Many domestic do foreign trade/Enterprises with international business often have companies registered in Hong Kong to carry out entrepot trade, thus reducing the tax costs of enterprises. Many enterprises are a set of people, several companies run together, the salary of the staff is paid by the domestic company, Hong Kong company except the company directors, no other staff. This method is easy to operate, but Hong Kong companies do not have the basic organizational structure and staffing, there is a big tax risk.

Some Hong Kong companies have annual turnover of tens of millions, hundreds of millions of yuan or even higher, but in the organizational structure of the company, there is only one shareholder, one director, and the same person, and there are no other sales staff, administrative staff, technical staff and so on. This is obviously not normal for an independent company to operate. In particular, when the business model of a Hong Kong company is offshore, it does not pay profits tax in Hong Kong. The Inland Revenue Department of Hong Kong will often send letters asking about the company's organizational structure, operation model, etc.When the company wants to reply (i.e. offshore claim), it is often difficult to justify and unconvincing, which may lead to tax adjustment by the Hong Kong Inland Revenue Department. No matter from the principle of accrual basis, or from the principle of matching revenue with cost, Hong Kong companies should have the basic organizational structure and staffing, and should also have corresponding personnel salary expenditure or office expenses. However, in actual operation, these organizational functions or expenses are all paid by domestic companies Be committed to. As a result, the company recommends that Hong Kong companies have a basic structure and staffing, as well as the expenses to match their high revenues.

CycloseThe company is committed to providing domestic and foreign customers with corporate audit, tax declaration, registration, annual inspection, tax planning and other services in Hong Kong, Singapore, Dubai and other regions. Efficient, rigorous, intimate service has been favored by many private enterprises, listed companies and large state-owned enterprises.