Commencement of Business
The commencement of business is the date when the company starts conducting business.
The commencement of business is the date when the company starts conducting business. It is not easy to determine the exact day of commencement, however normally it would be when a business undergoes business related activities.
How do I know if I have commenced business?
The commencement of business may be different for various companies, but in general it is a question of fact; that is based on some evidence or event which has occurred.
Some examples of the commencement of business may include:
- Issuing or receiving of invoices for the company
- Manufacturing of goods for manufacturer company
- Sale of goods for the company
- Receipt of funds for provided services
- Purchase or transfer of assets in some cases
- Start of business contracts for the company
- Employment of staff or hiring of freelance workers.
- Payment of salaries or remunerations
- Payment of company expenses, such as utilities or rent expenses
- Purchase of financial instruments for an investment company
These events may cause the commencement of business for the company.
Once the company has commenced business, it would need to file a form to inform the Hong Kong government of the start of business.
If you have any questions or further clarification on this, feel free to contact Startupr for further explanations. We can assist in filing the commencement of business form for the company to the government.
