|
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:
-
at least one Shareholder (can be any individuals or corporations of any country)
-
at least one Director (can be any individuals or corporations of any country)
-
a Company Secretary who must be a Hong Kong resident
-
an Auditor who practises in Hong Kong
-
a Registered Office in Hong Kong
-
a valid Business Registration with the Inland Revenue Department
-
to file Profits Tax and Employer's Returns annually
-
to present audited accounts to the shareholders for adoption annually
-
to hold a General Meeting of the Shareholders every year
-
to file an annual return giving particulars of the Directors, Shareholders and Secretary, together with the Company's capital structure
|