Work handled by Tax advisory

Service provided by the tax advisory is directly related to the tax that is paid by the individual or company to the government. This obligatory tax on individual or company (juristic or normal) or property (real, personal, stocked, wages etc.) is different from the tax imposed on the monetary transaction carried out either on individual or company.

Brief on tax

A company pays tax for different purpose; this includes the tax for property, personal tax, income tax or assets tax. There are two types of taxes direct and indirect. Indirect tax is imposed on a single entity. Example a consumer pays tax for retail setting. Direct tax is collected from the company, Example income tax, which is collected from employee of the company.

Since tax is a way of generating revenue for the government, it is necessary to have compliance with tax law and regulation. It plays a key role in corporate as well as non-corporate companies. Tax advisory committee provides specialized professionals that help in getting the much desired result of compiling the tax at low cost.

Work of the tax advisor

The tax advisory help in filing of the income tax and also prepare financial statement of individual or company. The consequences of withholding the tax by the company on various transactions are explained by them.  They represent the company in front of the tax authorities for tax payment and assessment.

Tax payer has to take care of these issues in case of direct taxes.

An experienced tax advisory professional can also help out in reconstructing of the business and keep the administrators updated on the tax regulation. They play a key role in communicating with the tax man for the payment so that the business requirements are met.

Other services provided by the tax advisory professional include computing tax liability, take decision on acceptable or unacceptable expenditure, reasonably subtracting the expenditure. The advisor prepares and files income tax and with holds it if required, from authorities to attain a variety of certificates.

It is important that the company has a regular updated tax clearance in order to avoid penalties, since there are constant changes in the tax liabilities. According to the law, a company needs to clear all the taxes within a given time frame to get tax clearance certificate. This certificate helps in creating a good fate of the company in the market and can only be obtained with the help of a professional tax advisor. Hence the job of tax advisory professional becomes more vital.

What to know about patent application in Hong Kong

A patent is basically a right that is usually granted to a person who has made an invention. This allows the owner to bar anybody else from using his invention without having the right permission. In Hong Kong one can apply for a patent if the invention is within the laws of the country. One cannot be granted a patent for inventing something that is not accepted by Hong Kong. The patent application procedure in Hong Kong is direct and follows a series of steps. Before applying for a patent it is necessary to ensure that you read the whole application procedure and research deeply on everything about patents in Hong Kong.

One of the most important things that you should note about patents in Hong Kong is that they are mainly divided into two categories. The first category is referred to as a standard patent and the second a short term patent. The main difference between the two is the protection period. Under the Hong Kong patent law, a standard patent is viable for 20 years. Renewing of the patent is however done annually after the first three years. For the short term patent, it is viable for 8 years but it is renewed after the first four years. The application process is different for the two categories of patents. This is why it is important to make a decision on the type of patent you prefer.

It is important to take note that a patent registered in a different country will not receive protection when in Hong Kong. One needs to get patent protection from Hong Kong in order to label a certain invention as theirs. One of the main advantages of patents is that under the protection you are liable to take legal action to any individual that uses the invention without your authorization.

For the case of a standard patent, the registration process is divided into two sections. The request to record section and the request for registration section are the two main sections. It is important to ensure that you fill all the application sections correctly and wait for a response from the registration office. It does not take a long time for the registration to be completed once you are able to fill the form with the correct information. Ensure that you get the application documents from the government site or from the government offices to avoid being scammed.

Beware of these accounting malpractices to ensure safe investments

Investors have the responsibility of checking out all of the accounting on-goings of a company before they decide to invest in it. Hence it is also important to know about the functionalities of “creative accounting”, as it is being called now. This is a branch of accounts that deals in manipulating accounts in a way that will provide different financial results than what is truthful. Managers of reputed firms get into such malpractices because they ae compelled by the economic reasons to show that they are ahead of the game. But the long term effects of this kind of a practice are very harmful to all involved. Below are a few reason of why creative accounting is resorted to in the first place:


Share price manipulation

It is often seen that to increase the price of the shares and hence the value of the firm, incorrect or distorted figures of accounts revenue generated are published. These inflated figures gain popularity and shows strong financial stability which in turn draws investors to buy more shares of the firm. Although it may work on a short term basis, if revenue is shown to be more than it is, it means that the company’s capacity to handle short term capital is hampered. This firm will have to have more focus on its short term capital because the revenue generated would not match up to the expenses due to increase in the various interest groups. It is fraud and has criminal prosecutions but affects the company’s reputation and goodwill even if it has not closed for business eventually.


Key managers’ compensation

Usually the key managers of the company are paid according to the accounting position of the company. They get shares as bonuses or their incentives depend on worth of the company. This is an added motivation for key personnel managers to try to manipulate the incoming numbers. This occurs especially to cover up a bad revenue patch. The accounting is also interfered with when there are debts to be raised from banks. It is important to show a strong financial backing and this is one route taken to achieve the purpose.


Shareholders vote of confidence

Although shareholders do not participate in the management of the company, they are interested in the accounting numbers. They have the power to replace the board if the company has not been managed well. This hence becomes a motive for accounting manipulation.

Setting up a company in Hong Kong

Hong Kong is one of the most favourable destinations for setting up a business venture. The local administration, world-class infrastructure, abundant talented professionals make it extremely easy to set up a company. Moreover, the simple process of company incorporation lets owners set up their organization in a matter of days.

In order to incorporate an organization, the owner needs to decide on a name and type of the company. In most cases, owners choose to incorporate their organization as a “limited company”, which exposes them to a lot of tax benefits and concessions. After a name for the limited company has been decided, one needs to apply for incorporation with the “Hong Kong Companies Registry” (CR).

In order to attract international business, the Hong Kong administration has simplified the process of setting up business ventures. The process of incorporating  an organization also includes the process of business registration. When the processing of a company incorporation application starts, a business registration application also gets processed simultaneously. The owner is free from the hassles of triggering two different applications for the same cause.

In order to submit a company incorporation, one needs to submit certain documents. The Incorporate Form NC1 needs to be completely filled up and a copy of the organization’s Articles of Association and Memorandum of Association needs to be submitted along with the application. These documents, along with a notice to the Business Registration Office needs to be submitted online at the CR e-Registry website.

The online application needs to be completed by submitting the correct fees associated with the type of the company. In order to set up a private company incorporation that is limited by shares, the Company Registration fee is HK$ 1720, out of which one can claim a refund up to HK$1425 in case of an unsuccessful application. The Business Registration fee is HK$ 2000, which was waved off in the financial year of 2012-13. A separate amount of HK$ 450 needs to be paid on account of the levy to the protection of wages on Insolvency Fund.

The online applications for company incorporation and business registrations are generally processed within an hour of receiving it. On the other hand, if owners decide to apply for Hong Kong company incorporation on paper, the processing takes a little longer. In most cases, the Certificate of Incorporation and Business Registration certificate are issued within four business days of receiving the application.

Business opportunities at Hong Kong

Beauty Industry and Wellbeing
People in Hong Kong live a modern life full of struggle and efforts. While spending a busy day with tight schedule, people visit fitness centers, yoga centers and massage centers to relax and refresh. As a way of modern life, people all over the Hong Kong spend more on personal grooming. Great business opportunities exist for hair salons, beauty spas, fitness centres, yoga centers, nail services and slimming centers.
Furthermore, around 50 Millions people visit Hong Kong annually for various purposes. Such great number of visitors prove to be the greatest source for promoting beauty and wellbeing business. This year, more than 9 thousand beauty centers have been establish in the entire Hong Kong.
In addition to above, Hong Kong hosts ”Cosmopr” the biggest beauty trade show in Asia that attracts 20 million visitors. Such events provide great opportunity to foreign investors for a successful business.
Biomedical Sector
If you own a biomedical company and are looking to spread your business then Hong Kong is the best platform for your business. Hong Kong has the world class healthcare system and invites lucrative business opportunity by exploring the biomedical related items from Mainland China and other parts of Asia.
Biotechnology and Pharmaceuticals
Hon Kong invites foreign investors for the highly lucrative biotech and pharmaceutical business. The city has world’s renowned, fully equipped and operational medical treatment centers that can be proved best platforms for differed biotech and pharmaceuticals.
Healthcare and Medical Equipment
Medical and surgical apparatus manufacturing companies at Hong Kong are keen and look forward for contract based relationship or even for the co manufacturing basis. Hong Kong has a very encouraging and flexible policy for healthcare and medical equipment business promoters.
The modern medical technology widely uses electronic contents in medical treatments. To meet the growing electronic industrial base demands, electronic industries at the Pearl River Delta PRD is sufficient enough to meet the manufacturing challenges.
Medical Treatment Facilities
Hong Kong is a hub of high standard healthcare services and millions of visitors get medical treatment at Hong Kong every year. People spend much on getting world class medical treatment at various private hospitals. Keeping the importance in view, the government of Hon Kong has allotted four sites for such valuable purposes.
Chinese Medicine Centers
Chinese Medicines are very useful in medical treatments. To meet the growing Chinese medicine demands, a great opportunity for exists for Chinese Medicine Centers across the Hong Kong. During the last decade, Chinese medicines have got appreciation from world over and Hong Kong is becoming the center for Chinese medical treatment.

Government Support for Improving Cost of Doing Business in Hong Kong

It is in the public domain that the government of Hong Kong has lived by its word generously without attaching strings to offer support to both local and international investments so that they can effectively start and do well in its soils. The administration has put in place mechanism and plans to attract the world of multinational corporations as well as small enterprises in Hong Kong to start their business. Such incentives include loan guarantees, innovations and incubations financial and advisory support and marketing financial aids.

Innovation and research funding

The Hong Kong government rolled out a research program dumped as SERAP. Small Entrepreneur Research Assistance Program provides financial support in the areas of research and development of technology that can come to the market and hit easily to such companies that are ready to take the challenge.

Under the same scope, the government started to pool the innovation and technology fund (ITF). This is a separate fund that is responsible for innovative ideas and technological upgrade for the companies. This helps the companies to remain competitive in the fast evolving technology days for maximum profitability.

Marketing Financial aid and loan guarantee

There are many supportive programs here;

The Creative Smart Initiative: This aid is specifically meant for the small medium sized enterprises in the creative industry. It helps these entities to brand their product in the market through international competitions and exhibitions.

The EMF (SME Export Marketing Fund): this motivates businesses in Hong Kong to stand in the renowned overseas exhibitions, B2B advisements and international business missions. The funding can overcome up-to fifty percent of companies approved expenditure that amounts up-to 50,000 dollars HK.

Financing Guarantee Scheme of SME provides loan guarantees for companies up to HK$12 million or ranging from 50 to 70 percent.

SME Loan Guarantee Scheme (SGS) those companies who are in need of financial aid for either capital or working equipments, the scheme secures their loan up to a total of $12 million HK.

Incubator programs

Hong Kong being an art and cultural city, there are government programs supporting incubation of ideas in the inventive industry as well as other industries.

The cyberport incubation program assists the SMEs in the digital media ideas and helps them come to the breakeven point and grow.

Design Incubation Program (DIP) gives housing to design upcoming professionals and professional guide.

DesignSmart Initiative gives up to HK$100,000 funding for small scale enterprises to start design projects

Hong Kong Science & Technology Parks scheme provides subsidized office space and highly valued professional consultancy and a small financial aid package to support research and development.

HONG KONG- An ideal Hub for Businesses

Located in a very advantageous place, Hong Kong is the ideal place for business as it is situated at the heart of Asia. The most thrilling business markets are present here. Shanghai, Taipei, Manila, Kuala Lumpur and Perth, all share the same time zone with Hong Kong while Bangkok, Jakarta, Seoul and Tokyo only have a difference of one hour.

Hong Kong is also a travel hub with over 100 airlines offering flights to approximately 180 destinations. It goes without saying that this plays a vital role in the success of the place as a regional centre. All key markets in Asia are less than a four hour flight away. In addition to this, about half of the world’s populace can reach here within five hours via airway. Also, about 1000 flights ply their route between Hong Kong and the rest of the world on a daily basis and you have the ideal location to conduct business.

The Pearl Delta Region-PDR- is China’s biggest and the most productive area when it comes to manufacturing. The region is located in the northern side of Hong Kong and business associates can easily commute even on a daily basis between the two. This basically means that Hong Kong offers easy and convenient access in both geographically and commercially to business opportunities in mainland China.

The PDR, as it is known, plays home to tens of thousands of factories managed or owned by Hong Kong or overseas companies. The vastly successful nature of the region from a manufacturing stand point has directly led the major cities of the Pearl Delta Region- Shenzhen, Guangzhou and Don guan- being counted as among the wealthiest cities in China. The domino effect is that they have now become strong market for customer goods and consumer services in their own right.

Considering the huge role transport plays in any business, several transport links are currently under construction. This will include the Guangzhou-Shenzhen-Hong Kong Express Rail Link. The rail connecting Hong Kong to Guangzhou will stretch over 142 Kilometers and it will only take one 48 minutes to cover the distance. This transport system will connect to the existing train services on the mainland essentially connecting Hong Kong further still with major cities in southern China and even beyond. All this is in an effort to ensure the easy flow of people and goods between Hong Kong and the Mainland, hence creating a conducive environment which is vital to get successful in business.

Consumer Products and Retail

The mystery of a productive retailing falsehoods in assembling an attractive number of customers; this may involve the amount, and the nature of customers. If there should arise an occurrence of Hong Kong, a famous shopping goal incorporates all.

Being one of the favored shopping plazas of prosperous Mainland Chinese, It has turned out to be an unparalleled ‘shop window’ for the traders and a pathway for assistant advancement. One has the possibility of increasing the retail business with brilliant chances owing to a free port i.e. No import or trade impose on large portions of the merchandise and an insignificant expense base of in the ballpark of 16.5 %income charge.


Regardless of assuming that you are a wholesaler, retailer, and a wholesaler or specifically concerned with purchasing, sourcing, or exchanging, Hong Kong give you a twin overlap profit of closeness to the source and an open right of recovery to purchasers. The in general circumstance is blasting all around the year for both indoor and open air shopping while four discrete seasons cow the occasional usage.

The momentous position  of the city with its status as Asian Hub, makes Hong Kong an impeccable perfect entryway to Mainland China and to different other cutting-edge assembling areas and advertises that incorporate the same amount as the accompanying locales: Bangladesh, Thailand, Indonesia and Vietnam. In the meantime Hong Kong has an accumulation of ability right from the outline to all items.

The season of merriments as Christmas and Chinese New Year, The Hong Kong gives an improved shopping action in the domain. The greatest image of global retail marks discovered in the Asia is verification that Hong Kong emerges as the planet’s most grand and productive areas.


Hong Kong turns out to be fifth most noteworthy exporter of important gems and the second biggest exporter of conventional adornments, everywhere throughout the planet. It emerges with its capability to lead the preparation pivot for immaculate gold things and turning into a critical center of jade creation with honorable position as the greatest broker and merchant of pearls. Also, it additionally has the distinction of being a capital of Asia’s precious stone stock.

The preparing of worth included assembly comes to be arouse at Hong Kong with its favored securing of some incredible fashion designers, very innovative, intentive and creative individuals, trustworthy and reliable buyers and cooperative suppliers.

Immigration Programs with Proper Details

At the same time as Mainland China forever entails a visa for admission, Hong Kong is a divide journey region with commerce gracious colonization strategies. Guests from over 170 states get pleasure from visa-free admission into Hong Kong, with restrictions varying flanked by seven and 180 days.
Working visa requirements
Overseas usually necessitate a visa before existing or operations in Hong Kong, other than Hong Kong’s visa programs designate with the intention of provisional guests are allowed to demeanor production consultation and symptom convention while on a guest’s travel permit.
Hong Kong travel permit forms
Service visa
To occupy citizens from abroad, you require revealing that a potential member of staff has particular abilities, information or practice not willingly accessible in Hong Kong. The planned member of staff must be supported by an owner in Hong Kong.
Venture visa
This necessitates you to be a partner of a Hong Kong inventory corporation. You can perform this by:
• Inventory and adjustment of a company in which you are the chief sponsor, or
• Empowering in a Hong Kong located corporation
You will also require making particulars of the feasibility of your planned commerce – or your monetary location if you are spending in an obtainable corporation.
Capital Investment Entrant Scheme (CIES)
Permitted CIES interviewees can look for service or set up commerce in Hong Kong. Provisions are:
• A resources speculation of HK$10 million into a justifiable quality division in Hong Kong
• Confirmation that you can hold yourself up
• Confirmation that you can prop up any reliant without community support
Dependant visa
A populace who productively pertain for a visa can convey their partner and contingent family under the age of 18, offered they have adequate finances and appropriate adjustment. The boundary on their residence is the equivalent as the visa holder – who is formally the ‘sponsor’. A partner holding a dependent relative visa can commence any type of legalized service in Hong Kong.
Hong Kong Identity Card
By rule every Hong Kong occupant in excess of the age of 11 years must take a Hong Kong individuality certificate at all periods. If you have authorization to continue in Hong Kong for supplementary 180 days, for case in point of an operational or speculation visa, you must be relevant for a Hong Kong individuality certificate. The submission at the colonization section is simple and cost free. You necessitate pertaining inside 30 days of advent in Hong Kong.
Employment Regulations
The Employment Ordinance puts out the least prerogatives for workers, such as constitutional public holiday, obligatory visionary finance expenses, ill and motherhood depart and separation and employment expenditures. Owners are appreciative to obtain the worker’s reimbursement indemnity plans for their workers under the Employees’ Compensation Ordinance.

Living in Hong Kong

About 150 years ago, Hong Kong has attracted people from all over the world to set up enterprises and explore opportunities. Today the town is still house to a vibrant and diverse enterprise community.

Asia’s most cosmopolitan city, Hong Kong brags all the support and services construction, it takes to seem like a house for worldwide inhabitants, while still maintaining its own distinct identity and heritage. That’s why we call it as Asia’s world town. Its compact dimensions, attractive scenery, buzzing night life and amicable worldwide community all blend to offer the best expat life in Asia. Hong Kong is considered as one of the secure city in the world.

An English-speaking town in Asia

Hong Kong is a bilingual city with two authorized languages, Chinese and English. Whereas 97% of the community speaks Cantonese, enterprise is generally undertaken in English. Nearly all information, encompassing signals, announcements and government and dealing websites, is provided in Chinese as well as English.

It’s very simple to find a house in Hong Kong

Hong Kong provides a wide variety of houses and locations, from apartments in high-rise expansion in the town to customary homes in the homeland areas. Expatriates can choose a position that suits their lifestyle, from the buzz of Hong Kong isle, to beachfront luxury suites, family-friendly new city developments and the slower-paced villages of the New Territories and Outlying Islands.

Hong Kong has a plenty of quality leased places to stay and there are numerous real land parcel agents who focus in meeting the desires of expatriates. Overhauled apartments are furthermore broadly accessible for shorter stays.

Worldwide education

Hong Kong has a large range of schooling options, plus some fifty international schools, from kindergarten and primary schools to secondary and university teaching. Simultaneously, they also offer more than ten worldwide curriculums encompassing Singaporean, Australian, German, Korean, UK, French, US, Japanese and worldwide Baccalaureate.

Kids who study in Hong Kong rise up with a worldwide mesh of friends. They are furthermore exposed to other dialects, including Mandarin which is often taught as a second dialect in international schools.


One of the world’s best healthcare schemes

Hong Kong has one of the world’s largest quality public and personal healthcare systems. There are many government clinics and clinics, offering reduced cost healthcare to citizens of Hong Kong. Private healthcare is also very good and varieties from Western surgery to customary Chinese Medicine and holistic advances. Finding an English-speaking doctor or expert is clear-cut.

Enjoy the outdoors

Although most of the people combine Hong Kong with its busy built-up streets and iconic harbor skyline, it’s amazingly easy to get pleasure with the city’s plentiful green spaces. Over 40% of Hong Kong is made up of sheltered country parks, hills and sandy shores. At the weekend, several Hong Kong people head for the city’s many hiking trails, or to the sandy shore. Another popular choice is a day cruise round Hong Kong’s appealing coastline on a junk.