How do I transfer my sole proprietorship online store to a Hong Kong limited company?

Moving from a sole proprietorship to a company is common once an online store grows or needs limited liability. Steps usually include:

1. Incorporate the company with the Companies Registry; business registration is dealt with at the same time.
2. Transfer the business by agreement: stock, equipment, domain names, supplier contracts and customer arrangements. Value the assets and keep a record.
3. Update platform seller accounts, payment providers, bank accounts, couriers and licences, since many are tied to the legal owner. Some cannot be transferred and need a new application.
4. Notify the IRD that the sole proprietorship has ceased and apply for cessation of its business registration, and file a final profits tax return for the sole proprietorship.
5. Handle staff: employees' contracts can move, but employment rules on continuity and MPF should be followed.

The transfer can affect depreciation allowances and trading stock for profits tax. Hong Kong may charge stamp duty on some transfers, for example of Hong Kong property or shares. Seek advice on the exact consequences for your case.