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Work handled by Tax advisory

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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

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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

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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

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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.

Living in Hong Kong

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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.

Why most businesses thrive in Hong Kong?

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For a business to thrive, certain factors have to be met so that the operations are run smoothly. Most of these factors are dependent on the location because this is what will bring most of the factors together. This is what makes most businesses in Hong Kong successful. They are successful because they have access to some of the top class facilities which they can use to offer better services. For instance, the infrastructure is good therefore giving people a chance to reach their clients at the most convenient time.

While still considering the infrastructure, you should know that there is a railway line that runs through the city therefore people can use this so that they transport the raw materials they will require for their businesses. This is a cheap option that most of the people who deal with very heavy raw materials can take advantage of. There are also several airlines that give people access to the other cities and other countries within the Asian continent. This makes it the best location especially for the people who move around a lot.

The government policies in the city are favourable to people who run businesses. This means that they are able to carry their activities with minimal interferences from the government. In any case, the Chinese government is very supportive of people who start their companies in the city therefore making it very convenient. This means that you will get all the documents which you need to establish a business within the shortest time. This makes the time people take to establish a business short hence attractive to most people. The taxes that you pay are lower hence something that further attracts more people.

Another thing is that there is ready labour and market in the city therefore making the process of starting and running a business very easy. The people offering the labour services are skilled therefore you stay assured that the services you will get are of high quality. The huge population in the city makes it possible for a business to realise good profits within a very short time. Another reason that makes this city ideal for locating a business is that it is international therefore you can also get clients from all over the world. In most cases, this is what most investors consider when establishing a business. Generally this city is able to meet all the requirements that will make sure a business becomes successful.

Hong Kong Business Start-Ups

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Prior business strategic planning is the core of all successful businesses. The procedures you decide to undertake when setting up a new business are among the most critical in the life span of your business venture. Consequently, you will need assistance in these crucial steps, especially if you are a novice in the business field. There are those magnificent business start-up ideas and investHK can help you build your business in Hong Kong.

The specific type of business, in terms of ownership, that you would like to set up is mainly a matter of personal reference. Whether you are setting up a sole proprietorship, a profit Corporation, a non-profit Corporation or a partnership, choosing the correct legal structure for your new business is extremely essential. Having best legal structure and strategy for your business is ideal. Moreover, you need to make sure that you have done your homework well to avoid being a victim of the law.

The simplest and most widespread form of organization for a business start-up is the sole proprietorship plan. This is where only one individual has all the rights and control of the business. Partnership is also an organization taken up by some individuals where two or more people own the company and are entitled to an equal share of all the profits and benefits. In the corporate organization, which is the most complicated type of business entity, no individual is attributed to all the rights or liabilities. The Board of members is attributed with the utter responsibility of managing the business. All stock holders share the profits as per their investment to the business. If you are planning or have decided to take on the partnership or corporate organizations, it is worthwhile to get the right legal structure that will ensure the flawless running of your business. InvestHK will assist you in your business location and also help you invest in Hong Kong.

InvestHK will vastly assist you in acquiring appropriate business registration and licenses. We will strive to protect your unique trademark while at the same time resolving any legal disputes in the business start-up stage. Setting up a business can be frustrating. However by choosing effective and reliable companies  , the process can be unbelievably easy, with the guarantee of future prosperity. Also for your business to grow you need to invest in a city that is full of creative entrepreneurs.

 

Register Your Own Company In Hong Kong

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Registering a company in Hong Kong comes with a lot of different issues, and it is really important to focus on these issues in order to avoid any further complicacy or complexity. The article of association and memorandum of the company are two important issues, on which the company must put most of their effort. The memorandum will help the company to regulate all business relations and external affairs. In the other hand, the articles of association regulate all internal affairs among the members of the company. Again, another purpose of this article of association is to regulate the relationship between the company and its members, as well.

According to the company registration act in Hong Kong, the memorandum must have some basic information about the company including the name of the company, liabilities of the members of the company, the amount of the share capital of the company, objects and objectives of the company’s business, and the address of the registered physical location of the company in Hong Kong. Again, the article of association must include the rules and norms about holding and arranging any meeting, the processes according to which the directors will be appointed, and the duties, relationships, responsibilities and the rights of the members.

The share capital of the company is another key issue, particularly when it comes about registering the company in Hong Kong. As per the company incorporation act of Hong Kong, this share capital could be of one among two types. One type of share capital is known as authorized share capital and another type is known as paid-up or issued share capital. It is a good news for the companies that, they don’t need to arrange any specific amount as the minimum share capital for opening their company in Hong Kong.

It is important to select the type or category of the business first, before registering a company in Hong Kong. Some information about the company must declare publicly, as per the company formation act of Hong Kong. For example, it is a common public right to know about the basic information of any company, its business type, and the name of its directors and shareholders. Each an every single company must maintain a company registry, where the details about the company’s officers are recorded. Options are also there for the companies to keep some information confidential, when it comes about appointing a nominee shareholder.

Some Facts About Hong Kong Company Registry

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Registering a company in Hong Kong is much easier than registering a company in any other country having such strong and vibrant economic and business trend. Selecting the director comes as one very important issue for any company, which comes with the intention to start and expand its business through Hon Kong. Usually, there are two different types of director comes into action while incorporating a company in Hong Kong. They are known as nominee director and regularly directs. According to the company registration act of Hong Kong, there is no distinction or difference between the nominee director and regular director, as they are treated with same authoritative and administrative responsibilities.

The duties and responsibilities of the director/s as per the rules and regulations of the Hong Kong company act is pretty much similar with the duties and responsibilities of directors in any other companies. They are responsible to carry on the overall business process of the company in good faith. Again, the directors are also bound to exercise their power in a proper manner, and they must also avoid misusing it. Diligence and skill must also come as part of the director’s responsibility, as well.

The shareholder/s of the company also has some specific right and duties according to the company incorporation act of Hong Kong. For example, shareholders are also bound to exercise their voting rights regarding removing or appointing any auditor/s or director/s of the company. It is obligatory for any company to release the profit divided among the shareholders without making any unnecessary delay. If the company is liquefied for some certain reasons, then the shareholders of the company also own a certain portion of the company’s asset, which is worth of their acquired shares in equal proportion.

Company secretary should act as one of the key persons of the company, as per the company formation act of Hong Kong. He/she must arrange the meeting and should take the meeting minutes accordingly. Filing all necessary documents and reports also come as another key job responsibility of the company secretary, as well. Registering the shares and the transfer of share must also be maintained by the company secretary, as this is well mentioned in the act of registering a company in Hong Kong. It is mainly the director, who is responsible for appointing or removing the company secretary without violating the rules and regulations of the company.

International Patent Application

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Protect your Invention Now

Aside from applying for a patent in your own country, you should also consider seeking patent protection internationally.  By doing so, you will be able to expand the potential market of your invention without subjecting it to copying. With an international patent, your product or invention will be protected from being copied, sold or used.

What is an International Patent Application?

An international patent application or PCT is filed based upon the Patent Cooperation Treaty. It will allow you to reserve the right to file a utility patent in more than one hundred countries all over the world. The patent will last for more than 2 years from your initial filing.

However, it is important to note that PCT should be filed within a year of your initial patent application. If you reside in the United States and have applied for a patent there, your international patent application must be filed before your application in the United States is published.

Once you have an international patent application, you will discover that your product will have an increased market value, especially if you are in engaged in the import and export business. This is a must if you intend to manufacture and sell your product overseas.

Benefits of a PCT Application

If you have not decided yet which countries you will need protection for your product or invention, the best thing to do is get a PCT application.  It is the perfect way to avoid multiple foreign applications and you will have up to 30 months to market your invention actively.

Immediate protection

Nobody likes having their ideas stolen or their inventions being claimed by others. If you happen to want protection in other countries which do not belong to the PCT, you also need to file the actual application in the specific countries.

Licensing your invention

The value of your patent rights can be increased if you have an international application. This is indeed a very good idea if your goal is to give other companies the right to sell, use or make your invention. The application will give you a legal basis wherein you will be able to receive payments from companies who wish to sell, make or use your invention in other countries.

Being the exclusive source

If you want to maintain being the exclusive source of an invention, the PCT application will extend the scope of your protection to beyond your country. Getting an international patent application is the most inexpensive way to keep your right to file other patent applications around the world. It will allow you the chance to seek protection in any or all participating member countries.