Setting up a small online buisness in HK?!?

[@dorable]

I wonder if anyone can give me any advice, information etc on setting up a small online buisness in H.k. - Legal requirments etc?
Im guessing registering as a company...etc.

I really have no idea

I basically make handmade jewellery and want to test the waters and see if it would work as a buisness...

Thanks in advance!
Really need any advice possible!

[PDLM]

The simplest form of business is a Sole Proprietorship. It's very simple to register (takes 30 mins or less at Revenue Tower - all you need is your HKID card, cost HK$450 for one year). You only need to keep simple accounts, and you report for tax purposes on your normal personal tax return.

[AIP]

Etsy is a good place to set up an online store for handmade items esp for jewellery

Etsy :: Your place to buy and sell all things handmade

Be careful though you may end up being tempted to buy as well!!!

You don't need to register a business but you will need to declare the income on your tax return. You'll need to keep a record of all income and related expenditure. (Others will correct me if I'm wrong - maybe you do need to set up as a sole trade which costs $450 and is very simple. You may find this useful anyway to get a business paypal account etc).

If you set up an etsy store, or other store, please post the details, I love handcrafted jewellery, I make a few bits and pieces too)

[PDLM]

You don't need to register a business but you will need to declare the income on your tax return. You'll need to keep a record of all income and related expenditure. (Others will correct me if I'm wrong - maybe you do need to set up as a sole trade which costs $450 and is very simple. You may find this useful anyway to get a business paypal account etc).

You are indeed wrong. It is a legal requirement to register any business carried on in Hong Kong, as noted at the page I linked above: "Business" Required to be Registered and Application for Registration

[AIP]

Thanks for clarifying PDLM! I was not sure as in some countries (including UK) you can sell things on ebay, etsy etc and just report it on your tax return without having to set up a business.

In reality I suspect that many people selling on line in HK do not have businesses registered and are not declaring the income.

If it's okay to change the subject a bit, what about people selling second hand items through geoexpat, is that considered a business or does it fall under something else?

[curlyv]

Another option to Etsy is Artfire.com.

I have a store there. It hasn't been around as long as Etsy but it has a free option you can try out.

[M Khan]

I believe that selling the occasional second hand item on Geoexpat does not constitute an occupation or form of employment and therefore such sellers would not be required to register a business. This is just common sense.

Where a person intends to habitually make goods or services available for sale on-line (whether as a primary occupation or as a source of supplementary income, and regardless of whether or not such a person actually succeeds in selling anything) then it is a requirement that such a person should register a business.

As PDLM says, a sole proprietorship is by far the easiest, quickest and cheapest way to do this.

[pinkelephant]

Agree with PDLM and M Khan.

If you are unable to go in person for any reason,then you can send the application by post too.

All you need to do is email them the forms you need and your address and they will mail them to you.
but as PDLM said,if you go in person,then it will be done in half an hour,by post may take around a week or more for you to get the certificate.

all details are mentioned in the link that PDLM put up.

Thanks Curlyv for suggesting Artfire.com
I had no clue about it!

[@dorable]

Thanks to all that replied, that really helps...Appreciate it!

So basically when i register at the revenue tower, i can then start acting as a buisness... and just have to fill in tax forms for being self employed when need be?
Good luck to me, eh?

[mongkokrat]

I'm going to disagree with everyone on this.

Yes, you need to register a business if you start a business.

But do you, in your situation, is it practical to register a business? It sounds like you're in an exploratory phase. If you're selling on eBay, and you don't make any material profits from it, and it's not your main source of income, it can be classified as a hobby.

That said, I do believe that you should register at least as a sole proprietor, but if you're just testing the waters, forget it. Those thing you can take care of after the fact.