Company registration in Hong Kong
Company registration in Hong Kong

With a prestigious financial sector and a world-class corporate division, Hong Kong stands out as a well-regarded and favorable jurisdiction for most investors. It has reputed itself with impeccable infrastructure, a stable economy, a productive and professional work environment topped by an advantageous tax system and the absence of Value Added Tax (VAT) on goods and services. Furthermore, Hong Kong is also one of the world's premier and largest offshore banking jurisdictions offering multi-currency corporate accounts with up to 10 different currencies and exceptional internet banking facilities. The jurisdiction attracts strong corporate laws with a selection of wide-ranging investment prospects and is viewed as one of the world’s most distinguished non-residentbusinessmarketsintheworld.

WHY HONG KONG?

WHY NOT?

  • Easy access to Mainland China and Asia
  • No tax on income derived from outside Hong Kong
  • Two tier system on income derived from Hong Kong:
  • 8.25% for profits under 2 million HKD
  • 16.5% on the remainder
  • No sales tax or VAT
  • No withholding tax on dividends and interest
  • No capital gains tax
  • No tax on offshore and onshore funds
  • No surtax
  • No wealth tax
  • Salary tax is maxed at 15%
  • Property tax is 15%
  • Tax deductions for Research and Development expenses
  • Special tax rates on several business activities like aircraft leasing, reinsurance and treasury centers
  • Hong Kong companies may carry forward losses
  • Hong Kong companies can obtain a tax residency certificate
  • Tax treaties with over 40 countries worldwide
  • No foreign exchange controls
  • Hong Kong banks offer multicurrency accounts
  • Low capital requirement
  • Expensive facilities and services, especially for those who wish to have physical offices and substance in Hong Kong
  • Weak Intellectual property protection laws
  • Public Register of directors and shareholders
  • All Hong Kong companies must maintain a Significant Controllers Register (beneficial owner information) which should be open for inspection by law enforcement officers upon demand
  • All Hong Kong banks require a physical, personal interview with the directors, beneficial owners and account signatories for bank account opening
  • Limited possibility of using payment gateways
  • Very strict Regulations for financial services
  • Re-domiciliation is not permitted
  • Company dissolution can be complicated, time-consuming, and expensive compared to other countries
  • Nationals of Cuba, Afghanistan, Cambodia, Albania, Laos, North Korea, Vietnam and Nepal are not permitted to register a business in Hong Kong
  • Strict and complicated employment visa requirements. Non-skilled, unqualified personnel will not be granted working permits
  • Communication barriers due to poor English knowledge by a vast number of local staff

Probably the most attractive aspect of the jurisdiction is its access to mainland China and the impeccable trade possibilities it offers. Likewise, a growing number of Chinese companies are taking advantage of Hong Kong’s access to global investors to raise funds and use Hong Kong’s status as a global financial and business center to promote greater global use of its currency, the renminbi and Chinese yuan. Unlike the rest of China, Hong Kong has a strong position as a free and open economy, most business practices are conducted in English language and its policies allow for a free enterprise with a minimum of bureaucracy and constraint. With this in mind, business models that would like to gain access to China’s infamous markets, but would like to maintain more flexibility, easier flow of funds and more lenient laws and regulations than in mainland China, can greatly benefit by incorporating a wholly foreign-owned enterprise (WFOE) in The Republic of China with a Hong Kong Special Purpose Vehicle (SPV) or holding company as its shareholder.

A Hong Kong company may be an excellent financial instrument for the right type of business however, it is worth noting however, that any legal entity that wants to take advantage of the favorable tax incentives that Hong Kong offers, especially when it comes to activities relating to banking, finance, leasing, shipping, insurance and holding, among others, must comply with the economic substance requirements set forth by the Organization for Economic Cooperation and Development (OECD). This means that a company must indicate sufficient evidence of its physical presence in Hong Kong such as fully functional offices, employees and local expenditure. Contact our corporate department for more information on the necessary steps your particular business model needs to take in order to comply with the substance and compliance requirements.

Corporate Features of a Hong Kong LLC

GENERAL

LLC

Incorporation Time

Approximately one week

Local Registered Agent Required

Yes

Local Registered Address Required

Yes

Migration of Domicile Permitted

No

SHARE CAPITAL

Minimum Share Capital

No Minimum

Minimum Paid Up

No Minimum

Maximum Share Capital

No Maximum

Bearer Shares Allowed

No

SHAREHOLDERS

Minimum number

One

Maximum number

Fifty

Publicly accessible records

Yes

Corporate shareholder allowed

Yes

Annual General Meeting Required

Yes

DIRECTORS

Minimum Number

One

Maximum Number

No Maximum

Local required

No but strongly recommended

Publicly accessible records

Yes

Corporate directorship allowed

Yes, but at least one director must be an individual

COMPANY OFFICIALS

Secretary Required

Yes

Local Secretary Required

Yes

Other Officials Required

No

COMPANY ACCOUNTS

 

Requirement to Prepare

Yes

Requirements to File Accounts

Yes

Audit Required

Yes (unless dormant)

OTHER ANNUAL REQUIREMENTS

Government Renewal Fee

Hong Kong companies must renew their business registration license one month prior to the expiration date. The license can be renewed for one or three years and the fee will depend on the date of registration of the company.

Annual Return

Yes

Tax Return

Yes

Employer's Return

Yes

Submission of Economic Substance Report

Yes

Contact our corporate department and we can promptly address any enquiries you have and advise you on how Hong Kong or another jurisdiction can benefit your business. We can assist you with the preparation of all the necessary paper work for company formation and can provide you with duly certified hard copies of the incorporation documents within a span of a week, without the need of your presence in Hong Kong for the incorporation process. We can also take on the full administration of your company, handle your annual submission requirements, accounting, audit and provide professional document drafting by qualified and knowledgeable lawyers. Furthermore, our banking experts will gladly assist you with setting up a fail-proof compliance portfolio for opening a bank account in Hong Kong or can suggest other excellent banking options.

Company registration in 3 easy steps
  • 1 Choose your package
  • 2Submit documents
  • 3Get registration documents
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