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

 

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

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

 

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

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？

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?

如何计算香港的薪俸税

为了吸引全球的投资和海外人才到香港，香港不仅为公司和企业家提供了有吸引力的税收制度，还针对香港薪俸税的个人所得税的低税率方案，相应地，薪俸税也指个人所得税。
 
首先，什么是评估年？
香港将课税年度定为次年的4月1日至第二年的3月31日。例如，2020年4月1日至2021年3月31日。
 
第二，什么是暂缴薪俸税？
一年的暂缴薪俸税通常是根据当年收入减去上一年度的免税额而确定的。
 
第三，如何计算你的薪俸税？
个人收入可以根据您的应课税入息净额的累进税率进行评估。或以您的净收入的标准税率（以较低者为准）。
 
累进率
净应收收入=总收入–扣除额–免税额
 
标准率
净收入=总收入–扣除额
 
1.免税额表：
免税额                                                                           2020/21及其后
                                                                                                $
基本免税额                                                                        132,000
已婚人士免税额                                                                 264,000
子女免税额（每名计算）                                                   120,000 
供养兄弟姐妹（每名计算）                                                 37,500
供养父母及供养祖父母或外祖父母（每名计算）               
Ø  年龄在60岁或以上                                                          50,000
Ø  年龄在55岁或未满60岁                                                   25,000
单亲免税额                                                                        132,000
伤残人士免税额                                                                   75,000
伤残受养人免税额（每名计算）                                          75,000
2.扣除表：
扣除额                                                                           2020/21及其后                  
                                                                                                $           
个人进修费用                                                                      100,000
长者住宿照顾费用                                                               100,000
房屋贷款利息                                                                      100,000
认可退休计划的强制性供款                                                  18,000
根据自愿医保计划保单缴付的合资格报复                              
针对每个被保险人                                                                  8,000
 
合资格年金保费及可扣税强积金自愿性供款                         60,000
认可慈善捐款                                                                          35%
 
 
 
3.应缴税额的计算：
 
                                   应课税入息实额                       税率
最初的                              $50,000                               2%
其次的                              $50,000                               6%
其次的                              $50,000                              10%
其次的                              $50,000                              14%
余额                                                                             17%
标准税率                                                                      15%
 
 
如想了解更多信息，请与我们联系。
您可能想要了解：2020/2021 年香港个人税务津贴

HOW TO CALCULATE SALARY TAX IN HONG KONG

In order to attract global investment and expat genius to Hong Kong. Hong Kong not only offers an attractive tax regime for corporation and entrepreneurs.  Moreover, it also has a competitive low taxation scheme for personal income tax on Hong Kong Salary tax. Correspondingly, salaries Tax referred to Personal Income Tax as well.

Firstly, what is assessment year?

Hong Kong set a year of assessment runs from 1 April to 31 March of the following year. For example, 1 April 2020 to 31 March 2021 

Secondly, what is Provisional Salaries Tax?

Provisional Salaries Tax for a year is usually based on the income less the allowances of the preceding year. 

Thirdly, how to calculate your Salary Tax?

Personal Income can be assessed by Progressive Rate on your net chargeable income. Or at Standard Rate on your Net Income, whichever is lower.

Progressive Rate

Net Chargeable Income = Total Income – Deductions – Allowances

Standard Rate

Net Income = Total Income – Deductions

 

  1. Allowances Table:

Allowances

2020/21 Onwards
$
Basic Allowance

132,000
Married Person’s Allowance

264,000
Child Allowance (Each)

120,000
Dependent Brother or Sister (Each)

37,500
Dependent Parent & Grandparent Allowance (Each)  
Ø   Aged 60 or over

50,000
Ø   Aged 55 and below 60

25,000
Single Parent Allowance

132,000
Personal Disability Allowance

75,000
Disable Dependent Allowance (Each)

75,000

 

  1. Deductions Table:

Deductions

2020/21 Onwards
$
Expenses of Self-Education

100,000
Elderly Residential Care Expenses

100,000
Home Loan Interest

100,000
Mandatory Contributions to Recognized Retirement Schemes

18,000
Qualifying Premiums Paid under Voluntary Health Insurance Scheme (VHIS)

Policy (For each insured person)

8,000
Qualifying Annuity Premiums and Tax Deductible MPF Voluntary Contributions

60,000
Approved Charitable Donations

35%

 

  1. Calculation of Tax Payable:

 

Net Chargeable

 Rate
On the First

$50,000

2%
On the Next

$50,000

6%
On the Next

$50,000

10%

On the Next

$50,000

14%
Remainder  

17%
Standard Rates of Tax  

15%

For further information, please contact us. 

You may want to read: HONG KONG PERSONAL TAX ALLOWANCE FOR 2020/2021

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