Executive Overview – Hong Kong is one of the best places in the world to incorporate, either onshore or off. Hong Kong is not technically considered an offshore jurisdiction, although the territorial tax regime makes this quite possible. Hong Kong has gained recent momentum from internet entrepreneurs.
A well known and major international centre, Hong Kong is one of the premier locations to set up your company. Hong Kong is located on the South East Coast of China and as of July 1st 1997 they officially joined the Chinese empire. Hong Kong is a Special Administration Region, also known as an SAR, which is located within the People’s Republic of China and has established their own courts and legislature. Chinese as well as English are both incorporated into documents as well as are the official spoken languages.
Hong Kong does not incorporate any “offshore” legislature; all legislature that is incorporates companies are all done using the same legislation wither they are a local business or do business “offshore”. (Hong Kong Company Ordinance, 1997 version, as amended 2004). Companies within Hong Kong are similar to offshore companies like the ones among the British Virgin Islands (BVI), these companies enjoy a tax free status if they fill certain circumstances. Any companies that are located within Hong Kong but have NO affiliate business within Hong Kong, as well as receive no financial income from the country are not considered taxable within Hong Kong. As long as a company within Hong Kong does business in any other country around the world, this qualifies it as an offshore company.
REGISTERED AGENT WORLDWIDE: INCORPORATE YOUR HONG KONG COMPANY
A major advantage of joining the Hong Kong family incorporation is that it is a highly regarded jurisdiction, and does not throw up any “red flags”. Hong Kong is a major trading body among the world capitals, and is an important hub city of Asia. Also, no capital gains taxes or exchange controls are used on products and consumer goods. Hong Kong’s primary law ensures that free trade is secured as well as low taxes on goods for a company within Hong Kong.
A company within Hong Kong is susceptible to a statute that required a minimum of one company director as well as one shareholder. Any person chosen may be either a director, shareholder, or is so chosen, may act as both. These selected people may be a corporation or even one selected individual and are not required to be an individual living within Hong Kong. Incorporation companies within Hong Kong require a registered office which is located within Hong Kong as well as an individual who remains a resident within Hong Kong or a corporation to act as the secretary. In accordance with Hong Kong’s company registration a registered office address and secretary will be provided to comply with legislative requirements.
What is Required for a Hong Kong Company:
The formation of a limited company that is incorporated within Hong Kong has never been easier. There are minimal limitations so long as the company has no prior companies that exist within Hong Kong who have the same name or a similar name. These companies require at least one director and shareholder as well as a secretary within the company and a registered office within Hong Kong. It is not necessary for any of the directors or shareholders to be a resident in Hong Kong. Our firm is happy to offer services that are among those of Hong Kong resident company’s secretary as well as a registered office for your needs. However one stipulation that is required is that a company that is located in Hong Kong must end their company title with the word “Limited”, but they do not require the country’s name in their title.
Information about HK Company
- Believe in nondisclosure of information is required for Beneficial Ownership to the Authorities
- Any companies that deal with International Trade as well as Investment are classified as Private Companies and are allowed to use stock certificates.
- The procedure to incorporate requires a submission of a Memorandum as well as the Articles of Association and must include a Declaration of Compliance with their initial application submission. We also require a Notice of Situation of Registered Office; this is a necessity and must be filed within the first fourteen days of the date of the initial incorporation.
- Any Hong Kong corporations are not able to take on any form of banking or insurance activities as well as they are unable to solicit funds or sell their companies shares to any member of the Public.
- Chinese and English documents are used for the corporation and legislation.
- A company in Hong Kong must have a resident Registered Office that must be maintained.
- Two weeks is the approximate time that is required for the submission of any documentation in order to be incorporated.
- There are however a few name restrictions, it is required that any name that is closely related to or almost identical to any prior company is not allowed to be used. And name that could be viewed as a possible criminal offense or also viewed contrary to public interest is also not allowed. Any name that implies royal or governmental patronage is obviously not allowed.
- Names that require consent or license: building society, Chamber of Commerce, co-operative, imperial, Kaifong, mass transit, municipal, royal, savings, tourist association, trust, trustee, underground railway, bank, insurance, assurance, reinsurance, fund management, asset management and investment fund.
- Every company must have a suffix that makes it clear the company is limited by shares such as Ltd.
Use your common sense when selecting and pick more than one. We can perform a name search for free on your behalf, simply contact us.
Additional Requirements for a Hong Kong Company:
- A company name within Hong Kong must have their name ending in “limited”
- Any business that is registering in Hong Kong required a business registration certificate. These certificates are issued by the Inland Revenue Department of Hong Kong.
- A Hong Kong limited company must be registered first with the Company Registry before that are able to file a Business Registration Certificate.
- All companies filing an application must submit it within one month of the initial incorporation date or registration with the Companies Registry.
- The 1(b) form needs a copy of the Certificate of Incorporation or the Certificate of Registration of Overseas Company which is given out by the Companies Registry must be submitted with the application.
- All Hong Kong companies must face yearly audits in Hong Kong, through a licensed HK accountant. We can help you with this service.
In order to prove that your company is within Hong Kong, we are happy to offer a virtual office for your company. We also offer services such as a phone number and fax number as well as a forwarding mail address that all reside within Hong Kong. These services will help you company assimilate in Hong Kong but also allow your company to maintain its offshore status.
Benefits of Hong Kong Company
- A company that establishes themselves in Hong Kong automatically gains the prestige of the Hong Kong jurisdiction. You also have the ability to staff an office as a COST CENTER as well as they aren’t obliged to pay taxes. For instance, any company that is located outside of Hong Kong have the ability to set up a Finance Management Center for their company or group and pay no tax so long as they receive no income but only expenses. A company or group also have the ability to set up a document processing company that is in Hong Kong as a Cost Centre and stay tax free.
- Companies that have no business within Hong Kong have no need to file their financial statements because there is no possibility of being audited. However it is required for your company to file a Declaration of “No” business activity within Hong Kong.
- Having a company within Hong Kong is a major advantage for clients as they are not generally viewed as “tax havens”; the legal system in Hong Kong are based on the common laws in Britain; the political environment here is secure; banking and finances are strong and there are no exchange controls for your company. Companies in Hong Kong are allowed to do business worldwide and have no requirement from the Directors and Shareholders that reside in Hong Kong.
More Benefits Of forming a Company in Hong Kong:
- Companies that have been incorporated in Hong Kong are supported by the World Banks Doing Business 2012 survey. Singapore is the only country ranked higher than Hong Kong, placing it second worldwide. Hong Kong is ranked so highly because they pride themselves on dealing with construction permits, obtaining credit, taxes, trading across borders and enforcing contracts.
- A wide variety of financial services are readily available in order to help support the Honk Kong company incorporation. There is a surplus of funds in Hong Kong, and investors are looking for a safe place to park their cash, or a high growth business opporitunity with exciting ROI potential. Hong Kong is currently one of the best places in the world to search for venture capital. Investors who decide to have their company incorporated within Hong Kong enjoy benefits such as access to China.
- Hong Kong is a major destination for asset management and corporate finance. The second largest in Asia, directly behind Singapore.
- In order to enjoy the advantages that are offered and receive access to China, Hong Kong promotes itself as an entrance to China. This allows for foreign direct investment into China from the safety and clear laws of Hong Kong. If you are doing any business in China, a Hong Kong entity is highly recommended.
- Hong Kong is linked with southern China and enjoys strong communication links. Air, rail, road and sea links are all modern, efficient and offer almost all access to China’s flourishing southern provinces, as well as it opens up a vital market to investors following Hong Kong company incorporation.
- Investors who decide to create their Hong Kong company incorporation have the ability to utilize the Closer Economic Partnership Arrangement (CEPA). This free trade agreement allows Hong Kong’s manufacturers and service supplier’s privileged access to most of the Chinese market. This agreement is now in the seventh phase, where China agrees to eliminate tariffs on all products of Hong Kong origin (to date there are more than 1,600 products).
- Hong Kong investment into Mainland China represents more than half of China’s US$90 billion of foreign direct investment as of 2009.
- Numerous investors who decide to use Hong Kong’s company incorporation are able to list their companies on the Hong Kong Stock Exchange. In 2009, the Hong Kong Stock Exchange rose over US$33 billion from IPO’s in Hong Kong, this is 1.4 times more than the New York Stock Exchange and 10 times more than the IPO capital achieved by the London Stock Exchange.
- More than $7.8 billion in U.S. dollars have been spent on Hong Kong’s infrastructure over the last decade alone. Almost 75% of which has been undertaken by foreign contractors. This percentage shows that there is a great potential as well as many opportunities for foreign investment in Hong Kong.
HONG KONG INCORPORATION
If your company should choose so, you may enter not only your directors but your shareholders as well within the Government and Public record, but if you prefer you may use a nominee in order to maintain privacy which is provided through Registered Agent Worldwide. Any nominee you select will be entered in both the Government and Public records. If you are a Beneficial Owner of a company, rest easy knowing that there is no obligation to be reported to the government, so long as a nominee is used and properly filed. Hong Kong takes pride in establishing itself from other companies is by ensuring that your company has a Secretary that resides in Hong Kong. We will be happy to provide this with the aid of Registered Agent Worldwide, with no extra charge to you or your company.
Your company will have now joined our incorporation and as a result we are happy to offer a list of professional services to help getting your company up off the ground. To maintain a wonderful relationship with us we recommend ensuring that the firm you hire are well known in a positive light and competent; a firm that will only help your company flourish. Make sure the firm you hire will offer these services:
- Help complete documentation required for incorporation
- If you have a name in mind for you company we would be happy to reserve the name of your choice for you and help prepare all necessary documentation required for easy incorporation.
- We will make sure that you receive your Certificate of Incorporation and we are happy to file the documents required for incorporation with the Company Registrar.
- Obtain Business Registration Certificate from Inland Revenue Authority.
- Offer instructions on how to set up your company’s bank account
We can also extend these additional services for new HK companies:
- Apostille Seals and stamps
- Bookkeeping for Hong Kong Company
- Registration for shares and share certificates
- You can also receive assistance with filing for relocation visa, business licenses, ongoing statutory compliance, and annual filings as requested.
The total price is quoted in our pricing guide.
Payment can be made via bank transfer or Paypal, details to follow after due diligence materials are received.
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Contact us today for more information on all corporations, and for personal assistance with your incorporation. Your business is important to us, you are not just another number to us. We give personal attention to each and every corporate filing.
The Hong Kong Filing includes nominee directorship (to keep private), registered Agent service, Full Service registered office (with mail forwarding and call answering service), secretary and tax audit service. If you require a lesser package, just contact us through the tab on the right hand of the screen.