Hong Kong is on the southeast coast of China and consists of a large number of islands and a part of the mainland totaling approximately 1,025 square kilometers.
Hong Kong is the leading southeast Asian center for both finance and commerce and ranks as the world's third largest financial center after New York and London. There are more than 160 licensed banks with 128 foreign banks having representative offices in Hong Kong and a further 225 licensed deposit taking Finance Companies all of which play an active role in the financing of international trade and commerce.
The type of company for international trade and investment is Private Company Limited by Shares. Aestriction on these limited companies is that it cannot undertake banking or insurance activities. It cannot solicit funds from or sell its shares to the Public.
Name Restriction. A name that is similar to or identical to an existing company. A name that implies illegal activities. A name that implies Royal or U.K. or Hong Kong Government Patronage. Suffixes to denote Limited Liability is "Limited".
Company names that require consent or license include "British", "Building Society", "Chamber of Commerce", "Chartered", "Co-Operative", "Imperial", "Kaifong", "Mass Transit", "Municipal", "Royal", "Savings", "Tourist Association", "Trust", "Trustee" and "Underground Railway","Bank", "Insurance", "Assurance", "Re-Insurance", "Fund Management", "Asset Management", "Investment Fund".
The standard authorized share capital is HK $10,000.00 ($1,290). The minimum Paid-up capital (issued capital) is one share of par value.
Classes of shares which are permitted in HongKong:
Ordinary Shares
Preference Shares
The principle of Hong Kong income tax is that it is a tax on income that has its source in Hong Kong rather than a tax based on residence. Hong Kong does not therefore impose tax on non Hong Kong source income even when remitted to Hong Kong. Consequently, if a Hong Kong company's trading or business activities are based outside Hong Kong no taxation will be levied. Hong Kong corporations currently pay a rate of taxation on profits of 17.5% and for un-incorporated businesses a rate of 16%. For Individuals there is a Standard rate of taxation on income of 16%.
Hong Kong has many double taxation agreement with foriegn countries. For airline and shipping income, Hong Kong has agreement with over two dozen regions. For non-airline and shipping income, Hong Kong has agreement with Belgium, mainland China and Thailand
The Business Registration Fee ("BRF"), currently HK $2,600.00 ($335.00) per year, is due and payable within one month of the date of incorporation and then annually on the anniversary of the first payment. A Hong Kong company must keep accounting records, which may be kept at the registered office address or elsewhere at the discretion of the directors. Every company must appoint an auditor who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate. Although there is no requirement to file accounts with the Registrar, there is a requirement to file the accounts with the tax authorities.
Information Summary
GENERAL
Political Stability: Good
Common or Civil Law: Common
Type of Company: Limited
Disclosure of Beneficial Owner: No
Migration of Domicile Permitted: No
Tax on Offshore Profits: Nil
English Language Names Allowed: No
Currency: Hong Kong $. 1US$=7.8HK$
Exchange Control None
Incorporation Time Scale: Two Weeks.
CORPORATE REQUIREMENTS
Minimum Number of Shareholders: one
Minimum Number of Directors: one
Bearer Shares Allowed: No
Corporate Directors Permitted: Yes
Company Secretary Required: Yes
Standard Authorized Share Capital: HK$10,000
LOCAL REQUIREMENTS
Registered Office/Agent: Yes
Company Secretary: Yes
Local Directors: No
Local Meetings: No
Government Register
of Directors: Yes
Government Register
of Shareholders: Yes
ANNUAL REQUIREMENTS
Annual Return: Yes
Submit Accounts: Yes
RECURRING GOVERNMENT COSTS
Minimum Annual Tax/License Fee: $335
Annual Return Filing Fee: $13
