Background & General Outline
Hong Kong(Chinese: 香港) is one of two special administrative regions (SARs) of the People’s Republic of China (PRC), the other being Macau.
Situated on China’s south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour. With a land mass of 1,104 km2 (426 sq mi) and a population of seven million people, Hong Kong is one of the most densely populated areas in the world. Hong Kong’s population is 95 percent ethnic Chinese and 5 percent from other groups.
Political Structure & Legal System
In accordance with the Sino-British Joint Declaration, and the underlying principle of one country, two systems, Hong Kong has a “high degree of autonomy as a special administrative region in all areas except defense and foreign affairs.” The declaration stipulates that the region maintain its capitalist economic system and guarantees the rights and freedoms of its people for at least 50 years beyond the 1997 handover. The guarantees over the territory’s autonomy and the individual rights and freedoms are enshrined in a constitution, the Hong Kong Basic Law, which outlines the system of governance of the Hong Kong Special Administrative Region, but which is subject to the interpretation of the Standing Committee of the National People’s Congress (NPCSC).
Hong Kong’s legal system is completely independent from the legal system of China. In contrast to mainland China’s civil law system, Hong Kong continues to follow the English Common Law tradition established under British rule. Hong Kong’s courts may refer to decisions rendered by courts of other common law jurisdictions as precedents, and judges from other common law jurisdictions are allowed to sit as non-permanent judges of the Court of Final Appeal.
The Hong Kong Dollar (HKD).
English and Chinese are the official languages as defined in the Basic Law of Hong Kong.
Disclosure of the Beneficial Owner
Although when you Incorporate in Hong Kong it is required to disclose details of the Beneficial Owner to the Government Authority, both Corporate and Nominee shareholders are permitted, and allow for total privacy.
Provided that the company activities are carried on outside of Hong Kong, the company you Incorporate in Hong Kong will not be subject to any income taxes therein.
Double Tax Treaties
Double taxation avoidance treaties are in force between Hong Kong and the following countries (with effective dates):
Austria (January 1, 2011)
Belgium (July 7, 2004)
Brunei (December 19, 2010)
Hungary (February 23, 2011)
Ireland (February 10, 2011)
Luxembourg (January 20, 2009)
China (April 10, 1998, second protocol signed 2006)
Thailand (December 7, 2005)
Vietnam (August 12, 2009)
UK (December 20, 2010)
Double taxation agreements between Hong Kong and the following countries have been signed but are awaiting ratification (with signature dates):
France (October 21, 2010)
Indonesia (March 23, 2010)
Kuwait (May 13, 2010)
Liechtenstein (August 12, 2010)
Mainland China (Third Protocol, August 21, 2010)
Netherlands (March 22, 2010)
New Zealand (December 1, 2010)
Switzerland (December 6, 2010)
A Hong Kong company cannot register with any name that has already been incorporated in Hong Kong or is so similar to an existing name that it may cause confusion. Any name which in the opinion of the Registrar is considered undesirable, obscene or offensive or it implies a link with the Government of PRC or the Government of HKSAR will also be rejected.
A Hong Kong Company can use only Limited as a suffix to its name.
A Hong Kong Private Limited Company cannot undertake the business of banking, insurance, assurance, reinsurance, fund management, asset management (other than the company’s own assets) or any other activity that would suggest an association with the banking and insurance industries. It cannot sell its shares to the public.
Summary & Features
Hong Kong’s corporate structure allows any person to control a company without their name appearing in the public records, through the use of nominee directors and a power of attorney.
We can Incorporate in Hong Kong your own Hong Kong company and deliver it to you within approximately 5-12 business days without YOUR name ever appearing in the public record, through the use of nominees.
Hong Kong is one of the few jurisdictions in the world that tax on a territorial basis. Many countries levy tax on a different basis and they tax the world-wide profits of a business, including profits derived from an offshore source. The company we Incorporate in Hong Kong for you is ONLY taxed on profits derived from a trade, profession or business carried on in Hong Kong. Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. Hong Kong sourced profits is currently subject to a rate of taxation of 16.5 per cent. There is no tax in Hong Kong on capital gains, dividends and interest earned.
Incorporate in Hong Kong
OUR Hong Kong Companies Include:
- name check
- preparation of memorandum
- preparation of articles
- preparation of registration forms
- filing with the registrar of companies
- payment of filing fees
- certificate of incorporation
- share certificates
- premium folder with all certificates
- minutes of board meetings
- resolution to open a bank account
- register of directors
- register of shareholders
- 1st year registered office
- 1st year registered agent
- 1st year government administration and maintenance
- Assistance with the opening of an offshore bank account
Hong Kong’s legislation has long created favorable tax conditions for offshore operations but the country’s popularity as such has only caught on over the last few years. Information given to local attorneys/notaries is protected by professional privilege and secrecy.
Incorporate in Hong Kong Today!
Now is truly the time to Incorporate in Hong Kong and get established offshore before it’s too late!
The total cost to Incorporate in Hong Kong is only US $2,695 including all first years fees.
Take advantage of our almost 18 years of experience and let us help you every step of the way.
Contact Us with any questions you may have.
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