JURISDICTION – HONG KONG
Hong Kong is the world’s third largest financial centre and one of the world’s largest container port by volume. Large number of trading companies are formed in Hong Kong as it is the major gateway and entry point into China and other parts of Asia. Hong Kong regards itself as a low tax centre rather than a tax haven. Taxes are levied on profits, salaries and property with varying rates. The Inland Revenue Department (IRD) of Hong Kong is extremely diligent in its determination of onshore and offshore profits as only profits that are derived in Hong Kong are assessable for taxation and genuine offshore transactions are not subject to Hong Kong tax. Private Limited Liability Company is the most commonly used business entity when foreign investors enter into Hong Kong market.
Company Secretary Service
In accordance with the Companies Ordinance in Hong Kong, a company is required to appoint a company secretary who is a Hong Kong resident or a body corporate having its registered office or place of business in Hong Kong. We can provide you with the services of a Company Secretary. Our services include:
- Coordinating the company’s formal decision making process
- Preparing of board resolution for company’s major decision
- Formulating of meeting agendas
- Obtaining internal and external agreements on documentations for circulation to shareholders and directors
- Safe keeping of all relevant documents
- Observe changes in the requirements of the Companies Ordinance
Seeking solutions for your accounting needs is critical for any business in any country. Choosing the right accountant can be the most important decision you can make in the process. In the end, a good accountant is a valuable financial consultant and a trusted advisor. By entrusting your finance and administration functions to us, you can mitigate these risks and deal with other challenges more efficiently. Here in Le Yu Corporate Advisory, we act as a third party that can manage both your internal and external accounting process and your reporting across any jurisdictions without any conflict of interest. We serve as your single point of contact that provides you with clarity of exactly where your accounting stands at all times. Our team of professionals provides you with services in local bookkeeping, full consolidated account preparation and reporting, international management reporting in Hong Kong Accounting Standards (HKAS) and Hong Kong GAAP. Our services include;
Accounting System Setup
- Reviewing of the specific requirements of the accounting system
- Sourcing for suitable accounting software
- Initial setup of corporate chart of accounts
- Implementation of system
- Data verification of transactions
- Training of all personnel involve in the new accounting system
- Payment procedure set-up
- Payments /petty cash service
- Overseas remittance service
- Bank reconciliation
Bookkeeping is required by law for most countries, some businesses find it hard to manage due to various reasons, for eg. different sets of accounting standards used in different country, business owner too busy to handle the book keeping and having difficulties finding the right person with the right skill set. Outsourcing bookkeeping has become an increasing trend in the current business environment because outsourcing let you have access to the skills of professional accountant at a low cost. Here in Le Yu Corporate Advisory, we are committed to personalized approach in assisting you. You can outsource your bookkeeping and accounting requirements to our team of professionals and focus on your core business activities. In accordance with the requirements of Section 121 of Hong Kong Companies Ordinance, every company that are registered in Hong Kong should keep proper books of accounts with respect to:
- All sums of money received and expended by the company and the matters in respect of which the receipt and expenditure take place
- All sales and purchases of goods by the company
- Assets and liabilities of the company
This books of accounts shall be preserved for 7 years from the end of the financial year.
We are specialized in preparing the following accounts in Hong Kong GAAP;
- Transactions coding & ledger posting
- Trial Balance sheet preparation
- Financial Statement preparation
- General Ledger Maintenance
- Account Receivable
- Account Payable
- Payroll processing
Both local and foreign companies in Hong Kong are subjected to annual filling requirements with the Inland Revenue Department (IRD) and Companies Registry. This annual return must be filed once every calendar year (except in the year of the company incorporation) within 42 days of the anniversary of the company’s incorporation date. Inland Revenue Department (IRD) issues tax return filing notification to companies on the first of April of every year and companies will need to submit the tax return along with its audited accounts.
We will assist client to comply with the following tax filings based on the taxation laws of Hong Kong and preparation of the following documents for filing
- Annual return reporting preparation
- Sourcing and appointment of auditor
- Certified copy of company’s balance sheet
- Auditor’s report and Profit & loss account relating to the basis period
- Tax computation indicating the assessable profit and loss
- Offshore Income tax exemption claim
We will assist to adjust the financial statements in accordance to the parent company’s accounting policies, be it U.S. GAAP, PRC standard, and other International Financial Reporting Standards for consolidation purpose.
Any limited liability company in Hong Kong should file annual returns and submit to the Department of the Company Registry and the Inland Revenue.
We will provide:
- Annual Tax Filling
- Offshore Operation Tax Exemption Application
Annual Audit Assistance
Audited financial statements should be prepared by an independent Certified Public Accountant (CPA) on behalf of the business. The audited financial statements should provide financial accountability and accuracy to a company’s stakeholders and people with a vested interest in the company. There are two types of audit in Hong Kong, the Statutory Audit and Special Audit. All company incorporated in Hong Kong is required to keep proper books of account which give a “true and fair view” of the company’s financial position. A Special Audit can be prepared to meet specific needs of the company like when there is a merger and acquisition. We will recommend our affiliated firm to provide this service for your company. We may also provide audit assistance services to assist you in responding to the auditor’s (whom you have appointed) enquires and complete the relevant audit schedules requested by the auditor.
Post-incorporation Social Security Registration & Payroll Services Initial Set-up
After the company is registered, we will assist you to set up the entire process flow including below:
- Payroll process – Initial Set-up
- Employee personal file and payroll record
In the event of any new hiring or termination, we will assist the company to register the new employee or termination records with the relevant authorities eg. Inland Revenue Department (IRD), etc.
Salary Calculation/Pay Slips Distribution / Social Insurance Filling
We can take charge to handle your monthly payroll routine work for all your local and expatriate staff, including:
- Payroll calculation and distribution in HKD
- Process gross and net salary for Mandatory Provident Fund (MPF) filing and payment every month
- Personnel file maintenance
- Pay slips to staff
- Reporting of employment information to IRD for employee salaries tax
Employment Visa / Dependent Visa
We provide value added services for the staff of your company:
- Employment Visa application for employeeRenewal, transfer or cancellation for employee
- Dependent Visa application for family member (Unmarried children under 18 years old and spouse)
- Renewal, transfer or cancellation of Dependent Visa for family member
Payroll and Related Yearly maintenance
- Payroll file maintenance
- Employer registration for Mandatory Provident Fund Scheme (MPF)
- Reporting of employment information to IRD for employee salaries tax
- Payroll report for management review
The company must satisfy the following requirements before they can submit an application for deregistration the company:
- All members of the company agree to the deregistration
- The company has stopped their business operation for more than three months immediately before the application
- The company has no outstanding liabilities
- Obtained a written notice of no objection from the Commissioner of Inland Revenue
Once the company has satisfy the above requirements, we will assist the client with the paper work and preparation of the documents needed for de-registration.
Members’ voluntary winding up
A company may decide to wind up its affairs voluntarily if the directors believe that the company will be able to pay its debts, in full, within 12 months after the commencement of the winding up. We will assist the company to appoint a liquidator, or provisional liquidator, to wind up its affairs and process the necessary notifications required under the Companies Ordinance.
Creditors’ voluntary winding up
A company may decide to opt for a “creditors’ voluntary winding up” if its directors believe that it cannot, by reason of its liabilities, continue its business. We will assist the company to appoint a liquidator, or provisional liquidator, to wind up its affairs and process the necessary notifications required under the Companies Act.
There will be a few steps required for company deregistration:
- Completing form DR1
- Acquire a Notice of No Objection from Commissioner of Inland Revenue
- Companies Registry will contact the applicant for any further requirements in information/documents
- Companies Registry will issue a Letter of Approval for the deregistration application within five working days.