Need to set up a sole proprietorship?

[expato]

Hello,

I'm here on a working visa but recently left my employer. In my off time I made a website and my ex employer wants to buy it. I want everything to be legal. I'm still looking for a new employer.

1. My ex employer wants to do a purchase order. Can the sale just be to me or do I need a business? If so I think Sole Proprietorship should be fine. Can anyone see any problems with that? Some old threads mentioned asking Immigration Dep and current employer if you can register/run a business. Where in Immigration Dep do you go for this and do I still need to ask my ex employer? Would I need to tell my new employer in the future?

2. On the form it needs an Address of place of business. I've been told this can't be the flat I am renting along with a bit of wink, nudge and a little everyone does it. Apart from a virtual office is there any other cheap alternative?

3. Anything else I should know or look into?

Any advice would be appreciated. Thanks.

[Yeahbaby]

Hello,

I'm here on a working visa but recently left my employer. In my off time I made a website and my ex employer wants to buy it. I want everything to be legal. I'm still looking for a new employer.

1. My ex employer wants to do a purchase order. Can the sale just be to me or do I need a business? If so I think Sole Proprietorship should be fine. Can anyone see any problems with that? Some old threads mentioned asking Immigration Dep and current employer if you can register/run a business. Where in Immigration Dep do you go for this and do I still need to ask my ex employer? Would I need to tell my new employer in the future?

2. On the form it needs an Address of place of business. I've been told this can't be the flat I am renting along with a bit of wink, nudge and a little everyone does it. Apart from a virtual office is there any other cheap alternative?

3. Anything else I should know or look into?

Any advice would be appreciated. Thanks.

I don't believe you need to form a business to sell your website.

What country is your citizenship? You likely will need to understand the tax implications of a sale. Tax credits or exclusions may not be the same as earned income from salary for some countries. This question might be as important.

Also, is the website located in Hong Kong?

[Gruntfuttock]

What country is your citizenship? You likely will need to understand the tax implications of a sale. Tax credits or exclusions may not be the same as earned income from salary for some countries. This question might be as important.

Only if that citizenship is one of the very few (USA, ...) which tax based on citizenship rather than residence.

[Gruntfuttock]

I'm here on a working visa but recently left my employer. In my off time I made a website and my ex employer wants to buy it. I want everything to be legal. I'm still looking for a new employer.

1. My ex employer wants to do a purchase order. Can the sale just be to me or do I need a business? If so I think Sole Proprietorship should be fine. Can anyone see any problems with that? Some old threads mentioned asking Immigration Dep and current employer if you can register/run a business. Where in Immigration Dep do you go for this and do I still need to ask my ex employer? Would I need to tell my new employer in the future?

2. On the form it needs an Address of place of business. I've been told this can't be the flat I am renting along with a bit of wink, nudge and a little everyone does it. Apart from a virtual office is there any other cheap alternative?

3. Anything else I should know or look into?

IRD and Immigration are more or less separate.

1. On Immigration/Visa, this is probably in a bit of a grey area - you're not supposed to work for anyone else (including yourself) on an Employment Visa. The only potential trioublespot here is that when you register a Sole Proprietorship the rules have now changed so that you need to show some evidence of your right to work in HK. I haven't been through the process with anyone since this changed so I'm not sure if simply showing a (non-Permanent) HKID card is sufficient or whether they will also look at your visa and raise an objection if it is an Employment Visa (clearly it would be no issue if you were on a Dependant Visa, so if you have a spouse here with one of those then it may be possible to work something out!). My guess is that if you go to the Business Registration Office with a HKID and a current visa of any type then they will accept the registration of the business, but I'm not sure, so feedback from anyone who's actually done this in the last year or so since they tightened up on the rules would be very useful.

2. If you mean the form to register your sole proprietorship then I see no reason at all why the address can't be the apartment you lease. Mine (and a couple of others for overseas friends) are registered at my apartment (albeit one I own rather than rent).

3. Obviously you should declare the income on your next tax return. Any directly attributable costs of the production of the website can be offset against the revenue and you will only be taxed on the profit. You will need to create simple accounts for your business, althoug if the revenue is less than HK$2M you will not need to submit them to IRD unless you get audited.