Costs of running a Honk Kong company for a non-resident

Here is a real example of the costs of a Hong Kong company run by a non-Hong Kong resident. Prices are in US dollars.

Costs related to company incorporation (2014)
$1089 – Incorporation costs with registration / secretary / address

After 12 Months
$795 – Renewal of virtual office services including secretary service and address costs.
$55 – Admin fees for director resolutions to withdraw dividends

After 18 Months
$350 – Profits tax return year 14/15 (NIL Value As < 18 months audit not required)
$1375 – Audited reports with profit tax return year 15/16
$40 – Printing and Admin Fees

After 24 Months
$795 – Year Renewal / Secretary / Address Costs
$1375 (TBC)+ – Audited reports with profit tax return year 16/17
$2500 –  Profits tax exemption claim (yearly procedure)

Total: $8374 after 2 years. 

Explanation:

Accounts audit are mandatory in Hong Kong. This is a yearly process. It requires hiring a certified public accountant from Hong Kong to do this job. The price varies depending on the number of transactions in the previous year. In our example, it cost $1375.

The profit tax exemption claim is also handled by a professional from Hong Kong. It is mandatory to apply for it every year. In this case, the price was $2500. In other words, for small businesses, the cost of profits tax exemption claim and audited reports may cost more than what a corporate tax could cost in jurisdictions without this procedure.

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