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• Country: The U.S
• Services: Tax - Accounting
• Rating Count: 51
• Rating Value: 5

Are you a business owner unclear about how personal income tax works in the United States?

This is a common situation for many foreign business owners who incorporate companies in the US.

The company operates smoothly until it receives a notice from the IRS requesting clarification of personal tax obligations for shareholders, directors, and key personnel.

At this point, they scramble to find tax experts, research regulations, learn calculations, and report according to IRS requirements.

If you don't understand the principles of US personal income tax from the beginning, you can easily find yourself in a passive position.

Therefore, this article, with insights from our US tax and accounting experts, will help you understand the fundamentals of US personal income tax and avoid mistakes from the start.

What is personal income tax in the US?

According to the definition by the US tax authority, the IRS, 

Personal Income Tax is a tax that individuals must pay to the US government based on total income earned during a fiscal year.

Notably, the US tax system uses the "worldwide" principle.

US citizens or permanent residents in the US must declare and pay taxes on all worldwide income to the IRS, regardless of which country the income was earned in.

Declared income may change depending on double tax avoidance agreements between the US and other countries (Double Tax Avoidance Agreement, "DTA").

Additionally, the US personal income tax system operates on a self-assessment principle.

Taxpayers are responsible for calculating, declaring, and paying taxes on time themselves.

The IRS (Internal Revenue Service) is the agency responsible for collecting taxes and checking the accuracy of tax returns.

For example, a business owner registers a company in the US with a salary of $100,000/year and rental income from Europe of $20,000/year.

Despite living and working in Europe, the business owner must still declare a total income of $120,000 on their US tax return.

However, they may apply the Foreign Earned Income Exclusion policy to exclude part of foreign work income and the Foreign Tax Credit to avoid double taxation.

How many types of personal income tax are there in the US?

The US has 2 main types of personal income tax that businesses need to understand: Federal personal income Tax and State personal income tax.

Although both are called personal taxes, these 2 types are completely different due to many factors such as governing agencies, state regulations, and tax calculation methods.

Who must pay U.S personal income tax?

In general, individuals paying income tax will fall into one of 3 categories:

US citizens and Permanent residents

All US citizens and permanent residents (Green Card holders) must pay personal income tax on worldwide income, regardless of where they live in the world.

Tax residents in the US

Foreigners are considered tax residents ( if they meet one of two criteria: through the Green Card Test or the Substantial Presence Test.

Note from the IRS for the Substantial Presence Test

A person is considered a tax resident if they meet both of the following conditions:

• Present in the US for at least 31 days in the current year
• Present in the US at least 183 days during a 3-year cycle (current year and 2 previous years), calculated using the formula:
  • All days in the current year
  • 1/3 of the days in the previous year
  • 1/6 of the days in the second previous year

For example, a study abroad consulting company shareholder frequently travels to the US to work with schools there, with the following schedule:

• 2024: 120 days
• 2023: 90 days
• 2022: 60 days

120 + (90 × 1/3) + (60 × 1/6) = 120 + 30 + 10 = 160 days

Since 160 < 183 and the shareholder was present 120 days > 31 days in 2024, this shareholder does not meet the Substantial Presence Test and is not considered a tax resident.

Non-tax residents  in the US

Non-resident aliens only need to pay taxes on income sourced from the US.

If the business owner is a shareholder, director, or employee of a US company, the business will need to pay taxes.

These are typically business owners living abroad who incorporate companies in the US.

When do you need to pay personal income tax in the US?

You must declare and pay personal income tax in the US if you fall under the categories specified by the IRS.

Regardless of which category you fall under, you must prepare tax returns and file on time and pay the correct amount of tax required each year.

• Tax return filing deadline: April 15 of the following year (or the next business day if it falls on a weekend/holiday). Example: 2024 taxes will be filed on April 15, 2025
• Tax return extension: You can extend the filing deadline to October 15 by submitting Form 4868
• Pay full tax amount each year

For businesses opening partnership-type companies in the US or S-Corps (Companies that must pay personal income tax instead of corporate income tax):

• Partnership types like Partnership (multi-member LLCs) or S-Corp: filing deadline is March 15
• You can extend 6 months (until September 15) using Form 7004

Generally, these are the 3 most common cases that a  person has to pay US personal tax

• Minimum income threshold by group according to Framework A - For Most People

• Impact of dependency status according to Framework B - For Children and Other Dependents

• Self-employment income from $400, tax debt, according to Framework C - Other Situations Where You Must File

An overview of the US federal tax system

How does the US federal tax system for individuals work?

The US federal personal income tax system applies progressive tax rates. 

A US progressive tax rate means that income is taxed in brackets. As your income increases, only the income that falls into higher brackets gets taxed at higher rates. 

This system divides income into different tax brackets, each bracket having its tax rate. Currently, the US federal tax for individuals has 7 tax levels, including 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

For example, Ms. Hanna has taxable income of $80,000 for 2024. The tax calculation is as follows:

• 10% bracket: $11,000 × 10% = $1,100
• 12% bracket: ($44,725 - $11,000) × 12% = $33,725 × 12% = $4,047
• 22% bracket: ($80,000 - $44,725) × 22% = $35,275 × 22% = $7,761
• Total tax due: $1,100 + $4,047 + $7,761 = $12,908

Does marital status affect tax rates?

Marital status affects the tax rates that individuals must apply.

The IRS divides taxpayers into different groups based on marital status: Single, Married Filing Jointly, Married Filing Separately, Head of Household, and Qualifying Widow(er).

Each group has different tax rate brackets and standard deduction levels.

Latest 2025 federal tax rate brackets

Below is the federal personal income tax table in the US for tax year 2025 (applied when filing taxes in 2026), presented by income threshold and filing status.

Marital status (single, family) and taxable income in the previous year will determine the tax rate business owners must pay.

What tax benefits are available for individual taxpayers in the US?

In the US, individual taxpayers can benefit from some important tax advantages in 2 main forms: tax deductions and tax credits.

Depending on each situation and government support policies, business owners will apply appropriate benefits.

Tax deductions

Tax deductions help reduce the portion of income subject to tax, thereby reducing the amount of tax businesses must pay.

The US has three main types of deductions:

Standard deductions

This is a fixed deduction amount that businesses can choose without needing to itemize detailed expenses. For 2024, the standard deduction is $14,600 for single individuals and $29,200 for married couples filing jointly. 

You simply need to fill in line 40 of Form 1040.

Itemized deductions

If businesses have many qualifying expenses, they can itemize instead of choosing the standard deduction. This requires submitting an additional Schedule A form.

Common items include: mortgage interest and charitable contributions. However, if the total of these items is lower than the standard deduction, businesses should choose the standard deduction to save on taxes.

Above-the-line deductions

These are deductions applied before calculating taxable income, usually located on lines 23-35 of Form 1040.

Some common examples include: student loan interest, contributions to IRA retirement funds, or self-employment tax deductions.

These items usually require additional supporting documentation.

Tax credits

Tax credits help you directly reduce the amount of tax you must pay (and can even be refunded if you overpay). Some common tax credits include:

• Earned income tax credit (EITC) – for people with low income;
• Child tax credit – worth up to $2,000 for each qualifying child;
• Child and Dependent care credit – for child or dependent care expenses;
• Foreign tax credit – for taxes already paid abroad;
• American opportunity tax credit and Lifetime learning credit – for college expenses.

How to prepare US personal income tax returns ?(+ Expert tips)

Filing your taxes doesn't have to be stressful if you prepare ahead of time and follow the right steps. Here's an easy guide to help you complete your tax return accurately and on time.

Our expert tips to help you file correctly

Many people only think about taxes during tax season, but this is a mistake. Planning throughout the year helps you:

1. Save time and reduce stress
2. File accurate returns
3. Pay the right amount of taxes
4. Get refunds faster

If you don't plan, the IRS might audit your account and penalize you for underpaying taxes.

To ger ready, our experts recommend that you do these first 3 things

Set up a good filing system

• Create folders on your computer and phone just for taxes
• Make separate folders for each tax year
• Sort documents by type: income, expenses, tax credits, deductions
• Keep both paper and digital copies

Keep and save these important documents

• Receipts and invoices for expenses
• Records of all income and expenses for the year
• Copies of previous tax returns

Track important life events

These events affect how you file taxes, so keep track of them:

1. Moving to another state (changes state taxes)
2. Getting married or divorced (changes your filing status)
3. Having children gives you family tax benefits)
4. Retiring (changes your income sources)
5. Starting a business (changes how you calculate taxes)

Step-by-step easy tax filing process

How can Global Link Asia Consulting help you calculate and pay the US personal income tax?

Understanding U.S. personal income tax isn’t a one-and-done task. It’s something you’ll revisit every year, and getting comfortable with the basics now can save you headaches later. 

 And to make filing even smoother, you can always count on our experts to help you make your US personal tax filing a stress-free experience.

Global Link Asia Consulting has 10 years of experience helping international entrepreneurs succeed in the U.S. market.

We provide professional services to help businesses set up, grow, and stay compliant with U.S. regulations. With our support, you can build a strong foundation and expand with confidence.

• Register a company in the U.S in your chosen state;
• Open a corporate bank account in the U.S with a 99% success rate;
• Choose the right company types for tax optimization in the U.S;
• Apply for US business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

FAQs about franchise tax in Delaware

• Country: Hong Kong
• Services: Tax - Accounting
• Rating Count: 27
• Rating Value: 5

Profit tax in Hong Kong is a key consideration for any business operating or planning to operate in one of Asia’s top financial hubs.

Don’t worry, you don’t have to figure profit tax of your company all out alone. 

At Global Link Asia Consulting, we guide founders, CFOs, and SMEs through Hong Kong’s tax landscape to ensure they stay compliant while maximizing savings.

Our clients regularly use this definitive guide to understand how profit tax works, what’s taxable (and what’s not), and how to handle offshore income properly.

By the end, you’ll know more than 90% of the founders Googling “profit tax Hong Kong.”

However, before we delve into strategies, let’s briefly review how Hong Kong views taxable profits (and why the source of income is crucial).

What is the Profit tax in Hong Kong?

According to the Hong Kong government’s official site and the Inland Revenue Department source,

Hong Kong Profits Tax is a tax imposed on profits derived from any trade, profession, or business carried on in the Hong Kong Special Administrative Region (SAR).

Here's what makes it unique:

It's based on a territorial system. This means you only pay tax on profits arising in or derived from Hong Kong. 

Profits earned outside Hong Kong are generally not taxable, even if you bring them back to Hong Kong (But you must declare the foreign-sourced profit in your Offshore tax claim form).

The tax applies to all types of business entities:

• Limited Liability Companies
• Partnerships
• Sole proprietorships
• Other business structures

Who needs to pay profit tax?

The simple answer: Anyone carrying on a trade, profession, or business in Hong Kong.

That means that if you have a company and it makes a profit in Hong Kong, the company must pay tax on that profit.

But let's break this down further.

Are there any different requirements between residents and non-residents?

Here's something that surprises many people:

There's generally no distinction between residents and non-residents when it comes to Profits Tax liability on Hong Kong-sourced profits.

Whether you're a Hong Kong resident or a foreign investor, if you're making profits from Hong Kong business activities, you're liable for Profits Tax.

However, non-residents face some additional requirements:

Special rules for non-residents

Non-residents face some additional requirements:

1. Agent responsibility: If you're a non-resident, you're chargeable to tax either directly or through your Hong Kong agent. Your agent must retain sufficient funds to pay your tax liability.
2. Withholding requirements: For certain types of income (like entertainment fees or intellectual property royalties), the person paying you must withhold tax at source.
3. Consignment sales: If you're a non-resident selling goods through a Hong Kong consignee, they must file quarterly returns and pay 1% of gross proceeds (or an agreed lesser amount).

What makes profits “Hong Kong-sourced”?

We know that the Hong Kong Profits Tax is a tax that applies to income earned from any business, trade, or profession conducted within the Hong Kong Special Administrative Region (SAR).

Building on this definition, Hong Kong courts have established several key principles:

• Location of operations: Where do you conduct your business activities?
• Decision-making location: Where are key business decisions made?
• Contract negotiation and conclusion: Where do you negotiate and finalize your deals?
• Service delivery location: Where do you provide services or deliver goods?

Let's take a look at the examples below to understand the key principles above

Example 1 - Trading company

A Hong Kong company buys goods from China and sells them to customers in the US. 

If the buying and selling negotiations happen in Hong Kong, the profits are Hong Kong-sourced and taxable. (The decision-making location)

Example 2 - Consulting services

A Hong Kong consultant provides services to clients in Singapore via video calls from their Hong Kong office. These profits are Hong Kong-sourced. (The location of operation).

Current profit tax rates in Hong Kong (2025)

You’ve probably heard that Hong Kong has low corporate taxes. 

But the details? They’re not always easy to follow.

I’ve seen businesses miss savings simply because they didn’t understand how the system works.

So here’s a clear breakdown of the latest rates, waivers, and incentives—no jargon, just what you need to know.

Tax waivers for the years 2024 and 2025 are a 100% waiver up to HK$1,500 per case.

For example, a corporation earns HK$3,000,000 in assessable profits.

• The first HK$2,000,000 is taxed at 8.25% = HK$165,000
• The remaining HK$1,000,000 is taxed at 16.5% = HK$165,000
• Total tax payable = HK$330,000

What income is subject to profit tax?

Understanding what constitutes taxable income is crucial for compliance.

Revenue and capital: Which is taxable?

As a general principle, all profits arising in or derived from Hong Kong from any trade, profession, or business are subject to Profits Tax.

But here's the key distinction: Capital gains are generally not taxable.

Deemed trading receipts

Certain types of income are automatically considered taxable, regardless of where they're actually earned:

Intellectual property Income

• Royalties for patents, trademarks, copyrights used in Hong Kong
• Income from secret processes or formulas
• Performance rights for Hong Kong performances

Media and Entertainment:

• Income from exhibiting films or TV content in Hong Kong
• Revenue from sound recordings used in Hong Kong

Equipment rental:

• Income from renting movable property for use in Hong Kong

Government assistance

• Grants, subsidies, or financial assistance (excluding capital expenditure)

How to file your Hong Kong company’s profit tax return?

You must file your Profits Tax Return through your registered tax agent if you are a foreigner opening a Hong Kong company.

They help you prepare and submit your tax return properly, the right way. 

If you want to find a trusted partner who helps you prepare and file your profit tax the right way, you can always count on our experts at Global Link Asia Consulting.

This guide helps you understand what to expect during the process.

When to file your tax return?

You usually have 1 month from the date your Profits Tax Return is issued to file it. If you file online, you can apply for a 1-month extension to make electronic filing easier.

When and who should file?

• New businesses: You’ll get your first Profits Tax Return about 18 months after starting or incorporating.
• Continuing businesses: Returns are sent in bulk every April.

What are supplementary forms?

According to the definition of the Inland Revenue Department on Supplementary Forms

Supplementary forms are extra forms that come with your Profits Tax Return. You’ll need to fill these out if your business uses any tax incentives or preferential regimes. 

These forms must be completed electronically and submitted via the eTAX system or the new Business Tax Portal (BTP) / Tax Representative Portal (TRP), launching soon.

Types of profit tax returns you need to know

Profit tax returns come in different types depending on your business structure: corporations, partnerships, or sole proprietorships. 

If you run a sole proprietorship, you have to report profits through your Tax Return (BIR60).

There are three main forms for Profits Tax Returns:

• Corporations: BIR51 (This is the form you must know if you are a foreign entrepreneur running your company in Hong Kong)
• Persons other than corporations: BIR52
• Non-resident persons: BIR54

An example of the form BIR51

How to file your profit tax returns: Step by step with the support of your filing agent

How can we help you help you optimize your Hong Kong company’s profit tax?

• Register a company in Hong Kong;
• Hire a trusted, experienced company secretary in Hong Kong
• Open a corporate bank account in Hong Kong with a 99% success rate;
• Choose the right company types for tax optimization in Singapore;
• Consular legalize all your important documents;
• Apply for Singapore business licenses;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe Paypal Business in Singapore, Hong Kong, and the U.S;
• Handle all your Hong Kong tax accounting needs, timely annual filings, auditing, and more.

FAQs about the profit tax in Hong Kong

• Country: Singapore
• Services: Company formation, Others
• Rating Count: 57
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Understanding the Dependant Pass is key to making the transition smooth.

Whether you're a working professional bringing your spouse and kids or a business owner relocating your team, you’ll need a clear game plan to navigate Singapore’s visa system.

And it starts with knowing how the Dependant Pass (DP) works.

In this guide, we will walk you through everything you need to know: From who qualifies, to how to apply, to what your family can or can’t do while living in Singapore.

You’ll learn each step of the process, starting with eligibility and ending with getting your loved ones settled in Singapore.

This is exactly the knowledge and process of how one of our expert families used to relocate seamlessly, while avoiding common application mistakes that delay approvals.

Ready to bring your family to Singapore with confidence?

Let’s begin with what a Dependant Pass is.

What is Dependant Pass?

The Singapore Dependant Pass (DP) is a type of visa (permit) that allows eligible family members of Singapore pass holders to live and work in Singapore.

It is the Singapore Ministry of Manpower that can grant this pass to a qualified person. 

Getting this right will save you weeks of frustration and unnecessary paperwork.

The Dependant Pass gives family members the legal right to stay in Singapore while the main pass holder works.

For example, a foreign executive working in Singapore on an Employment Pass can apply for a Dependant Pass for their spouse and children.

How does the Dependant Pass work? (Eligibility and Requirements)

Who can apply for a Dependent Pass?

Not everyone can bring their spouses and children to Singapore. You must meet specific criteria in order to have your family join you in Singapore.

Those who qualify for a dependent pass must be

Who can you apply for a Dependent Pass?

You can only apply for a dependent pass for your legally married spouse, your unmarried children who are under 21 years old, or a newborn.

Other family members must get a Long-Term Visit Pass instead.

What can Dependant Pass holders do?

One of the biggest questions Dependent Pass holders have is about employment opportunities. 

Here is the good news: Dependant Pass holders can apply for jobs in Singapore.

In fact, there are many job vacancies for DP holders for you to apply for. They have the options for working, starting a business, volunteering, or working remotely

However, there's a catch: To work in Singapore, you must fulfill a condition for specific work.

To work in Singapore, you must:

Start a business or Freelance (with a Letter of Consent)

Planning to run your own company?

If you're the registered business owner of a Singapore-based entity (e.g., sole proprietorship or company), you can apply for a Letter of Consent (LOC) to operate it legally.

Volunteer for charitable causes

You don’t need a work pass to volunteer, as long as:

• You’re not getting paid, and
• The work is for a charitable or non-profit purpose.

Work remotely for overseas clients

Yes, you can work remotely. But it depends on who you're working for:

No work pass required if you’re working for an overseas-based company or client.

But if you’re providing services to a Singapore-registered company (even remotely), you’ll need an appropriate work pass.

• Get a specific Work Pass while keeping the Dependant's Pass

A dependent pass holder must get a special type of Work Permit called a DP-WP. 

You must continue holding your Dependant's Pass while applying for the DP-WP.

The DP-WP’s validity will be tied to the validity of your Dependant’s Pass.

There’s no minimum salary requirement, and your nationality doesn't matter.

However, Work Permit quotas and levies apply, just like for regular Work Permit holders.

You’re exempt from certain requirements like:

1. The six-monthly medical examination
2. Security bond
3. Pregnancy restrictions (which apply to some other Work Permit holders)

If you already have adequate medical insurance, your employer may not need to buy a new policy, as long as it meets MOM’s minimum coverage rules.

• Apply for Your own Employment Pass (EP) or S Pass

Want more flexibility or to qualify for a higher-skilled job? You can apply for your own work pass.

Here’s how it works:

1. You’ll need to meet the criteria for an EP or S Pass, just like any other applicant.
2. If approved, you’ll get independent work and stay rights tied to your own pass, not the main pass holder’s.
3. That means your Dependant’s Pass will be cancelled once the EP or S Pass is issued.

Employers can check your eligibility using MOM’s Self-Assessment Tool (SAT) to see if they need to grant you these passes or not.

How to apply for a Dependent Pass (Straightforward process)

When the time comes, and you need to bring your spouse or child to Singapore on a Dependant’s Pass.

This guide walks you through the entire process — step by step — so you can apply with confidence.

We recommend keeping a checklist of the documents and requirements in one place as you go through each step.

Let’s get started:

Step 1: Gather the required documents

Before you fill in any forms, make sure you’ve got all your documents ready. Missing paperwork is a common cause of delays.

Here’s what you typically need:

• A copy of the passport (personal particulars page) of the person you’re applying for.
• If a child shares a passport with a parent, include the parent’s passport page too.
• Based on the family member’s relationship, prepare:
  • Marriage certificate (for spouses).
  • Birth certificate with parent names (for children under 21).
  • Adoption documents (for adopted children).
• For foreign-born kids under 12 (applying for a new DP): you’ll need a Verification of Vaccination Requirements from HPB.
• Non-English documents must be translated — submit the original and translated version in one file.

Keep in mind: MOM may ask for additional documents later, depending on the case.

Step 2: Choose the right Submission method

How you apply depends on the main pass type (e.g., EP, S Pass, PEP, EntrePass, etc.). Each type has its own flow.

Here’s what to expect:

• EP/S Pass holders: Apply online via EP eService. Make sure your company’s financials are up to date.
• PEP & EntrePass holders: Apply online and pay the $105 fee.
• EP (Sponsorship): A bit more manual. Download and complete a form, pay via PayNow, and submit through the MOM online form.

 Application fees are typically $105 per DP. Pay by GIRO, credit card, or as instructed.

A few important reminders before you click “submit”:

• You can apply for the DP before or after the main pass application.
• Submit a separate application for each person.
• If the person is on a short-term visit pass, be mindful that the pass cannot be extended if it expires before the DP is issued.
• Ideally, wait for approval before bringing them to Singapore.
• Newborns in Singapore? They get a 6-week Special Pass to give you time to apply.

Step 3: Track the application status

After submitting, don’t forget to monitor your application’s progress.

Here’s when to check:

• EP/S Pass dependents: After 3 weeks.
• PEP, EntrePass, or EP (Sponsorship) dependants: After 1 week.

If more documents are needed, MOM will notify you via email. This could add time to the process.

Results are sent to the email address you listed in the application.

You must check your inbox regularly since this email determines your next step.

Step 4:  Receive the In-Principle Approval (IPA) letter

If approved, you’ll get an IPA letter (a key document.)

Here’s why it’s important:

• The IPA letter acts as a pre-approved, single-entry visa to enter Singapore.
• You have to send it to your family member as soon as you receive it.
• You must not lose it,  you’ll need it to enter the country.

Make sure you and your family member check the latest travel and entry requirements before flying into Singapore.

Step 5: Issue the Pass

Once the dependent has arrived, it’s time to officially issue the DP.

Here’s what you need to do:

• Log in to EP eService and upload:
  1. Passport and entry details
  2. Local address and contact info
  3. Delivery address for the card
  4. Any required medical documents
• Pay:
  • $225 for the DP
  • $30 more if a Multiple Journey Visa is needed

You’ll receive a notification letter. It allows travel to and from Singapore while waiting for the card.

Note: Issuance must be done within the IPA validity (6 months for most, 2 months for S Pass dependents).

Step 6: Register Fingerprints and Photo (If Needed)

Not all DP holders need to register, but check your notification letter.

If required, you have to

• Book an appointment at MOM’s centre.
• Bring:
  • Original passport
  • Appointment and notification letters

The dependant pass holders have to be present at the MOM center 

• 2 weeks after issuance for EP dependants
• 1 week after for S Pass dependants

Step 7: Receive the Dependant’s Pass Card

The pass card is delivered to your registered address within 5 working days after successful registration or verification.

Here’s how it works:

1. You’ll be notified in advance about the delivery.
2. If delivery fails twice, you’ll need to collect the card from MOM.
3. Bring the original passport and notification letter.
4. If someone else collects it, provide a signed authorisation letter and their ID.
5. Once the card is received, your family member is officially allowed to stay in Singapore under the DP.

Remember that you must keep all letters and documents safe since you need them later for renewals or re-entry.

What to do after getting your family member's Dependent Pass?

Now that you get a Dependant Pass, fly to Singapore and settle your family members in your apartment, what to do next?

Before diving into your new routine, take time to set up the practical essentials that’ll make day-to-day life smoother.

Here’s what to do first: Make These Two Moves First

There’s a lot to think about, but here’s your starting point:

1.  Open their bank account
2.  Register for Singpass

Once those are done, everything else—payments, insurance, access to services—gets easier.

Set yourself up this week. You’ll thank yourself later.

Understand the validity, renewal, and cancellation of Dependant's Pass

Managing a Dependant’s Pass in Singapore involves more than just applying.

You need to stay on top of its validity, renewal timeline, and cancellation rules to ensure compliance and avoid unnecessary penalties.

How long is  a Dependant’s Pass (DP) valid?

A Dependant’s Pass is closely tied to the main work pass holder’s status.

• There’s no fixed maximum validity stated upfront.
• However, on renewal, MOM clearly states that a DP’s validity matches the main pass or is shorter if requested.
• This means the DP is only as long-lasting as the main pass it’s linked to.

For example, a husband has an employment pass lasting for 2 years. In this case, the dependent pass of his wife also lasts for 2 years.

How to renew a Dependant’s Pass?

Renewing isn’t automatic. There’s a clear process with different timing depending on the main pass type.

When do I have to renew?

1. EP or S Pass dependants: Apply up to 6 months before expiry.
2. EP (Sponsorship) or EntrePass dependants: Start 3 months before expiry.

Here is the good news for you: Renewing early doesn’t waste time on the current pass. The new one kicks in right after the old one ends.

Who applies?

• For most cases, the employer or appointed employment agent handles the renewal.
• EP (Sponsorship) and EntrePass dependants use a downloadable form submitted online.

How much is the renewal fee?

• $225 to issue the renewed DP.
• Add $30 if a Multiple Journey Visa is required.

Most applications are processed in 3 to 8 weeks, depending on the pass type.

Remember that Renewal is not guaranteed. MOM checks if you still meet the latest criteria.

What happens next after renewal?

If approved, you’ll receive an In-Principle Approval (IPA) letter:

• It’s valid for 3 months (EP holders) or 2 months (S Pass holders).
• You must act before the IPA or current DP expires—whichever is sooner.

Once the pass is issued:

• You’ll get a notification letter.
• It tells you whether to keep the current card or expect a new one.
• Returning the old card unnecessarily? That’s a $60 replacement fee.

How to cancel a Dependant Pass?

You’ll need to cancel a DP if the holder no longer needs it or is leaving Singapore.

When to cancel?

• Up to 14 days before the planned cancellation date.
• Mandatory if the DP holder has left Singapore permanently.

No need to cancel if the pass has expired or the DP holder becomes a Singapore PR.

Who cancels?

Usually, the employer or employment agent. For PEP and EntrePass holders, you can do it yourself or via an agent.

How to cancel?

Log in to the EP eService.

• If the DP holder is still in Singapore, you can request an STVP (up to 90 days) during the process.
• This STVP is delivered via email and shown at immigration when leaving.

Any Letter of Consent or Work Permit tied to the DP also gets cancelled. The DP card must be cut in half and discarded to avoid misuse.

Pro tip: Keep a timeline checklist. A well-managed DP reduces stress and helps your team stay compliant without last-minute surprises.

FAQs about Singapore Dependant Pass

• Country: Hong Kong
• Services: Company formation
• Rating Count: 141
• Rating Value: 5

You can have the most compliant, well-structured company in Hong Kong. But if you hire the wrong company secretary, none of that will matter.

The company secretary is more than just a legal requirement.  They’re your gatekeeper for staying compliant with Hong Kong law.

Get it right, and everything runs smoothly. Get it wrong, and you’re looking at missed deadlines, penalties, or worse, deregistration.

Take this real-world scenario:

1. Business A hired a freelancer off a referral via Facebook with the promise of full compliance.
2. Business B worked with a licensed, experienced firm specializing in Hong Kong corporate law.

One faced fines for late filings and had to seek our support to explain the situation with the Inland Revenue Department.

The other never missed a deadline and expanded into regional markets with ease.

Same city. Same regulations. Different outcome.

So, what made the difference? And how do you make the right hire?

In this guide, I’ll walk you through what a company secretary does, the red flags to avoid, and a proven way to help you hire the right person the first time.

What is a company secretary in Hong Kong?

A company secretary in Hong Kong is a legally required officer responsible for ensuring that a company complies with local regulations and maintains proper corporate governance.

You can think of them as your company’s compliance gatekeeper. This is the person who makes sure your business follows the rules and stays in good standing with the government.

Although they usually work behind the scenes, their role is crucial.

A company secretary is responsible for tasks like:

• File annual returns and other statutory documents with the Companies Registry
• Maintain the company’s statutory books and records
• Keep directors informed of their legal obligations
• Ensure proper board meeting procedures are followed

By law, every Hong Kong limited company must appoint a company secretary. 

In practice, a company secretary can be:

• A natural person ordinarily resides in Hong Kong;
• A professional service provider specializing in company compliance (If you search on Google, Chat GPT the keyword "Company secretary in Hong Kong", you will find hundreds of companies that offers Hong Kong company secretarial services)

Behind the scenes, they help your business operate smoothly and legally in Hong Kong.

Does my company in Hong Kong need a company secretary?

The short answer is yes. It is not optional.

Under Section 474 of the Hong Kong Companies Ordinance (Cap. 622), every Hong Kong company is legally required to appoint a company secretary.

And it’s not just a formality.

The company secretary plays a key role in making sure your business stays compliant with local laws.

They handle essential tasks like submitting your annual return, maintaining statutory records, and communicating with the Companies Registry.

You may have a question: If I am a one-man company (I am the sole director, the sole shareholder of my company in Hong Kong), can I also assume the role of a company secretary?

According to the (Cap. 622, Section 475(2))

The answer is no, 

• If you’re running a one-director company, you’re legally required to appoint someone else as the company secretary.
• You cannot be both the sole director and the company secretary.

Why does it matter?

In fact,  failure to appoint a company secretary is a breach of statutory duty,  and it comes with real penalties.

According to Section 898 of the Companies Ordinance, failing to comply can result in fines of up to HKD 50,000, and in some cases, daily default fines if the breach continues.

Not having a company secretary means:

• Your filings may be rejected
• You could miss key deadlines

You risk fines, legal trouble, or even being struck off the register

Long story short: A company secretary is required by law, and is essential for keeping your business legally safe.

What does a company secretary actually do for my company?

Do you think the company secretary is there to fulfill the legal requirements and just sort your paperwork? Think again

They offer more than that, they have a lot of responsibilities. These behind-the-scenes responsibilities keep your business compliant, organized, and running smoothly.

In this way, you can focus on growing your business and leave all the repetitive administrative tasks to your trusted secretary. 

Stay compliant

Your company secretary ensures you meet all legal requirements, so you avoid costly mistakes. Here’s what that includes:

• File annual returns with the Companies Registry on time
• Manage changes like share allotments or director updates
• Handle company dissolution or deregistration
• Keep statutory books (shareholders, directors, charges, etc.) up to date
• Managing and recording the use of the company seal
• Oversee share transfers and documentation

Talk to the Government, so you don't have to

A company secretary is your company’s point of contact with government agencies:

• Communicate with the Companies Registry and the Inland Revenue Department (IRD)
• Handle official correspondence and updates
• Keep all stakeholders informed on compliance issues

Tip: Use your company secretary’s address as your registered address to make sure all official mail is handled promptly. Normally, the secretary will handle the registered address service to help you in this regard.

Run the right meeting the right way

Good governance means good meetings. Your secretary makes sure they’re done right:

• Schedule and coordinate board meetings
• Prepare agendas and take accurate minutes
• Organize AGMs and EGMs, ensuring voting procedures and notice periods are followed

Avoid fines and headaches

Mess up your filings, and it can cost you. Your secretary helps you avoid:

• Penalties for late tax or annual report filings
• Fines for outdated statutory registers or missing records
• Risks from not keeping up with regulatory changes

How to find the right secretary for my Hong Kong company?

Choosing a company secretary isn’t just a checkbox.

It’s a decision that impacts your compliance, credibility, and operational flow. Here’s how to make the right choice and avoid costly missteps with our 3-step process

Understand who can qualify

Before you hire, make sure your candidate is legally eligible.

• For individuals: Must be a Hong Kong resident
• For corporations: Must be a licensed TCSP (Trust and Corporate Service Provider) with a registered business address in Hong Kong

The one rule here is simple. Always make sure the person you hire is verified, trusted, and has a working history. 

If you have a person currently residing in Hong Kong whom you can trust, you can ask them to be your secretary. But, they need to be well-versed in Hong Kong company regulations. 

Else, you risk putting your company in jeopardy.

Decide between In-House or Outsourced

You’ve got two main options:

•  In-house — You hire someone directly as part of your team
• Outsourced — You partner with a professional services firm

Outsourcing is a popular choice in Hong Kong because it:

• Lowers overhead costs
• Gives you access to experts in local compliance
• Reduces the risk of late filings or missed obligations

Check their credentials

Especially when outsourcing, make sure your provider:

• Holds a valid TCSP License
• Has a solid track record in handling statutory filings
• Offers ongoing support for things like annual returns, director changes, or share allotments

Pro tip: Look for providers who also offer a registered address. This streamlines official communications and keeps things centralised.

1 proven way to find a reliable secretary in Hong Kong 

No matter if you are a foreigner looking to incorporate a company in Hong Kong or a Hong Kong local who wants to find a reliable secretary, our method works for all.

Here’s one proven method to make sure you’re choosing a legitimate, licensed provider (not a middleman reselling services at a markup).

We call this the TCSP License Cross-Check Method.

Why does this work?

Because it lets you verify secretarial firms against the official Hong Kong government database—the Trust or Company Service Provider (TCSP) register. 

That means no guesswork, no fancy marketing sites—just licensed, verifiable data straight from the government source. Plus, it is very easy to do.

Step 1: Google Search “Hong Kong Company Secretarial Services”

Start by listing potential providers from organic search results. Use a simple search like with the keyword "Hong Kong company secretarial services" on Google.

Your goal here is to collect 10 company names that look promising. 

Step 2: Find their company TCSP Number

Go to each website’s About or Contact page, or the footer on the Homepage, and find the TCSP Name of Licensee or Licence Number. For example, TC003167

This is a verification that a person/a company who carries on or wishes to carry on a trust or company service business in Hong Kong.

This person or this company is licensed by the Hong Kong government to do this job legally. 

If it's not listed? Red flag. Skip them or email support to ask directly.

Step 3: Check the TCSP License

Now, verify each name using the official TCSP License Register via this link: Register of Trust or Company Service Provider Licensees in Hong Kong

On the site:

1. Choose Search By Name of Licensee or Licence No.
2. Input the name or number
3. Click Search

If the company shows up in the results, it’s officially licensed to offer company secretarial services.

If it doesn’t? You’re likely dealing with a reseller or unauthorized third party.

Summary:

• Google and shortlist 10 providers
• Check if they list their TCSP license number or their  registered company name
• Cross-check with the TCSP register
• Choose a verified, direct service provider

That’s it. You now have a bulletproof method to find a reliable, cost-effective, and legally qualified secretary in Hong Kong, without relying on trial and error.

How can we help you open a company in Hong Kong the right way

We’re not just another corporate service provider

As a trusted business advisor with over 10 years of direct relationships with licensed TCSP providers in Hong Kong, we help entrepreneurs like you skip the middlemen and get first-hand, high-quality service at a fair, transparent price.

You might come across providers like Sleek, Osome, or AsiaBC in your top 10 Google search.

Here’s the truth:

Most of these firms charge premium prices for basic services, especially if you're a first-time founder unfamiliar with Hong Kong regulations.

We’re different.

We’re a one-stop partner that:

• Works directly with licensed TCSPs (no resellers, no middlemen)
• Has deep knowledge of the legal, tax, and banking ecosystem in Hong Kong
• Helps you avoid costly mistakes when setting up your company
• Guides you step-by-step with personalized advice, not templated responses

Our services Include:

• Open a company in Hong Kong legally, fast with our one-stop support
• Get a reliable, experienced company secretary with our corporate secretarial service
• Support in opening your business bank accounts;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe, and PayPal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

Whether you’re a solopreneur, startup, or scaling business, we’ll make sure your Hong Kong setup is fully compliant, optimized, and affordable.

Want a real, trusted expert to guide you?
Let’s talk. No fluff, no hard sell — just real advice from someone who knows how to help and 1000 clients from all over the world who trust us to help them thrive globally.

FAQs about company secretaries in Hong Kong

Opening a company in Hong Kong is straightforward, but choosing the right type of company. 

That’s where many foreigners and foreign companies get stuck.

Each structure comes with different rules, benefits, and responsibilities. 

Some are ideal for solo entrepreneurs. Others are better suited for businesses that plan to raise investment or scale quickly.

Don’t worry—you don’t need to memorize every option. You only need to focus on understanding the main types and which one fits your goals best.

In this article, our experts at Global Link Asia Consulting will break them down for you below, with real-world examples to help you decide which company structure is best for your business model.

8 types of companies in Hong Kong you must know

Foreign investors looking to start a business in Hong Kong have several company structures to choose from.

Here’s a quick breakdown of the five main types of companies you can set up under Hong Kong’s Companies Ordinance (Cap. 622):

1. A private company limited by shares - This is the most common structure. It limits shareholder liability and is ideal for small to medium businesses.
2. A public company limited by shares - This is suitable for large companies that want to raise capital from the public or list on the stock exchange.
3. A company limited by guarantee - It is Often used by non-profits or charities. These companies don’t have share capital and instead have members who guarantee a fixed contribution if the company winds up.
4. A private unlimited company with a share capital - This structure is rarely used. Shareholders have unlimited liability, meaning they’re personally responsible for the company’s debts.
5. A public unlimited company with a share capital is similar to the private version, but can offer shares to the public. It is also very uncommon to set up.
6. A branch office is an extension of a foreign parent company.  It is not a separate legal entity. This is a choice for major corporations with a well-known brand name
7. A representative office is used for non-commercial activities like market research or liaison. This is a choice for major corporations
8. A partnership is formed by two or more people jointly running a business. It is the choice of professionals who want to work together
9. A sole proprietorship is owned and run by one individual. It is the easiest and cheapest to set up.

You don’t need to memorize every type. 

In fact, most foreign entrepreneurs, foreign SMEs go with a private company limited by shares. It’s simple, flexible, and widely accepted for business operations.

But knowing the full list helps you understand the legal landscape and choose the right fit if your situation is more complex.

If you want to see how each structure works in practice,  our experts have included real-world examples with the characteristics of each business structure below.

Private limited company (Ltd)

A private Limited Company is the most popular choice among foreigners starting businesses in Hong Kong. Its key features are:

• Limited liability protection (your assets stay safe)
• Minimum 1 shareholder and 1 director (can be the same person)
• No nationality restrictions (foreigners can own 100%)
• Minimum share capital of HK$1 (about US$0.13)
• Annual compliance requirements include filing tax returns and audited accounts

This company type in Hong Kong is perfect for:

• Most traditional businesses
• An e-commerce business selling overseas
• Professional services (IT, accounting, Digital marketing)
• Companies wanting to benefit from 0% VAT/GST/Sales tax for Google Ads invoice, Facebook Ads invoice
• Trading companies
• Businesses seeking credibility with clients and banks

Gogovan, or now GoGoX, is the best example of utilizing this company type in Hong Kong.

Founded by Steven Lam, it began as an app connecting van drivers with customers needing delivery services. Today, it's expanded across Asia and has become Hong Kong's first unicorn startup.

Pubic limited company

A public limited company can offer shares to the public and list on stock exchanges. Its key features include:

• Can raise capital by selling shares to the public
• Subject to strict regulatory requirements and disclosures
• Minimum of 2 directors and a qualified company secretary
• Higher setup and maintenance costs than private companies
• Must comply with the Hong Kong Stock Exchange listing rules if listed
• Enhanced credibility and visibility in the market

This company type is perfect for:

• Companies seeking to raise substantial capital from public investors
• Larger businesses planning significant expansion
• Companies wanting enhanced visibility and prestige
• Businesses with plans for an eventual IPO (Initial Public Offering)

There are many public companies in Hong Kong. In this article, we will use the example of a company with more than 100 years of history.

AIA Group Limited successfully listed on the Hong Kong Stock Exchange after separating from its American parent company.

As a public limited company, it gained access to significant capital for expansion, US$17.8 billion, making it one of the largest IPOs globally.

Company limited by guarantee

This unique structure has no share capital and is typically used for non-profit activities.
Key Features:

• No shareholders; instead has members who guarantee a nominal amount
• Cannot distribute profits to members
• Often used for charitable, educational, or community purposes
• Tax exemption is available if recognized as a charity
• Members' liability limited to the amount they guarantee (typically HK$100)

This business structure in Hong Kong is perfect if you are:

• Non-profit organizations
• Charitable foundations
• Educational institutions
• Industry associations
• Religious organizations

The Hong Kong Jockey Club operates as a company limited by guarantee.

Despite being one of the largest taxpayers in Hong Kong, it channels its surplus to charitable and community projects rather than distributing it to shareholders.

Unlimited company (Private or public)

An unlimited company is a type of business where the owners (called members or shareholders) are personally responsible for all the company’s debts and liabilities.

This means that if the company owes money or faces legal trouble, the owners may have to use their money or assets, like savings, property, or cars, to pay off those debts. 

The key characteristics of this types of companies are:

• Shareholders have unlimited liability for company's debts
• Not required to file annual accounts publicly
• Rare in Hong Kong due to the liability exposure
• Greater privacy than limited companies
• No minimum capital requirement

If you fit the descriptions below, an unlimited company will be your best choice

• Professional service providers who want financial privacy
• Family businesses where members fully trust each other
• Subsidiaries of larger corporate groups for specific purposes
• Companies prioritizing financial privacy over liability protection

Some professional service firms and family-owned businesses in Hong Kong choose the unlimited company structure when they value financial privacy over liability protection. For instance, certain wealth management firms serving high-net-worth clients may prefer this structure.

Branch office

A branch office is not a separate company on its own. Instead, it is simply an extension of your existing foreign company that operates in Hong Kong.

This means the branch shares the same legal identity as the parent company overseas. 

Many foreign businesses choose this setup when they want to enter the Hong Kong market but don't want to register a new company from scratch.

The key features of a branch office in Hong Kong are:

• Not a separate legal entity (your parent company bears all liability)
• Must register as a "Non-Hong Kong Company" within one month of establishment
• Can conduct business activities under the parent company's name
• Must file annual returns and audited accounts
• Parent company remains fully responsible for all debts and obligations

Usually, only major international corporations would choose this company types

Microsoft is the perfect example of a global company using a branch office to their advantages.

Located at 15/F, Cyberport 2, 100 Cyberport Road, Hong Kong,  the Microsoft Hong Kong office has been operating there since 1991 to serve customers in the region, with over 300 employees based locally. 

Representative Office

A representative office allows foreign companies to set up a presence in Hong Kong without actually running a business or making sales there. 

They can use it for things like market research, meeting with local contacts, or promoting their brand. 

Key features off a representative office in Hong Kong are:

• Cannot generate revenue or sign contracts in Hong Kong
• Limited to market research, promotion, and liaison activities
• Simple setup with minimal compliance requirements
• No need for audited accounts
• Cannot issue invoices or collect payments

In summary, a representative office is only practical for a major company that wants to test the market before full entry, as the operating expenses and the license fee for a representative office are high.

Many luxury brands, such as Louis Vuitton, initially established representative offices in Hong Kong to study the market and build relationships before launching full-scale retail operations.

Louis Vuitton set up its first Hong Kong store in 1979 after forming Louis Vuitton Hong Kong Limited as a subsidiary to manage its presence locally.

This approach allowed the brand to understand local consumer preferences and establish connections with key stakeholders before expanding into retail.

Sole proprietorship

A sole proprietorship is a type of business owned and run by one person. As the owner, you are personally responsible for everything (making decisions, handling daily operations, paying debts, and dealing with any legal issues.)

There is no separation between you and the business, so if the business owes money or gets sued, you might have to pay from your pocket. 

It’s easy and cheap to start, but it also comes with higher personal risk.

The key characteristics for a sole proprietorship are:

• No separation between business and personal assets (unlimited liability)
• Simple and inexpensive to set up
• Minimal compliance requirements
• All profits go directly to the owner
• Must renew business registration annually

Since this business structure is a one-man business, it is perfect for individuals who are:

• Freelancers and consultants in any industry
• Small service providers
• One-person businesses with minimal risk
• A person testing a business concept before incorporating

Many foreign English teachers and fitness instructors in Hong Kong start as sole proprietors, offering their services directly to clients before expanding to larger operations.

 Partnership

A partnership is a type of business where two or more people come together to share ownership and responsibilities.

This means all partners work together to manage the business, make decisions, and share the profits. 

 At the same time, they also share the risks and debts. If the business runs into trouble, each partner may be personally responsible for part—or even all—of the debt, depending on the type of partnership.

Key features of a partnership is:

• Can be general (all partners have unlimited liability) or limited (some partners have limited liability)
• Profit and losses are shared according to the partnership agreement
• Each partner is responsible for the actions of the other partners
• Simple to establish, but requires a clear partnership agreement
• Annual business registration is required

A partnership is perfect for 

• Professional services (law firms, accounting firms)
• Joint ventures between individuals or companies
• Family businesses
• Businesses where skills and resources from multiple owners add value

KPMG in Hong Kong operates as part of KPMG China, which converted from a joint venture to a special general partnership as of August 1, 2012.

This partnership structure is part of KPMG's global organization of independent professional services firms providing Audit, Tax and Advisory services.

As a partnership, KPMG's structure allows its professionals to share ownership and management responsibilities while combining their expertise across various service areas.

Which company type is best for you to incorporate your company in Hong Kong?

How can we help you open your company in Hong Kong?

Wondering which type of company you should set up in Hong Kong as a foreigner?

Here’s the good news: Hong Kong offers 8 solid options—each with its own pros, legal requirements, and ideal use cases.

The result?

You get a structure that fits your business goals, protects your assets, and positions you for long-term growth in Asia’s most business-friendly city.

Use our quick-start guide above to explore all 8 company types—with real-world examples so you can decide faster.

And when you're ready to register your business, check out our step-by-step setup process for foreigners in Hong Kong.

• Open a company in Hong Kong legally, fast with our one-stop support
• Get a reliable, experienced company secretary with our corporate secretarial service
• Support in opening your business bank accounts;
• Get an affordable, professional registered office address for business;
• Support to open, authenticate, and manage Stripe, and PayPal Business in Singapore, Hong Kong, and the U.S;
• Handle all your tax accounting needs, timely annual filings, auditing, and more.

FAQs about opening a Hong Kong company