Hong kong sole proprietorship

Unlike a private limited company, a sole proprietorship does not offer protection of personal assets and limited liability to its owner. A sole proprietorship is a type of small-scale business structure which is owned by an individual. As the name suggests, the business is owned and operated by a sole person. Since the business is not a separate legal entity, the owner and the business are considered one entity.

In the sole proprietorships , both the company and the owner are considered as the one unity. Therefore, the owner is legally responsible for all the liabilities and debts.

The owner is only required to intimate the Inland Revenue Department upon cessation of business. There are no legal formalities involved. You should have notified the Business Registration Office of the change in ownership of your business.

The sole proprietorship business and the partnership business will be treated as the same business. Its advantages and disadvantages are listed here by Asia Business Centre (asiabc.com.hk). Business for investor: Sole Proprietorship What is Sole Proprietorship ? This type of business structure is only recommendable in certain cases because a sole proprietorship does not offer protection for personal assets.

However, a sole proprietorship and a limited company are different types of business structures and it is not possible to convert or ‘transform’ from one form to another.

It is easy to close down the business. Setting up a Sole Proprietorship. Hong Kong adopts a territorial basis of taxation.

Sole proprietorship is the simplest and most flexible business structure. The secretary cannot be the sole director of the. If a sole trader has not received a return form (BIRComposite Tax Return) within four months after the end of the basis period for the year of assessment concerne he must ask for a tax return form from the Inland Revenue Department. The business is owned and conducted by a single individual who is liable will all his or her assets. The government fee to register a new SP is HK$ 250.

Quick Registration. Same Day Company Set Up. Servicing Clients Worldwide. Businesses other than corporation (e.g. sole proprietorship or partnership businesses) must make their applications within one month of business commencement. Learn more about the application procedures for new business registration as well as renewal and cancellation.

The company will cease to exist when the sole proprietor dies. Limited partnerships, on the other han can be operated in perpetuity, because a member who dies can be replaced with another partner. Similarly, LLCs may be operated in perpetuity.

But this is the riskiest as the owner and the business is the same, it offers no protection of personal assets.

Principally, it is guided by an established set of tests and judgments in court cases. Also, this company has a share capital that is distributed into a number of shares of a particular value. We offer services to individuals and companies ( sole proprietorship , partnership and limited companies) including: Accounting - on monthly, quarterly or yearly basis. I now no longer want to work exclusively for the company but as a consultant. My former company will give my wife’s company a consulting contract.

In your case, I guess the best solution for you is to set up a limited company in HK which can be done remotely. Many small businesses are owned by a single person, often called a sole trader or sole proprietor. But Manager’s default account structure accommodates other, more intricate business organizations.

So it may encourage more complexity in the chart of accounts than necessary.