GENERAL INFORMATION
Location
Hong Kong is located in the South China Sea 100 miles south east of
Guanzhou (formerly known as Canton). As of the 1 July 1997 under the
Sino-British Agreement of December 1984 Hong Kong became a Special
Administrative Region (HKSAR) of the People's Republic of China. The
Basic Law, which is the Constitution of the HKSAR, is intended to
maintain the HKSAR and the PRC as separate governmental, legal and
economic systems. This is known as the "One Country, two Systems"
concept. Hong Kong is governed by a Chief Executive and an Executive
Council. Although there is a legislature, the administration is
executive led and generally pro-business. Hong Kong is ranked the freest
economy in the world.
Legal System and Taxation
The legal system of Hong Kong is based on English Common Law
supplemented by locally enacted Ordinances. Hong Kong is guaranteed a
high degree of autonomy from 1997. It is generally allowed to enact and
enforce its own laws. The Hong Kong Companies Ordinance has many
similarities to the British Companies Acts. There are an excellent range
of professional services available as Hong Kong serves as the major
business centre for the whole of the Far East. This is unlikely to
change in the foreseeable future.
One of the major advantages of utilising a Hong Kong company is that
there is no immediate suggestion that the company is a tax avoidance
vehicle as Hong Kong is major trading entity in its own right. Hong Kong
is one of the world’s largest importer and also one of the world’s
largest exporter. The vast majority of the 50,000 Hong Kong companies
incorporated annually are local trading companies doing real business in
the region.
Language
The official languages are English and Chinese, with English being used
in the commercial and political context and Cantonese Chinese used
widely in industry and domestic trade.
Currency
The Hong Kong Dollar which is officially pegged to the US Dollar at
USD1=HKD7.78
Exchange Control
None.
Type of Laws
Common Law based on English Common Law.
Principle Corporate Legislation
Companies Ordinance (Cap 32). Details can be viewed at the following
link:
http://www.justice.gov.hk/Home.htm
FEATURES OF HONG KONG COMPANY
Type of Company for International Trade and
Investment
Private Company limited by Shares.
Restrictions on Trading
Cannot undertake banking or insurance activities or financial business
(such as currency trading) unless relevant licences are obtained.
Power of Company
A Hong Kong Company has all the powers of a natural person.
Language of Legislation and Corporate Documents
Legislation in both English and Chinese; Corporate documents can be in
English or Chinese.
Name Approval Required
It is not possible to reserve a name. It is essential to check that
there is no similar or identical name on the register, which would
prevent the company being incorporated.
Shelf Company Available
Yes, shelf companies or readymade companies are commonly used and are
available for immediate delivery.
Procedures to Incorporate
Submission of Memorandum and Articles of Association and a Declaration
of Compliance (please click here for detailed
incorporation procedures).
Time to Incorporate
Approximately two weeks from the submission of documentation.
Name Restriction
A name that is similar to or identical to an existing company. A name
that constitutes a criminal offence or is otherwise contrary to the
public interest. A name that implies government patronage.
Names Requiring Consent or Licence
Building society, Chamber of Commerce, chartered, co-operative,
imperial, kaifong, mass transit, municipal, savings, tourist
association, trust, trustee, underground railway, bank, insurance,
assurance, reinsurance, fund management, asset management and investment
fund.
Suffixes to Denote Limited Liability
Limited or Ltd.
Disclosure of Beneficial Ownership to Authorities
Not required. Total confidentiality can be obtained by using nominee
shareholders and directors.
Taxation
The rate of taxation is 17.5% on Hong Kong source income only. In
practice this means that, with careful structuring, as long as a Hong
Kong company is not actually doing business in Hong Kong it would
normally be possible to arrange the affairs of the company so that no
tax would be payable. Detailed advice on this aspect is available on
request. Please
click here for a detailed description of different categories of
taxes in Hong Kong.
Share Capital
There are two types of share capital, one is authorised share capital
and another is issued share capital. There is no limitation on the
amounts of both types of share capitals. For most of the small private
company, the authorised share capital is usually set at HK$10,000
divided into 10,000 shares of HK$1 each and the issued share capital is
usually set at HK$1 divided into 1 share of HK$1 each.
Classes of Shares Permitted
Ordinary shares, preference shares, redeemable shares and shares with or
without voting rights. Bearer shares not allowed.
Shareholders
A minimum number of one shareholder is required whose details are filed
on the public register. Corporate shareholders are permitted and
anonymity can be achieved by the use of
nominee shareholders. The shareholders can be of any nationality and
be resident anywhere in the world and meetings can take place anywhere.
Directors
A minimum of one director is required and full details of these must be
filed with the Companies Registry. The director can be of any
nationality and be resident anywhere. Corporations incorporated anywhere
can act as director. There is no requirement for board meetings to be
held within Hong Kong and directors may be resident anywhere in the
world.
Company Secretary
A company must appoint a
Company Secretary who can either be a person or a corporation. If
the secretary is a person, he or she must be a Hong Kong resident. If
the secretary is a corporation, the corporation must has a registered
office or a place of business in Hong Kong. We will provide a company
secretary at a cost of USD300 per year, if required.
Registered Office
A company must maintain a registered address in Hong Kong where the
correspondence from Hong Kong Government can be served. We will provide
the registered office at a cost of USD200 per year, if required.
Annual Reporting
Hong Kong companies are required to prepare audited accounts under the
company laws. Also, a copy of the audited financial statements is to be
furnished with Inland Revenue Department together with Profits Tax
Return. The audited financial statements are not available to the public
or to the foreign authorities except those of a listed company. We can
provide complete supporting services after incorporation, such as
book-keeping and auditing (please click here for
details of our accounting services) and tax filing (please
click here for details of our tax filing services)
All companies must also prepare and file an annual return which gives
details of the current directors and of the shareholders who have held
shares in the company at any time during the year.
Detailed registration procedures and documents
required for Hong Kong company
REGISTRATION AND MAINTENANCE COSTS
Registration Fee
Our registration fee for a company with a share capital of HKD10,000 is
USD1,175. The charge covers statutory filing fee (incorporation filing
fee and first year business registration fee), first year registered
company secretary fee and first year registered office fee.
Annual Maintenance Fee
Annual maintenance fee is estimated to be around USD1,335 which covers
annual filing fee, annual company secretary fee and annual registered
office fee, audit fee and tax filing fee.
Please click here for detailed registration and
maintenance costs
Special priced packages starting from USD1175, Please check out for
details.
Detailed break down of formation costs for Hong Kong company
Hong Kong company Detailed registration
procedures and documents required
Hong Kong Company incorporation packages
available |