Few restrictions on business scope: In Hong Kong, you can engage in all businesses except for some businesses that require special licenses, such as: Banking, insurance, real estate, charitable,finance, etc. If your company has restrictions to registration and business operations within the boundaries of China – you can opt for setting up a Hong Kong company for doing business.
Convenient banking operations: Hong Kong is a major financial center in the world that has very relaxed foreign exchange controls. Foreign exchange can be received in any currency into accounts opened in Hong Kong banks where there is no limitation on foreign exchange receipt or payment and it is also easy for settlement of foreign exchange. Foreign exchange transactions can be transacted normally provided that there is no money coming from a conflict zone or any sanctioned countries..
No need to operate locally: Hong Kong acts as a significant port for Southeast Asia and foreign markets, drawing buyers worldwide, and serving as a suitable starting point for businesses targeting global markets. Following registration of a Hong Kong Company one does not necessarily have to be resident in Hong Kong nor requires an office space. There is no need to employ people either. You can even set up trading operations for a business or an investment regardless of its location in the Hong Kong territory or outside boundaries. In this case, the Hong Kong company is just used as an office or register address. A complete legal protection system can fully protect your interests.
Export declaration: Exporters often have experience and situations where they declare USD 100 million for export, but get only 97 million dollars due to many various reasons or they agree with the customer on a 180-day deferred payment letter of credit to make their firm more competitive. The exporter can in this case easily transfer funds from offshore account into the domestic company account on time after obtaining export tax refund to have extra money for conducting the next round of trade.
Avoid trade barriers: It costs one to two times more when a company exports products into the United States since it needs to apply for quotas and other related procedures. However, when the company has an offshore overseas subsidiary, and the company exports to the offshore subsidiary and then re-exports to developed countries such as United States, it will be free from any tax as well as being able to get through export duties
Apply for BUD subsidy up to 7 million: Non-listed companies registered in Hong Kong and established for more than one year, with annual operating income in Hong Kong of HKD3 million or more, and with employee and MPF records, financial audit reports, actual business premises and transactions, etc., can apply for subsidies. After submitting the report, the subsidy will be received within 4 months. The subsidy will be directly transferred to the Hong Kong company’s bank account.
Non-listed companies registered in Hong Kong and operate for over one year, having annual operating income located in Hong Kong at HKD3 million or above as well as employees hired and MPF records, financial audit reports, real business premises and transactions can make subsidy applications. The subsidy shall be received 4 months after submission of the application and it will be transferred directly to the company’s Hong Kong company bank account.
Ensure you provide a copy of directories and passports as well as evidence of stay back documents from their nations if you run a company with non- residents as directors and shareholders.
Determine the company structure: Such companies may incorporate by registering as a limited liability company, operate as a sole proprietor, or form a partnership. Hence, it is essential to be aware of all these structures, and how they differ, selecting that is most suited for your business objective.
Appoint a company secretary: All HK companies are obliged to appoint a company secretary who will ensure that the company complies with legal as well as statutory obligations.
Prepare incorporation documents: The essential incorporation documents are the Memorandum and Articles of Association, a signed declaration made by a company secretary, and then the Certificate of Incorporation.
Register for taxes and licenses: You may have to carry out a tax registration process and secure licenses in line with the type of your business.
If you plan to hire global talent for your expanding company, then you have to know and understand all sorts of employee. It should give you additional information and allow you to weigh up your revenue and expense sheets. For employers, therefore, the freelancer vs contractor proposition is something they should be thoroughly familiar with.
The freelance workforce now accounts for about 36 % of the total US labor force, based on a recent report. But the pick of your external staff is not restricted to freelancers alone. You can also hire independent contractors. But what are their differences?
Freelancers are self-employed, non-permanent personnel providing professional skills to their customers. They tend to work with a number of companies at the same time, and take on as many projects as are within their schedules. Creative fields and media industries are the most common freelancers.
Independent contractors are like freelancers, and generally work for the same client or on a long-term project, some fixed period and others continuing. Those self-employed contractors can choose to act as individuals, or they may prefer a turn at an agency. They handle their own social security and taxing. The staff is skilled and often own the organization. The IT, finance, health and construction sectors have the largest shares of independent contractors.
Freelancer vs contractor are both external employees who enjoy considerable professional and financial independence. But these differences also exist, and employers should be aware of them to avoid employee misclassification. To understand the freelance vs contract employee debate, we need only consider hiring, payment and work schedules.
Working period can be seen as a criterion for differentiating between freelancer vs contractor. Freelancers work on short-term projects, either with or without deadlines. Therefore, contractors mostly work for clients on long-term projects with a fixed schedule.
Generally, an agency employs freelance workers. If you don’t have time to glance at the list of freelancers, this option is for you. Hiring agencies generally deal directly with independent contractors’ time frames, deliverables and fees. On the other hand, hiring a freelancer allows you to negotiate with the candidate over rates and deadlines.
Hong Kong Work VisaAs freelancers, they have fixed working hours and flexible work. Unfortunately, this schedule is not at all fixed. An employer will rarely get a steady stream of project updates. Some independent contractors do things in their own time, just like freelancers. However, most contractors have a set time every day for receiving news. Thus, freelancers and contractors can negotiate a suitable schedule for both sides at any time.
Freelancers and contractors are paid either on a project basis or by the hour. But the biggest difference is how they get paid. Freelancers receive direct payment at an approved rate. The payment process is simple. When a project is completed, freelancers send an invoice and receive payment. On the other hand, a freelancer working for an agency is paid by that agency (not the client). Yet most contractors who are without agencies are paid directly by clients. One major difference between the contractor and. Contractor free-for-all So, you’re a freelancer? If employers hire them through an agency they don’t have to worry about getting paid.
Most freelancers don’t work under contract, so they can work for numerous clients at once. However, independent contractors enter into a formal agreement with the company they opt for. These contracts specify the project costs, time schedule, deliverables and payment terms. Sometimes even independent contractors sign legal contracts that will clearly state who owns what following completion of work or which parties bear responsibility for aspects thereof.
This is one of the most common points in the distinction between freelancer vs contractor. Freelancers can choose where they want to work. It is their home office or a particular location depending on the requirements of the project. Freelancers occasionally rent office space, but employers are not obliged to give them an office or compensation for its rental. In contrast, in the IT or construction fields independent contractors are sometimes given a specific work location by employers.
The gig economy has boomed in the last few years. And if any worker has ever worked on their own as an independent contractor or a freelancer, they’ve been part of the mighty gig economy. Gig is just short-term work or project work. Uber drivers or Zomato delivery executives will give you a clearer idea of what gig workers are like.
Properly categorizing workers is of great importance, because employee misclassification is a punishable offense. But it could cause major tax problems, getting you in trouble with the IRS.
If the employer has direct control over the employee or can control his work, that is behavioral control. Control here refers to the professional’s instructions (when, where to work, what tools he or she should use, etc.).
If the employer has direct control over the employee or can control his work, that is behavioral control. Control here refers to the professional’s instructions (when, where to work, what tools he or she should use, etc.).
Financial control refers to an employer enjoying the right of control and decision-making over the organization’s business and finances. Higher monetary control is a greater probability that the worker will be an employee. For example, more financial control is seen when the tools to be used by the workers are still owned by the owner. Likewise, whether or not to reimburse any worker and if the worker may participate in other business ventures are also taken into account.
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