Hong Kong isn’t just the connection between China and the rest of the world, it’s the world's mega-market with a huge consumer market and has incredible potential for your business.
Why is Hong Kong one of the most popular destinations for business nowadays?
And why are hundreds of residential and non-residential companies being established daily in Hong Kong?
- Prestige and reputation are currently more important than zero percent taxation for some companies. With a Hong Kong-based company, you’ll be perceived as a prestigious global company with great potential not only to Chinese clients but worldwide.
- The legal system is based on common English law, so you don’t have to study Chinese laws and you won’t even have language problems. All documentation may be in English because it is one of Hong Kong’s official languages.
- Bear in mind that the Company Register is publicly accessible. For a greater degree of anonymity, we recommend that you use a service nominee.
- If you want to be anonymous, use them. Their main principle is to introduce a responsible and professional person into the position of shareholders and company directors acting for the owner’s benefit, always on the basis of their instructions.
- The most common legal form of a company is Private Company Limited in Hong Kong, which is a suitable type of company for international transactions and which has some elements identical to our limited liability companies and some elements of our stock companies.
- The requirements are one shareholder and director, which may be an individual or legal person and needn’t be resident in Hong Kong. So you can be a sole owner.
- It’s important to know that each company must have a secretary, which again, can be an individual or legal person. The company must have its registered office or headquarters in Hong Kong.
- Taxation is more than simple. The company pays taxes only if the profits flow from Hong Kong sources (the so-called territorial principle). So if the company trades only cross-border, the tax is replaced by an annual fee to the government in the amount of $ 350. Profit accruing directly from Hong Kong is subject to 16.5% tax.
- Another advantage is a number of double taxation agreements. A pleasant bonus for those with foreign partners and clients.
- The disadvantage is that the company is obliged to keep accounts, file tax returns and present audit results once a year.
Founding Company Ltd. in Hong Kong isn’t just a way to increase your earnestness, credibility and reputation, it will also help in international business, but it will mainly save you time and money. It’s one of the most popular destinations for business in Asia.
Founding a company in Hong Kong has the following benefits:
- If you deal with China, you can hide your suppliers under your Hong Kong company. It won’t be possible to find out who your suppliers are so you will avoid competing unfair practices and possible attacks by authorities, customs officers and others.
- You will be more accessible to Chinese suppliers.
- You report business activities for your Hong Kong company after the first 18 months of business.
- You can manage the company from easily anywhere
How about corporate taxation in Hong Kong?
If your business income comes from Hong Kong, they’re subject to 16.5% tax rate.
If your income comes from outside Hong Kong, you apply a 0% tax rate.
Partner income, capital gains on the share sales or shares and dividends from a Hong Kong-based company are not subject to taxation, i.e. they’re subject to a 0% tax rate.
How about directors d shareholders anonymity in a Hong Kong business?
All data is publicly accessible and traceable. Your identity can be anonymised.
What is the amount of capital required?
Ltd. company in Hong Kong isn’t required to set-up share capital.
How about a Hong Kong business liability?
Limited company (shareholders) nor members of the board of directors (executives or managers) are not responsible for bankruptcy or debts and other liabilities of a limited company. You can also open an account in Europe for your Hong Kong company.
Company management in HONG KONG:
- Private Limited Company: Ltd.
- Presentation of financial statements: YES
- Submitting an annual report: YES
- Mandatory company audit: YES
- Required tax return: YES
- Corporate tax rate: 16.5%
- flat rate for local government: 350 USD
- Possibility to use double taxation avoidance: NO
- Withholding taxes: no dividends, royalties, certain types of interest income aren’t charged, as well as profits from sale of securities aren’t taxed
- Income tax on Hong Kong companies only applies to parts coming from Hong Kong sources
- VAT isn’t specified
- Hong Kong is a state with a favourable tax policy, zero tax on capital gains or VAT and others. It’s in the Hong Kong Constitution that the existing capitalist system and way of life will be preserved for next fifty years and provide the appropriate economic and legal environment for the preservation of Hong Kong as an International Finance Centre.
You’re in one of the most popular packages, Hong Kong Ltd. from Zenron includes:
- Offshore business activities 100% TAX FREE / no taxes
- Registration of your limited company in Hong Kong, including the use of our own registered address for 12 months, our local secretary (Company Secretary), you will add the names of your own candidates for the positions of Chairman of the Board and Shareholders
- Standard capital at founding is HK $ 10,000 (1300 USD), divided into 10,000 tribal shares valued at HK 1.00 per share (not all shares issued, but minimum one share must be issued);
- Registration usually takes just 7-14 business days, when the application is submitted and all payments are settled
- The package includes a government fee for establishment, prestigious registration of headquarters in Hong Kong for 12 months
- The package includes the provision of an authorised local secretary (nominated secretary) for a period of 12 months
The following hardcover copies of business documents, will be sent to you after your company’s founding in Hong Kong:
- The original listing of your company in the Business Register (in English and Chinese)
- Six times fixed copies of memorandum and company statutes (in English and Chinese)
- A hardcover copy of the minutes of the first meeting of the directors / board of directors (only in English)
- Shares of shareholders, registry-list of directors, secretaries and shareholders (only in English)
- One company stamp and one seal of your company are extra included in the price of this Zenron package
Benefits of setting-up an offshore company in Hong Kong:
- Easy creation of a new company - quick establishment, clearly defined documents needed for foundation, without incorporation of registered capital.
- A high level of anonymity - directors, shareholders and real owners are not listed in any public registers, but there is always the possibility of using a service nominee.
- Full tax exemption - a flat tax is included in the company's renewal fees.
- Flexible legislation allowing many options how of using the company. The most common examples are listed below
Offshore Hong Kong - Use
- Offshore money and investment management
- Production and transport
- Trading, marketing and distribution
- Trading in Forex and shares
- E-commerce, Internet commerce
- Provision of professional services
- Employment for overseas employees
- Online casino and other gaming systems (need to obtain a licence)
- Suitable for ship-owning
- Same as for property ownership, movable property and intellectual property.