A Hong Kong company that is registered with Hong Kong Companies Registry is compulsory to renew its business registration on an annual basis before the anniversary of its incorporation. A fee has to be paid the Hong Kong Government for this renewal.
Accounting, auditing, and tax filing all have to be done for the locally registered company. If you have been using one of the Hong Kong incorporation services right from the beginning, all these would become much simpler for you to handle.
Hong Kong has a very attractive tax system which is simple. It offers very low tax rate for international Dun & Bradstreet South Asia Middle East to open offices and do businesses in Hong Kong. As a Hong Kong registered business, the taxes that do not apply include sales tax or VAT, tax on dividends, tax on bank interest received, capital gains tax, inheritance tax or estate duty, or witholding tax on management fees paid to overseas companies.
Any Hong Kong company must handle profit tax, salaries tax, and stamp duty.
Profits Tax is charged at 8.25% (for annual tax year in 2019-2020) on profits for companies who do businesses in Hong Kong. But for companies who do businesses outside of Hong Kong (e.g. offshore profits), they get charged no tax.
Salaries Tax can be charged for no more than 15% based on the income of an individual. This individual is a person who is employed by a local Hong Kong company.
Stamp Duty may be charged at different rates on the transfer value of a property or shares. This depends on the value of the asset being transferred.
Each company in Hong Kong must maintain accounting records, and prepare annual accounts in accordance with HK accounting standards. The company must also arrange for its accounts to be audited by a Hong Kong registered auditor. During the first time, the company has to choose any month end no longer than 18 months from the date of the company’s incorporation as the first accounting month.
It is compulsory to file a profits tax return on annually even when your company produces no business activity in Hong Kong or there is no tax payable. When the company has received the first profits tax return (which is usually 18 months after incorporation), the profits tax return must be filed within three months.
The company may have hired some staffs and have paid them for their work during the year. For this, the company must submit a return to the Hong Kong tax authorities before 30 April each year. This has to include the details of the remuneration paid to the employees during the year to 31 March. This applies also to those companies who has paid no remuneration.