Importance of Audit and assurance

Audit and assurance play important role, so that the capital market and the economy of the company work effectively. It provides confidence to the present stock holders of the company in its future.  The further investment by the stock holders depends on this report. Hence it can rightly be said that the company success depends on the report of audit and assurance. The report is formed by the auditor.

Purpose of audit and assurance

The message from the auditor of the company is given in plain words to the stock holders in audit and assurance report. The report represents the financial status of the company. This helps them in making decision regard their share in the company. This procedure needs to be updated from time to time.

Who needs the access to the financial information?

The stock holders of the company are different from the management, owners and administration of the company. Hence they need an independent source to know about the financial status of the company so that they can assess the performance of the management. Besides share holder the lenders, staff, market analysts, creditors, government, perspective stock holder and the public also need asses to the financial information of the company.

Why is it required?

Audit and assurance increased the credibility of the information in the final financial statement. Thereby it increases the confidence about the company among the people. There are many level of assurance that the practitioners perform. They lead to different level of

Absolute assurance: it consist of guarantee.

Reasonable assurance: this is the audit of the financial statements where details of the testing, evidences that are gathered and the required support are given in the conclusion. It represents the true and actual view of the financial condition of the company. The auditor provides it according to the accounting standard. This type of assurance is difficult to get as it is not practical for the auditor to investigation and audit every transaction.  The report consists of opinion on the financial statement that mostly cannot be accurately determined by an individual and might be dependent on the future events.

Limited assurance: it is the review of the financial statements and consist primarily enquires and analysis. Less detail of the procedure is given. There are no evidences to believe that the conclusion is false, hence people can take it to true and rely on it.

No assurance:  this report consist of financial statement.

What to consider when registering for a trademark in Hong Kong

A trademark is a basically words or a symbol registered to represent a certain company or business. The main aim of a trademark is to allow the consumers to be able to differentiate one company from another. When it comes to trademark registration, different countries have different registration processes. In Hong Kong the registration process is really simple. The main advantage of using a trademark is that it gives you the right to use the trademark on your goods and services. This allows the consumer to know that the good or service provide is yours. When applying for trademarks in Hong Kong there are several factors that should be considered.

What to consider

All these factors should be taken into consideration in order to be assured that the trademark passes the registration process. The registration process is readily available from the government site. This is one of the reasons as to why it is really easy to apply for a trademark in Hong Kong. Some of the main factors that should be taken into consideration before you start the application procedure include;

  • Distinctive- you should ensure that your logo or word clearly defines the services and products you offer. It is advisable to ensure that you use unique trademarks in order to ensure that it passes. The logo or words should not be the same as any other company in the market.
  • Generalization- Ensure you avoid using general words when creating your trademark. The trademark should describe the services and products you offer and not generalize the product. For instance you should not use general logos like “quality belts”. Creativity is highly important when it comes to choosing a trademark.
  • Line of business- keep in mind some of the common phrases in your line of business and avoid them. Some business lines have common phrases and they should not be used when creating your trademark.
  • Uniqueness- the trademark registration of Hong Kong will reject any applications that have trademarks that are already in use by other registered individuals. It is necessary to research and find out whether your desired trademark is already in use or not.

These are the main factors that should be considered when submitting your trademark application. It is important to note that once the application is submitted and denied one will have to start the application procedure again. In order to avoid this it is advisable to take the above factors into consideration.

Why opt for shelf companies in Hong Kong

Why opt for shelf companies in Hong Kong

Compared to other regions, starting up a business in Hong Kong is a highly simple process. One of the areas that most people tend to deem as complex is business registration. Hong Kong Business Registration is actually simple and direct. Once you have all the required documentation, this is a highly simple and fast process. Though simple, it might take some time for all the necessary registration procedures to be completed. One of the simple ways to start a business in the region is by opting for shelf companies. Shelf companies are companies that already registered companies that are for sale. Once you buy the shelf company all you need to do is to change the ownership for the process to be complete. This is the fastest way opening and registering a business in Hong Kong.

What to know about shelf companies

Starting the registration from scratch consumes a lot of time. Shelf companies simplify this whole process since they are already made and registered. You can find these companies in a list provided by the Hong Kong registry of readymade companies. The registration procedure will only take place after the proper transfer of shares. One of the main advantages of this method apart from time saving is that you can be able to do this online. All other processes like changing the name are simple and direct.

It is however advisable to hire a business consultant in Hong Kong in order to make the process move in the proper manner. All features of opening a business in Hong Kong will be fast tracked once you opt for this method. For instance opening up a business bank account will be done immediately since you already have a registered company. It may be done in only two business days. New companies will have to wait for all the government documentation to be processed in order to open up a business bank account.

The best part about buying shelf companies is the fact that you will be able to buy a business in any category. The registry has several listed business in all the company categories available. This makes it easier to choose which business to opt for. It is important to ensure that you avoid scams at all costs. This is why it is necessary to choose a registered business consultant in order to receive the right form of advice. Always ensure that you buy the company from the government registry.

Company Setup Procedures within Hong Kong – How to setup Your company inside Hong Kong

Hong Kong (HK) is actually well-known for opportunities and offshore business  that is first place in your “Index of Financial Freedom” fifteen many years in a line (until 2009). The catalog takes into account aspects such as company independence, investment independence, property privileges and independence from problem. Along with one of the cheapest corporate tax prices on earth (16. 5%) along with zero taxes on foreign found earnings, HK can also be the perfect jurisdiction with regard to tax-efficient company, without being regarded as an international taxes destination. Setting up a business within HK usually takes less than 4 business days along with using an expert services organization is easy. The task is as comes after:

- The organization services business gathers the necessary due diligence along with verifies the required providers
- Lawful, accounting along with tax ramifications of business incorporation usually are settled using the professional providers organization
- Company title availability is actually examined
- Professional providers organization, and the customer, discuss along with agree ideal required corporate framework for new business

Including how many shareholders and company directors
- Incorporation paperwork usually are delivered with regard to signing and delivered to business support business for running
- Service expert handles the work incorporation using the relevant regulators
- Business incorporation inside HK is full
After developing a company within HK, new agencies often encounter other essential requirements within new business setup. These range from opening the corporate banking account, obtaining business and industry finance along with vendor accounts, and discovering a local work place or virtual business office.
World-class multi-currency balances and net banking services are plentiful within HK. Business owners can choose among leading worldwide banks which function within HK, to open up their business bank account for fresh Hong Kong company, and will appreciate having no foreign currency controls or limitations on medially and facing outward opportunities -a selling point for working worldwide company from a HK workplace.
Advertising components like the company web site, search engine marketing and the logo design are additional factors which play an important role within the success of the newly set up business.

Minimal requirements to setup business inside Hong Kong:
- One shareholder
- One overseer, virtually any nationality/residence
- Business assistant, possibly HK citizen or HK business
- A listed HK office deal with
- Auditors, through firm involving HK accountants
- Company Enrollment Certification
- Anyone can behave as movie director, shareholder along with assistant, unless sole overseer, he/she can’t act as assistant
- Absolutely no minimum reveal funds needs

How To Register A Company In Hong Kong

Businessmen around the world are getting serious to know about how to register a company in Hong Kong. In this age of globalization, businesses are no longer confined within any geographical restrictions and Hong Kong is becoming a more popular place for doing business of almost any types. Both Asian and European businessmen along with some other countries have found Hong Kong as the right place to expand their business and take it to the next level. It is obvious that, the businesses need to fulfill some prerequisites in order to form a company in Hong Kong, as like as any other country in the world.

According to the official company formation law of Hong Kong, both public and private limited businesses are allowed to open their branches and continue their business activities. Yet, most of the businesses preferred to start as a public limited company, as this is one of the most flexible options of doing business in Hong Kong. Doing business as a public limited company is a common practice for many businesses around the world, and there are some specific rules and regulations which the businesses must follow while doing business in Hong Kong.

There should be at least one shareholder of the business, who could either be a local Hong Kong residence or a foreigner. There is only one restriction on the age of the shareholder, and he/she must have the age at least 18 years and above. There is no particular limit for the minimum share capital in order to register a company in Kong Kong, and this is another big reason for why both investors and businessmen prefer doing business from Hong Kong. But, there is common practice according to which companies are getting incorporated in Hong Kong with an authorized share capita worth of ten thousand Hong Kong Dollar.

It is compulsory for businesses to have a local address (registered) of Hong Kong, as it is not possible to register a company in Hong Kong just by using any PO Box number. The company must also appoint a company secretary, as it is another prerequisite to register a company in Hong Kong. There is a restriction that none of the shareholder can act as the company secretary as per the rules and regulation. These are some common and general terms, which must be followed by any company to start and doing business in Hong Kong.

Deciding of Company Name and Type of a Company in Hong Kong

The first thing to decide is about name and type of company.
Company types
There is a wide range of companies from which, one can choose that would meet your specific requirements.
Limited Companies are the most used types of company setups. These are companies which are Hong Kong incorporated, meaning that their owners can be able to benefit from all tax concessions and benefits available to businesses in Hong Kong. They are fully incorporated including CEPA, the agreement on free trade with China Mainland.
Parent Company’s Branch Office: Companies which are not incorporated in Hong Kong establishing business places in Hong Kong, must be registered at the Registry of Companies as ‘Non-Hong Kong Companies’ under one month of set-up. Compared to subsidiary limited companies, branch offices are not separate legal entities from their parent companies and may benefit from funds leverage due to the rating of their owners.
Company Representative Offices may not engage in activities that are profit-making and may only undertake limited activities. If companies wish to explore the market in Hong Kong prior to making bigger investments, company representative offices can be useful. Companies deciding to start or enter into transactions that create legal obligations, they must alter their business structures to branch offices or limited companies.
Names of Company
A limited company which is Hong Kong incorporated, its name cannot be similar to that name on the company index names which are kept at the Companies Registry. The company index of names can be search online.
Structure of Company
Many limited companied, which are Hong Kong incorporated, are mostly private companies that are limited by share holding portfolios.
The private limited companies of Hong Kong require at least one secretary and a director to get registered. For a company with only one director, the single director may not be the company secretary simultaneously. The secretary should under ordinary situations stay within Hong Kong if she or he happens to be an individual and if body corporate, registered business place or office must be in Hong Kong. A director can also be appointed from any other country who is not a resident of Hong Kong.
Company registered office must be located within Hong Kong.
It is not mandatory that shareholders must be residents of Hong Kong. Sole shareholders may be company directors as well.

Improvements in Offering Financial Services

Hong Kong has many unexploited opportunities in the finance and banking sector. The city houses many local and international firms that would like to have a market share of the fast growing Chinese economy and such enterprises competing globally. The town is known for its developed financial infrastructure, effective functional regulatory bodies and capital. Hong Kong has attracted the financial professionals with the highest level of professionalism and talent and a number of service providers from all over the world.
In 1980s, many companies moved to Hong Kong in search for cheap manufacturing labor, which led to Hong Kong in increasing capital formation and asset management assurance in which, banking sector has made great contributions to convert Hong Kong into the regional hub for entire Asia pacific. They thrived due to government’s support to the sector via use of trusted legal systems, low taxation in the sector and providing security through intellectual property for business.
The succeeding financial sector with a strong base in non-banking financial sector has seen Hong Kong ranked as the best in two consecutive years. Such financial services include the IPO, insurance, SMEs and cooperative credits facility. You will be surprised to know a fact that Hong Kong has surpassed USA and UK by far according to the World Economic Forum’s annual Financial Development.
Hong Kong houses over 70 of the 100 top world banks, as a world banking town where, the city’s 6.2% population works for the banking industry and translates to be about 226,400 individuals employed.
Hong Kong acts as an offshore market for the burgeoning renminbi (RMB) centre. Hong Kong commands both local and international settlements of RMB trade and also serves as the regional hub for the Asia pacific. This has been proved by the data collected in 2012 and declared the city as the most competitive in the offshore platform business in RMB. RMB trade settlement is responsible to back the data and manages them by the help of banks in Hong Kong totaling to RMB 2,633 billion Yuan, accounting for 90% of the China’s mainland external trading that is settled for the same period (RMB 2,937 billion Yuan).
Sustainable Growth in Fund Management
Hong Kong uses international financial management systems with assets under management rising up to HK$5,764 billion in the year 2011. As per the latest survey conducted by Securities and Futures Commission (SFC), the growth has been robust and determined to be increased from US$9.1 billion in 2004 to US$87.1 billion in the third quota of 2012.

Information and Communications Technology

As Asia’s heading logistics, transportation and budgetary center, Hong Kong is the regular decision for Ict organizations needing to administration customers crosswise over Asia.

Data and Communications Technology

Hong Kong itself furnishes a prepared market for Ict organizations, with 3,800 territorial central command or business settings situated in the city and many Hong Kong organizations found all around the Greater Pearl River Delta (GPRD) district. Hong Kong is likewise deliberately found in the focal point of Asia, so territorial Ict activities might be adequately actualized and oversaw from a center in Hong Kong, where an exceedingly gifted workforce is promptly accessible.

Hong Kong’s remarkable foundation likewise makes it a perfect base for organizations serving worldwide markets and a magnificent site for information centres. Its planet class telecommunication framework ranks second in the Penetration of High Speed Optical Technologies Index 2011. Associations incorporate eight submarine link frameworks, 17 overland link frameworks and eight satellites for outer interchanges, with progressively on the route in 2012 and 2013 incorporating the Asia Submarine-Cable Express and the Southeast-Asia Japan Cable. This suitability is supported by a solid power supply (right now surpassing 99.99 percent) and an environment generally free of characteristic catastrophes.

Information Centres

With its complex high-tech framework, tech-wise experts, solid power supply, and hearty implementation of information security and security, Hong Kong offers an astounding area for high-end territorial information centres in Asia-Pacific. As the area’s business center point, Hong Kong is home to numerous logistics, money and proficient administrations organizations, all of whom depend on secured information focus offices to backing their operations. A considerable lot of these organizations are outsourcing information space and administration, exhibiting an energizing chance for information focus administrators.

Investhk’s Ict group can offer useful direction and backing to information focus administrators searching for extension chances, and in addition to business end clients intrigued by setting up their information focus offices in the area.

Cloud Technology

Hong Kong is a heading local center point for cloud innovation, offering energizing nearby chances and incredible potential as a launchpad for venture into Mainland China and universal markets.

As a worldwide place for the money and assembling businesses, which are the biggest adopters of cloud engineering administrations, Hong Kong revels in solid neighborhood request with exceptional development potential.

Interest is supported by the Hong Kong Government’s proposal to convey e-administrations and data through distributed computing. The proposed Government Cloud environment incorporates capacities to backing base as an administration (Iaas), stage as an administration (Paas) and programming as an administration (Saas) as a private cloud for utilization by all legislature work places and divisions.

Assuming that you need to discover progressively about chances identifying with distributed computing in Hong Kong, please contact Investhk’s Ict group.

Programming and Services

The programming and administration industry is a key segment of Hong Kong’s Ict part. Request from multinationals and Sme customers is solid. A considerable lot of the planet’s heading programming administrations organizations base their provincial operations, for example, bargains and promoting, back, specialized backing and human assets in the city, reflecting their customers’ inclination for Hong Kong as a local base.

Hong Kong’s thorough insurance of erudite property, and its tech-smart buyers make the city a perfect testbed for organizations trying to start new items into Mainland China.

Investhk has helped programming and administrations suppliers set up in Hong Kong. To discover more, please contact Investhk’s Ict group.


Hong Kong is at the front line of worldwide telecommunications advertises, with a propelled base and high consume of administrations. All divisions of Hong Kong’s telecommunications showcase have been liberalised and there are no confinements on outside possession or cutoff points to the amount of specialists in the business. This, in addition to its tech-sharp experts and customers, and closeness to Mainland China, imply that Hong Kong is a fabulous local base for multinational telecoms organizations that need to enter Asia Pacific’s high-development advertises.

Opening of Bank Account is an Easy in Hong Kong

Creation of a commerce depository bank account in Hong Kong is an uncomplicated procedure. Those people who are taking interest in this matter should consider their business status as this is essential to choose an account type in the bank. People can gain services of professional bankers in this matter that are in performance in various famous banks and providing proper instructions and directions to customers. After this knowledge, customers should prepare all those documents that are essential for account opening and this preparation is an easy matter with proper observation of features and specifications of account types in the market place. Some essential steps are mentioned as below which should be obligated by all personnel.
In the first step, you should fulfill all those documents which are known as business documents as these are essential to provide validity of business to selected bank. Banks are also demanding some amount of deposit in start that is commonly stated as HK$2, 000. Banks are also responsible to collect complete information about those people which have ownership of the business or company. Account holders are also responsible to provide this information as this is essential for obligation of anti money laundering directions and rules. So, it can be stated that opening of business account in Hong Kong is an easy and simple matter which can be performed by all people with no doubt. In this matter, people should use the services of those people which are related to banking field as this is helpful sources to gain proper information about preparation of documents.
For this purpose, people should use latest communication sources that are effective and rapid in connections to make them result oriented in the social order. Accordingly, the use of latest technologies in this matter is also preferred as customers can achieve their specific goals easily and comfortably in the marketplace. In the same way, people should provide all those documents which are required for opening of business accounts in Hong Kong. These documents are mentioned as business proof, company registration certificate and office catalogs because these are essential to solve various finance issues comfortably. As the result of this situation, people should follow the rules and make their business secure and progressive with the use of latest finance and communication sources that are essential to make business winning and successful in the social order. This situation is beneficial for all persons but they should take proper interest in this matter to make bank accounts beneficial and secure.

Hong Kong offshore business – why this stays well-known?

Hong Kong has developed into one of the essential business centers in the area. Found on the South East Coast regarding China it became portion of China upon 1 July, 1997. It is a Unique Management Region (SAR) inside the People’s Republic regarding China with its personal legislature along with courts. Regardless of the presence of company centers for example Shanghai, Hong Kong continues to obtain popularity being an offshore legislation and commercial hub due to the economic and politics stability and simple and straightforward taxes regime as well as legislative program. The Hong Kong offshore company is an extremely well-known vehicle regarding conducting offshore financial actions, international industry, investment actions, as well as for asset safety.
Many of the key advantages of Hong Kong being an overseas jurisdiction consist of:
Favorable Tax routine: Hong Kong follows the territorial plan regarding taxation, the companies usually are taxed only on the particular income which is derived from HK and income earned past the shores regarding Hong Kong usually are exempted through tax. Furthermore there is not any VAT, or capital benefits tax or taxes on returns this makes it an extremely desirable legislation. Thus, the Hong Kong offshore business that produces earnings from abroad virtually gives Zero taxes. Overseas earnings are not affected by taxation within Hong Kong even though it is cut back to the legislation.
Also for income generated through Hong Kong typically the tax relevant on taxable revenue is simply 16.5%, among the lowest in the area. After discount and permission the efficient taxes rate is going to be much lower compared to headline tax price.
Positive Picture: Hong Kong Businesses are not regarded as offshore tax safe place as Hk is not really considered to be a tax refuge. In a post released in May 2009, typically the Director from the OECD’s Centre with regard to Tax Policy as well as Administration recommended Hong Kong’s initiatives to conform to the worldwide standards upon tax transparency as well as exchange details while pointing out which Hong Kong is not really a tax safe place according to the OECD requirements. Subsequently, within the September 2009 survey, typically the OECD vindicated once again that Hong Kong is not really a tax safe place and recognized Hong Kong’s obligations for the OECD requirements. As a result the Hong Kong Offshore company instructions a respectable picture and does not increase accusations.
Proper Location: Hong Kong is regarded as the portal in order to China, typically the world’s greatest market and allows for quick access for you to mainland China and the real key marketplaces of Asia, many of the Asian cities usually are within 4 hours traveling radius.