Hong Kong is a special administrative region of the People’s Republic of China, which has large autonomous rights, its own legislative and political systems, and is developing as a country of Western democracy.
By choosing Hong Kong, you get the following benefits:
- A company in a prestigious jurisdiction without the status of an offshore zone, which is appreciated by international partners.
- Entering the Asian market and carrying out foreign economic activities.
- Avoidance of double taxation with many countries.
- Territorial principle of taxation – taxes are levied only on profits earned in Hong Kong. The corporate tax rate is 16.5%.
- 0% corporate tax on profits earned outside the country.
- 0% VAT, dividend tax, capital gains tax.
- Opportunity to accumulate tax-exempt assets on the company balance sheet.
- Opportunity to keep financial statements in accordance with the international GAAP standards.
- Absence of exchange controls.
- Confidentiality subject to the use of a nominee service.
- An account for a Hong Kong company can be opened both in Hong Kong and abroad.
The most acceptable organizational and legal forms of conducting business in Hong Kong:
- Sole Proprietorship;
- Private Limited Company;
- Foreign firm.
The most popular form is Private Limited Company (PLC).
Features of PLC in Hong Kong:
- Minimum authorized capital is HKD 1 (USD 0.13), but it does not need to be paid either, it is considered declared.
- A shareholder/a director can be an individual or a legal entity, regardless of residency.
- The sole director must be an individual and cannot act as a secretary.
- Information about directors and a secretary is in the public register.
- Availability of a registered legal address in Hong Kong is obligatory.
- Presence of a secretary-resident, who can be an individual or a legal entity is obligatory.
- Obligatory maintenance and filling of financial statements, audit.
- Information about beneficiaries is confidential.
- You can register a company remotely.
Company registration in Hong Kong includes the following stages:
- Choice, verification of the name uniqueness.
- Preparation of document.
- Company registration.
- Obtaining a certificate of state registration of the company and a certificate of registration of economic activities.
What do you need for a company registration:
- Unique name in English and Chinese.
- Copies of passports of beneficiary, shareholders, director.
- If a shareholder/a director is a legal entity, copies of constituent documents.
- Proof of permanent address (for example, a utility bill).
VigoLex understands that working with the Asian market has its own features and is ready to advise and warn its clients about them. When working with Hong Kong, VigoLex specialists take into account the difference in time, traditions and approaches to entrepreneurship in order to facilitate its clients to open and run a business.