Hong Kong

KEY CORPORATE FEATURES
Approximate time to incorporate 2-3 days
Minimum number of Directors 1
Local Director required No
Local Secretary required Yes
Shareholder required 1
Disclosure of Beneficial Owner requirement No
Audit Requirement Yes
Accounts Filing Requirement Yes
Taxation Nil*

 

** Profits tax is charged only on profits earned in Hong Kong. A company is not required to pay tax if it carries on business in Hong Kong, but its profits come from another country. Profits earned inside Hong Kong are taxed at 16.5%. Also no capital gains tax, no tax on dividends and no tax on interest earned.

Hong Kong Offshore Company Formation

flag hongkongHong Kong is a major world financial centre with a huge consumer market and has in recent years has become a very popular destination for offshore company formation, especially by those wishing to break into the Chinese market.

For a quotation to incorporate in Hong Kong or for more information about offshore company formation in Hong Kong please click here

Taxes

Only profits that your Honk Kong Offshore Company makes in Hong Kong are taxable in Hong Kong, if you make profit from outside Hong Kong, then you are not liable for profits gain tax.

If you do have a source of profits from within Hong Kong then expect to pay 16% tax, also Hong Kong has many tax treaties so check before you begin.

Language Barriers

English is widely spoken, taught and used as a second a language throughout Hong Kong, second to Chinese, both mandarin and Cantonese.
As an ex British colony, English is still widely used, even with the increase of mandarin from Chinese immigrants, making business dealing much easier than some countries popular for Offshore Company Formation.

Economy

Hong Kong has a strong, ever growing economy, which has been rated the world’s freest economy in the past and is one of world’s top economies.

The economy relies heavily on international trade and the official currency is the Hong Kong Dollar.

The economic future for Hong Kong looks strong and it will likely remain a large financial centre, popular with enterprising businesses looking for Offshore Company Formation.

Rules and Regulations

  • Every Hong Kong offshore company must have a registered office in Hong Kong, where full records of directors and shareholders must be kept. You must also keep full minutes of all shareholder and director meeting in the registered office.
  • You must have at least one director, this is the minimum required to start the Hong Kong company registration. The director may be foreign and need not be resident in Hong Kong.
  • You must have an annual meeting of directors and shareholders, although it may be held anywhere in the world, and full minutes must be kept in your registered office.
  • You must have at least one shareholder, which may be a corporate body only if you are a private company.
  • Your shares must have par value.
  • You must have at least one secretary, whom must be resident in Hong Kong, but may either be an individual or a corporate body.
  • You must keep a record of accounts which must be audited and submitted annually, and a record kept in your registered company office in Hong Kong.
  • Your company name must end with the word limited.
  • All reports may be completed in English and usually all forms, information etc are provided in English.
  • There is an annual fee and registration which must be completed on the anniversary of your registration.

Although the rules and regulations in Hong Kong are stricter than some other popular offshore jurisdictions, Hong Kong has the benefit of a strong and growing economy and is a financial capital.

Hong Kong offers the added incentive of no tax on external income and excellent tax treaties which can lower the tax if you plan to have profit from within Hong Kong.

Setting up your Offshore Company in Hong Kong may take a little longer than some of the smaller countries, but should offer security and a profitable enterprise for small and large businesses alike.