Extended tax deadlines
With consideration of COVID-19 impact on business operation in Hong Kong, the Hong Kong Inland Revenue Department (“IRD”) announced on 4 April 2020 that deadlines for the following tax matters [...]
Hong Kong Company Formation
Introduction
Hong Kong is one of the major financial centres in Asia that is traditionally used as an economic gateway to the China market. Hong Kong was a British colony until 1997 after which it became a special administrative region of China, due to the expiry of the Convention between Great Britain and China Respecting an Extension of Hong Kong Territory. Despite the actual change of the political status of Hong Kong, Mainland China observes the principle known as “one country, two systems”, and today Hong Kong continues to be a paragon of capitalism as well as a popular jurisdiction for registration of tax-free companies. Hong Kong is often seen as the leading financial centre and has over 1 million active companies in the Registry.
Features and Advantages
- Hong Kong is a major trading hub and as such the formation of a Hong Kong company is likely to be viewed upon with less scrutiny from customers and suppliers compared to other pure offshore jurisdictions
- Reputable and world recognised banking and financial sector
- English and Chinese is the official language and is the main business language. All reporting information and documentation can be produced in English
- Base on English Common Law that is simple and straight-forward
- No restrictions on foreigners acting as Shareholder or Director
- Corporate Shareholder and Corporate Director is allowed although at least 1 individual director is required
- Formation of a Hong Kong company is simple and quick taking around 1 business day
- Adoption of territorial tax whereby foreign source profit is not subject to Hong Kong income tax
- No capital gains, dividends or withholding tax on profit
Formation Package and Fees
Formation Fee (including following services) – USD 2,250
- Company Secretary Services (1 year)
- Provision of Registered Office (Only receive mails from government authorities on your behalf)
- Formation Service Fee
- Business Registration Fee
- Certificate of Incorporation, M&A, First Director Resolution, Registers and Share Certificate
- Free Registration of Chinese Name
- Free Appointment of Tax and Audit Representative
- Provision of Dedicated Professional Formation Representative
Maintenance Fee (Fee for subsequent year) – USD 1,650
- Company Secretary Services (1 year)
- Provision of Registered Office (Only receive mails from government authorities on your behalf)
- Business Registration Fee*
- Annual Return Filing Fee*
- Appointment of Tax and Audit Representative
* Fees vary based on the actual costs charged by the government
| Hong Kong Company Corporate Details | |
|---|---|
| General | |
| Type of Entity | Limited by Shares |
| Type of Law | English Common Law with local ordinances |
| Governed by | Companies Ordinance (Cap. 622) |
| Registered Office in Hong Kong | Yes |
| Shelf company availability | Yes |
| Our time to establish a new company | 1 Business Day on provision of all due diligence documents |
| Minimum government fees (excluding taxation) | USD 300 |
| Corporate Taxation | No (16,5% tax for profits derived in HK, offshore transactions are not subject to HK tax) |
| Share capital or equivalent | |
| Standard currency | HKD Hong Kong Dollar (pegged to the USD1.0 = HKD 7.78) |
| Minimum paid up | HKD 1 |
| Suggested authorised capital | HKD 10,000 |
| No par value shares allowed | No |
| Directors | |
| Minimum number | One |
| Local required | No |
| Publicly accessible records | Yes (nominee director available) |
| Location of meetings | Anywhere |
| Corporate directorship allowed | Yes (but require at least one individual acting as director) |
| Shareholders | |
| Minimum number | One (which can be the Director) |
| Publicly accessible records | Yes (nominee shareholder available) |
| Corporate shareholder allowed | Yes |
| Location of meetings | Anywhere |
| Company Secretary | |
| Required | Yes |
| Local or qualified | Yes (Local individual or corporate body) |
| Accounts | |
| Requirements to prepare | Yes |
| Audit requirements | Yes |
| Requirements to file accounts | Yes |
| Publicly accessible accounts | No |
| Recurring Government Costs | |
| Minimum Annual Tax / License Fee | USD 295 |
| Annual Return Filing Fee | USD 50 |
| Other | |
| Requirement to file annual return | Yes |
