FAQ

All your Questions answered in one place

WE PROVIDE:

FAQs About Accounting and Tax

FAQs About Intellectual Property

FAQs About Corporate Services

FAQs About Corporate Services

Q: What services will Accolade Virtual Service Centre provide?

A: We provide comprehensive client services, including answering telephone, receiving and dispatching faxes, forwarding commercial letters and parcels, and processing import/export documentation etc. on behalf of the clients.

Q: Is there any difference between service of company secretary and commercial secretary?

A: According to the Hong Kong government, every Hong Kong company should employ a Company Secretary, whether a resident or company in Hong Kong, to facilitate contact with government and process the documents to and from government. Commercial secretary is responsible for customized commercial services, including answering telephone, receiving and dispatching faxes, collecting and sending letters and parcels, etc. The advantage of commercial secretary lies in building a company's corporate image, equivalent to having its own staff.

Q: Can we use secretary services to answer calls from customers in order to improve our corporate image?

A: Yes. We provide business centre service, where we have professionals in your name to answer calls via a dedicated line available for client use, to promote your corporate image.

Q: Is there any difference between registered address and correspondence address?

A: The registered address is the legal and operating address of a Hong Kong company, to which letters from government will be posted. Correspondence address is used for receipt of commercial letters and parcels.

Q: Since there is no office in Hong Kong, how can we have professionals to answer telephone?

A: We provide clients with dedicated telephone line services, where our professionals, in your name, answer the calls and record the message, then forward the message to clients via telephone, email or SMS. In addition, we also provide dedicated fax line, where received fax will be forwarded real-time to designated email address.

Q: What is “Call Forward Service”?

A: "Call Forward Service" means a Hong Kong fixed network commercial telephone number (that is, beginning with "2", for example, 2××× ××××, and in the same way, beginning with "3", "6", "8", or "9", which is merely a mobile telephone number instead of a fixed network telephone number), connected to a telephone number in the designated country or region. Wherever this number is dialed up, the telephone can be directly answered. "Call Forward Service" not only promotes a company's corporate image in Hong Kong, but also increases its efficiency of operation.

Q: Can Accolade provide Customs Brokerage Service in Hong Kong?

A: Yes. We provide Customs Brokerage and Banker's L/C Handling Services, including preparation of import/export documents, processing of banker's L/C (receiving, issuing and document against bank acceptance) and processing of customs entry.

FAQs About Intellectual Property

Q: What are the characteristics of trademark?

A: Trademark has the following characteristics:

Differentiating its commodity or service from others
Formed by words, graphics, letters, figures, colors or 3D symbols, and combining the fore mentioned elements
Exclusive nature; trademark holder has the exclusive rights to the trademark, protected by law
Intangible asset, the value of which can be determined by assessment; trademark holder may be entitled profits by transferring and licensing the using rights

Q: What marks cannot be registered as trademarks?

A: The following marks shall not be used as trademarks:

Marks identical or similar to the name, national flag, national emblem, army flag, and medal of a country, as well as marks identical to the name of a particular place where state organs locate or the name and graph of landmark buildings
Marks identical or similar to the name, flag and emblem of an international organisation
Marks identical or similar to the official mark and hallmark indicating the implementation of control and security, other than the authorised
Marks of racial discrimination
Marks of high sounding publicity and fraud
Marks coherent to the generic name, graph and type of the product , such as computer, pen, portfolio
Marks directly indicating the quality, major raw materials, function, purpose, weight, quantity and other characteristics of the product
Marks identical or similar to name or sign of Red Cross and Red Crescent

Q: What should be considered before filing an application for trademark registration?

A: Matters to be considered include:

Whether the trademark distinguishes the applicant’s goods or services from other traders
Whether the trademark shows the distinctiveness of the goods and services
Whether the trademark is a generic term in that industry
Whether the trademark is identical or similar to other trademarks

Q: What is Nice Classification?

A: Nice Classification (the “NCL”) is an international classification system to classify goods and services for the purposes of trademark registration.

Q: Can an individual apply for trademark registration?

A: Yes. Applicant can be either corporation or individual.

Q: What information is required for trademark registration?

A: It varies with each country and region. Generally, applicant’s identity documents, application form and trademark image are required.

Q: How long is to process a trademark registration?

A: It varies with each country and region, for example, 4-8 months in Hong Kong and 12-18 months in China. Generally, it takes 4-24 months to process.

Q: What is the validity period of a trademark?

A: It is 10 years in most countries and regions, except few, such as Canada (15 years) and Macau (7 years).

Q: Can the registration be renewed?

A: Yes. Generally, the validity period of a renewed trademark is 10 years.

Q: What is the right of priority?

Entitlement of the right of priority
An applicant may enjoy the right of priority on trademark registration for certain goods or service with a state party to Paris Convention or a WTO member state for six months after the first application submission.
Exercise of the right of priority
An applicant may exercise the right of priority to file the same application in another country within six months after his/her first application such that the application date of the second application may be dated back to that of the first application.

Q: What are the principles on the basis of trademark protection?

A: The adopted principles vary with each country and region. Currently, the 3 principles adopted internationally are prior use, prior application, and both of aforementioned.

Q: What are the differences between the packaging and presentation of commodity and trademark?

A: Trademark is part of the packaging and presentation of commodity; both of them are used in the packaging of the commodity. While trademark is to differentiate the producers or operator of commodity from another, presentation is to beautify commodity. A registered trademark cannot be altered, but the design style of a presentation is free to change.

Q: Does transferring trademark need an agreement?

A: Yes. It requires an application form and a trademark assignment contract, which are signed by the assignor and the assignee.

FAQs About Accounting and Tax

Q: What tax does Hong Kong company need to pay every year?

A: Hong Kong company needs only to pay Profits Tax every year, which is calculated by 16.5% (2007/08:17.5%) of the profits. The company without profits needs to pay no Profits Tax.

Q: What is the year end of Hong Kong company?

A: It is generally 31 March to 31 December of each year for the basis period of taxation according to custom. Hong Kong company has maximum 18 months for the first year's basis period of taxation.

Q: Does Hong Kong need to levy tariffs on imported/exported commodities?

A: Generally imported/exported commodities need not be levied tariffs, except tobacco, liquor and petroleum. But import/export commodities must be declared at customs.

Q: Can Accolade provide services of Hong Kong accounting and tariff declaration?

A: Yes. You only need to provide relevant information, and then we can process accounting, auditing and tariff declaration and other service on your behalf, at expenses to be determined by actual workload.

Q: What are the taxes of Hong Kong taxation?

A: There are three kinds of taxes in Hong Kong taxation: Profits Tax, Salaries Tax and Property Tax. Profits Tax shall be 16.5% (2007/08:17.5%) of the taxable profits of the company; Salaries Tax shall be calculated by salary income at progressive tax rate, and paid up to 15% (2007/08:16%) of total salary income; Property Tax 15% (2007/08:16%) of the net rent income earned from owning properties after deduction of 20% standard tax relief for renovation and expenditure.

Q: How is the accounting year (base period of assessment) determined?

A: The base period of assessment shall be one of the following periods:

The year ended on 31 March or 31 December commonly
The year ended by the end of other month as permitted

Q: What restriction will Inland Revenue Ordinance have on deduction for donation?

A: Donation granted to recognizable charitable organization is permitted to be deducted, but total donation as required shall not be less than $100 and not more than 35% (2007/08:25%) of assessable profits.

Q: Can the profits of a Hong Kong company offset the losses of previous year?

A: Losses incurred in a taxable year can be carried forward and used to offset the profits of the company in subsequent years.

Q: What is Provisional Profits Tax payable?

A: Profits Tax shall be levied according to the actual profits of the taxable year. Since the profits of one year shall be determined only after the end of year, Inland Revenue Department will levy provisional tax before the end of that year. After the profits of relevant year are assessed in the following year, the provisional tax already paid can be deducted from the Profits Tax payable of this year.

Q: In which case will Hong Kong company be free from Profits Tax?

A: If the corporate profits do not arise from Hong Kong, and the company has not set up an office in Hong Kong nor hired Hong Kong employees, then its earned profits will be exempt from Profits Tax.

Q: My Hong Kong company only opens account at bank, to collect and pay bills for other China Company, then does this Hong Kong company need to process accounting, auditing and tax declaration?

A: Yes. Because company incorporation is profit-oriented, even if the company in Hong Kong only performs the role of collecting and paying for others, it shall be deemed as agency service business, and its income shall be the commission for collection and payment for others.

Q: My Company only opens an account at a foreign bank in China and does not open account in Hong Kong; shall the business conducted by my company be free from tax declaration?

A: No. According to Hong Kong laws, all Hong Kong company has the obligation to declare its financial condition to Inland Revenue Department, whether its business takes place in Hong Kong or not. If this company does not have its source of income in Hong Kong, it can apply to Inland Revenue Department for exemption from taxation.

FAQ