COMPANY REGISTRATION IN HONG KONG

General information

Hong Kong is a unique country that offers an opportunity to work in a transparent legal jurisdiction while using all the main benefits of an off-shore zone. In Hong Kong there are no restrictions on foreign investments and freedom of capital. There is no currency control, which means that finances can be easily deposited in a bank account, withdrawn or transferred to another account with no taxes. Additionally, there are no taxes on dividends for an off-shore company.

Company registration cost:

Services

Fees, EUR

Incorporation of a company, incl. registration fees and dues, legal address and secretary service for 1 year, company stamp, certification of documents by the Commissioner of Oaths and apostile

490

Incorporation of a company, incl. registration fees and dues, legal address and secretary service for 1 year, company stamp, notarization of documents by Public Notary and apostile

640

Ready-made company with nominal director and shareholder, incl. registration fees and dues, legal address and secretary service for 1 year, company stamp, notarization of documents by Public Notary and apostile

730

DHL delivery fees

100

Annual support, incl. NAR1 and BRC payment, legal address and secretary for 1 year, nominal service and Power of Attorney for 1 year, submission of nil Profits Tax Return for financial period

370

Apostilled Certificate of Continuing Registration (Good Standing)

230

Notarized and apostilled Certificate of Incumbency

270

Apostilled Company Particulars Report

230

Change of director/shareholder/Beneficial Owner

140

In which cases its beneficial to set up a company in Hong Kong

  • If you are going to do business with China or Hong Kong
  • Wish to optimize expenses by using Hong Kong company as an intermediary
  • Aim to optimize tax burden for your company
  • Thinking about investing in other companies or various financial instruments in Hong Kong

Minimal requirements to register a company

  • Director
  • There must be at least 1 director – an individual person, citizen of any country. All the other directors may be legal entities. Director may also be a shareholder.
  • Shareholder Individual person, or legal entity. Resident of any country.
  • Secretary Required a local secretary with a special license. Secretary services may be provided by a secretary company, or by an individual person.
  • Unique name of the company Prior to registration, the name of the company has to be checked with the register. Essentially, the legal form of the company (“Limited”) is included into the company’s name.
  • Share capital Minimal requirement is 1 HKD.
  • Legal address
  • Real office is not required. It is sufficient to have an address in Hong Kong for correspondence.
  • License (if necessary)Company’s business activity is checked for licensing. License is required if the company’s business is related to banking, insurance, investment funds, construction, etc.

Financial reporting and audit


Steps in preparing financial statements and audit reports:

  • Preparation of financial statement
  • Financial statement is audited
  • Auditor’s opinion obtained
  • Audited statements submitted to Inland Revenue Department (IRD) – tax authority in Hong Kong

In order to prepare financial statements and complete the audit, the company must provide the following documents:

  • Statements from all bank accounts
  • Contracts with clients and suppliers
  • Invoices
  • Other documents related to transportation of goods and services

The company is legally required to submit audited financial statements each year, even it has no business activity in Hong Kong itself.


Requirements for financial statements:

  • The first Profits Tax Return (PTR) form must be submitted to IRD within 3 months from the date of its issue. The company will receive its first PTR form after 18 months from the date of incorporation.
  •  

    It’s recommended for the first reporting period to cover from 12 and up to 18 months since the incorporation.

  • The following Profit Tax Returns are submitted periodically, each 12 months.
  • Each company is required to appoint an auditor who is an active member of Hong Kong Accounting Society with a professional license.

Taxation

There is no VAT or dividend tax in Hong Kong if the company has NO business in Hong Kong territory.

There’s a territorial principle of taxation in Hong Kong. It means that the companies which have no business activities in Hong Kong territory receive a waiver for any taxes in Hong Kong.

If the company has business activity in Hong Kong territory.


Annual levy:

  • Annual business registration levy
  • Stamp duty. Charged on shares and rental documents, operations with real estate objects.

Taxes:

  • Profit tax 8.25% if the profit is less than 2 million HKD 16.5% if the profit is higher than 2 million HKD
  • Tax on wages Fluctuates from 2% to 17% on a progressive scale, depending on the wage amount. • Property tax 15% of the cost of rent.
  • Tax on capital gain 1% of the capital gain amount, but not exceeding the amount of 3864 USD.

  • Important notice

    Information about a company and its participants is public. All the information is submitted to the Company Registrar.

    We provide our clients with a “nominal” service to keep the information related to directors and shareholders of the company confidential and anonymous.  

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