Normally, the tax return should be filed within one month from the date of notification issue. Registration of the sole proprietorship and obtaining the Business Registration Certificate can be completed within 1 day, provided all the documents are found to be in order and there no objections against the chosen business name. The Business Registration Ordinance (Cap. Read explanations and guides from Osome experts on how Sole Proprietorship works and everything entrepreneurs need to know about it. The sole proprietorship is by far the most common form of business in the United States. (ii) The sole proprietorship business Z is carrying on business in Hong Kong, and had incurred a. tax loss of $50,000 in 2017/18. Sole proprietorships are easy to set up. Registration of Sole Proprietorship Business in Hong Kong. The name should not suggest a connection with the Government or any public body when no such connection exists or has existed. Hawksford provides professional company formation services ranging from the incorporation of Hong Kong companies, subsidiaries of foreign corporations, to the registration of branches of overseas companies. The firm you have engaged to aid in your business registration can advise and assist you on the business licensing requirement and procedure. The "vehicle" available for doing business in Hong Kong: Sole-Proprietorship, Partnership, Representative Office, Local Hong Kong Limited Company, and Non-Hong Kong Company. Setting up a sole proprietorship in Hong Kong is simple and straight-forward: it involves a single step procedure of registering the business with the Inland Revenue Department. About Fixed Income. The present rate of profit tax for sole proprietorship is 15%, which is slightly lower than that of the profit tax (16%) to be levied on private limited company. Growth under a sole proprietorship is limited and there may be sole proprietors who are interested in converting to a limited liability company in Hong Kong.However, a sole proprietorship and a limited company are different types of business … The sole proprietorship business X and the partnership business Y are carrying on business in. I would like to partner up with a company outside of HK to import and sell beverages in HK as a side business for now. The registration number of the sole proprietorship is also required for the filing of the sole proprietorship in terms of Hong Kong tax, that will appear on the certificate of the business registration. The owner is primarily responsible for all the elements of the business entity and is fully accountable for all the finances of the company including loans, debts, and profits/losses of the business. 1. When you engage Kaizen to register your sole proprietorship business, please follow the procedures described below. Entity Type: Sole Proprietorship Sole proprietorship is considered the easiest and simplest form of business. Hong Kong is quite reliable and straightforward as compared to the registration of other business structure. But depending on your field you may need a license – such as a food and liquor license, or an admission to practice law. Registration of the business with the Inland Revenue Department’s Business Registration Office, Complete application form, including proposed business name, For resident owners: Hong Kong identity card, For non-resident owners: The sole trader in Hong Kong, also known as the sole proprietorship, is a type of business entity that is suitable for small-scale businesses, essentially those managed by only one individual.Unlike other business structures in Hong Kong, the sole proprietorship does not offer protection of personal assets. A tax computation referring to the assessable amount of profits or losses. A sole proprietorship is taxed at the rate of 15% on their assessable profits of the company, and it must be filed with the Inland Revenue Department on an annual basis. On the other side, if the sole proprietorship businesses gross income exceeds the value of HKD 500,000, then they have to submit the following documents along with their tax return to the Inland Revenue Department: So, if you have plans and are ready to start a new business in Hong Kong as a sole proprietorship, then contact us today! A company limited by shares has a separate legal status from its members and liabilities of its members are limited by subscription to the shares.Subscriptions of shares … In the sole proprietorships, both the company and the … Registering a sole proprietorship business in Hong Kong is ideal if you intend to run a small business on your own (self employed Hong Kong) with no other employees. A sole proprietorship is the easiest and least expensive business structure to set up. So, from my understanding the next step would be to open my Sole Proprietorship … When you engage Kaizen to register your sole proprietorship business, please follow the procedures described below. Fixed Income. Sole proprietorships in Hong Kong differ from Private Limited Companies in Hong Kong because with sole proprietorship Hong Kong, there is no protection when … In order to carry more than one business entity as sole proprietorships in Hong Kong, you need to apply for the Business Registration Certificate for each company with their different business name. The reasons to convert a sole proprietorship into a limited liability company are primarily related to the business owner's desire to expand the company. Planning to open up a new company as a sole proprietorship in Hong Kong and not sure about the process for sole proprietorship registration? A critical part of being a founder is... Read more. In order to incorporate sole proprietorship in Hong Kong, you need to register with the Inland Revenue Department’s Business Registration Office. After some studying I think a Sole Proprietorship is the way to go for me. The name should not suggest that the business is incorporated with limited liability. Startupr is here for you. The registration procedure involves. Some of the banks in Hong Kong require the physical presence of the business owner as part of their due diligence procedure in opening a bank account. If somehow you have changed the particulars of your registered business entity, you are also required to notify the Inland Revenue Department of the Business Registration Office within the month of the change. The Inland Revenue Department will issue a demand notice for the renewal of the Business Registration Certificate one month before its expiry date, depending on whether the Certificate is valid for one year or three years. Business owners usually needed the following documents in order to register a sole proprietorship business in Hong Kong. The business registration number that appears on the Business Registration Certificate is also the sole proprietorship’s profits tax filing number. A sole proprietorship is not a separate legal entity – it’s considered an extension of the owner. So, from my understanding the next step would be to open my Sole Proprietorship … See how Hong Kong stacks up against your home country. Hi, Currently I am employed on a work (GEP) visa. For Hong Kong residents- Copy of Hong Kong identity card. This site uses cookies to offer you a better browsing experience. Businesses other than corporation (e.g. Therefore, before you select a bank, it is essential to consider whether you will be able to visit Hong Kong for the procedure of opening a bank account or not. Singapore Company Incorporation is the leading force in company registration in Singapore.With a gamut of services including Work Visas & Relocation, Accounting & Taxation, Business Licenses, Company Secretary and Trademark Registration, we are well … Unlike a private limited company, a sole proprietorship does not offer protection of personal assets and limited liability to its owner. Applicable HSBC declaration form and/or IRS W form to establish your tax status under FATCA. Residential Address history - last 3 years 2. Generally, it is better to hire a professional service firm like Startupr that will guide you in selecting an appropriate bank depending on your needs, and provide you with the required information. Registration of Sole Proprietorship Business in Hong Kong. Hong Kong in the form of a sole proprietorship, partnership or corporation. ACCOUNT OPENING IN HONG KONG Page 2/3 - SOLE PROPRIETORSHIP ESTABLISHED OVERSEAS OT-SOP-HK 517/1R24E-m (220620) I G. Foreign Account Tax Compliance Act (FATCA) Documents 1. Sole proprietorships in Hong Kong differ from Private Limited Companies in Hong Kong because with sole proprietorship Hong Kong, there is no protection when it comes to your personal assets and … Know their difference and … Generally, a newly registered business will receive (from IRD) its first tax return filing notification 18 months after the date of registration. However, they must prepare the accounts, complete the tax return in accordance with the accounts prepared, and retain the accounts and documents for inspection by tax authorities. This guide provides information on how to set up a sole proprietorship in Hong Kong. My current company approved my business idea already. Mr. Park did not elect for personal … A tax computation indicating how the amount of assessable of profits (or adjusted losses) has been arrived at. General. The shareholder's liability is only limited to the sum of their … In order to register a sole proprietorship business in Hong Kong, the following documents/information are required. Tag: sole proprietorship More Topics: New/Unread - Last Day - Last 7 Days Search: Search took 0.00 seconds. and that you will be able to make a significant contribution in the specific market that you are entering into. Selected business names are not allowed to use the limited terms related to the public limited company, abbreviations of limited (Ltd) and limited liability partnership (LLP) in their business name. The Business Registration Certificate must be conspicuously displayed on the office premises at all times. Sole Proprietorship throughout the basis period for that year of assessment. The foremost requirement for sole proprietorship registration in Hong Kong is to register their company with the Business Registration Office of the Inland Revenue Department in order to obtain the Certificate for business registration. Otherwise, a penalty fee of HKD 300 will be charged after the expiry date of the Business Registration Certificate. Opening a business account for sole proprietorship, partnership, and single-layer limited companies with share capital that are registered in Hong Kong can be completed earliest in 5 working days counting from making an appointment, submission of the required documents and company search fees. Hong Kong Branch (incorporated in Singapore with limited liability) GENERAL REQUISITE DOCUMENTS FOR ESTABLISHING BANKING RELATIONSHIP WITH UOB HONG KONG BRANCH - PARTNERSHIP, SOLE PROPRIETORSHIP, JOINT VENTURE & ANY OTHER UNINCORPORATED BODY - A. Learn the difference between Hong Kong entities. The lack of funds and unlimited liability of the owner are major limitations. Find out how to register a private limited liability company in Hong Kong and the basic incorporation requirements, procedures and timeline. All rights reserved, Hong Kong Sole Proprietorship Registration, Find out about Hawksford incorporation services, All sole proprietorships must register with the. 7. Completion Guideline on CRS Self Certification Form (Individual and Sole Proprietor) Reasons for providing Self Certification To increase tax transparency and to combat cross border tax evasion, Hong Kong Government has published Inland Revenue ... Hong Kong (China), the TIN is the Hong Kong … A duly signed and finished incorporation structure. A sole proprietorship may be registered with an English name, a Chinese name, or an English and a Chinese name. As a matter of fact, Hong Kong attracts many entrepreneurs from around the world for company incorporation. Sole proprietorships are businesses owned and operated by a sole person. You can find how we use these by clicking "More info" or click "Accept" to agree.