|Doing business in Hong Kong|
|Our Services provided|
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Doing business in Hong Kong
|Sole proprietorship -||There is only one owner and the business is usually carried out in one's own name or XXX Company. The liability and the business risk is solely resumed by the owner oneself.|
|Partnership -||There are at least two or more owners but their liabilities are still unlimit. The act of one partner concluding contract in the name of the partnership binds all partners in such partnership.|
|Limited company -||The company should have at least 2 shareholders according to the
requirements of the Ordinance (or the Law) in Hong Kong. Besides there are several
statutory posts which should be appointed in order to satisfy the statutory requirements.
They are the 2 directors and 1 company secretary who are appointed to manage the operation
of the company. However the shareholders can also be the directors and the directors can
also be appointed as the company secretary.
Under this kind of business, the limited company is a separate legal person from the owner of the company, and the shareholders have only limited liabilities on the capital contributed.
According to the relevant law in Hong Kong, every person who carries out business should obtain a business registration certificate, whichever the business is carried out under what form as stated above. The business registration certificate should be renewed annually and the certificate fee payable to the Government of HKSAR is HK$2,250 at present (Year 2000).
Apart from the cost for business registration certificate, there is no extra charge for carrying out sole proprietorship business and partnership business payable to the Government of HKSAR.
However a setup cost should be incurred for the formation or purchase of a limited company and also annual filing cost according to some statutory requirements (please see below).
For the sole proprietorship and partnership business, the Inland Revenue Ordinance (Chapter 112) seems to be more relevant. Under the scope of this Ordinance, every business should keep proper books and records at least on the business receipts and payments. Besides any tax correspondence and returns issued by the Inland Revenue Department relating to the business should be properly filled and promptly filed or otherwise penalty will be raised even on late filing of such document.
Since a limited company is incorporated under the Companies Ordinance (Chapter 32) of Hong Kong, some necessary statutory requirements should be complied with, namely : the filing of Annual Return annually and the performance of annual audit by recognised certified public accountant in Hong Kong.
The main tax on the business in Hong Kong is called the "Profits Tax". It is a tax on the profit of the business carried out in Hong Kong and such profit should have a "Hong Kong source" in order that the Hong Kong profits tax be levied. There is no sales tax in Hong Kong.
At present (Year 2000), the tax rate applicable to the sole proprietor business and partnership business is 15% and the tax rate applicable to the limited company is 16%, no change of tax rate since 1998.
The profit figure subjected to the Profits Tax is calculated based on the profit per company account, and after statutory adjustments as stipulated in the Inland Revenue Ordinance.
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Our Services provided
Associated with Pilot Management Consultants Limited, a professional consultancy
company, we offer a wide range of services:
The audit services include statutory audit according to the Companies Ordinance of Hong Kong and special audit for other purposes.
Our taxation services include the reporting of Profits Tax, Personal Tax and acting as the tax representative on behalf of our clients. Besides we offer services on advising tax matters and tax planning.
Corporate Secretarial Services
We also provide services on the formation of companies (sole proprietor, partnership and limited company), preparation of statutory documents concerning the operation of different kinds of company as well as the closure of such companies.
Accounting and Business Services
Our services in this respect comprise of the preparation of company accounts on a regular basis (monthly, quarterly, bi-annually and annually). Setting up of internal control system is another task we are offering. Furthermore we also provide a registered office address for overseas companies as a correspondence address in Hong Kong and recuitment of personnel.
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