Hong Kong &Shanghai company

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Greenie

Talker

Joined: Mar 09, 2004
Posts: 103

Status: Offline

Posted: Mar 08, 2006 - 01:40 PM
Post subject: Hong Kong &Shanghai company

Has anyone set up a trading company in Hk and operate in Shanghai ?
Was told that the tax there is lower, 12.5% against 23% in Shanghai.

But would that means I need to employ an accountperson in HK while I am based here ?

Any advice much appreciated.
thanks

Mon_Mon

Rocker

Joined: Oct 07, 2005
Posts: 661

Status: Offline

Posted: Mar 08, 2006 - 03:54 PM

Hi Greenie, don't really got what you may want to ask specifically. Your question is a bit broad...Just based on what you asked. HK and Shanghai is different ing the business setup so all the work of setting up co. in HK and China (--> Shanghai) are different. HK company can operate in Shanghai but in specical forms e.g through setting up a rep. office ( this may gets a complicate and long explanation...). Now also via CEPA if certain conditions are met...
Tax is deifnitely lower in HK but not 12.5% ( around 16% on profits (depend on fiscal year)) and the tax regime in HK is also different from China ( again another long story to explain). HK's tax charges are much more simple but there are many more types of tax charges in China....
? regarding accountperson : do you mean an auditor or an inhouse accountant? All companies with limited liability in HK needs to be audited (by public auditor) and as required by the companies ordinance needs to keep proper books and records but not necessary to have an in-house accountant. The responsibilities are with the directors of the companies....( not sure if answer your question...)
Anyway if you have other questions you may PM me because it's a bit too difficult to put on forum & not to misled others by too simple an answer. (Don't worry, I won't charge you)

pat_togo

Raver

Joined: Feb 22, 2005
Posts: 398
Location: Pudong & Hongkou, Shanghai
Status: Offline

Posted: Mar 08, 2006 - 11:58 PM

HK income tax is more accurately 17.5%. For tax filling most of the time the company you used for registration can provide those services and if you have a corporate bank account in HK with funds movement it can be used for reconciliation and in that case also you may need more paperwork.

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