Hong Kong Company Formation

Hong Kong is generally regarded as one of the international financial centers in the world. It is an attractive place to do business and a leading international trading and service hub for many large organisations with high value-added manufacturing base. It is one of the freest economies in the world and a gateway to investment in China.

Hong Kong provides an appealing tax environment for foreign investors with the following tax advantages:
1. generally lower tax rates compared with other Asian jurisdictions;
2. no tax on profits NOT arising in or derived from Hong Kong;
3. no tax on dividends;
4. no tax on capital gains;
5. no estate duty; and
6. no tax on interest income; and
7. no sales tax and VAT.

Therefore, Hong Kong's simple regime of tax incentives designed to attract foreign investments together with other exemptions, tax allowable dedutions designed to stilmulate particular industries or new investments in existing businessnes is something one should evaluate carefully for your business success.Starting a business is a significant step involving various important decisions with long term consequences. We advise on the choice of business entity, assists in the incorporation of sole proprietorship, partnership and limited company. Applying for Business Registration, setting up bank accounts, setting up internal accounting systems, applying for financing, the selection and training of accounting staff and make compliance with all the legal requirements under the Laws of Hong Kong.

To do business in Hong Kong, one can set up a sole proprietorship, a partnership or a limited company. A limited company, which limits the liability of the shareholders to the capital subscribed, can be incorporated in Hong Kong. The incorporation of a tailor-made company takes approximately five to eight days but one can buy a "shelf company" and start doing business almost immediately. The "shelf company" is specially incorporated for clients to commence business activities immediately and has never traded since incorporation and so has no liabilities.

The authorised capital of a standard shelf company or ready-made company is HK$10,000 with standard Memorandum and Articles of Association. One can change the name, amend the Articles or increase the authorised capital at any time. Shelf companies are incorporated with one subscriber share of HK$1.00 each which is the statutory minimum. There is no obligation to subscribe and pay up further capital. The formation of the Company will take between 5 to 8 working days.

The basic requirements of a limited company are as follows: