Working for a company incorporated offshore - duties in HK?

[v.m.]

hi there,
hope my question will make sense to most of you...
I am planning on incorporating a company offshore (not in Asia but maybe Channel islands or Seychelles) and i will be working for it from different places in the world (planning on travelling a lot to develop the company in the fist few months so might be in Europe or in Asia).
My question is: if some part of the business is done in Hong Kong (bear in mind the company will not be registered there) - do i have to file returns and will i have any other duties with the local authorities?

Also do i actually need a permit from local authorities to actually do this (i.e. get green light to potentially have a part of my business done on the HK jurisdiction)? I would have thought no because the company will not be registered there but any help from you would be greatly appreciated

Thanks a lot in advance

[PDLM]

There are two areas: immigration and tax (including business registration).

On immigration, if you don't have the right of abode or some visa permitting you to reside in HK without restriction on working then you will need to get a suitable visa unless your activities are limited to those permitted as a visitor.

(2) A person permitted to enter Hong Kong as a visitor may generally engage in the following business-related activities:
(a) concluding contracts or submitting tenders;
(b) examining or supervising the installation/packaging of goods or equipment;
(c) participating in exhibitions or trade fairs (except selling goods or supplying services direct to the general public, or constructing exhibition booths),
(d) settling compensation or other civil proceedings;
(e) participating in product orientation; and
(f) attending short-term seminars or other business meetings.

As to business registration:

"Business" Required to be Registered

Includes:

any form of trade, commerce, craftsmanship, profession, calling or other activity carried on for the purpose of gain;

any club which provides facilities, services and exclusive club premises to its members for social intercourse or recreation; and

every company incorporated in Hong Kong in accordance with the Companies Ordinance or non-Hong Kong company that has established a place of business in Hong Kong, regardless of whether it is actually carrying on any business in Hong Kong.

every non-Hong Kong company that has a representative or liaison office in Hong Kong, or has let out its property situated in Hong Kong, regardless of whether it has established a place of business in Hong Kong.

However, a person who is only holding an office or employment is not regarded as carrying on any business and is not required to apply for business registration.

If the business is required to be registered then the business will then need to make various returns and may well need to pay tax. Further discussion in this FAQ document from IRD: http://www.ird.gov.hk/eng/pdf/e_faqciohk.pdf

And if you are deemed "employed in Hong Kong" then you will need to make individual tax returns. More detail in A guide to Salaries Tax for people coming to work in Hong Kong: HK or non-HK office, HK or non-HK employment, the days-in-days-out basis of assessment.

[fth]

Choose where you want to incorporate carefully. There are a myriad of issues to think about, but primarily worry about where your customers will be, the nature of the business you are doing and lastly where you want to live.