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Sole Propietorship for Dummies

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  1. #1

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    Sole Propietorship for Dummies

    I've registered my sole proprietorship. And now what?

    Is there a "sole proprietorship for dummies" guide out there?

    Do any of you have any tips?

    I will be getting Director fees for being on the Board of a couple of Philippine companies; and perhaps a small amount of consulting work.

    I know I probably need the "company" for the consulting fees - do I also need it for Director fees? Any ideas?

    Any good suggestions for book-keeping?

    (I used to have staff......!)


  2. #2

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    No advantage of a sole proprietorship over a limited company besides the need for an annual audit report imho.


  3. #3

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    I've run a sole proprietorship in Hong Kong for 10 years and never felt the need to add the expense and complication of a limited company.

    Business reg. fees are $24xx per year and are often waived. Tax returns are easy. No need for directors, audits, etc. Unless you need to limit your liabilities, companies make zero sense in my opinion.

    From what you say here, I can't imagine why you'd want to pay someone to do your books! You're the only one who'll ever see them.


  4. #4

    With a sole proprietorship you don't need to hire anyone to do an audit? I'm also looking at sole proprietorship. I realize you need to keep books just in case and file taxes.


  5. #5

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    The big one is to have separate operating bank accounts and not to mingle the business with personal accounts. Esp with top tier banks.

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  6. #6

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    Quote Originally Posted by historian:
    With a sole proprietorship you don't need to hire anyone to do an audit? I'm also looking at sole proprietorship. I realize you need to keep books just in case and file taxes.
    That is correct. There is no need for annual audit. Regarding books, if your business is simple, a file divided into income and expenditure with all your invoices and receipts and statements for each month is enough.
    shri, historian and Coolboy like this.

  7. #7
    Quote Originally Posted by shri:
    The big one is to have separate operating bank accounts and not to mingle the business with personal accounts. Esp with top tier banks.
    Any suggestions on what banks are good for using sole proprietorships? Or they are all about the same?

  8. #8

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    I suspect they're all the same. Personally, I don't see a problem with HSBC / Stan Chart etc.

    Smaller local banks (like OCBC Wing Hang, Dah Sing, BEA etc) might be more amenable to these accounts, but they come with a very low-tech-form-filling type burden that many people might not want to deal with.

    historian and Mr Chips like this.

  9. #9

    Join Date
    May 2019
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    trying to open a bank account for your sole proprietorship in Hong Kong is going to be real fun. I have been rejected by 4 banks.


  10. #10

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    I will be getting Director fees for being on the Board of a couple of Philippine companies; and perhaps a small amount of consulting work.

    I know I probably need the "company" for the consulting fees - do I also need it for Director fees? Any ideas?
    You can do freelance consulting and the fees for that work need not be paid to a "company". You can receive it as a sole-proprietor in your designated bank account. Similar arrangement for receiving Director's fee as it would be treated as some form of "remuneration" by the IRD here.
    Last edited by shri; 07-01-2020 at 11:26 AM. Reason: formatting

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