Online business are full of risks - some bigger risks
2024-2-23
When doing business online, after applying for a business registration certificate, you still have to pay attention to the following risks you may have fallen:
1. Do I need to pay tax? According to the tax regulations, businesses operating in Hong Kong, regardless of business size and form (online or physical), are required to report and pay Hong Kong profits tax. It is very clear. However, many friends who do business online do not file taxes or keep business records. The tax bureau can routinely trace transactions for seven or even ten years. Based on the assessment, taxes and fines may be required, and the fines can be up to three times the tax amount. When trading online through a platform, the transaction information is very detailed. The tax bureau only needs to ask the platform to provide it, and there is nothing to hide.
2. Company form: If you just apply a "unlimited company" to operate for the sake of convenience and saving money, your personal liability is unlimited. For example, if the goods sold result in injury or loss to others, the buyer can hold the seller responsible. The seller's liability is unlimited, so our company strongly recommends setting up a limited company to operate the business.
3. Insurance: If you have employees, whether full-time or part-time, you must purchase labor insurance. Otherwise, if any accident occurs to an employee, the company will still be held responsible.
Many friends who operate online businesses are deceiving themselves or taking chances and do not comply with the above legal requirements and do risk management. Once they are investigated by the government or have an accident, they will incur huge fines and compensation.
Doing business is long-term. To do big business, it is necessary to comply with all laws and manage risks. How can we do all of the above? Our company can assist. Welcome to contact our company.
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