COMPANY UPDATES THAT MUST BE REPORTED WITHIN 15 DAYS

Every registered company must comply with the requirements of the Companies Ordinance. Also have to deliver statutory returns to the Registrar of Companies within prescribed time periods. Company updates are required to notify Company Registry within 15 days. While some company updates require report within 42 days.

 

What situation you should report within 15 days after change?

  1. Section 658 requires a company to deliver a notice of change of address of registered office in Form NR1.
  2. Sections 645 and 652 state that if there is a change in the company’s director, company secretary and/or in the particulars. Then the company should deliver a notice of change in Form ND2A and / or ND2B.

What scenario you should report within 42 days after change?

Under the provision of Sections 662 and 654, below company must deliver an annual return in Form NAR1 together with an annual registration fee 

  1. For a private company, in respect of every, within 42 days after the anniversary of the date of incorporation of the company in that year.
  2. For a public company, in respect of every financial year, within 42 days after the company’s return date. The company’s return date is the date that is 6 months after the end of the company’s accounting reference period. The return must be accompanied by certified true copies of the company’s financial statements, directors’ report and auditors’ reports.
  3. For a company limited by guarantee, in respect of every financial year, within 42 days after the company’s return date. The company’s return date is the date that is 9 months after the end of the company’s accounting reference period. The return must be accompanied by certified true copies of the company’s financial statements, director’s report and auditors’ report.

For further information, please contact us.

You may want to read: WHAT ARE HONG KONG LIMITED COMPANY ANNUAL OBLIGATIONS?

 

WHAT DO YOU NEED FOR A SHARE TRANSFER?

What is a share transfer?

A share transfer is the process of transferring existing shares from existing shareholders to new shareholders or third parties. The process can either be sale or gift and is a common exercise performed by Hong Kong companies with shares. The process mostly involves either adding new shareholders or changing the existing proportion of shareholders.

When do you need to make a Share Transfer?

You may have difference reasons to make a Share Transfer. However, the most common factors are as following:

  1. When a business owner is contemplating selling the business. Or wants to take advantage of an opportunity to cash out by selling some, or part of their shareholdings.
  2. To facilitate the restructuring of a company. For example, transferring the shares of a company from a parent company to a new entity.
  3. Changing the existing proportion of shares between shareholders due to new profit sharing or ownership arrangements.

What is the standard Hong Kong Share Transfer process?

According to the Hong Kong Company Ordinance, all the Hong Kong private limited companies must include in the Article of Association. A provision detailing the restriction of share transfers. The provisions must met the conditions listed before the share transfer occur.

General speaking, the process takes about 3-5 working days. The following shows the process as below: 

  1. Ensure any pre-emptive rights have been satisfied or waived and obtain approval to conduct the Share Transfer from the company’s shareholder.
  2. Prepare Share Transfer documentation required for the transfer to take place.
  3. Prepare all related documents (Contract notes, resolutions, sales & purchase agreements, management account, audit reports etc.) for stamping
  4. After stamping of documents at the Inland Revenue Department , it means the process is completed.

If the share transfers to a third party, it is necessary to establish the terms via a Share Purchase Agreement. These contracts set out in detail the terms of the purchase, including the price and conditions and assurances from the transferor regarding the finances and liabilities of the company in question.

What do your company need for a Share Transfer? 

  • The original copy of the latest audit report and / or a certified management account, showing the latest 3 months financial status of the business.
  • A copy of the residential address, passport or identity card of the new shareholder
  • Name of the share transferor
  • The number of shares to be transferred
  • A company resolution detailing the distribution of dividends
  • Land property information (if any)
  • Sales & purchase agreement detailing the share transfer
  • The company’s subsidiary’s audit report and/or the most recent certified management accounts (if any)
  • A copy of the company’s Articles of Association

For further information, please contact us. 

You may want to read: Company Limited by Shares Vs Company Limited by Guarantee

 

股份转让需要什么？

什么是股份转让？
股份转让是将现有股份从现有股东转让给新股东或第三方的过程。这个过程可以是出售也可以是赠与，是持有股份的香港公司的常见做法。该过程主要涉及增加新股东或改变现有股东比例。
您什么时候需要进行股份转让？
您可能有不同的理由进行股份转让。但是，最常见的因素如下：
当企业主考虑出售企业时，或者想利用机会通过出售部分或部分股权来套现。
促进公司的重组。例如，将一家公司的股份从母公司转让给新公司。
由于新的利润分配或所有权安排而改变股东之间现有的股份比例。
香港股份转让的标准流程是什么？
根据香港公司条例，所有香港私人有限公司必须包括在公司章程中，及其详细说明限制股份转让的条款。该规定必须满足股份转让发生前所列的条件。
一般来说，这个过程大约需要3-5个工作日。流程如下： 
确保已满足或放弃任何优先购买权，并获得公司股东批准进行股份转让。
准备转让申请所需的股份转让文件。
准备所有相关文件（合同说明、决议、买卖协议、管理帐目、审计报告等）以供盖章
在税务局盖章文件后，即表示该过程已完成。
如果股份转让给第三方，则需要通过股份购买协议来制定条款。这些合同详细规定了购买条款，包括价格和条件以及转让方对相关公司财务和负债的保证。
您的公司需要什么进行股份转让？ 
最新审计报告和/或经认证的管理账户的正本，显示该企业最近 3 个月的财务状况。
新股东的住址、护照或身份证复印件
股份转让人姓名
拟转让股份数量
详细说明股息分配的公司决议
土地财产信息（如有）
详细说明股份转让的销售和购买协议
公司子公司的审计报告和/或最近的经认证的管理账目（如有）
公司章程复印件
如需更多信息，请联系我们。 
您可能需要了解：股份有限公司与担保有限公司

WHAT TO BE AWARE OF WHEN SIGNING A BANK CONFIRMATION?

What is a bank confirmation?

Bank confirmation is the audit procedure. It allows to test the existence, accuracy and the ownership of banks account and bank balance of entity. 

When needing a bank confirmation?

Entrepreneurs need the confirmation during the interim audit rather than at the completion stage. The auditors review the bank balance and select some important accounts to be confirmed. Auditors draft the confirmation and the send to client review and get the confirmation signed. 

Once the confirmation signed, auditors is the one who proceeds the confirmation to banks. The bank confirmation is normally the positive confirmation and all the confirmations are responding to auditors.

What to be aware of when signing a bank confirmation? 

The denial is common. As you may involve some careless mistake. In other words, No worry, if you aware of the minor, common mistake. Then everything is going to alright. Yet, we are going to highlight some common mistakes as below:

Authorisation Signature and Chop

  • Irregular Signature
  • Irregular Company chop
  • Incomplete stamp
  • Lack of signature
  • Irregular or lack of signature of the account which deduct bank charge
  • Correction without an authorization signature

Incomplete documentation:

  • Not specify the period of bank confirmation
  • Incomplete / Lack of auditor information
  • Requested bank confirmation period over 7 years
  • No record with the bank
  • Posted-date bank confirmation period

Others:

  • Not an existing client of bank
  • Service for Corporate client
  • Name of bank confirmation is different from Bank account

In general, the banks will charge an admin fee from Hk$300 to HK$800 per document . So, once you found there is a mystery transaction of a few hundreds deducted from your company bank account.with the  description stating audit fee. Then this is a bank fee for the confirmation.

For further information, please contact us. 

You may want to read: CHECKLIST FOR ACCOUNTING AND AUDITING IN HONG KONG

 

签署银行确认书

什么是银行确认书
是一种审计程序，检测银行账户和银行余额的存在、准确性和所有权。

什么时候需要
企业家在中期审计而不是完成阶段进行确认时需要。审计员审查银行余额并选择一些重要账户进行确认。审计员起草确认书并发送给客户审查并签署确认书。

一旦确认书签署，审计员就会向银行递交确认书，而审计员通常会回复银行确认书是通过的。

需要注意什么
因为您可能会有些粗心大意，被否认是很普遍的事情，但无需担心，这只是常见的小错误，不过还是有些常见的错误点需要留意。

授权签名和盖章
签字格式不符
公司印章不符
印章不全
缺少签名
扣除银行费用的账户不规范或没有签名
未经授权签名更正
不完整的文档：
未指定银行确认期限
审计员信息不完整/缺乏
要求银行确认期限超过 7 年
没有银行记录
银行确认期日期尚未到期
其他：
非银行现有的客户
为企业客户服务
银行确认名称与银行账户不符
一般而言，银行会收取每份文件 300 至 800 港元的审计费。所以，一旦您发现从您的公司银行帐户中扣除了数百美元的神秘交易，那就是除了上面的审计费，还有确认书的银行手续费。
如需了解更多信息，请联系我们。 
您可能想要了解：香港会计和审计清单

HOW TO GET YOUR BANK OF CHINA MONTHLY E-STATEMENTS

Bank of China started not mailing out the monthly statements. The act is in response to environmental protection and the sustainable trend of green banking. Hence, your paper consolidated statements will be converted to e-statements effective 1st August 2021. While you are running your business, the monthly bank statements is one essential documents that you MUST have.  In order to know your company’s  financial status, to arrange the monthly accounting and yearly auditing reports to Inland Revenue Department. 

However, you can view your past 13 months of e-statements via IGTB Net Corporate Internet Banking. Once the e-Statement is ready. There is an email notification to inform you each time.

Steps to view your e-statement 

  1. Log in to your Bank of China account
  2. Select Main under Information Management on the top menu bar
  3. Select statement
  4. Fill in all required fields on the left pop box, then click “Search”
  5. Statement will be shown on the right-hand side. Then click on the icon to download.

How to register for your e-statement via iGTB NET

  1. Log in to your iGTB NET
  2. Click on the Gear icon on the top right menu bar
  3. Select “Company Setting”
  4. Select “Company Name” to register for e-statement
  5. Check with your company details
  6. Choose an option for
    • Paper Statement
    • E-Statement
    • Paper Statement and e-statement
  7. Press “Confirm”

For further information, please contact us. 

You may want to read: BANK OF CHINA – IGTB PLATFORM UPGRADE TO PAPERLESS

HOW TO CHECK MY COMPANY FINANCIAL STATUS FROM XERO?

Company Financial Status is similar to physical health of a person. Your physical health is crucial to living a happy and successful life. So applies the same concept to your company. Company Financial Status refers to the state and condition of your company finances.

There are four main financial statements to look at when evaluating your company’s status.

Balance sheets

that shows what the company owns and what it owes at a fixed period of time.

 Income statements

that shows the company’s income and expenditures

Cash flow statements

shows the summarise of cash position

Statements of shareholders’ equity

shows the changes in the value of shareholders’ equity or ownership interest in a company

 

How can you obtain your Company Financial Status from Xero?

You don’t need to send your whole company books to your accountant. If you are Xero user. You just need to press a few buttons and follow below steps:

  1. Log in your Xero
  2. Go to “Accounting” from the top bar
  3. Select “Profit and Loss”
  4. Choose “Date Range” for example 1 April 2020 to 31 Mar 2021
  5. Select “Compare with 1 period”
  6. Click “Update” on the left
  7. Updated Profit and Loss statement will pop up

For further information, please contact us.

You may want to read: HOW CLOUD ACCOUNTING CAN HELP STARTUP BUSINESSES?

如何从XERO检查我的公司财务状况？

公司财务状况是指贵公司的财务状况。公司财务状况类似于人的身体健康，您的身体健康对幸福和成功的生活至关重要，所以对您的公司也适用同样的概念。
 
在评估公司状态时，有四大财务报表是需要看的。
 
资产负债表
显示公司在固定时间段内拥有的资产和所欠的款项。
 
损益表
显示公司的收入和支出
 
现金流量表
显示现金状况的明细
 
股东权益表
显示公司股东权益或所有者权益价值的变化
 
你如何从Xero获得公司的财务状况？
如果您是Xero用户，你不需要把整个公司的账簿都寄给你的会计， 只需要按以下步骤按几个按钮即可：
 
登录您的Xero
从顶部栏中转到“会计”
选择“利润与亏损”
选择“日期范围”，例如2020年4月1日至2021年3月31日
选择“与一段时期作比较”
点击左侧的“更新”
将弹出更新后的损益表
如想了解更多信息，请与我们联系。
 
您可能想要了解：云会计如何帮助初创企业？

BUDGET 2021-2022 – PROPERTY RATES CONCESSION

Budget 2021-2022 announced to provide rates waiver for both domestic property and non-domestic property. Each domestic property for all 4 quarters of 2021-22. Subject to a ceiling of HKD 1,500 per quarter in the first 2 quarters and HKD 1,000 per quarter in remaining 2 quarter. While each non-domestic property, subject to a ceiling of HKD5,000 in the first 2 quarters and HKD2,000 per quarter for the following 2 quarters. 

If your payable is within the ceiling, then you no need to pay. However, you still need to pay the government rent.

Let us show you some examples: 

Domestic Property 

Example 1: 2021-2022 quarterly rates payment below HKD1,000

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $700 $700
Amount of Concession $700 $700
Amount Due $0 $0

Example 2: 2021-2022 quarterly rates payment equal to HKD1,000

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $1,000 $1,000
Amount of Concession $1,000 $1,000
Amount Due $0 $0

Example 3: 2021-2022 quarterly rates payment equal to HKD1,500

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $1,500 $1,500
Amount of Concession $1,500 $1,000
Amount Due $0 $500

Example 4: 2021-2022 quarterly rates payment exceeding HKD1,500

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $1800 $1800
Amount of Concession $1500 $1000
Amount Due $300 $800

Non-Domestic Property

Example 1: 2021-2022 quarterly rates payment below HKD2,000

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $1,700 $1,700
Amount of Concession $1,700 $1,700
Amount Due $0 $500

Example 2: 2021-2022 quarterly rates payment equal to HKD2,000

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $2,000 $2,000
Amount of Concession $2,000 $2,000
Amount Due $0 $500

Example 3: 2021-2022 quarterly rates payment equal to HKD5,000

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $5,000 $5,000
Amount of Concession $5,000 $2,000
Amount Due $0 $3,000

Example 4: 2021-2022 quarterly rates payment exceeding HKD5,000

Apr – Sep 2021Oct 2021-Mar 2022

 
Payable per quarter $6,000 $6,000
Amount of Concession $5,000 $2,000
Amount Due $1,000 $4,000

For further information, please contact us. 

You may want to read: THE 2021-2022 BUDGET TARGETS ON REVIVING THE ECONOMY