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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.

Labuan conference – Wealth management

Governance Regime for Wealthy Business Families

We are pleased to announce that Labuan Borneo Trustees Limited will be
hosting a half day  Seminar on ” Governance structures, regulatory documents
and policies for wealthy business families” in Kuala Lumpur in the month of
September 2013. We will announce the specific date and venue nearer that

Briefly about the Seminar :

Asian’s wealthy families are most concerned about business growth,
diversification and the allocation of family assets. With the swelling
number of wealthy Asian families, the need for good family governance
mechanisms has become even more important.

This talk will focus on the following key areas :

.         21st century wealthy Asian family business in transition
.         understanding the challenges at the intersection of ownership,
family and business
.         the importance of family governance for the family and business
.         choosing the appropriate tool for governance with specific focus
on Labuan IBFC’s wealth management tools
.         constitutional documents and family governance policies
.         issues to consider when drafting family business governance

A case study involving a 4th generation wealthy family business will also be


At the end of the Seminar you will takeaway the following :

.         understand the importance of family, business and ownership
governance systems
.         appreciate the family dynamics and intricacies of family
relationships involved in business
.         learn how to handle the spexhism phenomenon and the speck of dust
.         understand different policies and how they relate to the family
.         learn to ask appropriate questions  in formulating family business
.         understand how to integrate/develop a family office within the
family and business governance system

Hong Kong Company Incorporation and Business Registration fees

To form a Hong Kong limited company, you would need to identify at least one director and one
shareholder. The director and the shareholder can be the same person and can be a foreign
passport holder who has attained the age of 18. You would also need to identify a company
secretary. If the secretary is an individual, he/she must ordinarily reside in Hong Kong and has
attained the age of 18. If it is a company, its registry office must be in Hong Kong. The company
registration fee is HK$1,720.

Hong Kong Business registration fee applies to every business in Hong Kong and an application should be made
within one month of business commencement. The registration fee is HK$2,450 for a 1-year
certificate and HK$6,550 for a 3-year certificate*.

(*Note: According to 2012-13 Budget proposal. The fees payable in respect of business
registration certificates that with commencement date on or after 1 April 2012 will be reduced by a
sum of $2,000, subject to the scrutiny by the Legislative Council.)

UK Limited Company – bearer shares

UK Limited by Shares Company

 Advantages of a UK Limited Company:-

 ü       Quick, easy and low cost to setup and maintain

ü       We offer fast company formations/registrations, fastest time of 6 minutes

ü       Average Incorporation time of 2 – 3 hours

ü       The company has a legal existence separate from its management and members (the shareholders)

ü       Members’ liability is limited

ü       The company’s name is protected

ü       The company continues despite the death, resignation or bankruptcy of management and members

ü       Appointment, retirement or removal of directors is straightforward

ü       One man Company (One person can be the Director and Shareholder)

ü       No Residency Requirements


 ·       The Company is required to have a Registered Office Address in the UK (CFS can provide this).

·       You must appoint a minimum of 1 Director and 1 Shareholder, of which 1 director must be an individual.

·       The minimum share capital is £1.00.

·       There is no maximum share capital.

·       The minimum number of shares issued is 1.

You will receive the following documents by email:

ü       Certificate of Incorporation

ü       Memorandum of Association

ü       Minutes of the First Meeting

ü       Fully Written up Company Register

ü       Share Certificates (Required to open a bank account)

ü       Web Filing Code      

ü       Company will be Registered with the UK Tax Authorities

2)      UK Limited Company with Bearer Shares – (Standard Email Package)

Advantages of a Bearer Share Company:-

ü       Same Advantages as a Limited by Shares Company

ü       A Bearer Share company is a company which allows Shareholders to be anonymous. The names of the shareholders are not shown on any documentation.


·       Same requirements as a Limited by Shares Company

You will receive the following documents by email:

ü       Same documents as a Limited by Shares Company

ü       Letter to the Directors requesting Share Warrants

ü       Bearer Share Warrants

ü       Share Warrant Coupons

It is not possible to incorporate a Company with Bearer Shares. The company will be incorporated with a Shareholder.

The Shareholder can be you, but your name will then be recorded at the Company Registrar and also in your Company’s Register.

Immediately after incorporation we will then transfer all the issued shares to Bearer Shares.

 I hope you find the above information useful.  Please do not hesitate to contact me if you require any further information.

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.



Banking industry and possible changies? Cyprus !

It’s really interesting to observe how the world keeps changing in many ways. In our corporation & banking sector the changes have been tremendous! One of our bank we work with, they send us an alert about some changes in Cyprus banking industry. Be aware that this might be an opinion of competition however the changes are there!

Hi Tomas,

I wanted to give you a quick update on what are seeing out of the major Cyprus banks.  Despite news updates to the contrary, wires of up to $50,000 per day are leaving the country.  If you still have clients in Cyprus who are looking to exit, this would be an excellent time to inform them of this window of opportunity as we don’t believe many investors are aware of this fact.  If you have no clients or exposure there there, hopefully this email was still informative.
Please let me know if you have any questions about this information.
Best Regards,
for company formation please contact us!

Belgian and/or Chinese customs

From one of our customers. We have been aske to announce this event:


Dear Mr. Milar,

After many years of doing business with China, you may have come across some customs issues with Belgian and/or Chinese customs while exporting your goods to China or importing goods into Belgium.

To offer our help and assistance in a more tailored way, we would like to invite you to our 4th ChinaCustoms event on Monday, May 6, 2013 during which you can meet the new Belgian Customs Attaché, Mr. Eddy De Cuyper, based in Beijing. Moreover, you will have the chance to discuss your problem privately with the responsible persons from the Belgian & Chinese customs during an individual meeting.


14:00 – 14:30: Registration
14:30 – 14:35: Welcome speech by Mr. Bernard Dewit, Chairman, BCECC
14:35 – 14:50: Presentation by Mr. Sun Xiangyang, Minister Counsellor Customs, Mission of P.R. China to the EU (Hong Kong)
14:50 – 15:05: Presentation by Mr. Eddy De Cuyper, New Customs Attaché in Beijing, China
15:05 – 16:30: Networking reception in the lobby

15:15 – …: Start of private individual meetings

Places are limited for an individual meeting, we register on a first come, first serve basis! Please send usan email before April 26, 2013 with your questions and/or problems in order to receive more detailed answers to your questions. 

Sheraton Brussels Airport Hotel
Brussels National Airport
1930 Brussels
Located across the departure halls of the airport.




Interested in joining us? Please send us the attached registration form by e-mail to or by fax to 02 649 04 39. Subscription fee for BCECC members is 30€/person and 60€/person for non-members.

Best regards,

If you’re interesting on setting up company in Hong Kong , please contact us. Start company in Hong Kong

Launch: Silicon Valley 2013 – 7 days remaining, submit your startup’s Executive Summary

Are you interesting to present your startup in Seilicon Valley? Apply for the event right now!


Hello Tomas,


We are calling for emerging startups interested in presenting their products at Launch: Silicon Valley 2013 to send in their entries for consideration. Launch: Silicon Valley is designed to uncover and showcase products and services from the most exciting of the newest startups in Information Technology, Mobility, Digital Media, Next Generation Internet, Life Sciences, and Clean Energy. Up to 30 exciting young startups will be selected to present before an audience of several hundred of the most influential people in the Valley. L:SV2013 will be held on June 4th at the Microsoft Campus in Mountain View, California.


Companies interested in presenting at Launch: Silicon Valley 2013 should send an Executive Summary of no more than two pages to by April 26, 2013.


For more information, please visit the event website- or mail me if you have any questions.


Best regards,
Brian Nesbit


Your startup registering company in Hong Kong

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.