Hong Kong has been a British colony until 1997, when it became a Special Administrative Region of the People’s Republic of China, but is a perfect example of the winning formula: “One country, two systems”. The legal system of Hong Kong is based on the British common law, and full-heartedly supports two basic principles – low tax and free trade. The international agreements and treaties signed by Hong Kong as a Crown Colony remain in force.
Hong Kong is a very attractive destination to choose as a base for corporate operations. The reasons to do so are just obvious: the renewed confidence in Hong Kong’s political system and its clear legal tradition and political stability; its sustained importance as a financial, trading, services and technology center, plus the quality, innovative approach and competitiveness of the industry; let us not to forget the banking, very easy accessibility, well-developed infrastructure and modern communications
Reliably stable, protected by the status of a Special Administrative Region (when compared to several offshore jurisdictions)
British Common law-based; British legal customs also apply to corporate regulations
English, Cantonese, Mandarin
Absolute anonymity of corporate ownership is achievable through permitted nominee structures; no statutory disclosure of beneficial owners of non-listed companies is required
Excellent access by air from anywhere in the world
Excellent telephone, fax, telex, mail and courier services. Courier mail reaches Europe within two-three days
No restrictions
Incorporation and annual costs are reasonable taking into account the overall place advantages
Annual Business Registration Fee and Filing Fee of Annual Return are USD 305 (HKD 2.355). No tax on profits made outside of the S.A.R. No tax on dividends, royalties or interest. Negligible tax on share capital.
Due to mandatory accounting, auditing and reporting Hong Kong companies technically and legally shall be considered as tax-privileged onshore companies. This eliminates eventual problems of business transactions with the countries with strict fiscal system, providing formal proof of proper accounting and auditing, submitting tax declaration, and paying the taxes.
− Minimum recommended capital HKD* 10.000 (USD 1.300)
− Declaration of share capital and of basis currency for accounting in HKD (or any other currency permitted)
− Increase or reduction of share capital by amending the Memorandum of Association possible; change of authorized capital must be filed and registered
− Registered shares with no minimum par (face) value
− Shares may be issued by the Board after initial sub-scription
− A share register has to be maintained at the regular place of business of the company
− Share transfers must be registered and are subject to stamp duty
− Minimum one shareholder
− Nominee shareholders permitted
− Minimum one director
− Appointment of first director(s) by the founders; appointment by virtue of Apostille is possible
− Elections of the Board by the shareholders, or by the Board majority (to be approved at the following annual meeting)
− Dismissal of directors possible by the resolution of the Board or Sharehold¬er majority
− Corporate Directors permitted for non-listed companies
− Board meetings anywhere in the world permitted, also resolutions by telephone or mail (to be recorded and filed with the secretary thereafter)
− Local secretary required
− Local registered office required; P.O. Box addresses not permitted
− Meetings and/or assemblies anywhere in the world; resolutions in writing signed by all shareholders permitted (to be recorded and filed with the secretary thereafter)
− general powers of attorney permitted
− public register of shareholders and directors
− beneficial owners may remain undisclosed
− limited liability to be denoted by Limited
The following company documents shall be sub¬mitted to the Register of Companies in Hong Kong:
− Memorandum of Association
− Articles of Association
− Corporate registration forms
− Amendments to Memorandum and Articles of Association
− Change of Registered Office in Hong Kong
− Changes of directors or secretary
− Issue, repurchase or redemption of shares (see shares/share register)
− Dissolution Resolution
− Corporate seal is mandatory
− Duplicate seal might be kept outside Hong Kong
− Accounting, auditing and reporting are mandatory
− No tax on profits received from abroad. No tax on dividends. Capital tax: 0.3 percent on share capital only. Annual Business Registration Fee (USD 300 = HKD 2.250) and Annual Return Filing Fee (USD 15 = HKD 105).
− The company’s revenues and main business activities should be briefly described to tax authorities at least for the first annual return in order to explain the source and legitimacy of the income from abroad Continuation − Re-domiciliation of a company to or from Hong Kong is prohibited
− By shareholder’s resolution (a common procedure, lengthy and costly)
− An application for deregistration may be made if the company has no outstanding tax matters or any statutory or commercial liabilities. Time period required: normally about 6-7 months. Total costs USD 4.500 approximately
*HKD= Hong Kong Dollars