Increasing of registration fees in Hong Kong

24.03.2014

The Revenue (Reduction of Business Registration Fees) Order 2013 (“2013 Order”) will expire on the 1^st day of April 2014. So, after these changes the fees for registration of the company (any legal organizational form) or its branch will be paid under new rules.

Also on the website of Hong Kong Tax authority was the information related to registration of companies, sole proprietorships and partnerships. For company registration is enough to fill one application which is submitted to the body, which is responsible for keeping a register of companies (Companies Registry), and do not need to apply to the Business Registration Office for the registration. For providing false information in application there will be a fine of $ 5,000 and imprisonment for one year.

Based on: http://www.ird.gov.hk/eng/tax/bre_ro_exp_20140304.htm

Expert’s opinion

Hong Kong today is a recognized financial center with a rather stable economy. Every year the number of companies registered there only increases. Apparently, Hong Kong government thinks that even an increase of fees for company registration will not affect the popularity of the jurisdiction among businessmen. Therefore, those who wish to register a company in Hong Kong without increased governmental fees should make it before the 1^st of April.

Indeed, in view of the recent politic and economic crises, entrepreneurs hardly lost interest in Hong Kong. But there some complications in working with this jurisdiction, because of local banks. Perhaps in this situation, it is interesting to pay attention to the Chinese, so-called, continent banks. Nowadays it is more easier to open a bank account there than in Hong Kong banks.

Anna Shevchenko ( Paralegal of Legal Services and Bank Consulting Department of Honest & Bright)