Company formation in Hong Kong

Company formation Hong Kong

Hong Kong Company Limited by shares

The most popular company set up in Hong Kong is company limited by shares. The main advantage of such companies is the fact that they are not considered offshore companies, unlike e.g. IBC, because companies established in Hong Kong do not pay tax only if the income is obtained outside the territory of the country. In Hong Kong, taxation is based on the territorial source principle, which in short means that taxation is applied to the incomes that have their source in Hong Kong. Incomes generated outside of Hong Kong are not taxed even if they “enter” Hong Kong. The companies are well perceived also because Hong Kong is Asia’s main financial centre and many international companies have their seats or branches here.

Companies limited by shares registered in Hong Kong have simple, clear structure. To set up a company, you need one shareholder, one director and a secretary. Even though information on the persons appear in the register of entrepreneurs, it is possible to maintain full confidentiality by using nominee services, which is a common practice here.

Companies in Hong Kong have to keep accounting books and submit annual financial statements that clearly demonstrate validity of all transactions.

Every company has to have a Business Registration Certificate and has to be registered in a tax office. The registration certificate has to be renewed every year.

Company formation in Hong Kong usually takes 15 days.

Advantages of having a Hong Kong Company Limited by Shares:

• Provided revenue comes from abroad, there is complete lack of taxation and low tax (16.5%) if revenue is obtained in the territory of the country
• Simple structure – to set up a company you need one director and one shareholder
• No tax information exchange with numerous countries
• Fast company formation
• No restrictions on foreign investments or transfer of income and capital in foreign currencies
• High level of confidentiality when using nominee services
• Hong Kong has a good reputation in the world and companies established here are not commonly regarded as offshore companies used for tax evasion.
• No currency exchange control
• In Hong Kong, the currency is Hong Kong dollar, pegged with the American dollar
• The official language is English and all company documents are in English and Chinese

Nominee

In Hong Kong, nominee services are known and used, mostly because each company has to have a secretary who by law has to be a resident. A secretary may be both a legal and a physical person. We encourage all our clients to use secretary services carried out through our company registered in Hong Kong.

In Hong Kong, you are also allowed to register companies with nominee directors and nominee shareholders, which we recommend to all those who want to do business maintaining full anonymity. In Hong Kong, this is particularly important, as director and shareholder data appears in the business register and is publicly available. By using our nominee services, you are guaranteed 100% discretion, which translates into asset protection and tax optimisation in the country of residence.

Do you wish to start the procedure?

Just drop us an email or give us a call and we will send you short list of information that we need. After you provide it to us you can come anytime to proceed with the formalities.