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.
Hong Kong is recognized as a global financial center and in 2020 ranked second after Singapore in terms of economic freedom
Hong Kong company registration
By choosing Hong Kong incorporation, 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.
- Hong Kong incorporation provides an 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;
- Foreign company registration in Hong Kong or online business incorporation in Hong Kong is a popular option.
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.
Hong Kong company registration 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 Hong Kong 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).
How do I register a company name in Hong Kong?
Company name in Hong Kong must be unique. It can be written in both English and Chinese, or even both. You can check the existing company names in Hong Kong free online company’s database.
You can use a database search to see if your chosen name is available. You can use the same service to find information about your competitors, suppliers or customers. Please note, that company name may play a great role for a business. For example, is the company name matches your website, it will inspire more confidence in your customers.
How do I check if a company is registered in Hong Kong?
For this purpose, you should use the Hong Kong free online company’s database specified in hereinabove. You will find necessary information on the active companies’ registrations in Hong Kong there.
Tax Law in Hong Kong
The only tax for companies registered in Hong Kong is a 16.5%corporate income tax. The tax base is income derived from trade, professional activity or business in Hong Kong. Therefore, if a Hong Kong company receives a profit from overseas, no tax shall be paid.
Hong Kong company does not have to pay taxes other than income tax, including the following taxes:
- capital gains tax;
- tax on income in the form of dividends or interest.
How much does it cost to register a company in Hong Kong?
Cost of registration of company in Hong Kong will depend on particular circumstances, e.g. whether it is necessary to find a nominal director, form a substance on Cyprus etc. Please contact us and we will calculate the cost of registration of Malta companies due to your needs.
How we can help?
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.
We will gladly consult you on the following matters: online business incorporation in Hong Kong, foreign company registration in Hong Kong, preparation of corporate documentation etc.