Hong Kong company incorporation packages
|Company registration including government fees|
|Registered address for 1 year|
|Provision of professional shareholder for 1 year|
|Provision of professional director for 1 year|
|Annual renewal fee||1149 USD||2299 USD|
Advantages of incorporating A HONG KONG COMPANY with us
you work directly with a licensed Hong Kong services provider (read more about our Hong Kong license), and thus:
- you get all services much faster, without any unnecessary delays
- you get the best formation fees without intermediaries
- you enjoy the highest confidentiality protection level as no intermediaries are involved, and all your data and documents needed for incorporation purposes are maintained on our files only
- immediate status updates for your orders, again, because no intermediaries are involved
- if confirmation of physical presence / substance is required (which became a rather frequent request for bank account opening or other related purposes), we can arrange for an office lease agreement, or employ local staff for you in Hong Kong
- we pride ourselves on 20+ years of experience in the company formation industry
- 187 employees in our 6 offices worldwide (including Hong Kong) which means that you can order not only company registration, but also legal, tax planning, and bookkeeping services, we arrange for, and prepare and file financial statements, as well as offer translation (include from Chinese) and other related services
UNIQUE Advantages of Setting Up A HONG KONG Company
- Hong Kong is a common law jurisdiction, unlike most countries in the region, which makes the incorporation procedure much easier, and the fees – lower (can be times less than in other Asian jurisdictions, such as Singapore, for instance)
- Hong Kong is obviously the best choice for doing business in the Asian market as it enjoys a solid financial center reputation
- No restrictions for non-residents to own a Hong Kong company
- The income tax rate is 16.5%, but we draw your attention to the fact that any profit obtained outside the territory of Hong Kong is not subject to taxation, and what is more – there is no taxation for dividend or interest, no VAT or capital gains tax
- Minimum issued share capital can be equal to HK$1 only
- Hong Kong companies may have unlimited number of bank accounts worldwide. Unlike most offshore companies, Hong Kong companies are rarely rejected when applying to a bank to open a bank account
- Hong Kong banks are likely to be quite satisfied, if you provide details of the company shareholders only, not the ultimate beneficial owners
- Shelf or ready-made companies incorporated in Hong Kong can be made available to you within a few hours to start your business or open an account without delay
- English is an official language, alongside with Chinese, so the documents for your company will be officially issued both in Chinese, and English
Hong Kong Incorporation in A NUTSHELL
The most suitable type of company for carrying out international trade is the private company limited by shares. The regulating law is the Companies Ordinance, 2014.
HK companies may engage in virtually any legal business, but must obtain licences for some regulated activities including banking and insurance activities, money lending, or investment advisory.
Hong Kong companies must maintain a registered office within Hong Kong and must also appoint a secretary resident in Hong Kong.
Upon issue of the certificate of incorporation by the Companies Registry, the company must obtain a Business Registration Certificate from the Inland Revenue Department.
It should be noted that the Certificate of Incorporation, the annual Business Registration Certificate and the corporate seal of each company should be kept in the Hong Kong registered office.
Hong Kong companies may have one or more shareholders (whether individual or corporate, resident in Hong Kong or not). The sole shareholder may be appointed as the company director. Details of shareholders are provided to the local agent and filed with the public register (nominee shareholders can be used for anonymity purposes). Bearer shares are not allowed.
Ultimate beneficial owners are not required to be disclosed to the authorities, though the details of the beneficial owners (they are called significant controllers) must be provided to, and kept by, the local registered agent. This requirement of maintaining a beneficial owners register is a new one and was introduced with a view to meet the purposes of the EU's 4th Anti-Money Laundering Directive enacted in 2015.
However, it should be noted that the register of beneficial owners is not public, and the information can be disclosed only to the laws enforcement officers and only upon their legal and duly made demand.
The minimum number of directors is one. Directors may be either natural persons or companies, resident or not, but at least one director must be individual. Again, names and addresses of directors are filed with the register of directors which is public. Besides, Hong Kong companies must also appoint a secretary resident in Hong Kong (either individual or corporate).
Each year the Hong Kong company must prepare and file with the Companies Registry an annual return which gives details of the current directors and shareholders who have held shares in the company at any time during the year. Annual return must be filed within 42 days following the date of any annual general meeting. The companies may be stricken off from the Register for a failure to comply with this requirement.
In addition, every company must annually prepare and submit its audited accounts to the Inland Revenue Department (accounts must be audited by a locally qualified auditor). The filed accounting statements are not open to public. This requirement is obligatory, irrespective of whether or not the company had any dealings. In such case, a “negative tax-return” must be prepared which does not need to be certified by an auditor. In case of non-compliance, the Inland Revenue Department may take criminal court proceedings against the company.
Accounting records of all business operations must be maintained by the company in English or Chinese, in hard copy or electronically. Such records must be kept for at least 7 years following the end of any relevant financial year and include invoices, cheques, bank statements, contracts, other source documents. Losses can be carried forward without restriction.
Every year each company must pay a business registration fee of approximately USD 350 which is due by the 15th day of the next month from the company’s date of incorporation. If payment is not made within 3-4 months, penalties will apply.
Taxation of Hong Kong companies
There are three main direct taxes in Hong Kong: income tax, salaries tax and property tax. Hong Kong does not impose any payroll, turnover, sales, value-added or capital gains taxes.
However, taxation is territorial, thus, the income tax is levied only on the profits derived from a trade, profession, or business carried on in Hong Kong, i.e. the principle of Hong Kong profits tax is based on the source of income rather than on tax residency (“operations test” is applied for determining the source of income). Income sourced elsewhere, even remitted to Hong Kong, is not subject to Hong Kong income tax. The currently applicable income tax rate amounts to 16.5% at the moment.
Hong Kong companies make two profits tax payments during the tax year. The first payment consists of 75% of the provisional tax for the current year plus 100% of the final payment for the preceding year. The second payment equals 25% of the provisional tax for the current year. The timing of payments is determined by assessment notices, sent generally during November to April of the tax year.
Tax returns are issued to taxpayers by the Inland Revenue Departments on 1 April, the day after the tax year ending on 31 March. Generally, a tax return should be completed and returned within one month of issue accompanied by relevant audited financial statements.
|Total area||1.104 sq.km|
|Corruption perceptions index rank||14 (2012)|
|Government type||limited democracy|
|Executive branch||Executive Council headed by Chief Executive of HK|
|Legislative branch||unicameral Legislative Council (60 members), elected for 4 years|
|Judicial branch||High Court of Appeal, High Court (includes the Court of Appeal and the Court of First Instance), the District Court (includes the Family Court) and special courts|
|GDP per capita rank||26 (2012)|
|Shelf companies permitted||No|
|Legal system||based on English Common Law|
|Incorporation timescale for a turnkey company||7 days|
|Cyrillic alphabet permitted in company name||No|
|Local registered office||Yes|
|Types of entity||private company limited by shares; public company limited by shares; public unlimited company with a share capital; private unlimited company with a share capital; company limited by guarantee without a share capital; partnership; limited partnership; sole proprietorship; branch; representative office; trust|
|Incorporation timescale for a new company||4 days|
|Sensitive words||Department, Government, Commission, Bureau, Federation, Council, Authority; Bank, Stock Exchange, Unified Exchange; Assurance, Insurance, Re-insurance; Certified Public Accountant (C.P.A.), Public Accountant (P.A.); Building Society, Chamber of Commerce, Cooperative, Kaifong, Mass Transit, Municipal, Savings, Tourist Association, Trust, Trustee, Underground Railway; words, usage of which is considered crime or contradicts social inetersts in any way|
Shares and share capital
|Minimum authorized share capital||No requirements|
|Minimum issued share capital||1|
|Minimum paid share capital||1|
|Authorized capital payment deadlines||No requirements|
|Bearer shares permitted||No|
|Issued capital payment deadlines||Immediately upon issue or within time specified in the relevant resolution|
|Standard currency||Hong Kong Dollar|
|Standard authorized share capital||10000|
|Standard par value of shares||1|
|Shares with no par value permitted||No|
|Min. rate for corporate tax||16.5%|
|Capital gains tax||No|
|Withholding tax||Dividend and ineterst: no; royalty: yes|
|Corporate tax (in detail)||Corporate tax is levied on profit obtained from sources in Hong Kong at rate of 16.15%. If company did non run business in HK and obtain profit from income in HK, its profit is not taxable.|
|Other taxes||Capital duty, Real property tax, Social security contribution|
|Requirement to file accounts||Yes|
|Publicly accessible accounts||No|
|Requirement to file Annual Return||Yes|
|Publicly accessible Annual Return||Yes|
|Requirement to prepare accounts||Yes|
|Double tax treaties network||29|
|Tax Exchange Information Agreement network||6|
International law relations
|Party to the Hague Convention (Apostille)||Yes|
|Legal system||based on English Common Law|
|Double tax treaties network||29|
|Offshore/onshore status according to the RF laws||Yes|