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Hong Kong

IP Seminar: How to protect your R&D by Patent?

As being the supporting organization of the “IP Seminar: How to protect your R&D by Patent?” hosted by Hong Kong Science & Technology Parks Corporation, it is our great honour to help them in promoting this seminar. Please see the programme details as below:


Date 10 December 2013, Tuesday
Time 2:30pm – 5:15pm
Venue Conference Hall 01-02, G/F, Core Building 1, Hong Kong Science Park
n Dr Jasemine C. Chambers, Ph.D., J.D., Wilson Sonsini Goodrich & Rosati
n Mr Andrew Cobden, Consultant, Hogan Lovells
n Mr Peter Colegate, Legal Manager, Hogan Lovells
nMr Melvin Li, Founder and Principal, Melvin Li Intellectual Property Ltd
Target Entrepreneurs, Legal experts, Technology-based companies
Language English
Fee Free of charge
Registration Please register on or before 5 Dec (Thu) to with your company name, first name, surname, job position, tel no. and email address.

Seats are available on first-come-first-served basis.

Hong Kong Profits Tax Return

How you should prepare for the Profit Tax Return for Hong Kong Limited Company.

Normally, HK Tax Authority (“IRD”) will issue a Profits Tax Return (“PTR”) to your company after 18 months from the company’s incorporation date and you are required to file it to IRD within 3 months from the date of issue of the PTR no matter your company is dormant during the said period, i.e. 2nd December 2011 (date of incorporation) to 31st December 2012.


Generally, IRD would demand penalty of HK$1,200 for any company that first time late submission.


In this stage, as 18 months have passed since incorporation of the company, please prepare the following basis information should be provided for our audit purposes:


–          All sales invoices

–          All purchases invoices

–          All expense receipts

–          All bank statements

–          All signed agreements (including tenancy agreements, services agreements, etc.)

–          General ledger and management account (i.e. Trial Balance, Balance Sheet and Income Statement). If this one you cannot provided, we can provide bookkeeping service to handle it.


Please firstly to provide the management account and advise the volume of transactions incurred by the company during the said period, we will provide our quote of services fee to you.

IF you want to register company in Hong Kong, please let us know, we will be happy to assist you!

PayPal account for Hong Kong Limited Company

One of the easiest way how to obtain the merchant account is to subscribe with Papal. How to get the account? Well, first of all you need to register Hong Kong company and receive company documents: M&A, NC1, Biz certificate and Inc certificate. Once you receive all of them, you can set up your PayPal account.

This is our customer advice how to set up PayPal account for HK Limited company:

“Basically the problem was my poa(Proof of Address). It took them one week and a half to explain it.
Because i was supposed to get two small deposits on the bank account to get the vérification but they wouldn’t deposit the money… after a few phone calls and emails, i got directly in touch with a member of the staff and he explained me the problem with the poa. He engaged “manual verification procedures” and gave me an email address where i should send my new poa. Thats what i did and i got the confirmation

It took longer than usual but i got it !”


Client testimonials – Suit Up Tailor Limited

Hello to all of you,

Guillaume is one of our customer who has been experienced to get company opened within 24 hours.

“Tomas is really helpful and knows what he is doing. Even with his detailed websites, he is willing to answer all of your questions to get the work done. Fast and premium service for the lowest price on the market ! Excellent

The company was ready within 24 hours as I needed to have the bank account one day leter.”


Suit Up Tailor Limited

Guillaume BAZAN – Corporate

Hong Kong tax system

This is our correspondence with our customer, we advise him on the Tax system in Hong Kong.

Customer’s request:

My business operations are all outside of HK (the HK company outsources to my Singapore company), so I would like to claim for offshore profit. I would like someone who has experience with this to advise me on what documentation I need to have, how should the contract/invoices be written, etc, so that the offshore profit claim can proceed smoothly when the time comes.

Startupr response:

Hong Kong tax system is based on a principle of ‘Source’ or ’Territorial income’. If all the income are generated outside Hong Kong, then it will not be subjected to HK tax.


For trading, there are 4 main criteria that the company must fulfill:

1.      Where the central management is?

2.      Where and how the sales and purchases contracts are negotiated and concluded?

3.      How the shipping are arranged?

4.       How is the financing arranged?

 For 1, we can proof this by providing the passport of the directors. Short term visits to HK is absolutely O.K.

For 2, we need to provide the correspondences (emails and faxes) between the company (all responsible staff in singapore) and customers and between the company and suppliers. No need to have the hardcopies until the Tax Authority request for the documents.

If there is any sales and purchases contracts/ pro-forma invoices,  we can also provide to the Tax Authority.

For 3, we need all the shipping documents including bill of lading for the places of loading and destination outside HK.

For 4, using the banks in Hong Kong to receive and pay out $ is absolutely fine. BUT, any bank borrowing may likely trigger the income as being generated from Hong Kong.

 For services/ agency/ commission income, it will be a bit simpler. There are 3 criteria:

1.      Who is the customers?

2.      Where and how the contracts are negotiated and concluded?

3.      Where the services are being rendered?   


For 1, it is important that the customers are overseas companies.

For 2, it is important that the contracts are being negotiated and concluded outside Hong Kong. Where the services to be provided must state clearly in the contracts.

For 3, (the most important), the services must be rendered outside Hong Kong. We need to provide the correspondences which can demonstrate all the services are rendered outside Hong Kong.

 I hope the above will give you a clear picture of offshore claim.

 If you have any questions, pls feel free to contact me.

For Hong Kong company formation visit us.

Event: Mediation and Arbitration are two alternate dispute resolution processes

Event Details

Time: Thursday, June 13, 2013 from 6:30pm to 9:00pm (at Bisous)
Topic: Alternative Dispute Resolution
Presented by Mr. Chan Bing Woon, SBS JP, and Mr. Dennis Cai, Assistant Secretary-General, Hong Kong International Arbitration Centre

TEN’s June 13 event is a special presentation for TEN by two distinguished guest speakers, focusing on what entrepreneurs need to know about Mediation and Arbitration.

1. Mediation to Resolve Disputes
Presented by: Mr. Chan Bing Woon, SBS JP. Chairperson of the Joint Mediation Helpline Office (JMHO), Hong Kong


2. Arbitration to Resolve Disputes
Presented by: Mr. Dennis Cai. Assistant Secretary-General, Hong Kong International Arbitration Centre
Every entrepreneur or business owner will sooner or later face a serious dispute situation in his or her business. By being informed and properly prepared, an entrepreneur can make smart decisions and avoid many of the serious and expensive consequences of allowing a dispute to spin out of control.  Mediation and Arbitration are two common ways of resolving disputes between two or more parties without judicial proceedings.

It is no secret that the traditional way of filing a lawsuit and then proceeding through the judicial system can be enormously expensive and take years until settlement.  In addition, even the eventual “winner” of a lawsuit may suffer emotionally, financially and in other ways over a long period of time.

Mediation and Arbitration are two alternate dispute resolution processes that are typically much faster and less costly for both sides, but are generally not widely understood by entrepreneurs.  The Hong Kong government is wisely promoting alternatives to court filings for SME’s, partly as a way to “unclog” an overburdened court system.

In this 2-part presentation, each of our guest speakers will give a presentation of his specialty.  Our speakers will explain the processes, how and when they may be efficiently used, provide examples, and suggest contract clauses. For example, by inserting a simple clause in supplier, customer or distributor agreements stipulating Arbitration in case of a dispute (thereby avoiding litigation) the wise entrepreneur can avoid possible major “headaches”, business interruptions, and high costs.

A combined Q&A session will follow immediately after the second speaker’s presentation.

for company formation in Hong Kong visit our website

Venue: Bisous
9/F., LKF Tower
33 Wyndham Street
Central District, Hong Kong
Tel: 2501-0002

HK private limited company to sell mobile iPhone apps

One of our customers request on setting up company in Hong Kong.



I plan to set up a HK private limited company to sell mobile iPhone apps through Apple’s App Store. I have a few questions, and would be grateful for your guidance:

1) Since my apps will be sold globally over the Internet, will I only need to file taxes in HK or also in other countries where buyers download my apps?
no, you will only need to file taxes in HK, as far as the apps store will register you brand/company name under the HK jurisdiction!

2) Will my company only be liable to paying HK corporate tax on income sourced from HK, or also on overseas sales? For example, if sales are US$100K, GBP100K and HK$100K in US, UK and HK, then will I only pay tax on HK$100K, and incomes earned in US/UK won’t be taxed either in HK, or in US/UK?

you will be liable to pay taxes for global business, you will report this after 18 months to IRD (we will help you on this – tax and auditing) simply, keep your received/issued invoices
3) If I select one of your packages for company incorporation, I understand that I can obtain the Certificate of Incorporation and Business Registration Certificate, and also appoint company secretary, directors, accountant, auditor etc.
that’s correct, however HK Company ordinance doesn’t require to have appointed another director, you can be the only director/shareholder

without physically coming to HK. However, for opening a bank account for the company, I will need to visit HK. Is this correct?

once the company is set up and HK company documents issued ( NC1 – shares certificate, biz certificate, inc certificate, M&A) we will advise you when to come for bank account opening. We will set up a meeting with our HSBC relationship managers and they will help you to set up the bank account.



What is the dormant status?

What does it mean an offshore or being an offshore?  Offshore company!

A dormant company is one that does not carry on business and has no income for the whole of the preceding year.


Benefit of Dormant status?
It allows an inactive company (company incorporated in Hong Kong) to be retained at a minimum maintenance cost since a dormant company under Section 344A of the Ordinance is Exempt from complying with the following requirements as laid down in the Company Ordinance.

When is a company deemed to be a dormant company?

If a company passed a special resolution (pdf Format) declaring the company would become dormant, the company will be deemed to be dormant as from:
(i) the date of delivery of the special resolution to the Registrar of Companies


You can download Specimens of the special resolutions in here.


Where a company becomes dormant, it will not be necessary for the company to comply with these annual obligations. A company is still required to submit an annual return for the year in which it declares itself to be dormant.

How to de-register Hong Kong Limited company ?

How to de-register Hong Kong Limited company ?

If you want to deregister Hong Kong Limited company, you need to follow these 2 steps (the company must be incorporated under the Companies Ordinance, other than those companies specified in section 291AA(16) or registered under Part XI of the Companies Ordinance) :


1) Contact IRD (Inland Revenue Department) to obtain a written notice of no objection
2) Once you receive a written notice of no objection from IRD, you have to notify CR ( Company Registry)


Process with Inland Revenue Department


Applicant Form (IR 1263) is required to submit to the Commissioner of Inland Revenue with a fee of $270 which is non-refundable regardless of the result of the application.

  • All the members of the company agree to the deregistration;
  • The company has never commenced business or operation, or has ceased to carry on business or ceased operation for more than 3 months immediately before the application
  • The company has no outstanding liabilities; and
  • It has obtained a written notice of no objection from the Commissioner of Inland Revenue.

Fees: 270 HKD


How do I deal with CR (Company Registry)


Once you obtain a written notice from IRD, an application for deregistration can be made to the Registrar of Companies in the specified form (Form DR1).


Fees: 420 HKD


for further request or help with Deregistration of Hong Kong Limited Company please contact us at:

Wealth Management Forum 2013 – Hong Kong

Wealth Management Forum 2013 – Hong Kong” – hosted by Hubbis.

This one-day forum will provide you unique insights from many of the industry’s leading practitioners – to help you differentiate your offering and meet the new requirements of doing business profitably in Asia.


It will be held from 9.00am to 5.00pm on:

Tuesday 26th February
Conrad, Hong Kong


Registration begins at 8.40am.