately, the Hong Kong Government has said the winding-up and insolvency regime will undergo a separate law review exercise. The table below list all parts of the new Companies Ordinance and its Schedules. You need to use Adobe Acrobat Reader to view or download the […]

The Hong Kong Companies Ordinance (Chapter 622 of Hong Kong laws, hereafter the new CO is set to commence operation 3 March 2014. The new CO will replace the current Hong Kong Companies Ordinance (Cap. 32) (“Cap 32”) The new CO aims to enhance corporate governance, ensure better regulations, facilitate business and modernize the law. When the new CO comes into operation, Cap. 32 will be retitled Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap. 32) with core provisions affecting the operation of companies repealed except for those provisions relating to the winding up and insolvency of companies and company prospectuses. New Companies Ordinance Full Text Index Description PDF 1 Companies Ordinance Chinese Version Download 2 Companies Ordinance English Version Download 3 Schedules to the new Companies Ordinance Chinese Version Download 4 Schedules to the new Companies Ordinance English Version Download 5 Subsidiary Legislation Chinese Version Download 6 Subsidiary Legislation […]

1. An employer in Hong Kong is required to make arrangements for relevant employees aged between 18 and 65, who have been employed for 60 days or more, to join a registered MPF scheme. It can select one or more MPF schemes managed by the licensed trustees in the market (e.g. HSBC, Standard Chartered Bank and the licensed insurance companies) and then arrange the relevant employees to join the scheme. 2. Mandatory contributions are calculated on the basis of 10% of an employee’s relevant income. The employer and its employee each are required to pay 5% to the scheme. 3. Maximum and minimum income levels have been set for mandatory contribution purposes. If the employee’s income is less than HK$5,000 per month, he or she will be exempted from making mandatory contributions, but the employer is still required to contribute an amount equals to 5% of the employee’s income. 4. […]

Introduction There is no legal minimum wage in Hong Kong. Wages can be calculated by the hour, day or month, or by piece rate. The Employment Ordinance (Chapter 57 of the Laws of Hong Kong) sets the minimum entitlements for employees, such as statutory holidays, sick and maternity leave, severance and long-service payments. It is up to employers whether to provide additional benefits, such as a Lunar New Year bonus (normally equivalent to one month’s extra pay), medical allowances, subsidized meals, good-attendance bonus, paid holidays over and above statutory public holidays, subsidized transport to and from work, free or subsidized accommodation. Benefits  The Employment Ordinance requires employers to provide a set of basic entitlements. These include:  statutory holidays  sick leave  maternity leave  severance payments  long-service payments Fringe Benefits Some employers offer additional benefits. The most common are:  A lunar new year bonus, usually […]

Gift tax is levied at a progressive rate. Inter-vivos gifts which are not made for valuable consideration attract stamp duty of up to 2.75% where the gift has a value in excess of US$513,000 whereas no tax is payable if the gift is worth less than US$128,000 or where the recipient is a charitable organization.

Foreign Investment Incentives Hong Kong offers no special incentives to overseas investors or foreign-owned firms. Nevertheless, its free-port status, low tax rates, good infrastructure, relative freedom from government interference and substantial available capital make it attractive to potential investors and thus competitive with other countries in the region that do offer specific incentives. Restrictions on Foreign Investment The simplicity of procedures for investing, expanding and establishing a local company is a major attraction for foreign investment in Hong Kong. It is relatively easy to start a company: ready-made company, also known as shelf companies, are widely available and enable a businessperson to walk off a plane in the morning and start operating a firm in the afternoon. The government’s special industrial-land policy features somewhat more complex rules, but it is still less demanding than the policies of many other Asian investment centres. Controls on new investments are almost non-existent, and […]

The Revenue (Abolition of Estate Duty) Ordinance 2005 [“the Ordinance”] came into effect on 11 February 2006. No estate duty affidavits and accounts need to be filed and no estate duty clearance papers are needed for the application for a grant of representation in respect of deaths occurring on or after that date. The estate duty chargeable in respect of estates of persons dying on or after 15 July 2005 and before 11 February 2006 (“transitional estates”) with the principal value exceeding $7.5 million will be reduced to a nominal amount of $100. The old law is set out in the Estate Duty Ordinance. Estate duty had the following characteristics: It was based on the territorial principle and was thus only levied on property situate in Hong Kong. The deceased’s nationality, residence or domicile were completely irrelevant in determining whether an estate duty charge arose. The following examples show when […]

The law governing Estate Duty in Hong Kong is set out in the Estate Duty Ordinance. Estate duty has the following characteristics: 1. It is based on the territorial principle and is thus only levied on property situate in Hong Kong. The deceased’s nationality, residence or domicile are completely irrelevant in determining whether or not an estate duty charge arises. The following examples show when a charge arises and when a charge does not arise: Bank accounts: A charge arises if the bank account is in the territory. Contract Debts: A charge arises on monies owing to the deceased by way of a contract debt if the debtor resides in Hong Kong. Registered Shares: Registered shares are located in Hong Kong if the share register is situated there. Bearer Instruments: are located at the place in which they are physically present at the time of death. Patents and Trademarks: are […]

Table of Content Part (1) Summary of Maintenance and Compliance Part (2) Filing Obligations with the Companies Registry Part (3) Change of Name Part (4) Changes to Memorandum and Articles of Association Part (5) Issue of Shares (Increase Issued and Paid up Capital) Part (6) Share Transfers Part (7) Filing of Employer’s Return (for the purpose of reporting the payment of salaries to its employees, including director(s) during the financial year) Part (8) Filing of Profits Tax Return Part (9) Application and Renewal of Business Registration Certificate Part (10) Internal Management Part (11) Keeping Proper Business Records Part (12) Accounting and Auditing Requirements of a Hong Kong Company Part (13) Application for Dormant Status Part (14) Closing Down a Company in Hong Kong by Deregistration (Strike off) Part (15) Closing Down a Company in Hong Kong by Liquidation (Winding Up)