Hong Kong is a bustling metropolis renowned for its impressive skyline, free trade port, and status as a global financial hub. It boasts one of the most liberal and competitive economies in the world, making it an attractive destination for entrepreneurs looking to incorporate their businesses. Here's an in-depth look at how to set up a Hong Kong company limited by shares, including costs, benefits, and additional services available.
Why Incorporate in Hong Kong?
Economic and Tax Benefits
Competitive Tax Rates: Hong Kong offers a corporate tax rate of 8.25% for the first HKD 2 million of profits and 16.5% for profits above that threshold. There are no taxes on capital gains or dividends.
Territorial Tax System: Income earned outside Hong Kong is not subject to local taxation, making it possible for a well-structured company to enjoy a 0% tax rate on foreign income.
No Sales Tax or Customs Duties: Simplifies operations and reduces costs for businesses.
Legal and Financial Environment
Common Law System: Hong Kong’s legal system is based on Common Law, ensuring respect for private property and reliable legal processes.
Robust Banking Sector: Home to some of the world's most solid banks, Hong Kong offers high levels of solvency and liquidity, no exchange controls, and the availability of multi-currency accounts and payment processing services.
Business-Friendly Environment
Ease of Doing Business: Hong Kong is known for its efficient company incorporation process and business-friendly policies.
Strategic Location: Ideal for international trade, tech start-ups, market entry into China, internet entrepreneurs, and as a holding company.
Incorporation Process and Services
Incorporation Services
Our comprehensive incorporation package includes:
Preparation and Filing: Articles of Association and form NNC1.
Board Resolutions: Initial board resolutions for appointing directors, corporate secretary, and registered office.
Certificates: Certificate of Incorporation, Business Registration Certificate.
Registered Office: Provision of a business address for one year.
Legal Representation: Designated legal representative services in Hong Kong.
Corporate Documentation: Share certificates, company chop, and delivery of certified corporate documents.
Ongoing Corporate Secretary Services
Hong Kong law requires each limited company to appoint a resident corporate secretary.
Our services include:
Provision of Corporate Secretary: A Hong Kong resident and TSCP licensee.
Secretarial Services: Maintaining statutory records and the minute book.
Bank Account Opening Services
We assist in opening bank accounts in Hong Kong. We can also facilitate opening accounts in various offshore jurisdictions, including:
Andorra, Armenia, Belize, Cayman Islands, and more: Fees vary depending on the jurisdiction.
Annual Fees and Additional Services
We ensure compliance with annual requirements, including:
Business Registration Renewal: Government fee and submission of annual return (NAR1 Form).
Registered Office and Legal Representation: Continued provision of business address and legal contact point.
Optional services include full accounting, bookkeeping, tax services, and more.
Conclusion
Incorporating a company in Hong Kong provides numerous benefits, including low tax rates, a robust legal system, and an advantageous business environment. Whether you're an international trader, a tech start-up, or looking to enter the Chinese market, Hong Kong offers a strategic and supportive setting for your business endeavors.
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