PREPARES TO FURTHER EASE COVID-RELATED RESTRICTIONS

Chief Executive Carrie Lam announced on 3rd May, 2022 to further ease the Covid-Related restrictions. After considering the epidemic’s relative stability and the strong demands of people recently. The phase 2 social distancing measures will be in effect 2-week earlier.

Covid-19 rules to ease on 5th May

  • Beaches & Swimming pools to reopen.
  • No need to wear mask during outdoor exercise.
  • Dine-in patrons to rise from 4 to 8 per table.

Rules set to ease on 19th May

  • Restaurants may open until midnight for dine-in.
  • Bars and clubs will be allowed to reopen.
  • Social gathering limit rises from 4 to 8.
  • Bath houses, party rooms, karaoke venues, mah jong parlours and cruise will also resume operation.

For further information, please contact us.

You may want to read: ANTI-EPIDEMIC SOCIAL DISTANCING MEASURES TIGHTENED IN HONG KONG

HOW TO READ A HONG KONG BUSINESS REGISTRATION CERTIFICATE

In case you want to run a business in Hong Kong, you have a few steps to complete. The first one is to apply for a Certificate of Incorporate (CI) number. Once you have the CI number, the next step is to apply for a Hong Kong Business Registration(BR) number. You must register with the BR office in order to carry out any business activities in Hong Kong.

What information you can find on a Hong Kong Business Registration?

Hong Kong Business Registration
BR Specimen
  1. Name of Business / Corporation
  2. Company Registered Address
  3. Nature of Business
  4. Status
  5. Date of Commencement (Start day of the Valid period)
  6. Expiry Date (End day of the Valid period)
  7. Certificate No – it is commonly said as BR number. BR number is combined with 8 digits-3 digits. E.g, 12345678-001. It stands for BR number-Branch number
  8. Payment date
  9. Receipt number
  10. Amount paid

For further information, please contact us.

You may want to read: Business Registration Ordinance for Company

WAIVER OF BUSINESS REGISTRATION FEES FOR 2022-23

The Financial Secretary proposed in his 2022-23 Budget to waive Business Registration fees for 1 year. The schedule is starting from 1st April, 2022.

Details of the Business Registration Fees waiver

In respect of business registration certificates and branch registration certificates that commence on 1st April 2022 but before 1st April 2023. The fees payable deducted by a sum of $2,000 and $73 respectively. Thus, take into account of the proposal, the Office has not demanded the registration fee for the above period in the renewal certificate and demand note for the business or branch. However, the levy for the Protection of Wages on Insolvency Fund remains payable.

Still, the proposal and subject to final approval from the Legislative Council. If the the Legislative amendment is not passed. The the office will sent notify the proper amount payable for the business or branch.

For further information, please contact us.

You may want to read: 2 YEARS WAIVER OF REGISTRATION FEES FOR ANNUAL RETURNS

HOW TO CALCULATE MPF CONTRIBUTIONS?

What is MPF?

MPF refers to “Mandatory Provident Fund”. Hong Kong started MPF system since December 2000 in response to the rapidly ageing population issue in Hong Kong.

How to calculate MPF contributions?

The MPF contributions have 2 parts: 5% from employee and 5% from employer. Totally 10% of employee’s relevant income. Moreover, the employers must make mandatory contributions for their employees with their own funds. The employers must also deduct the employee’s contributions from his/her relevant income for each contribution period.

Monthly Paid Employees

The current minimum and maximum relevant income levels are $7,100 and $30,000 respectively.

Monthly Paid Employees

Non-Monthly Paid Employees

The employer must first calculate the minimum and maximum relevant income levels of the wage period. The calculation must base on the daily minimum and maximum relevant income levels of $280 and $1000.

Non-Monthly Paid Employees

Weekly Paid Employees

The weekly maximum relevant income level is $7,000 ($1,000 x 7 days). Then the weekly minimum relevant income level is $1,960 ($280 x 7 days)

Weekly Paid Employees

For further information, please contact us.

You may want to read: What is MPF ?

THE BUSINESS REGISTRATION LEVY RATE REDUCTION

Starting from 17th Jun 2022, the Business Registration Levy will reduce to $150 per annum. While the registration fee is remaining $0 since 1st April 2019. So, if the commencement date of your company is on or after 17th Jun, then you can save $100.

Who Eligible?

The new rate is applicable to

  1. the incorporation submissions in relation to simultaneous business registration applications made on or after 17th Jun and;
  2. all other cases, if the commencement date of business or branch registration certificates is on or after 17th Jun.

Business Registration Fee and Levy Table

For further information, please contact us.

You may want to read: Business Registration Fees for Year 2020-2021

THE BUSINESS REGISTRATION ORDINANCE HIGHLIGHT

According Business Registration Ordinance (Chapter 310, Laws of Hong Kong). Every business owner in Hong Kong should ensure compliance with the requirements of the Business Registration Ordinance. Please find the highlight as following:

  1. Section 7(2) requires every business owner to notify the Commissioner of Inland Revenue (Commissioner). If the business owner does not receive the demand notice in writing within ONE MONTH of the expiry of the existing business registration certificate.
  2. Section 8(1) and 8(2) states if occurs any change in the particulars of business as set out in the form of application for registration or cease of business. Then business owner should within ONE MONTH of such change or of the cessation notify the Commissioner in writing thereof.
  3. Section 8(1A) specifies that a local company registered under the Companies Ordinance (Chapter 622, Laws of Hong Kong) commences to carry on business. It must notify the Commissioner if any change in the business particulars within ONE MONTH, the changes including:
    1. Business Name
    1. Description
    1. Nature of Business
    1. Business address, and
    1. Date of the commencement of business
  4. Section 15(1) provide penalties for offences against the Ordinance consisting of a fine $5,000 and imprisonment for 1 year.

For further information, please contact us.

You may want to read: Business Registration Ordinance for Company

UPDATED HONG KONG COVID-19 RULES FROM 21 APRIL 2022

Hong Kong will begin relaxing its “Most Stringent” set of social distancing restrictions on 21st April 2022. Food and Health secretary Sophia Chan announced that the following measures will be in place on 21st April.

  • Restaurants can resume evening dine-in services until 10 p.m. with a maximum of 4 people per table.
  • Banquets with a maximum of 20 people
  • The public gatherings up to 4 people per group.
  • Lift the restriction on private gatherings of more than two households

Premises will Reopen with Limited Capacity

  • Indoor and outdoor sports venues, except beaches and swimming pools
  • Gyms
  • Beauty parlours
  • Massage parlours
  • Performance venues
  • Theme parks
  • Museum and exhibition venues
  • Entertainment venues, including bowling alleys, ice skating rinks
  • Gaming arcades
  • Religious venues
  • Cinemas
  • Public libraries
  • Playgrounds
  • Eating and drinking will be allowed in cinemas if all staff and customers have received three jabs.

Local Tours Arrangement

Local tours can resume with a maximum of 30 people. However, the head-limit can raise to 100, if

  1. The staff had the booster jab;
  2. All the participants have to meet the vaccination pass requirements; and
  3. Both staff and participants have the rapid test negative result on the departure date.

Premises remain closed

  • Bars will remain closed.
  • Beaches, swimming pools, water sports premises, and barbeque pits will remain closed.

For further information, please contact us.

You may want to read: ANTI-EPIDEMIC SOCIAL DISTANCING MEASURES TIGHTENED in HONG KONG

VALUE-ADDED TAX EXEMPTED IN CHINA

The Ministry of Finance and the State Taxation Bureau issued a joint announcement (No. 15 [2022]). China is extending the value‑added tax (VAT) exemption policy for small‑scale taxpayers and small business firms. The exemption has started since April 2021 due to the Covid-19 pandemic, slow down of business activities across within China and cross-boarder businesses. From now to 31st December 2022, 3% of the VAT will be exempted. Furthermore, the small business firms’ taxpayers with quarterly sales of RMB450,000 or less will be exempt from VAT as well.

The measure aimed at supporting small firms and easing their financial burdens amid recent COVID-19 outbreaks.

For further information, please contact us.

You may want to read: China Taxation Vs Hong Kong Taxation for Foreign Investors