Hong Kong’s commercial law is based on United Kingdom Company Ordinance of 1932, as amended.

The most popular form of doing business in Hong Kong is company limited by shares. To set up a company in Hong Kong you need only one shareholder and one director. They do not have to be residents. It should be stressed here that information on directors and shareholders is public, so those of you who value anonymity should consider using nominee services that our company may provide. There is no obligation to publish information on who the beneficiary owner is, so this solution guarantees a high level of confidentiality. The shareholder and the director may be a physical as well as a legal person.

There is an obligation to appoint a company secretary, who has to be a Hong Kong resident and a have a Hong Kong residential address. The secretary may be a physical or a legal person. We encourage you to use our services in this regard.

Internal company affairs are regulated by Articles of Association that have to include: company name, address, names and addresses of subscribers, the scope of members’ liability, information on the classes of the shares, share capital amount and information on the currency it will be paid in. Articles of Association have to have at least one subscriber.

Every company has to have a name that is different from the names of the already existing companies and have to include the word ‘limited’.

There is no minimum share capital amount and it may be paid in any currency.

Every company has to have an address in the territory of Hong Kong.

Companies registered in Hong Kong are obliged to prepare and submit the following documents: Annual Return, Shareholder Annual General Meeting, Business Registration Certificate, Employer Tax Return and Profit Tax Return with Audited Accounts. Shelfcompanies24 will help you prepare all the required documents.

Companies also have to keep the following books: register of directors and secretaries, register of members, and register of fees. The books have to be kept in company’s registered office. It is also obligatory to appoint a chartered auditor who is a member of Hong Kong Society of Accountants.

Hong Kong has the opinion of a jurisdiction with low taxes, and not a typical tax haven, thanks to which, when investing in the country, you will not be regarded as persons intending to evade taxation. The fiscal system is territorial, which, in short, means that only the income coming from sources located in the territory of Hong Kong is taxed. The system is very transparent and simple. The income tax is 16.5% and is one of the lowest in Asia. Income from activity outside of Hong Kong is completely exempt from tax. There is no accumulated tax, dividend tax, capital gains tax or interest tax. There is no goods and services tax either. From 2005, inheritance tax has been also completely disposed of.

Also, Hong Kong does not put restrictions on currency exchange what allows free receipt and transfer of capital.

In Hong Kong, there is obligation to keep accounting books and prepare annual financial reports that are subject to audit. Although this generates some costs and additional obligations that may be avoided in many jurisdictions, thanks to that companies are seen by counterparties as clear and transparent. Our company will assist you in preparing all documents.

Hong Kong is one of the biggest economic powers in Asia, which is of great importance to the global economy. This is mostly due to goods exchange between the CPR and the rest of the world that developed through years.

Supervision over the development of international economic relations is in the hands of Hong Kong Trade Development Council.

This small administrative region for years has been performing the role of global trade and financial centre with seats of global corporations and banks. It is here that numerous companies have their headquarters, which allows to greatly reduce taxation. For sure, the fact that local and foreign companies are treated on similar terms have something to do with it.

Fast economic development of Hong Kong also translates into high standard of living and excellent level of education.

There is no place in the world where imports and exports per capita (7 million inhabitants) would be higher than in Hong Kong.

The main sectors of the economy are services, tourism, real estate, manufacturing, construction, transport and warehousing.

Hong Kong is a Special Administrative Region of People’s Republic of China. The legal basis for the functioning of the region in the current form is the “one country, two systems” principle, formulated by Deng Xiaoping in 1984 during the negotiations on Hong Kong’s return to China. Hong Kong enjoys a high degree of autonomy both on economic policy issues and social policy issues, and the central authorities in Beijing decide merely on foreign policy and regional defence. Hong Kong maintains a separate currency, the Hong Kong dollar, and remains a separate customs, passport and visa area.

Hong Kong’s political system got regulated in the Basic Law, introduced by the parliament of People’s Republic of China in 1990 and also in Sino-British Joint Declaration of 1984. What was guaranteed then was stability of the political system, economic system and lifestyle for 50 years, i.e. until 2047.

The highest power in Hong Kong is exercised by the Chief Executive who is selected by Election Committee for a 5-year term. The legislative power is exercised by the Parliament consisting of 60 people, elected for a 4-year term. Half of the parliamentarians are elected by functional constituencies consisting of professional groups, 24 parliamentarians are directly elected in geographical constituencies, and 6 is elected by Election Committee appointed by the central government of People’s Republic of China. The executive power is in the hands of the government consisting of bureaux (headed by secretaries – equivalent of ministers) and departments. Bureaux have executive initiative as well. The judiciary power is exercised by independent courts.

Banking activity in Hong Kong was regulated in Banking Ordinance and Securities and Futures Ordinance. The banking sector is immensely important to the economy of Hong Kong, and banking law does not only regulate the banking sector alone, but also provides legislative framework, the example of which are the two aforementioned legal acts. In short, banking in the small region is maintained at the highest global level and is well perceived abroad.

In Hong Kong, you will find both local bank and branches of the biggest international banks from every continent. According to the data from January 2015, there are 203 licence banking institutions with the total number of 1372 branches functioning there. The dominating bank here is HSBC, with offices around the world.