Viewpoints
2019-10-01
A Hong Kong limited company can be dissolved in the following two ways: Deregistration/Strike Off of a Hong Kong Company A Limited company, which is defunct and solvent, wants to cease its business must officially apply to the Companies Registry to deregister it or strike it off from the Register of Companies. A company is still required to file Annual Returns to the Companies Registry before it is officially deregistered. A penalty will be imposed on the Company and/or the management for failure of submission of Annual Return. In applying for deregistration, certain declarations should be made by the applicant. Any person who knowingly and recklessly gives information to the Companies Registrar that is false or misleading in a material particular is liable to a fine and to imprisonment. As the deregistration process is more technical and affecting company’s property. A company should seek professional advices before making an application. […]
2019-10-01
The differences between a Hong Kong branch and a Hong Kong subsidiary of a foreign company stem from the fact that, unlike a branch, a subsidiary is an entity which, under Hong Kong law, is entirely separate from its parent. The business activities available to a company in Hong Kong are generally not dependent upon whether the company is locally incorporated and there is generally little practical difference between operating a branch and a subsidiary company in respect of profit computation. The rate of tax levied on profits is the same for local and foreign companies and dividends are not subject to separate taxation in Hong Kong. Reasons for preferring a subsidiary over a branch The usual reasons for preferring a subsidiary over a branch include the following: the parent company will not be liable for the debts of its subsidiary; its legal liability will be limited to the amount […]
2019-10-01
1. Recruiting Customs and Practices (1) Recruiting The Labour Department offers a range of free recruitment and employment services. Employers who wish to recruit staff should complete and return a vacancy order form by fax or mail. When job seekers are interested in your job, the Job Centre will call you to introduce the job seekers and arrange for interviews. After concluding each interview, you must indicate the result on the introduction letter and return it to the Job Centre. The Centre will continue to refer interested job seekers to you until your vacancy has been filled. (2) Working hours Employees employed under a continuous contract are entitled to not less than one rest day in each period of seven days. (3) Wage Hong Kong’s minimum wage ordinance came into effect on 1 May 2012. According to the ordinance, wages payable to an employee in respect of any wage period, […]
2019-09-27
Overview Hong Kong’s financial services industry has seen unprecedented growth in recent years. As a result, Hong Kong has become a key financial services center in Asia. In Hong Kong, an intermediary needs a valid license to conduct financial services regulated activities. The regulated activities include securities dealing; futures dealing; leveraged foreign exchange trading; advising on corporate finance, securities and futures; securities margin financing; providing automated trading services; and asset management. The Securities and Futures Ordinance SFO governs the securities and futures markets, establishing regulations for intermediaries, offers of investment products and general conduct in these markets. Types of Financial Service Licenses The SFO regulates 10 types of regulated activity. Generally, no person may carry on a business (or to hold itself out as carrying on a business) in a regulated activity unless, the person is a corporation licensed or registered by the Securities and Futures Commission SFC for that […]
2019-09-27
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 […]
2019-09-27
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 […]
2019-09-27
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 […]
2019-09-27
Filing Employer’s Return The Employer’s Return for the year of assessment 2003/2004 was issued to all employers on 2 April 2002. All employers are required to furnish the return within one month from the date of issue. That is, the return must be furnished on or before 1 May 2004 unless an application for extension in writing is filed with the Inland Revenue Department (IRD) on or before 1 May 2004. A complete set of annual employer’s return of remuneration and pensions contains a form BIR56A and forms IR56B. Before you complete the return, you should read carefully the “Notes and Instructions” given on the form BIR56A. A “NIL” return of BIR56A is still required even if you have no employees or pensioners chargeable to Salaries Tax. To avoid duplication in reporting employee’s income, no annual return form IR56B is required for those employees whom a form IR56F or IR56G […]
2019-09-27
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 […]
2019-08-23
General Information One thousand miles from the African coast in the western Indian Ocean at the crossroad of Asia and Africa, Seychelles?115 islands, located between 4 and 10 degrees south of the equator, offer a diverse range of experiences – white sandy beaches, verdant mountains, and luxuriant forests. Within this seemingly enchanted, pristine world you can enjoy snorkelling on coral reefs, trekking, bird watching, diving and fishing amid unique, natural surrounds. Far away from the hustle and bustle of a busy world, Seychelles has retained a soulful way of life which is vibrant, captivating and still wonderfully authentic. This archipelago of legendary natural beauty comprises 41 of the oldest mid-oceanic granitic islands on earth which, together, constitute the Inner Islands, of which Mah? the principal island and home to the capital, Victoria, together with its close neighbors, Praslin and La Digue, are the most prominent. A sparkling collection of low […]