Advantages of incorporation in Hong Kong
Hong Kong is one of the world's reliable and efficient financial centers. The advantages of no exchange control, sound legal system and efficient transport/communication networks make the incorporation in Hong Kong attractive for international traders. Hong Kong is ranked the freest economy in the world.
Types of Business Registration in Hong Kong. Hong Kong company formation, Hong Kong company registration
One of the major advantages of Hong Kong company incorporation is that the company will not be perceived as a tax avoidance vehicle, as Hong Kong is a major trading entity in its own right. There is no capital gains tax and exchange control. The basic law of Hong Kong guarantees free trade as well as low taxes for a Hong Kong company.
By statute Hong Kong companies must have a minimum of one director and one shareholder. One person can be both a director and a shareholder. There is no statutory requirement that the shareholders or directors be residents of Hong Kong. They can be individual persons or corporations. Hong Kong company incorporation requires a registered office in Hong Kong and a Hong Kong resident individual or Hong Kong corporation to act as the secretary. We can provide a registered office address and secretary to comply with these statutory requirements for Hong Kong company registration.
It should be noted that:
- A Hong Kong company name must end with the word "limited";
- Business registration certificate is a required business license for registering almost any type of business in Hong Kong. It is issued by the Inland Revenue Department of Hong Kong. Before making application for a Business Registration Certificate, a Hong Kong limited company must first be registered with the Companies Registry. Applications should be made within 1 month of the date of incorporation or registration with the Companies Registry. A Form 1(b) should be submitted with a photocopy of the Certificate of Incorporation or Certificate of Registration of Overseas Company issued by the Companies Registry.
Hong Kong company share capital
Hong Kong companies (including the "shelf" ones) are usually incorporated with the authorized share capital of HK$10,000 divided into 10,000 shares of HK$1.00 each.
Documents and information required for a Hong Kong company incorporation, Hong Kong company formation:
- Two proposed company names.
- A copy of passport and address of company director(s)/shareholder(s) - one is enough, if he is not a Hong Kong resident.
Hong Kong company taxation and accounts
Hong Kong adopts a territorial source principle of taxation. Only profits which have a source in Hong Kong are taxable here. Profits sourced elsewhere are not subject to Hong Kong Profits Tax. Consequently, if a Hong Kong company is trading or conducts business activities outside Hong Kong, no taxation will be levied. Hong Kong companies with Hong Kong source of income currently pay 16% on profits.
To determine whether a Hong Kong company carries on business in Hong Kong, please follow the Tax Department web site: A Simple Guide on The Territorial Source Principle of Taxation
Schedule of Fees - Hong Kong company incorporation, formation, registration and corporate package
- Hong Kong private limited company formation fee is US$ 1 190 which include: Hong Kong company incorporation, registration, company corporate including Certificate of Incorporation, annual business registration certificate, Minutes of First Directors' Meeting, Appointment of first company directors, Notification of First directors and secretary, director consent, Notice of Situation of Registered Office of Hong Kong company, share certificates, metal seal and signing chop. For purchase a ready-made Hong Kong company instrument of transfer of Hong Kong company is available.
- Note. If you plan conducting business (or opening a bank account) outside of Hong Kong, then you need to have the corporate documents apostilled. The cost of the Certificate of Incorporation apostilling is US$ 280. If the full set of the corporate documents has to be apostilled the total will make US$ 490.
Timescale for Hong Kong company incorporation
Incorporation, registration of a Hong Kong company takes around 3 weeks. Ready-made companies are available however their transfer to new owners takes almost the same time.
Hong Kong company renewal
- Annual renewal of a Hong Kong company on the anniversary of incorporation US$ 850. This includes providing the Hong Kong company registered office, company secretary and paying Business Registration fee.
- The company must compile audited accounts annually prepared by a registered Hong Kong auditor. The first audited accounts must be prepared up to date within 18 months after the Hong Kong company incorporation. We are able to arrange for filing 'Nil' Profits Tax Return and 'Nil' Employers Return if the client's company has not commenced its business in Hong Kong. Auditing fees depend on the volume of work required.
Making presence in Hong Kong after Hong Kong company incorporation
- To show your company presence in Hong Kong we can provide a Hong Kong virtual office for the company. These services include Hong Kong phone and fax numbers and Hong Kong mail forwarding address. These services will make your company look like any other Hong Kong company for the outer world, while preserving its offshore status. The cost of the office services is US$ 990 annually.
Please contact us if you would wish to proceed with Hong Kong company incorporation and registration.
- COMPANIES ORDINANCE
- Guidelines on Directors' duties - important information related to Hong Kong company directors