Set up your business in Hong Kong
Overview
Hong Kong has a world-class corporate and financial sector as is a prestigious and well regarded tax haven with strong corporate laws wide-ranging investment opportunities with a company formation market that is amongst the world’s most renowned markets for non-resident business incorporation.
Hong Kong has been rated the world’s freest economy by the Index of Economic Freedom for the 20th consecutive year, though that might radically change with the recent move from China to keep Hong Kong under its thumb. Having successfully steered through major worldwide ups and downs, the territory continues to have a high level of market openness (measured by freedom in finance, trade and investing).
No bank or reference letters are required under this program! However, once the account is pre-approved, physical presence is now necessary at the bank in Hong Kong. Only HK 10,000 (around US$1,400) is needed as a minimum account opening balance.
Currently, Hong Kong is the absolute best option out there for a multi-currency corporate account (10 different currencies), with internet banking at one of the largest banks in the world, in one of the world’s premier and largest offshore banking jurisdictions.
Advantages of Hong Kong as a Tax Haven
Hong Kong incorporates more companies per annum than any other jurisdiction and most of these are trading companies doing real business rather than asset protection or tax avoidance vehicles so there is no immediate suggestion that the company is also being used for tax avoidance.
Forming a Hong Kong company through our special service allows you to obtain an account in Hong Kong with one of the largest financial institutions in the world without the usual requirement of reference letters of any type.
A Hong Kong company is an essential element of doing almost any type of business in Mainland China.
Hong Kong is a well-known and respected jurisdiction that is not
Hong Kong is a PayPal approved jurisdiction and one of very few no-tax jurisdictions where it is possible to have an unrestricted PayPal account. (The only other two jurisdictions where this is possible are Cyprus and Gibraltar).
No tax treaties with any other countries except for a double taxation agreement with China. China, which controls Hong Kong, is unlikely to be pressured by OECD countries.
English is the main business and banking language.
Things To Consider
- Directors and Shareholders are public information (using our nominees can resolve this)
- Annual accounts must be audited and filed (but information is not publicly available)
- Local resident secretary must be appointed (nominee provided)
- Annual fees are higher than what is normal in most other IBC jurisdictions, because of the requirements for filing company financials.
Taxation Of Offshore Companies In Hong Kong
Key Corporate Features
Hong Kong Company | Corporate Details |
General | |
Type of Entity | Limited by Shares |
Type of Law | English Common Law with local ordinances |
Governed by | Companies Ordinance (Cap 32) |
Registered Office in Hong Kong | Yes |
Shelf company availability | Yes |
Our time to establish a new company | 1 Day – Ready-made Company 3–7 Days – New tailor-made Company |
Minimum government fees (excluding taxation) | USD$295 |
Corporate Taxation | No (16.5% tax for profits exceeding HK$2 million and in HK. Offshore transactions are not subject to tax) |
Access to Double Taxation Treaties | Yes |
Share capital or equivalent | |
Standard currency | HKD Hong Kong Dollar (pegged to the USD1.0 =H KD 7.74) |
Permitted currencies | Any |
Minimum paid up | HKD 1 |
Usual authorized | HKD 10,000 |
Bearer Shares allowed | No |
No par value shares allowed | No |
Directors | |
Minimum number | One |
Local required | No |
Publicly accessible records | Yes (for anonymity Nominee Shareholders allowed) |
Location of meetings | Anywhere |
Corporate directorship allowed | Yes |
Shareholders | |
Minimum number | One |
Publicly accessible records | Yes (For anonymity Nominee shareholders allowed) |
Corporate shareholder allowed | Yes |
Location of meetings | Anywhere |
Company Secretary | |
Required | Yes |
Local or qualified | Yes (Local individual or corporate body) |
Accounts | |
Requirements to prepare | Yes |
Audit requirements | No (Only if a Company does business within HK) |
Requirements to file accounts | Yes |
Publicly accessible accounts | No |
Recurring Government Costs | |
Minimum Annual Tax / License Fee | USD $1200 |
Annual Return Filing Fee | USD $700 |
Other | |
Requirement to file annual return | Yes |
Migration of domicile permitted | N0 |
Registration Packages
Includes:
- Government Registration Fee (First year)
- Registered Office Address (First year)
- Registered Agent Services (First year)
- Company Secretarial Maintenance
- Certificate of Incorporation
- Memo & Articles of Association
- Appointment of 1st Directors
- Consent Actions of the BOD
- Share Certificates
- Register of Directors
- Register of Officers
- Register of Shareholders
- FREE Phone and/or email consultations
Requirements for Incorporation
- A clear photocopy of the passport of each director and shareholder of the proposed company. If the shareholder/director is another corporation, please provide us its certificate of incorporation instead;
- A clear photocopy of the recent residential address with proof of each director and shareholder of the proposed company. If the shareholder/director is another corporation, please provide us any document showing its registered address instead;
- The authorized share capital and par value per share respectively. If not otherwise provided by the client, we will apply for our standard authorized share capital. That is HK$10,000 divided into 10,000 shares of HK$1 each;
- The issued and paid up share capital. If not otherwise provided by the client, we will apply for the minimum issued and paid up capital;
- The shareholding amongst each shareholder if there is more than one shareholder;
- The name and address of any third party of 18 years old or above who will witness the shareholders’ signatures in the Memorandum and Articles of Association (M&A). Please be advised that the third party witness is also needed to sign in the M&A;
- The business scope of the proposed company;
- Three proposed company names in order of priority. The proposed company name can be of English or Chinese only or both.
- A notice to the Business Registration Office declaring the intent to establish a company in Hong Kong, including the proposed company name and address.
- Consent to act as director forms from all proposed directors, confirming their agreement to take on directorship responsibilities.
- A local physical street address in Hong Kong is required to be registered with the Companies Registry as the company’s official address. P.O. Boxes are not permitted. This is where all official correspondence will be sent, and any address changes must be promptly reported to remain compliant.
- Appointing a company secretary, who can be a local individual or corporate resident, is mandatory. The company secretary files required documents with the Companies Registry to ensure compliance on the company’s behalf. A professional qualification is not required for this role.
There are no residency requirements for company directors or shareholders of a Hong Kong offshore company. The directors and shareholders can be of any nationality and reside anywhere in the world.”.
The sole director or shareholder cannot serve as the company secretary.
Hong Kong Company Incorporation Process
The incorporation and registration of a Hong Kong company involves two main steps:
- Obtaining approval for the company name by filing an application with the Companies Registry.
- Submitting the following incorporation documents to the Companies Registry:
- Incorporation application form
- Company’s Articles of Association
- Passports/IDs of shareholders and directors
- Proof of residential addresses
- Registration documents of parent company (if a corporate shareholder)
Hong Kong company incorporation typically takes 3-7 working days
Post-incorporation steps:
- File statutory documents with Companies Registry within 14 days (director/secretary appointments, registered address, etc.)
- Open a corporate bank account for company finances.
- Register with the Inland Revenue Department within 1 month to obtain a Business Registration Certificate.
- Obtain any required business licenses before operations.
A quicker alternative is acquiring a pre-existing shelf company to avoid the full incorporation process.
Additional services we provide
How to Register?
From company order, name check and reservation, documentary requirements guidelines, feedback and timing. Step by step guide how a new offshore company registration normally happens in Hong Kong.
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