It is often said in the market that setting up a company to avoid tax can greatly reduce the tax that needs to be paid but we should remind everyone that tax avoidance does not mean tax evasion.
Anyone who knowingly or intentionally assists another to evade tax with intent to evade is liable to a fine of $50,000 and may be subject to additional tax evasion. The fine is equivalent to three times the underpaid tax, and imprisonment is possible in severe cases.
By law, a Hong Kong company must use a Hong Kong business address as its registered address, so a residential address does not qualify. Since registered addresses are also disclosed during the search process, government agencies may occasionally visit or search
Note: Company address is required when registering. If you do not have a company address at the beginning, it is recommended to use the address provided by the local accounting company to open an account. Never reveal the addresses of directors, as there are rumors that some thieves who use the Yellow Pages to check the registered addresses of companies with Chinese surnames and perform robbery, so it is definitely not recommended to apply with a residential address.
The directors of the company will be responsible for the management of the company on behalf of the shareholders, so their decisions should be made in good faith and in the best interests of the company and shareholders. The duties of a company director include ensuring that the company’s business operations are always aligned with the company’s goals and direction.
The Hong Kong Companies Registry outlines 11 codes of conduct for company directors to observe in the performance of their duties: If a director does not follow the Companies Registry’s code, he may be subject to legal action and may be disqualified as a company director.
