Guideline to those who have just incorporated their Hong Kong companies.

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Introduction

Tammy : Hi everyone, This is Tammy from the client services of Unipro Hong Kong, greeting everyone a wonderful day! Before I begin, I would like to thank our existing clients for making us the best company secretarial in Hong Kong. Thank you for your continuous patronage. Your success is our success. I am here with Ray ng the founder of Unipro Consulting Limited Hong Kong, he will share with us some things to remember when you have incorporated your company in Hong Kong.

Ray: The reason why we created this podcast is because we noticed that quite a number of clients are worried of us being silent for some time after the company has registered. They thought that we are not caring for them anymore after the company incorporated. However, it is totally a misunderstanding here. The reason that you might feel being ignored is just that the timeline for the first filing to the government is just long. We understand that in other jurisdiction or in your home country, it is possible to be a monthly filing. That means once your company has been formed, then your consultant would probably be in touch with you shortly. So it’s really quite different from the situation here in Hong Kong. We will discuss more in this podcast. 

Tammy: Thanks Ray for clearing that out, I hope that after this discussion, clients will understand more about before and after the company incorporation in Hong Kong, Let me tell you a brief information regarding setting up a company in Hong Kong, as discussed in our previous podcast regarding ASEAN, setting up a company in Hong Kong is the best choice you’ll ever made, here’s my 2 cents:

  1. Hong Kong is the top 1 business country here in ASIA.
  2. Taxes are low compared to any other countries in ASIA.
  3. Quick and easy! For just a few days, you’ll have your company incorporated in Hong Kong.

Ray: That’s right. Here in Hong Kong, we can setup a company online. You don’t need to visit HK in order to have your company incorporated. Tammy, maybe you could share to our audience what points to be aware of after their company has been formed? 

Tammy: Sure, I would like to share this information with everyone. So there are points to remember once your company has been set up in Hong Kong.

Things to remember:

  1. Annual Return Filing and Business Registration Certificate should be renewed on your company anniversary day every year. 
  2. Your first profit tax return or PTR for short, will be issued on the day after 18 months of your incorporation and they will grant you a 3 months period for your first filing completion. (If you have just incorporated, for your first year, they will give you an allowance of 3months for filing) For the second year and onwards, the profit tax return should be filed annually too (in profit case), and once it has been issued, they will only give 1 month to complete and submit. However, if you select your financial year end month as March / December, the profit tax filing deadline will become approximate 8 months after your year end month (i.e. if your year end month is March, then the deadline is in November or if your year end month is December, then the deadline is in August). If your company is in a loss situation, then you won’t be required to file the profit tax return annually, but on a regular basis such as every 3 years. Therefore it is important to keep record and track all your company profit & loss, transactions and bank statements for this, make sure your General Ledger and Balance sheet are prepared beforehand, to avoid any delays on your audit. Feel free to message us if you have any audit concerns.
  1. Statutory requirement of appointment of auditor, if you have an auditor or you would like to get our audit services. (Please message us for consultations)
  2. Salaries Tax Return and Employer Return. (Employee salary declaration) is issued in April every year. However, if you have hired a staff member, you should notify the tax department within 3 months of the employment date. Once the tax department has records about the employee salary and personal particulars information. They would issue the personal tax return to your staff in May every year. Please be aware that if you as a director or shareholder have received a salary, the same rule will be applied.
  1. Please take note that late penalty charges apply to those who failed to settle on the deadline. Kindly inform us in advance if you won’t be able to settle on the due date.

Ray: As Tammy has just mentioned, your first government filing will be 12 months after your company has been formed. Unless you hire someone, in this case you will need to do your first government filing to the tax department. Otherwise, we will be silent for almost 1 year until your first government filing (the annual return to company registry) is due soon. Also, once the anniversary date arrives, then you will also need to get prepared for your completion of financial, audit of financial, profit tax filing to the tax department etc. Therefore, please be comfortable, and don’t feel ignored. We actually are with you all along the way. We are just sitting beside you quietly.

Tammy: Okay, to make things clear, after the company incorporation, we will be silent for almost 1 year until their first government filing due, correct? And for the tax dues, are we going to give them heads up before it due? 

Tammy : I hope we were able to give the information you need regarding setting up a company in Hong Kong. It is actually safe and easy, Please don’t hesitate to message us for any suggestions, concerns or questions you have, and we will be very happy to assist each one of you. Thank you so much Ray for this information!

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