Hong Kong located on the south-eastern of China was a former British Dependent Territory which became a Special Administrative Region of the People’s Republic of China with effect from 1 July 1997.
In the heart of rapidly developing East Asia which is a very popular place to incorporate for foreign investors and businesses. Hong Kong has established itself as a leading international finance and business center in the world. It is a territory equipped with stable political environment, well-developed infrastructure, ever-growing capital market, highly educated working professionals, and an attractive tax regime.
Being one of the most dynamic economic regions in the world, Hong Kong not only offers a supreme location for entrepreneurs and firms to participate in the Asian economies, but also serves as the doorway to the Chinese market and a gateway for markets in the Asia Pacific Region.
A comprehensive exercise to rewrite the Companies Ordinance (Cap. 32) was launched in mid-2006 with the aim of modernising Hong Kong’s company law and further enhancing Hong Kong’s status as a major international business and financial centre.
The new Companies Ordinance (Cap. 622) (“the new CO”), which consists of 921 sections and 11 schedules, provides a modernised legal framework for the incorporation and operation of companies in Hong Kong. It aims to achieve four main objectives, namely, (i) to enhance corporate governance, (ii) ensure better regulation, (iii) facilitate business and (iv) modernise the law.
|Company Registration Requirements|
|Corporate Directors and Shareholders||Permitted|
|Local Secretary required||Yes|
|Local Registered Office||Yes|
|Minimum Paid Up Share Capital||HKD$1|
|Annual Reporting and Audit||Required|
|Local Tax on Foreign Income||Exempted|
** Shareholder(s), director(s) and Corporate Secretary can be the same individual person or a corporate entity. The company Secretary has to be a local person or corporate. If there is a sole director, this director cannot be the company secretary at the same time.
** No Nationality restriction placed on Directors and Shareholders.
Steps to register a BVI Company:
|1||Prepare due diligence documents and forms for incorporation (NCC1);|
|2||Perform Company Name Search with the Companies Registry|
|3||Submit approval for company name with the Companies Registry|
|4||Submit signed incorporation forms;|
|5||Receive Business Registration Certificate|
|6||Open corporate bank account|
|7||Provide Client with the original incorporation documents|
Types of Companies:
- Hong Kong Limited Liability Company (LLC)
- Hong Kong Representative Office
- Hong Kong Branch Office
- Hong Kong Trust Company
- Hong Kong Limited Partnership
- Hong Kong Public Limited Company
- Hong Kong Public Company Limited by Guarantee
Advantages of setting up a Hong Kong Company;
- Strategic location with access to East Asia and entry point to the Chinese market.
- Ease of operation, maintenance and control
- Ease of doing business- World Bank Report: “Doing Business 2017” ranks Hong Kong as no.5 out of 167 countries.
- Attractive Tax Regime- boasting one off the lowest taxes in jurisdictions worldwide
- No capital gain tax, no withholding tax on interest, dividends and royalties.
- Hong Kong is ranked as one of the world’s most dynamic and free economies according to the Heritage Foundation, Index of Economic Freedom 2016.
- Comprehensive Business Support & Assistance
- Corporate directors and shareholders are permitted
- Excellent and flexible post-incorporation follow-up services
- Liberal immigration Policy
- Sound Legal Environment and adherence to the rule of law.
- Stable political environment,
- Well-developed and robust infrastructure
- Ever-growing capital market
- Highly educated and productive workforce
- High Quality of Life
- English is an official language and is the main business language
Best uses of a Hong Kong Company
- Head Quarters for Asia Pacific Operations
- Excellent Gateway to China
- Asset management and protection
- Access to East Asia
- Tax optimization- A corporate tax rate of 0% for transactions outside of Hong Kong
- International trade
- Holding patents and trademarks
- Holding Company