●Why setup a company in Hong Kong？
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| Hong Kong is an international free trade and financial centre with favorable geographical location, business-friendly environment, sound legal system and political stability as well as low tax rate. Business people decide to set up companies in Hong Kong so as to take advantage of Hong Kong’s strategic position in Asia as well as to explore a better opportunity in China. The followings are the additional reasons that businessmen choose Hong Kong as a place to land their business.
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Hong Kong has been rated as one of the freest economy in the world. The infrastructure is excellent. People, cargo and capital are easy to go inside and outside Hong Kong.
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The tax structure of Hong Kong is simple. Companies are charged to profits tax at the rate of 16.50% which is relatively low compared with other developed region. Only profits which arise in Hong Kong, or derived from a Hong Kong source are subject to profits tax. International businessmen are able to minimize their global tax liability by choosing Hong Kong as their base: |
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Hong Kong is one the largest banking centre in Asia with well-established banking system. Businessmen are easier to raise fund through loan and trade finance from bank or listing in the stock market... |
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There is no foreign exchange control in Hong Kong. Money can be exchanged freely 24-hour a day. |
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There are a lot of international exhibition held in Hong Kong every year. The government provide subsidy for local enterprises and manufactures to participate exhibition held in overseas. |
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To establish your brand name in Hong Kong in order to increase the product’s overall competitiveness. |
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The procedure for incorporating a company is simple. The cost of incorporation is low. There is also no entry barrier. |
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1.For company names, you can use the company name such as “International”, “Holding” and “industrial” and etc., |
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2.The minimum paid up capital is HK1.00. |
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3.During business in Hong Kong, there is no need to rent an office and recruit employee for the daily operation. The company secretarial company can handle the statutory record for your company. |
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4.I t normally takes 10 to 15 working days to form a company. |
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| ● The requirements of forming a company. |
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The authorized capital is at least HKD10,000.00 |
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The minimum issued capital is HKD1.00 |
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Every company must have at least one shareholder and one of director. (A person can be both the shareholder and director). The director and shareholder need not be Hong Kong residents. |
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The address of registered office must be in Hong Kong. |
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To appoint a company secretary to handle the statutory record of the company. |
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To submit an annual return to the Companies Registry every year. |
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To apply for a Business Registration CertificateTo submit the accounts annually to Inland Revenue Department which have been audited by a registered auditor? |
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● The procedures for formation of a company in Hong Kong is as follows:？ |
| * To register a self-named company |
| * To buy a shelf/ready- made company |
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● Flow chart of setting up a company（see below diagram） |
| Propose the name of company in Chinese and English. Confirm the authorized capital, issued capital , shareholder and director |
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| We will check whether the proposed name is same or similar of to a name already appearing on the index of company names. It normally takes a day to complete the search. |
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| Sign the contract between both parties. The clients need to provide the information of shareholders and directors including name, address, passport or ID card number |
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| Pay 70% deposit on contract amount and full payment of stamp duty on authorized capital. |
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| Sign the full set of documents |
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| Approval by the government (It normally takes 10 working days) |
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| Pay the balance of the contract amount before getting the full set of company documents |
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| When the company registration is completed, the company can be put into operation |
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● The Comparative table of each area tax rate（see below diagram）
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Hong Kong |
China |
USA |
1.Company
profits/income tax
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16.5% |
25% |
15%-39% |
2.Individual income tax
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2%-17%charge at progressive rate
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5%-45%charge at progressive rate
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15%-39.6% |
3.Dividend tax
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No |
Yes |
Yes |
4.Worldwide tax – company
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No |
Yes |
Yes |
5.Worldwide tax – individual
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No |
Yes |
Yes |
6.Accumulated earnings tax
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No |
No |
Yes |
7.Custom duty
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Levied on limited items only
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Yes |
Yes |
8.Capital gain tax
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No |
Yes |
Yes |
9.Sale, Vat or Consumption tax
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No |
Yes |
Yes |
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●Operation expenses |
| * Initial registration fee |
| Registration fee |
| Company secretarial fee |
| Open bank account |
| * Annual service fee |
| Company secretarial fee (it must be paid) |
| Accounting/ Auditing/ taxation/ letter of credit receivable (optional) |
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| ●Company Secretarial Services |
| * Maintain statutory records, such as share registers of shareholders and secretaries. |
| * Act as company secretary for your company
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| * Provide advice in changes to Memorandum and Articles of Association |
* Prepare the?notices of meetings as well as the minutes of those meetings |
| * File the documents with the Registrar of Companies.. |
| * Annual Returns |
* Offer our office as the registered office of your company |
* Issue of new shares |
* Transfer of shares |
* Allotment of un-issued share |
* Increase of shares capital
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* Act as nominee directors and nominee shareholders |
* Change of company name |
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| ●Taxation |
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Prepare proposed profits tax computations |
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Handle tax returns, tax letters and applications ... etc |
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Provide assistance in handling tax field audits and investigations |
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Provide tax planning for individual or company
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Offer tax consulting services for overseas companies to make use of the low tax rate in Hong Kong to reduce their overall tax burden |
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●Trading Services |
* Act as business center for international traders and businessmen
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* Provide practical assistance and advice in trading operation.
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* Letter of Credit
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* Full set of shipping documents
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* Re-invoicing
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| ●Finance |
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Corporate Finance
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Formulate and implement strategic plan in respect of finance and taxation |
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Corporate restructuring to enhance and improve the efficiency and effectiveness?of the company |
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Prepare the company for listing in main board and growing enterprise markets |
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Provide business valuation in Hong Kong and China.
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Provide professional services in merger and acquisitions to safeguard the interest of clients
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Export Finance
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| With our good relationship with a number of bankers in Hong Kong, we can assist your company to establish export banking facilities |
| Handle daily operations of accounts and act as authorized signatory of the bank accounts if necessary. |
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