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Best way/app to transfer the money out

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  1. #1

    Best way/app to transfer the money out

    Hi All,

    I live in Australia and will be working (part time) for a HK based company. Its an ongoing commitment with only 2 days per week to start with but potential to become a full time commitment.

    In order to get paid, I have been advised to register a company or sole prop business in HK and open a biz account with a virtual bank like Neat.

    So I would like to get your advice on:
    - If this is the best to go about getting paid i.e. register a company/sole prop and a business account?
    - Is Neat the best virtual business account in HK?
    - How can I transfer the money out to Aust if transferring to my local personal bank account is NOT an option.

    I would really appreciate any advice you can share.


  2. #2

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    1) For setting up a company or sole proprietorship - Be aware that company registration and compliance (maintaining accounting records, annual audit, and tax/corporate filing etc.) will cost you. And this will be a recurring expense to you. You can consider starting with a sole proprietorship which has limited compliance and related costs etc. (no audit, you can maintain your records by yourself, tax filing is similar to an individual), and see if it makes sense to register a company later on.

    2) Neat, and a few other virtual banks are your options. There are a few operating from SG as well. I am not much aware of it, but some online research will get you the options. In short, it is possible to open/maintain a virtual account.

    3) Transferwise or Instarem can be used to transfer funds to your Australian account (or could be anyone else's account).

    Last edited by fullmetaljacket; 21-12-2020 at 02:03 PM.

  3. #3

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    No comment on the banking part - but I'd recommend a sole prop assuming you can do this remotely. The audit / filing requirements are far lower for sole props.

    Seems like @CatcherBiz in the industry and might have some more info.


  4. #4

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    Great job shri, , you know me well that I only appear in "Businesses & Companies" forum .

    Okay, back to the question, like always, I agree with the advice of shri with a little bit of practical information / resources for your reference.

    1) Sole Proprietorship
    https://www.ird.gov.hk/eng/tax/bre_a...f=geoexpat.com
    Please read below extracted content (see Sample Questions)
    In short, nowadays, any non-resident applies for a sole proprietorship might not be that easy, where question 1 already set out a barrier.


    2) For Neat - bear in mind that Neat is NOT a licensed bank in Hong Kong
    Yet, for a business account, Neat allows application without "Physical Presence" in Hong Kong for the bank interview; so, I won't say Neat is the best, yet, seems a possible option

    3) For the time being, you are free to transfer money out to Aust any time you wish
    Regarding transferring to your personal bank account, you may need to consider about tax matters if your Aust tax authority find out such incoming amount

    I am not sure if there is any specific reason why your employer cannot pay to your personal bank account directly?
    To provide further advice or option, prefer to have a little more context about the case.

    You may pm me if the reason is a little bit sensitive.


  5. #5

    Thanks guys for valuable input.

    I think Sole prop is probably the way to go but I will do some more research.

    Regarding question 3, I prefer NOT to transfer into my local aust bank account (for many obvious reasons). Which is why I was seeking advice if there are any alternative methods to still access and use money in aust?


  6. #6

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    Hi themiester,

    Clarify a little bit, perhaps I don't know how to attach captured screen correctly.
    As per my original message, more straight-forward, a non-resident applies for a BR likely will be declined by IRD.

    QUOTED
    Given that persons who land in Hong Kong as visitors are normally not allowed to establish or join in any business during their stay in Hong Kong, IRD will require businesses with non-resident sole proprietor or partners to provide further information (
    see Sample Questions) with a view to ensuring that the particulars, including the date of commencement, stated in the relevant application form are correct. Please note that any person who submits false information shall be guilty of an offence and liable to a fine of $5,000 and to imprisonment for 1 year under the Business Registration Ordinance.
    UNQUOTED

    Question #1

    QUOTED
    "
    a copy of the Visa/Entry permit label issued by the Immigration Department showing that you or the non-resident partners are allowed to join in any business in Hong Kong."
    UNQUOTED

    Back to Question 3, regarding access and use money in aust without triggering any of those "obvious reasons", honestly, no safe and 100% legitimate method; ever there is any, sorry to say, it won't be shared in this public forum and won't be easy to arrange.

    My final advice, any arrangement, be aware of the AEOI
    https://www.oecd.org/tax/automatic-e...f=geoexpat.com

    All the best!!
    themiester likes this.

  7. #7

    Thanks again CatcherBiz.

    I'm fully aware of the AEOI. I'm just trying to figure out a best way to get paid so I don't end up paying most of my minimum earnings in setting up, maintaining business in HK, and exchange rates, bank charges etc.

    I have sent you a PM with more details.


  8. #8

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    Hi themiester,

    Replied your PM message.

    If you find the answer helpful, please give a "Like" to my answer, also, appreciate a few words in this thread as a review of CatcherBiz for the friends in GeoExpat as reference .
    themiester likes this.

  9. #9

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    Quote Originally Posted by themiester:
    Thanks guys for valuable input.

    I think Sole prop is probably the way to go but I will do some more research.

    Regarding question 3, I prefer NOT to transfer into my local aust bank account (for many obvious reasons). Which is why I was seeking advice if there are any alternative methods to still access and use money in aust?
    Instarem is great for making transfers from HK to Aus. You just make a local HKD bank transfer from your HK bank to instarems HK bank account. Then instarem will pay you AUD from their local Aus bank account into your Aus bank account. This gives you no sending fees, no receiving fees, a great rate, it's instant (10 seconds after you send the money from HK you can see it in your Aussie bank accout already), and to top it off these are all local transfers so the Aussie taxman might not scrutinise it as they would a regular overseas transfer. To them is just a local transfer coming in through Aussie PayID.

    But just to be clear, whilst this might assist you to hide your money transfers, you still have to pay Aussie taxes on all your HKD income. You do realise this right? Whatever taxes you pay in Hong Kong can claim as Australian foreign income tax offset which provides relief from double taxation. But you still have to pay Aussie rates of taxation on all your HK income.
    aw451 likes this.

  10. #10

    Thanks bdw and yes, I'm fully aware I still have to pay tax on all incomes even earned overseas.

    So Instarem is like trasnferwise? And they issue you a debit card as well for business accounts. But In order to use Instarem, I still need to have a local HKD bank account.


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