Dear Sir/ Madam,
Hong Kong IRD will randomly send out the enquiry letter (attached sample) to check if the Hong Kong Company has commenced business or not. If yes, report the details within one month after the commencement of the business.
The commencement of business is the date when the company starts conducting business. It is not easy to determine the exact day of commencement, however normally it would be when a business undergoes business related activities.
How do I know if I have commenced business?
The commencement of business may be different for various companies, but in general it is a question of fact; that is based on some evidence or event which has occurred.
Some examples of the commencement of business may include:
Investment in subsidiary
Issuing or receiving of invoices for the company
Manufacturing of goods for manufacturer company
Sale of goods for the company
Receipt of funds for provided services
Purchase or transfer of assets in some cases
Start of business contracts for the company
Employment of staff or hiring of freelance workers.
Payment of salaries or remunerations
Payment of company expenses, such as utilities or rent expenses
Purchase of financial instruments for an investment company
These events may cause the commencement of business for the company.
Once the company has commenced business, it would need to file a form to inform the Hong Kong government of the commencement of business.
If you have any questions or further clarification when receiving the enquiry,please feel free to contact us for further explanations. We can assistin filing the commencement of business form for the company to the government in due course.