Company Services in
Tai Po, Hong Kong —
New Territories Specialists

The Hong Kong Science and Technology Parks Corporation (HKSTP) operates Asia's leading innovation cluster at Tai Po — hosting over 1,000 technology companies across Science Park Phases 1, 2, and 3, InnoCentre, and INNO Space. Companies seeking HKSTP tenancy and those already tenanting Science Park have corporate service needs that are significantly more specialized than standard SME requirements. Company Incorporation and HKSTP Tenancy Application: Before applying for HKSTP tenancy, companies must be incorporated as HK Private Limited companies. HKSTP's application process requires: Certificate of Incorporation, Business Registration Certificate, company profile, business plan demonstrating innovation activities, and evidence of R&D capacity. Sirus Infotech assists with the company incorporation and helps prepare the corporate documentation package for HKSTP tenancy applications. R&D Bookkeeping for Science Park Companies: HKSTP companies conducting qualifying research and development can claim the 300% enhanced Profits Tax deduction under Section 16B of the Inland Revenue Ordinance on qualifying R&D expenditure. This is one of the most powerful tax incentives in HK tax law — but it requires meticulous bookkeeping to qualify. Qualifying R&D expenditure includes: staff costs of R&D employees (can be 300% deductible), costs of external R&D contractors, R&D materials and consumables, R&D software and equipment depreciation. To claim the 300% deduction, companies need: separate accounting records for qualifying vs non-qualifying expenditure, timesheets demonstrating employees' R&D time allocation, project-level cost tracking, and a supporting narrative for the IRD tax computation. Sirus Infotech sets up R&D cost centre accounting in Xero for all Science Park clients. HK Government Grant Accounting: HKSTP companies frequently receive HK government innovation grants. The key grants and their accounting requirements: Innovation and Technology Fund (ITF) General Support Programme: grants up to HKD 10 million for qualifying projects. Requires: separate bank account for grant funds, quarterly financial reports to HKSTP's ITF Secretariat, final audit by HKICPA-registered CPA with a specific format, matching expenditure documentation (1:1 or 2:1 matching ratio depending on program). InnoTech Fund — HKSIP: seed funding for early-stage companies. BUD Fund: for HK companies expanding to ASEAN/Greater Bay Area — specific accounting for activities qualifying for BUD funding support. Re-industrialisation and Technology Training Programme (RTTP): HKD 15,000 per employee for tech upskilling — simple accounting. Science Park Equity and Fundraising Financial Statements: HKSTP startup companies typically raise capital from angel investors, venture capital, and corporate investors. Investors require HK GAAP-compliant financial statements, often prepared to HKFRS standards (not just simplified SME standards). Stock option and equity incentive accounting (HKFRS 2) for staff retention schemes is common in Science Park companies — requiring specialist accounting treatment that many general bookkeepers lack. Sirus Infotech prepares investor-ready financial statements for Science Park companies at Series A and Series B fundraising stages.

Tai Po Industrial Estate (TPIE), established in 1977 and managed by the Hong Kong Science and Technology Parks Corporation (previously by Tai Po Industrial Estate Corporation), is one of Hong Kong's premier industrial zones — hosting over 130 companies in food processing, printing, electronics, textiles, chemicals, and light manufacturing. The bookkeeping requirements for TPIE manufacturers are substantially more complex than service businesses, requiring manufacturing accounting expertise. Manufacturing Cost Accounting under HK GAAP (HKAS 2): Unlike a service company where costs are simply classified as revenue or capital, TPIE manufacturing companies must maintain product cost accounting: Standard Costing — pre-determined costs for each product unit based on materials, labour, and overhead. Actual costs vs standard costs variance analysis — price variance, usage variance, efficiency variance, volume variance. Work-in-Progress (WIP) Valuation — products in various stages of manufacturing must be valued at cost including labour and overhead allocation (HKAS 2 requirements). Finished Goods Inventory — correct valuation on balance sheet is critical for bank lending, investor statements, and customs documentation. Raw Materials Inventory Accounting: TPIE factories importing raw materials from mainland China or overseas must reconcile: purchase invoices against customs import declarations (for HK import duty exemption verification — HK is a free port but some goods have duties), materials consumed in production against purchase records, and closing stock physical count. Capital Allowances on Industrial Plant and Machinery: Section 14A and Section 14B of the HK Inland Revenue Ordinance provide capital allowances (similar to depreciation) on plant, machinery, and industrial buildings: 60% initial allowance on qualifying plant and machinery in first year of purchase. Annual allowances of 10%, 20%, or 30% depending on asset class in subsequent years. Accelerated allowances for certain environmental-friendly equipment. Industrial buildings allowances at 4% per year of construction cost (Section 33A). For TPIE manufacturers with significant capital expenditure on machinery, the capital allowance calculation can materially reduce taxable profits — but requires precise fixed asset tracking with purchase dates, costs, and asset classifications. Import and Export Documentation Accounting: TPIE companies importing materials and exporting finished goods must reconcile: HK Customs Form 1 (Import Return) and Form 2 (Export Return) records, bills of lading, packing lists, and commercial invoices, trade financing documentation (letters of credit, trust receipts), and export proceeds repatriation (for HKMA monetary tracking). Payroll and MPF Accounting for Factory Workers: TPIE factories typically employ both skilled engineers and production workers. Payroll accounting must track: basic salary, overtime (HK Employment Ordinance — 1.5x for authorised overtime), shift allowance, MPF contributions (5% employer, 5% employee, up to HKD 1,500 per month each), year-end double pay or bonus accounting, and annual leave accruals. Sirus Infotech provides specialist manufacturing bookkeeping for TPIE companies — using Xero or Sage with manufacturing modules that support production cost accounting, inventory management, and standard costing variance analysis.

Yes — the location of your registered office in Hong Kong (Tai Po or any other district) has NO bearing on your eligibility for the offshore profits exemption. The offshore exemption is determined by where the profit-generating business activities take place, not where your company is registered. This is an important clarification because many people assume that having a Tai Po address (in the New Territories, further from Hong Kong Island) affects their tax position — it absolutely does not. The HK Territorial Basis of Taxation: Section 14 of the Inland Revenue Ordinance imposes Profits Tax only on profits "arising in or derived from Hong Kong." Profits derived entirely from activities conducted outside Hong Kong are "offshore" and exempt from HK Profits Tax. For a Tai Po-registered company: if an Indian entrepreneur incorporates a company with a Tai Po address, but conducts all commercial operations from India (negotiating, contracting, buying, selling), the profits from those operations may be offshore and tax-exempt. The "Operations Test" — how IRD determines offshore status: The HK Inland Revenue Department applies the "operations test" to determine where profits arise. The relevant question: where do the profit-generating activities occur? For trading companies: where are purchase contracts negotiated? Where are sales contracts signed? Do goods pass through HK? For service companies: where are services performed? Where are key decisions made? Where are project managers located? Contemporaneous documentation is critical for supporting an offshore profits claim: email records and contracts showing negotiations conducted outside HK, board minutes showing key business decisions made outside HK, travel records demonstrating management presence outside HK, bank records showing payments made from outside HK. FSIE Regime (from January 2024) — applies only to PASSIVE INCOME: The Foreign-Sourced Income Exemption (FSIE) regime introduced in 2023/2024 applies to passive income received from foreign sources: dividends, interest, royalties, disposal gains, and capital gains from foreign assets. For passive income: the FSIE regime requires the HK company to either meet economic substance requirements (relevant activities test for IP income — R&D conducted in HK), or meet a participation exemption test (for dividends — 5% shareholding for 24 months), or nexus test (for IP royalties — percentage of R&D expenditure in HK). ACTIVE business income (trading profits, service income, manufacturing) is NOT affected by FSIE — it retains the traditional offshore exemption rules. Specific Tai Po scenarios: Science Park company licensing IP to overseas entities: may have HK-source R&D income from Science Park activities (taxable in HK) PLUS overseas licensing royalties (potentially FSIE-regulated). Careful structuring needed. TPIE manufacturer exporting to overseas buyers: if production occurs in TPIE (HK-source) and profits are from HK manufacturing, profits are likely assessable in HK at 8.25–16.5%. Tai Po-based trading company sourcing goods from China and selling to India: if all trading activities occur outside HK, offshore profits claim potentially available. Sirus Infotech provides written analysis of offshore profits eligibility for each Tai Po company as part of the initial engagement — before any IRD return is filed.

This is a strategic question that many HK company founders — particularly those forming companies remotely from India — ask. Here's a comprehensive analysis of the address decision for HK companies: Legal requirements for all addresses: All Hong Kong companies must maintain a registered office address in Hong Kong. The address must be a physical location — not a PO Box — where Companies Registry correspondence can be received. The registered office address is a matter of public record, searchable on the Companies Registry's ICRIS database. Types of HK registered address options and their costs: Hong Kong Island — Central / Admiralty / Wan Chai / Sheung Wan: Most prestigious financial district. Companies here attract international finance partners. Address cost: HKD 4,000–12,000/year for a professional business centre address. Suitable for: financial services companies, law firms, consulting firms, international trading companies targeting institutional counterparties. Kowloon — Tsim Sha Tsui (TST) / Mong Kok: International commercial hub. TST has strong recognition among Chinese mainland business partners. Address cost: HKD 2,500–7,000/year. Suitable for: international traders, consumer goods companies, Chinese mainland-oriented businesses. New Territories — Tai Po: Most cost-effective option. Scientifically credible (Science Park association). Addresses cost HKD 2,000–4,000/year. Suitable for: technology startups, biotech companies, manufacturers, SMEs, Indian-owned companies seeking cost efficiency. The Tai Po address advantage by business type: Science and Technology companies: a Tai Po address — especially one associated with the Science Park campus or science district — actually ADDS credibility with: HKSTP (Science Park operator, which has its own cluster address system), HK innovation funders (ITF, InnoVenture Fund), university research partners (Chinese University of Hong Kong is in Tai Po/New Territories area), and global tech companies that understand HKSTP is a prestigious innovation hub. Manufacturing and industrial companies: Tai Po Industrial Estate address carries significant credibility in HK's manufacturing community. TPIE is a known quality industrial zone — an address here signals established industrial operations. Indian-owned HK companies for international trade: Tai Po is perfectly adequate — the registered address appears on the Certificate of Incorporation and Business Registration Certificate, but most international trade correspondence references the company's operational contact details, not the registered address. Cost-conscious Indian entrepreneurs can save HKD 2,000–6,000/year by using a Tai Po address rather than a Central or TST address. When a premium address matters: companies raising capital from HK/Singapore VCs who conduct office visits; companies tenanting HSBC, Standard Chartered, or other premium bank branches where branch prestige affects relationship manager attention; licensed financial services companies (SFC, HKMA) where address may be inspected. When Tai Po address is optimal: Science Park tenants (dedicated address provided by HKSTP), TPIE manufacturers, cost-conscious startups and SMEs. Sirus Infotech provides registered address options in all HK districts — and advises on the optimal choice based on your business type, client profile, and budget.

Tai Po businesses — particularly those in the Science Park ecosystem and Tai Po Industrial Estate — have access to one of the most comprehensive innovation grant systems in Asia. The Hong Kong government has committed over HKD 100 billion to innovation and technology development, with a significant portion accessible to Tai Po businesses. Key HK Government Grants for Tai Po Businesses: 1. Innovation and Technology Fund (ITF) — managed by Innovation and Technology Commission (ITC): General Support Programme (GSP): grants up to HKD 10 million per project. Available to both SMEs and larger companies. Requires technology innovation component. Application reviewed by ITF Vetting Committee. Success rate approximately 60–70% for well-prepared applications. Enterprise Support Scheme (ESS): for in-house R&D by HK companies, up to 50% of qualifying expenditure (no cap since 2022). Requires detailed budget and milestone plan. R&D Cash Rebate Scheme: 40% rebate on qualifying R&D expenditure (HKD 1–6 million spend range). Simplified application process. 2. BUD Fund (Dedicated Fund on Branding, Upgrading and Domestic Sales) — managed by HKPC: For HK companies establishing/expanding business in ASEAN countries and Mainland China. Cumulative funding up to HKD 7 million per company. Two programs: Enterprise Support Programme (grants HKD 700,000 per project) and Industry Support Programme. 3. HKSTP Program Funding: HKSTP manages several direct funding programs for Science Park tenants: HKSTP Ventures (equity co-investment for early-stage companies), IP Loan Guarantee Programme (loans for IP-intensive companies), Smart Living Programme, GBA Tech Boost Programme. 4. Transformation and Upgrading Funding — for TPIE manufacturers: Re-industrialisation Funding Scheme: for factories setting up smart production lines in HK. Up to 50% of approved expenditure. Productivity Enhancement Scheme for SMEs. Grant Accounting Requirements — what Sirus Infotech manages: Separate grant bank account: most ITF and BUD Fund grants require all grant funds to be held in a dedicated bank account — separate from the company's operating account. Matching expenditure tracking: ITF grants typically require 1:1 matching — for every HKD 1 of grant, the company must spend HKD 1 of its own funds on qualifying project expenditure. Expenditure must be contemporaneous and properly documented. Quarterly financial progress reports: ITF requires quarterly reports showing: grant funds received, grant funds disbursed (with supporting invoices), company matching funds disbursed, and cumulative project progress. These are submitted to HKSTP's ITF Secretariat and must be accurate to avoid project suspension. Final audit report: upon project completion, companies must submit a CPA-audited final project accounts statement, certifying that all grant funds were used for qualifying expenditure. The CPA report must follow HKSTP's prescribed format. Sirus Infotech engages HKICPA-registered CPA firms specifically experienced in ITF final audit reports for this purpose. Tax treatment of grants: HK government grants received for R&D or capital expenditure are generally NOT taxable in HK (treated as capital receipts if for capital projects, or as IRD-exempted receipts if specifically exempted under the Tax Exemption Order). However, the accounting treatment (revenue vs capital grant under HKAS 20) and tax treatment must be correctly handled — errors can trigger IRD queries. Sirus Infotech has managed grant accounting for 10+ HKSTP companies, covering ITF, BUD Fund, and HKSTP program funding — providing complete end-to-end grant accounting from application support through quarterly reports to final CPA audit.