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Working as a contractor for an overseas company from HK.

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  1. #1

    Join Date
    Oct 2011
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    Working as a contractor for an overseas company from HK.

    Hi all,
    I am talking to a US based company that would like to hire me. They are willing to allow me to work remotely from HK and I would need to fly to the US occasionally. Now how would this work if I were to work for them as a contractor? Any one is/was in a similar situation please advice me. Btw I am on a dependent visa in HK.

    Will I need to setup a company in HK and then bill my US employer, or can I bill them directly?
    How would the income-tax work in both the US and HK?
    Thanks.
    Last edited by desi78; 13-09-2016 at 11:18 AM.

  2. #2

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    Dec 2009
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    Setup as a sole proprietor would be simplest solution to start with, or just use your own name.

    HK_Katherine likes this.

  3. #3

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    As per post 2.

    You will not be liable for tax in the US, only in HK.

    VNHK likes this.

  4. #4

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    Is there any accountants or lawyers here I can talk to about this? If so please send me a PM.
    Thanks


  5. #5

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    Why? Its not complicated. A sole proprietor is very simple to set up, costs a few hundred HKD to register and is a legitimate company structure.

    You then have a company and that company sells services to the USA. The USA taxman has nothing to do with it. The HK taxman will tax you on your profits, which requires you to keep simple accounts. I don't believe you need them to be audited - its very much "company-lite".

    The whole point of sole proprietor is to avoid the need for expensive legal and accounting advice!

    (NB - I run a company here which sells services to the USA - no US tax obligations at all. My husband has a sole proprietorship - he just read the HK Government website and got on with it, no advice required. He sells his services to my company - our auditors see him as just another company).

    desi78 likes this.

  6. #6

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    Hong Kong
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    Hi Katherine,
    Thanks for you reply. I will definitely look into sole proprietor company.
    Thanks


  7. #7

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    Q3.
    How can I form/cancel a sole-proprietorship or a partnership in Hong Kong?

    Answer:
    You should contact the Business Registration Office ( 商業登記署 ) of the Inland Revenue Department (稅務局 ):-
    Address : Revenue Tower, 4th Floor,
    5 Gloucester Road
    Wan Chai, Hong Kong
    Hotline : (852) 187 8088
    Telephone : (852) 2594 3146
    Fax : (852) 2824 1482
    Email : [email protected]
    Website : Business Registration

    HK_Katherine and desi78 like this.

  8. #8

    Join Date
    Nov 2007
    Posts
    2,112

    Agree with the others re: Sole Proprietorship. It's the easiest way to go.

    One small side note. Sole proprietorships are not an incorporated entity and the owner and business are considered one and the same. The sole proprietor is responsible for all debts and liabilities. In cases of debts incurred, there is no protection of personal assets.


  9. #9

    Join Date
    Jan 2007
    Location
    HK
    Posts
    213

    sole proprietor

    Quote Originally Posted by HK_Katherine:
    Why? Its not complicated. A sole proprietor is very simple to set up, costs a few hundred HKD to register and is a legitimate company structure.

    You then have a company and that company sells services to the USA. The USA taxman has nothing to do with it. The HK taxman will tax you on your profits, which requires you to keep simple accounts. I don't believe you need them to be audited - its very much "company-lite".

    The whole point of sole proprietor is to avoid the need for expensive legal and accounting advice!

    (NB - I run a company here which sells services to the USA - no US tax obligations at all. My husband has a sole proprietorship - he just read the HK Government website and got on with it, no advice required. He sells his services to my company - our auditors see him as just another company).

    Do you need to protect yourself from getting sued for negligence by your US clients?
    Either through insurance or in your contract?

    Or if you have no assets in the US than its not an issue?

    thanks