GENERAL INFORMATION
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 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. 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 center for the whole of the Far East.
There is no tax on capital gains. Interest income and dividend income is also tax free. There are no withholding taxes. The local currency is the Hong Kong Dollar which is freely interchangeable but has a pegged exchange rate against the US Dollar. There are no exchange controls.
FEATURES OF HONG KONG COMPANY
Taxation
The rate of taxation is 16.5% 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.
Shareholders
A minimum number of one shareholder is required whose detail is filed on the public register. Corporate shareholder is 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 natural person 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 Hong Kong resident or a Hong Kong Company.
Registered Office
A company must maintain a registered address in Hong Kong where the correspondence from Hong Kong Government can be served.
Processing Time
Incorporation of a Hong Kong company takes around 7 days but ready-made companies are available for immediate purchase.
Annual Reporting
Hong Kong companies are required to prepare audited accounts under the company laws. A copy of the audited financial statement and the Profits Tax Return is required to be furnished with the Inland Revenue Department.
All local companies incorporated in Hong Kong under the Companies Ordinance are required to file an annual return manually signed by a director or the Secretary of the company once in every year. For private company having a share capital, the company has to file, once in every year an annual return made up to the anniversary date of the incorporation of the company.
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 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. 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 center for the whole of the Far East.
There is no tax on capital gains. Interest income and dividend income is also tax free. There are no withholding taxes. The local currency is the Hong Kong Dollar which is freely interchangeable but has a pegged exchange rate against the US Dollar. There are no exchange controls.
FEATURES OF HONG KONG COMPANY
Taxation
The rate of taxation is 16.5% 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.
Shareholders
A minimum number of one shareholder is required whose detail is filed on the public register. Corporate shareholder is 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 natural person 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 Hong Kong resident or a Hong Kong Company.
Registered Office
A company must maintain a registered address in Hong Kong where the correspondence from Hong Kong Government can be served.
Processing Time
Incorporation of a Hong Kong company takes around 7 days but ready-made companies are available for immediate purchase.
Annual Reporting
Hong Kong companies are required to prepare audited accounts under the company laws. A copy of the audited financial statement and the Profits Tax Return is required to be furnished with the Inland Revenue Department.
All local companies incorporated in Hong Kong under the Companies Ordinance are required to file an annual return manually signed by a director or the Secretary of the company once in every year. For private company having a share capital, the company has to file, once in every year an annual return made up to the anniversary date of the incorporation of the company.
