What is the condition of "No business commenced"?
No business commenced
  • Generally, there are 2 interpretation:
    1. Totally no transaction happens under a company name, no matter it is administrative expenses, investment, or income items
    2. No income item happens under a company name
  • Interpretation in above (2) is narrower than (1), and is commonly adopted for tax treatment purpose;
  • However, “commonly adopted” is not “officially adopted”, considering different business nature of companies;
  • Therefore, to avoid mis-understanding, the safest approach is to adopt (1) and follow the duty of keeping proper proper business record and auditor report