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Hong Kong Fact Sheet  Incorporation of a Private Company
We can incorporate your Hong Kong company: contact us
Requirements A Hong Kong private company (limited liability company) requires one shareholder, one director, a Hong Kong address (registered office) and a company secretary. All this information is a matter of public record in Hong Kong, i.e. anyone can search for and find the information. Where confidentiality is important, our clients should therefore consider the use of nominees at the earliest stage. Only the company secretary needs to be from Hong Kong. The director and shareholder can be another company (corporate) and can be of any nationality, whether a company or an individual. Incorporation Time Incorporation time is approximately two weeks from the submission of documentation to the Hong Kong Companies Registry, of which one week is required for the incorporation itself and one week for activation (putting in place offices of the company, allotment and issue of shares, etc.) of the company. Where a “shelf” (or ready made) company is acquired, the registration process can be reduced by a week, with the company itself being ready within as little as one day. Share Capital The minimum share capital is 1 x HK$1: there is no maximum amount. Most private companies have an authorised share capital of HK$10,000 divided into 10,000 shares of HK$1 each with an issued share capital of between HK$1 and HK$100. We can incorporate your Hong Kong company for you: contact us Reporting Requirements We can prepare your accounts: contact us Hong Kong companies are required to prepare annual audited accounts. The audit must be carried out by a Hong Kong audit firm. A copy of the audited financial statements must be sent to the Inland Revenue Department with the company’s Profits Tax Return. The audited financial statements of a private company are not available to the public or to foreign authorities. We can prepare your accounts: contact us All companies must also prepare and file an annual return which gives details of the current directors and of the shareholders who have held shares in the company at any time during the year. We provide this service as part of our company secretarial service. We can provide complete supporting services after incorporation, such as book-keeping and auditing (through third party) and tax filing. Contact us. In addition, a company which employs staff in Hong Kong is required to make various reports to the Inland Revenue Department, namely the annual Employer’s Return and reports of joiners and leavers. We can handle all your Hong Kong staff reporting requirements: contact us. Furthermore, Hong Kong employees are required to be enrolled by the employer in the Mandatory Provident Fund (MPF) and monthly reports are required to be made in respect of contributions to the MPF. We can handle all your MPF requirements: contact us Legal System and TaxationThe legal system of Hong Kong is based on English law.
TaxationFor further information: contact us One of the major advantages of utilising a Hong Kong company, compared with an offshore company, is that there is no immediate suggestion that the company is a tax avoidance vehicle as Hong Kong is a major trading entity with a substantial, real trading economy. The vast majority of the 50,000 plus companies incorporated annually are local trading companies doing real business in the region. This is even more important when combined with Hong Kong’s tax rules (below). The rate of taxation is 17.5% on Hong Kong source income only (the “territorial” basis of taxation). In other words, income which is not Hong Kong source is not taxable in Hong Kong. In practice this means that, with careful structuring, it is possible to arrange the affairs of the company such that no Hong Kong tax is payable. More detailed information on this is available on request. For further information: contact us Registration of a Branch of An Overseas CompanyWe can register your Hong Kong branch: contact us Procedure The process takes around 18 working days from submission of the following documents to the Companies Registry:
(b) a list of the names and addresses of one or more persons resident in Hong Kong authorized to accept on behalf of the company service of process and any notices required to be served on the company, and
(ii) the respective addresses of the principal place of business, if any, and the registered office (or its equivalent) of the company in the place of its incorporation; and (iii) the particulars of the directors and secretary of the company; (c) a certified copy of the company’s certificate of incorporation, and (d) (with exceptions), a certified copy of the latest accounts of the company. Establishment of Sole ProprietorshipFor further information: contact us
Requires approval of name and registration with the Inland Revenue Department. We can set up your sole proprietorship: contact us Banking, Currency and Exchange ControlHong Kong is a major banking centre and the Hong Kong Dollar is pegged to the US$ at HK$7.78: US$1.
There is no exchange control and there is no exchange of information with other countries except in cases where Hong Kong itself has a direct interest in the case. Bank account opening is straightforward if properly handled although there are certain documentary requirements imposed by the Hong Kong Monetary Authority which sometimes appear onerous and, for accounts with HK banks, an interview with the bank in Hong Kong is normally required. We can help open your bank account: contact us. VisasHong Kong is an open jurisdiction and hence anyone who can demonstrate that they will benefit the Hong Kong economy, through creation of jobs or by bringing expertise and skills into Hong Kong, will have a good chance of obtaining a working or investment visa. We can apply for your Hong Kong visas: contact us. |
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