Hong Kong is one of the world’s most liberal economies. Hong Kong’s strengths as cited by the Heritage Foundation are its very low level of government involvement in business activities, very low inflation, very low barriers to foreign investment, very low level of restrictions in banking and finance, very low level of regulation.
- One of the major advantages of utilizing a Hong Kong entity is that it will not be perceived as a tax avoidance vehicle, as Hong Kong is a major trading entity in its own right;
- A Hong Kong company is one of the best corporate structures in the world. As well as being an extremely tax-efficient corporate vehicle;
- The tax laws of Hong Kong are extremely simple compared to other onshore jurisdictions and the tax advantages of operating there could be summarized as follows:
- Taxes are levied according to the “territorial principle” meaning that taxes are only levied on income “derived from or arising in” Hong Kong and not on income sourced outside the Territory;
- Some taxes that exist in most jurisdictions do not exist in Hong Kong. Thus there are no capital gains taxes, no withholding taxes, no sales taxes, no VAT, no annual net worth taxes, and no accumulated earnings taxes on companies, which retain earnings rather than distribute them. In the long term, it is intended to completely phase out stamp duty on the sale and issue of shares and securities and to reduce direct taxes further.
- Hong Kong has no double tax agreement with any country, except for a limited treaty with the United States of America relating to shipping matters only.
- The Business Registration Fee, currently USD335 (HK$2,600), is due and payable to the Hong Kong Registrar of Companies within one month from the date of incorporation and then annually on the anniversary of the first payment;
- The standard authorized share capital is HK$10,000. An increase in the authorized share capital above this amount incurs an increase in annual statutory fees. The minimum issued capital is one share of HK$1 each;
- A Hong Kong company must appoint a company secretary, who may be a natural person or a body corporate, but the company secretary must be a resident in Hong Kong. The Company Ordinance prohibits the sole director to be company secretary of the Company.
- Hong Kong companies are required to prepare full audited accounts under the company laws. Also, the audited financial statements are furnished to the Inland Revenue Department together with a Profits Tax Return.
- At least one director is required and full details of directors are filed with the Hong Kong Public Registry. The directors can be of any nationality and be resident anywhere. There is no requirement for board meetings to be held within Hong Kong and directors may be resident anywhere in the world;
- Every Hong Kong Company must have a Registered Office in the Territory to comply with the Companies Ordinance.
The current international vision of Hong Kong by international organizations.
|International organization||White List||Grey List||Black List|
Hong Kong company registration US$2,000.00
- Verification of the proposed names for the company at the registrar
- Memorandum and Articles
- Certificate of Incorporation
- Share certificates
- Share register
- First minutes
- The first year of the license fee.
|OPTIONAL SERVICES||FEES IN USD|
Apostille per document or set
|Notarization of documents (per doc)||varies|
|General powers of attorney (if we provide nominee)||US$250.00|
|Nominee director (yearly per nominee)||US$500.00|
|Nominee shareholder (yearly per nominee)||US$500.00|
|Certificate of Incumbency||US$150.00|
|Certificate of Good Standing||US$150.00|
|Transfers out (exit fee)||US$400.00|
|Resolutions post incorporation||US$150.00|
* Nominee directors and nominee shareholders are provided by our Panama office. Should you require nominees to be provided in Hong Kong please inform us accordingly.