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  • 1 Post By Gruntfuttock
  • 1 Post By INXS

Sole proprietorship usage

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  1. #1

    Join Date
    Mar 2013
    Posts
    3

    Sole proprietorship usage

    Hey everyone,

    First of all thanks for keeping such a forum with great information around here.

    Second of all, I'm a non-resident and I don't plan to change that.

    I read a lot about sole proprietorship / limited companies and I've decided that the sole proprietorship might be the way I want to go. It's less hassle and I just invoice small freelance projects to foreign entities, a few times a year. I would open a bank account in HK under the company's name (again, sole proprietorship company) and I will be able to start invoicing (or so I hope ).

    Now, how do I start using the money I make for personal matters. Do I withdraw the money in another HK-based personal account? If so, what are the taxes applied? Can you link me to some IRD documents?

    Ultimately my goal would be to use the funds in another country, but I guess that's less to do with HK legislation and more with the other's country legislation. From that point of view perhaps a limited company would have been better because I could just have paid dividends. Is there a similar solution to sole proprietorship under the HK law?

    Thanks,
    Alex


  2. #2

    Join Date
    Mar 2012
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    4,821

    It is (now) very difficult to register a sole proprietor business here unless you have the right to work here. Do you?

    See http://www.ird.gov.hk/eng/tax/bre_abr.htm#11


  3. #3

    Join Date
    Feb 2013
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    What the hell are you on about?


  4. #4

    Join Date
    Mar 2012
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    If you mean the OP, he is clearly just looking for a tax dodge.

    If you mean me, then I'm just passing on what I know.

    INXS likes this.

  5. #5

    Join Date
    Mar 2013
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    3

    Gruntfuttock, cool, thanks, I didn't know about that!

    You are right, I'm trying to dodge some tax. So... let's see... if I manage one way or another to get that sole proprietor registration, what would your answers to my questions be?


  6. #6

    Join Date
    Dec 2009
    Posts
    6,714
    Quote Originally Posted by a4a4a4:
    I'm trying to dodge some tax.
    Which country are you trying to dodge tax from?

    If your from the USA, then chances of you being able to even open a bank here will be slim without bending over and getting undressed for the banks.

  7. #7

    Join Date
    Jan 2008
    Posts
    1,966

    B V I CO

    If you want to avoid taxes in your home country, your best option is to register a Company in British Virgin Islands. Initial costs about US1,000/ You can open a bank account in HK. No taxes payable in HK. No accounts to be maintained.
    Simple and easy. Deposit & withdraw as you like.

    Quote Originally Posted by a4a4a4:
    Gruntfuttock, cool, thanks, I didn't know about that!

    You are right, I'm trying to dodge some tax. So... let's see... if I manage one way or another to get that sole proprietor registration, what would your answers to my questions be?

  8. #8

    Join Date
    Feb 2013
    Posts
    3,471
    Quote Originally Posted by Gruntfuttock:
    It is (now) very difficult to register a sole proprietor business here unless you have the right to work here. Do you?

    See http://www.ird.gov.hk/eng/tax/bre_abr.htm#11
    The OP....

    I'm always fascinated by people who are 'ready' to go into business, in this case international, who seem to have no clue about fundamental concepts....
    JAherbert likes this.

  9. #9

    Join Date
    Mar 2013
    Posts
    3

    @emx: it's not US (Romania, although I doubt it makes any difference)

    @INXS: well, I guess that's why I posted here, because I have no clue. If I would have had, I wouldn't have wasted your precious time. Which seems to be very precious as you have replied two times at this topic, never related to the question at hand. Though I appreciate your involvement towards bumping this thread. Thank you!

    @B V I CO: I'd prefer HK as I'm physically near the place right now. LLC will be the ultimate way I'll go, if no other solution.

    Thank you all for suggestions / comments. I'd really appreciate if you have more of these.


  10. #10

    Join Date
    Nov 2007
    Location
    Wanchai
    Posts
    5,063
    Quote Originally Posted by Oldtimer:
    If you want to avoid taxes in your home country, your best option is to register a Company in British Virgin Islands. Initial costs about US1,000/ You can open a bank account in HK. No taxes payable in HK. No accounts to be maintained.
    Simple and easy. Deposit & withdraw as you like.
    Most banks require the UBO to visit HK to open the bank account however.