For the past year, HK companies have been benefitting from the waiver of the HKD2,000 Business Registration Fee per the Revenue (Reduction of Business Registration Fees) Order 2016 (“2016 Order”). The 2016 Order, however, is about to expire on the 1 April 2017; this means that the fee to obtain or renew the Business Registration of a company will go back up to HKD2,250 (HKD2,000 business registration fee + HKD250 levy). Some providers might urge you to set up your HK company before the expiry in order to save HKD2,000, but first, we think you should consider, does it really make sense?
First, take into consideration that HKD2,000 will not make a big difference when setting up a company. What we mean to say is, if you are scrambling to save that amount, you are likely not prepared to set up your company in the first place. We estimate you need a minimum of HKD15,355* which includes the costs to obtain the assistance of a professional, which is recommended to save you from making mistakes and incurring, even more, fees. Check out our article Can You Afford To Incorporate AND Maintain An HK Company for more info on the very minimum you should be prepared for.
Meanwhile, sooner or later you will need to pay the full HKD2,250 anyway as HK companies are required to renew their Business Registration every year. So, while you may save HKD2,000 initially by setting up before the 1 April 2017, the following year on the anniversary of your company you will need to pay the HKD2,000 whereas no one can tell if the next budget will include a waiver or not.
Finally, the expiry date of the waiver is in 3 weeks from now. Unless you really rush, you may not even have enough time to actually file before April 1st.
In conclusion, the only question that really matters is “Am I ready to set up a company or not?” Don’t be tempted to rush to meet the deadline just to save HKD2,000, because, in the end, you may end up with the problem of trying to maintain a company that you simply can’t afford.
Think you are ready to launch the process? iNCUBEE | LCCS can help.
* Before the expiration of the waiver!