STEP 2 of ACCOUNTING PROCESSES IN HK: CREATING VOUCHERS

Marketing ACCOUNTING & AUDITING

Step 2: Creating Vouchers Now that all your invoices and receipts are sorted (See Step 1), the accountant must create vouchers. A voucher is made for the income earned each month, and the different expenses incurred each month. In accounting, earned income and incurred expense does not necessarily mean money was collected or spent. Earned income means a product or …

What is a representative office?

Marketing INCORPORATION

When an overseas company, a company that is not incorporated in Hong Kong, establishes a place of business in Hong Kong, that is a representative office. The establishment of representative offices in Hong Kong by an overseas company is governed by Part XI of the Companies Ordinance.  Many companies will create a representative office when they don’t want to create …

WHAT IS A CONFIDENTIALITY AGREEMENT?

Marketing INCORPORATION

When beginning negotiations with business partners or clients, it would be a smart decision to protect yourself with a confidentiality agreement and a letter of intent. Confidentiality Agreements are legally binding and require that your potential partner or client refrains from disclosing or discussing any information to a third party. This protects your business even if the relationship never moves …

Tax Saving Tip #4: Hong Kong Surplus Waiver

Marketing ACCOUNTING & AUDITING

ATTENTION BUSINESS OWNER: Hong Kong’s government budget has consistently saved you money. You don’t believe me? Well, Hong Kong has a tax-friendly law that particularly benefits SME’s. When Hong Kong runs a government budget surplus (brings in more money than they spend) part of your tax is waived. And the waiver is no laughable amount; it is 75 percent of …

Tax Saving Tip #3: No Taxes on Investments

Marketing ACCOUNTING & AUDITING

After years of intelligent and lucrative investing, you decide it is time to take your earnings out of your portfolio. But before that money reaches your pocket, you are disappointed to find that a huge slice of your would-be earnings has been gobbled up by various taxes. You realize your investment was hardly worth what you thought it was. This …

Tax Saving Tip #2: Hong Kong Rent Write-Off

Marketing ACCOUNTING & AUDITING

Another tax saving tip for your business! We all know one thing for certain in Hong Kong – rent is expensive. Really really expensive. For many, Hong Kong rent can eat up most of their monthly paycheck. Luckily, Hong Kong has a policy providing relief for entrepreneurs here. In Hong Kong, the directors of a company can use their rent …

Tax Saving Tip #1: Hong Kong “Carryforward”

Marketing ACCOUNTING & AUDITING

Who likes paying taxes? Nobody. Fortunately, Hong Kong has one of the lowest corporate tax rates in the world. What’s more, there are several unique ways you can save on your company’s tax bill. Being wildly profitable in the first few years of business is often far-fetched with getting your name out there and all the startup costs. Even some …

ONLINE BUSINESS IMPORTANCE

Marketing INCORPORATION

When running an online business, the steps are similar to if you were running a traditional, offline business. By setting up clear rights and obligations, you will ensure that the business relationship runs smoothly between all involved parties. Terms and Conditions for Online Sale of Goods outline the rights of your business and customers when selling goods/services online. Terms and …