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Doing business in Hong Kong

  1. How do you set up a new company in Hong Kong?
    Limited company is the most common type of company to be set up in Hong Kong. Unlimited companies are less common, but with our services, both can be easily set up.

  2. How do you apply a working visa for an employee who is non-residential?
    A working visa must be obtained before where work is to be started in Hong Kong if you are not a permanent resident of Hong Kong.

    If you are the investor and is in position to run the daily operation of the business, the sponsoring company is required to meet the following criteria of the Immigration Department in order to sponsor the non permanent employee to work in Hong Kong:

    • The company has been actively carrying out business in Hong Kong
    • Job opportunities for local people will not be decreased
    • The business activity has been beneficiary to the economy of Hong Kong

    If you are an employee who intend to work in Hong Kong, you are required to

    • Lodge the visa application form to Immigration Department
    • Answer whatever question that the Department enquires
    • Submit valid, official and required documents to support your application

  3. What are the requirements or procedures for maintaining a Hong Kong incorporated company on-going?
    For unlimited companies, it's required to renew to business registration certificate and hand in the Annual Tax Return annually. For limited companies, in addition to the terms above, an annual audit is required.

  4. What are the auditing requirements for the new incorporated companies in Hong Kong?
    The company is to close its account within the duration of 18 months from the first year audit and yearly audit is required for the following years of corporation.

  5. What is the tax system like in Hong Kong?
    Hong Kong has a relatively simple and low taxation system. The corporate Profits Tax rate is 16.5%

    Furthermore, offshore income and capital gains are not chargeable to Profits Tax. Dividend is exempt from Profits Tax as well as Bank interest. Order granted under Section 87 of the Inland Revenue Ordinance.

    There is also no Sales Tax imposed on goods and services.

    However, the Hong Kong Government may implement measures to widen the tax by introducing this tax. Therefore, this is an area that should be monitored in the future to ascertain the implication of this indirect tax.

    There is no withholding tax on dividend or interest. Withholding tax on royalties, in most case, is only 5.25%.

    Under the 'One Country, Two Systems' concept, business in Hong Kong does not subject to People's Republic China Mainland's taxation system. This means that the HKSAR Government practises an independent taxation system.

    In general, only income arising in or derived from sources in Hong Kong is chargeable for tax under the IRO.
    The fiscal year end is 31 March. Salary tax and property tax are calculated based on the fiscal year end. Tax liability for Profits Tax is calculated and applied according to accounting period ended at choice of the taxpayer rather than following the fiscal year.

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