Company Formation Hong Kong
Updated on Thursday 03rd May 2018
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BridgeWest offers full company formation packages in Hong Kong, in order to cover any of your various business needs: opening representative offices, establishing branches or subsidiaries, starting an NGO, providing accounting services or legal consultancy, tax planning and tax minimization strategy.
Offshore Company Formation in Hong Kong
Hong Kong is a desirable location for opening offshore companies by the foreign companies.
The advantages offered by this jurisdiction come from the tax system, the little intervention of the government in the foreign companies’ activities, simple registration procedure, economical and political stability.
Starting a company in Hong Kong offers you the possibility to have 100% foreign members.
The tax system is also friendly to the foreign investors: for example, the corporate income tax is 16.5%, the VAT doesn’t exist and there are no estate tax capitals, gains duty and no withholding tax on dividends or interest.
Also, the foreign profits are exempt from tax.
STEPS FOR COMPANY FORMATION IN HONG KONG
The investors that wish to register a new business must know follow few easy incorporation steps.
1. The first step for starting a company in Hong Kong is to choose the name/names of the future company. The company’s desired name must be checked at the Companies Registry. If it’s not a duplicate or too much alike with another one, it can be reserved.
2. After that, the main documents must be submitted to the Registry: the registration application form, the Memorandum of Association and Articles of Incorporation, the passport copy of the founders, bank reference letter for non-resident shareholders or directors, copy of Hong Kong identity card for Hong Kong resident shareholders or directors and copy of parent company registration documents (only for corporate shareholders).
3. After 14 days from registration, the company must also deposit the following documents: notification regarding the registered address, the decision of appointing the director(s) and the secretary and their consent to act in that position and other documents requested by the Business Registration Office.
4. A bank account must be opened and within a month since the registration, the company must be registered at the Inland Revenue Department.
Once the above steps are completed, the foreign investors may start operating business and enjoy the benefits of having an offshore company.
REQUIREMENTS FOR OFFSHORE COMPANY FORMATION IN HONG KONG
- An offshore company must appoint at least one director but their number may be unlimited. It’s not mandatory for them to be Hong-Kong residents.
- Minimum one shareholder is required and maximum fifty. The shareholders may be natural persons or companies.
- The company must also appoint a local individual or corporate resident to have the role of company’s secretary.
- In order to register a Hong Kong company, you must provide a local Hong Kong address as the registered address of the company – physical address.
- Accounting services are needed in order to conduct a business in Hong Kong.
- Operating a trading company, a retail shop, a travel agency, a restaurant, an employment agency, an education business, a financial services agency, an event management agency are activities that requires receiving a license, so it is important to apply for it at the competent authorities.
SERVICES PROVIDED FOR HONG KONG COMPANY INCORPORATION
- drafting the Articles of Association (necessary for the company incorporation in Hong Kong); The Articles of Association of the Hong Kong company can be signed through Power of Attorney.
- drafting all other documents required for the incorporation of the Hong Kong company; these documents include: Specimen Signatures, Special Forms provided by the Company Registration Office in Hong Kong, passport copies etc.
- offering a Registered Office in Hong Kong for your company, which is mandatory to have for starting a business in this offshore jurisdition. The registered office may be any cannot be a PO Box.
- setting up a bank account for your Hong Kong company.
HONG KONG KEY FACTS
- The foreign investors have two choices in incorporating an offshore company in Hong-Kong. They may register a new company or buy an already registered one.
- In Hong-Kong, various forms of business may be chosen but the basic ones are the sole proprietorships, the companies and the partnerships.
- Hong Kong has recently started to sign double taxation treaties in order to attract more investors.
- One of the reasons why many investors chose to open a private limited liability company is Hong-Kong is the fact that no minimal share capital is required at incorporation.
- The foreign companies may open business which can perform commercial activities (branches and subsidiary) or representative offices (only for marketing purpose).
- Companies may choose different ways of hiring personnel in Hong Kong, as publishing announcement in the newspapers or participating at job fairs.
Bridgewest provides company formation services in Hong Kong. Please contact us for more information and prices.