Viewpoints

The taxpayer can apply for the hold-over on the following grounds: The actual profits are likely less than 90% of the provisional assessable profits assessed. On this ground, the taxpayer has to provide certified management accounts covering at least 8 months of the basis period. Loss brought forward is omitted or incorrect. The taxpayer has ceased trading. The taxpayer (who is a sole-proprietor or a partner) elects for Personal Assessment. The person has objected to the prior-year assessment. Notice of hold-over should be given to IRD at least 28 days before the due date or 14 days after the date of the demand for payment, whichever is the later.

Introduction The registration of a private company is a straight and fast process. The laws in Hong Kong does not require the engagement of professional agent to handle the registration itself. In other words, the founder (the investor or shareholder) can prepare the registration documents and handle the registration process by himself. Normally, the costs incurred for the registration of a private company will be lower should the founder decide to handle it by himself. In this case, the founder is only required to pay the official registration filing fee, business registration fee and costs for making the company chop. If professional agent is appointed, professional service fees will need to be incurred in addition to the official filing fees. Registration Costs (Founder Handles the Registration) As mentioned above, the founder of a company can chooses to handle the registration of a company in Hong Kong by himself. Assuming that […]

1. Introduction The registration of a private company limited by shares in Hong Kong starts with the creation of the company name and ends with the issue of business registration certificate. During the whole process, there are mainly two government departments involved, namely the Companies Registry and Business Registration Office. The detailed procedures are set out below. 2. Registration Procedures (1) Name of Company First, the founder (normally the investor, that is, the first shareholder of a company) should decide what name to use for its intended company. The name of a company to be registered in Hong Kong can be in English, or Chinese or both. (2) Organizational Structure Then, the founder should decide the member of the board of director of the intended company. Normally, the first shareholder will also appoint himself to act as first director of the intended company. Or course, he can also appoint whoever […]

1. Introduction In accordance with the requirements of the Company Ordinance, every company registered in Hong Kong must have a street address as its registered office. 2. Requirements of the Registered Office By law, every company must have a registered office – it’s the company’s address for formal communications. The registered office must be a real address, but it doesn’t have to be the place where you do business. For example, some companies use their accountants for company secretarial services, and the accountant address as their registered office. PO Box numbers alone are not acceptable. In addition, the Company Ordinance does not specify the number of companies which can be registered at the same address. In other words, an address can be used as registered office by unlimited number of companies. 3. Purpose of Registered Office You must be able to deal promptly with any mail sent there. Companies Registry […]

Profits Tax There is only one kind of tax for a Hong Kong company i.e. Profits Tax (Corporate Income Tax) which is at 17.5% on its assessable profits. There is no Value Added Tax (VAT), and no tax on dividend or interest income in Hong Kong. Basically, a Hong Kong company is not subject to Hong Kong taxes if its operations are not carried out in Hong Kong. In determining whether a Hong Kong company’s operations are carried out in Hong Kong, all the company’s operations (starting from customers’ enquiries about product prices, place of orders from the customer, place of a purchase order to completion of sale and purchase) will be considered to find out which processes are carried out in and outside Hong Kong. The location of bank accounts is insignificant for this matter. For instance, a Hong Kong trading company with a bank account in Hong Kong […]

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. […]