urgent- new MPF account for sole proprietorship?

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  1. #1

    Join Date
    May 2008
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    4

    urgent- new MPF account for sole proprietorship?

    Hello,

    I am a freelance worker currently away from Hong Kong, and I intend to cancel my MPF account to get the money back asap.

    But at the same time, I am considering setting up a sole proprietorship in Hong Kong to make my business look more professional.

    I researched this topic and found that by doing so, I am more likely to be scrutinized by the government as I have to set up a tax and MPF account.

    If that's the case, will that MPF account merge with the existing one (with financial contributions from my previous job)? Or it will be independent?

    If I am really bent on taking the money from the old MPF account (which requires taking a vow to state that I would leave HK permanently, or something like that), should I set up this sole proprietorship that might contradict my behavior ( Well I won't live in Hong Kong but I'd keep doing jobs that come from Hong Kong)

    Any help would be deeply appreciated since I can't find any related info on the web.

    Thanks much!
    SK


  2. #2

    Join Date
    Mar 2012
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    4,835

    Do you have the right to work in HK? If not you may find it impossible to register a Sole Proprietorship here.


  3. #3

    Join Date
    Sep 2012
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    dont worry - dont think any of the gov dep's actually really communicate with each other... but it would be evidence should they investigate from immigration

    dont think the tax dep - will ask u anything about MPF - I declared myself exempt when it first came out ( I had overseas savings plan in position )

    not sure why havin a solepropritership is gonna help - apart from maybe a name on the bank account...


  4. #4

    Join Date
    Mar 2010
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    5,357

    What else exempts a SoLe P from MPF contributions ?
    I hate it as I can manage my money better than those gangsters from finance industry


  5. #5

    Join Date
    Sep 2012
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    u need to show them u have some kind of pension /savings scheme.. probably should exceed or meet the mandatory min - which I think is about 2.5 k per month for sole prop.??


    min didnt actually exceed -but they may be stricter now..........


  6. #6

    Join Date
    Mar 2012
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    Quote Originally Posted by Gruntfuttock
    Do you have the right to work in HK? If not you may find it impossible to register a Sole Proprietorship here.
    Just to expand on that now that I'm on a computer...

    From http://www.ird.gov.hk/eng/tax/bre_abr.htm#a11

    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.
    Edit: why can't I have a link within a quote? Anyway, the Sample Questions are here: http://www.ird.gov.hk/eng/pdf/br_queryletter.pdf

  7. #7

    Join Date
    May 2008
    Posts
    4
    Quote Originally Posted by Gruntfuttock
    Do you have the right to work in HK? If not you may find it impossible to register a Sole Proprietorship here.

    I forgot to mention I am a HK-born resident with a HK ID card.

    My major concern is, I don't want this scenario: I go and cancel my current MPF account, and then find myself rejected and they ask me, "why do you set up a sole proprietorship when you plan to leave HK permanently?" I want to get my money back asap because I don't trust the financial gangsters either

    Also, I can't be bothered with the paperwork involving the taxes and MPF (though the amount will be insignificant or even non-existent, as my business is just a start-up) from the sole proprietorship.


    I hope I have made myself clear and I really appreciate all your feedback

  8. #8

    Join Date
    Feb 2014
    Posts
    6

    Since you will be starting a sole proprietorship, you will be allowed to pick your own MPF schemes and merge your old accounts with your new one. Bear in mind the new minimum is $7,100 per month or $85,200 a year.


  9. #9

    Join Date
    May 2008
    Posts
    4
    Quote Originally Posted by SYGOR
    Since you will be starting a sole proprietorship, you will be allowed to pick your own MPF schemes and merge your old accounts with your new one. Bear in mind the new minimum is $7,100 per month or $85,200 a year.
    I guess I'd better not start the sole proprietorship since I won't be living in HK, and I want to cancel my existing MBP account and get the MPF money back asap. Thanks for your help!