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Renting from a Company - but paying to directors?!?

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  1. #11

    Join Date
    Oct 2007
    Posts
    1,741
    Quote Originally Posted by shri:
    Landlord wants to avoid transactions on his company account to reduce or avoid an audit fee.

    Also want to avoid reporting company income and prfit taxes.

    They might be able also not be willing to stamp the lease and issue you a receipt for the rent, for tax purposes
    I don't think it necessarily the landlord trying to play shenanigans - the shell company might simply serve to circumvent stamp duty when selling the property, which is a perfectly legal albeit stupid loophole. And given how cumbersome it is to open a business bank account (no bank in HK will want to jump through the hoops just to get a customer who only receives deposits....), I don't find it hard to believe that the company owner (who is likely the sole director) prefers to use his personal account. @OP - just make sure the lease is stamped, the payment method is in the contract and that you receive receipts, and you're all good.
    shri likes this.

  2. #12

    Join Date
    May 2008
    Location
    DB
    Posts
    3,713
    Quote Originally Posted by er2:
    I don't think it necessarily the landlord trying to play shenanigans - the shell company might simply serve to circumvent stamp duty when selling the property, which is a perfectly legal albeit stupid loophole. And given how cumbersome it is to open a business bank account (no bank in HK will want to jump through the hoops just to get a customer who only receives deposits....), I don't find it hard to believe that the company owner (who is likely the sole director) prefers to use his personal account. @OP - just make sure the lease is stamped, the payment method is in the contract and that you receive receipts, and you're all good.
    ...and that the property is owned by the named company and the individual is indeed a director of said company?
    Kiz likes this.

  3. #13

    Thanks everyone! That is great information.

    I have received a company search which indicates the directors of the company and have specified in the tenancy agreement that payments can go to the directors.

    Hope it all goes well.


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