Sole proprietorship and Dependent Visa

[PolySocrates]

Hi everyone,

I am a bit confused about something that I read regarding holders of Dependent Visas that I hope someone might help clarify.

On the ID website, it is written that someone holding a Dependent Visa from someone who's currently employed in Hong Kong has the right to seek employment (see below)

"Dependants of persons who have been admitted to take up employment (as professionals, investors or for training) or as capital investment entrants may apply to the Immigration Department for cancellation of the condition of stay that employment is not permitted if such condition has been imposed on them."

The fact is that I set up a (private limited) company here in Hong Kong last year (doesn't require any visa) and I am wondering if, as the sole proprietor and director of the company, if I can carry out business here in Hong Kong. At the moment, the company is dormant but I would like to "self-employ" myself.

Anyone has an idea if this is actually possible?

Cheers,

Polysocrates

[Football16]

You need to more thoroughly review the Immigration Dept site for specifics or seek professional advice as you are away ahead of yourself.

If your spouse has a job and visa are you asking if you can get the dependent visa? I might be confused.

If you set up a company and employ yourself to get a visa, then you must have a lot of cash to do just that or contracts guaranteeing this. Most small guys go the work (investment) route.

I set up with my partners a limited company in HKSAR where I am a director and CEO but that did not give me the right to work here until I submitted my work (investment) visa application which was granted in just under 3.5 months with a one month delay on my part as I went home for a month and didn't submit the supplementary information requested until I got back here.

I know some who set up businesses and get their applications approved in good time like myself and others who submit a poor, incomplete and confused application that gets caught up in endless circles it seems. From my experience, these applicants either don't have good cases to begin with or they do a poor job at submitting the materials requested and addressing the key issues that Immigration is basing their decision upon.

The one bit of advice a Geoexpat gave me that I valued and respected was don't think these guys are stupid! They are not. I know how thoroughly they read my submission as they picked up on the one point I rushed as I was hesitant to use existing client names in fear they'd be contacted and I hadn't at that time spoke to them. My original list was weakish and they saw that. We also submitted our business plan which is another source of potential issues for them as it must too reflect the issues they want addressed to grant the visa. Ours was airtight and didn't screw me up.

If setting up a business in whatever form was a guarantee to entry, everyone would do it as you can set up an incorporated company here quickly and relatively cheaply - 14 days. That won't cut it when it comes to a work visa.

If you are setting up a company unless you are fantastically capitalized, then you are likely going to have to apply for a work (investment) visa and that is not easy if you don't do things right and meet their tests. Secondly, you get the visa for one year and then have to go back again where they will review what is happening.

[jaykay]

If you are a dependant of someone who has an employment visa then you are allowed to work, start a business without restriction.

There was a period after SARS whereby those who had applied for a dependant visa as a dependant of an employment visa holder was not allowed to take up employment on that visa without the approval of immigration. This was dropped (i think) in 2006. People whose depandant visas had been issued in that period could get them changed.

So you should be good to go

[PDLM]

As jaykay says, that condition was only imposed for a couple of years post SARS. If you arrived in the last 2 years or if you have had your Dependant Visa renewed in the last 2 years then you can do whatever you want business-wise.

Note that Sole Proprietor and Limited Company are two different legal/tax statuses. If you have set up a Limited Company (rather than simply registered as a Sole Proprietor) then you would presumably be an employee of that company.

all the tax and registration info you need here: Businesses

[DanielandHayley]

If your still unsure I can recommend these guys...

Emigra Asia Limited
21st Floor, Sunshine Plaza,
353 Lockhart Road, Wanchai
Hong Kong
Tel: 3578-6538 (Direct)
Tel: 2783-7183 (General)

we send a lot of our clients to them to sort out their visa issues

[PolySocrates]

Hi everyone and thanks for the answers.

DanielandHayley, thanks for the data.

Football16, I have actually already exhausted the "investment" visa route and I am not willing to go through it again. The 6.5 million dollars capital requirement is ridiculous in my case given that my company is a services company and requires $0 investment (I'm good to go with a laptop).

JayKay, PDLM, thanks for the info. I had read something on that topic on the ID site but the phrasing is so vague that I am still puzzled.

I realize I might have been unclear in how I described my situation but you guessed it pretty much as it is: I am indeed holding a dependent visa and my sponsor is indeed working here in HK. The fact is, I also am the sole Director of a Limited company and although I have read that, as in the quote I included in my OP, a dependent sponsored by someone holding a work visa can work, I am still quite unclear on how one goes about starting to work.

The idea, of course, is that I would get "hired" by my company but does that mean that I would need to apply for a visa or is it that my DV pretty much covers it? I'm renewing my DV next week and I've only had it for a few months.

So, I guess my question is, should my own company "hire" me and then have me go through the work visa procedure or does the DV suffice?

Thanks for taking the time to answering these. I appreciate it.

Cheers,

Polysocrates

[jaykay]

Dependant visa will suffice. This legally allows you to work for who you like (unlike your husbands visa which restricts him to his sponsoring company only). You can work for your own company immediately without any further paperwork.

[PDLM]

As jaykay says: you can do whatever work you want on your dependant visa, including being employed by a company in which you are the sole shareholder. Or you can do business as a Sole Proprietor or anything else at all.

Obviously the tax treatment of these options will be different, but that is completely independent of your immigration status. If your business is likely to be quite sizeable then you should probably take specific advice from an accountant as to the best way to structure things from a tax point of view (which will be totally dependent on the nature of the business and the personal circumstances of you and your spouse).

I'm slightly curious as to why you need to have a Dependent Visa renewed after only "a few months" since the normal initial period is a year. I'm guessing that you got married a few months ago and that your spouse had been here longer. The renewal date of you and your spouse's visas would normally be the same.

[PolySocrates]

Thanks JayKay, thanks PDLM,

I appreciate your input, this has been helpful and I'll be consulting the ID once my DV is renewed.

PDLM, as to why I need to renew my visa so soon: you hit on the nail. My sponsor's visa is being renewed and mine has to be too.

Cheers,

Polysocrates