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IRD Reminds HK Businesses Of Registration Requirements

Friday, June 8, 2012

A notice issued by Hong Kong’s Inland Revenue Department (IRD) on June 6, 2012, has drawn taxpayers’ attention to certain matters under the Business Registration Ordinance.

For example, except for those specifically exempted, every person carrying on a sole proprietorship or partnership business in Hong Kong must register his or her business within one month of commencement of business. The IRD will not accept any applications for registration of businesses which have never existed or have yet to commence operation.

Any person applying for incorporation of a local limited company, or registration of a non-Hong Kong company under the Companies Ordinance, is deemed to apply for business registration at the same time. The applications for business registration of these companies must be submitted to the Companies Registry.

In addition, local limited companies are required to notify the Business Registration Office (BRO) of IRD in writing within one month of the date of commencement of the business their business name, description and nature of business, business address and date of commencement of business.

BRO will issue business registration renewal demand notes to registered businesses about one month before their current business registration certificates expire. If business operators do not receive such renewal demand notes, they must still inform BRO in writing within one month of expiry of their current business registration certificates. IRD may impose penalties if renewal demand notes are overdue.

However, business registration is not a licence to trade. The applicant may also need to apply for other types of licences or obtain the recognised professional qualifications for operating certain kinds of business. The issue of business registration certificate or branch registration certificate in respect of any business does not imply that the requirements of any law in relation to such business have been complied with.

Apart from companies incorporated or registered under the Companies Ordinance, businesses may apply for exemption from payment of the business registration fee and levy if its profits are mainly derived from the sale of services and its average monthly sales/receipts do not exceed HKD10,000 (USD1,290); or, in other cases, its average monthly sales do not exceed HKD30,000. If two or more businesses are carried on by the same proprietor or partners, none of these businesses is entitled to exemption.

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The Report

Offshore Trusts Guide: Introduction

The History of Offshore Trusts
Development of Professional Competence in the Jurisdictions
What Future for the Trust?
The New Age of Transparency
The Swiss Association of Trust Companies
The Society of Trusts and Estates Practitioners

Offshore Trusts Guide: Jurisdictions

Bahamas

Bahamas: Legal Framework and Formation Rules and Fees
Bahamas: 2006 Private Trust Companies Legislation

Barbados

Barbados: Legal Framework and Formation Rules and Fees
Barbados: Supervisory and Licensing Regime and Fees

Bermuda

Bermuda: Legal Framework and Formation Rules and Fees
Bermuda: Supervisory and Licensing Regime and Fees

British Virgin Islands

British Virgin Islands: Legal Framework and Formation Rules and Fees
British Virgin Islands: Special Trusts Act 2003
British Virgin Islands: The Trustee Act 2003
British Virgin Islands: :Supervisory and Licensing Regime and Fees
British Virgin Islands: New Laws on Private Trust Companies
British Virgin Islands: New Private Trust Company Regulations

Cayman Islands

Cayman Islands: Legal Framework and Formation Rules and Fees
Cayman Islands: Supervisory and Licensing Regime and Fees

Cook Islands

Cook Islands: Legal Framework and Formation Rules and Fees
Cook Islands: Supervisory and Licensing Regime and Fees

Cyprus

Cyprus: Legal Framework and Formation Rules and Fees
Cyprus: Supervision, Licensing and Tax

Gibraltar

Gibraltar: Legal Framework and Formation Rules and Fees
Gibraltar: Legislation, Regulation and Supervision

Guernsey

Guernsey: Legal Framework and Formation Rules and Fees
Guernsey: Trusts Law 2007

Isle of Man

Isle of Man: Legal Framework and Formation Rules and Fees
Isle of Man: Supervisory and Licensing Regime
Isle of Man: Uses Clients and Tax Treatment

Jersey

Jersey: Legal Framework and Formation Rules and Fees
Jersey: Supervisory and Licensing Regime
Jersey: Trusts Amendment Act 2006
Jersey: Foundations

Liechtenstein

Liechtenstein: Legal Framework and Formation Rules and Fees
Liechtenstein: Regulation Supervision and Transparency
Liechtenstein: Characteristics of Liechtenstein Trusts
Liechtenstein: Foundations

Madeira

Madeira: Legal Framework and Formation Rules and Fees

Malta

Malta: Legal Framework and Formation Rules and Fees
Malta: The Trust and Trustees Act 2004

Mauritius

Mauritius: Legal Framework and Formation Rules and Fees
Mauritius: Characteristics of the 2001 Trusts Act
Mauritius: Additional Provisions of the 2001 Trusts Act
Mauritius: Tax Treatment

Monaco

Monaco: Legal Framework and Formation Rules and Fees

Nevis

Nevis: Legal Framework and Formation Rules and Fees

Panama

Panama: Legal Framework and Formation Rules and Fees
Panama: Requirements for Acting as Trust Company in Panama

Seychelles

Seychelles: Legal Framework and Formation Rules and Fees

Turks & Caicos

Turks & Caicos: Legal Framework and Formation Rules and Fees
Turks & Caicos: The Voidable Dispositions Ordinance

Vanuatu

Vanuatu Legal Framework and Formation Rules and Fees




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