Hong Kong is on the southeast coast of China and consists of a large number of islands and a part of the mainland totaling approximately 1,025 square kilometers.
Hong Kong is the leading southeast Asian center for both finance and commerce and ranks as the world's third largest financial center after New York and London. There are more than 160 licensed banks with 128 foreign banks having representative offices in Hong Kong and a further 225 licensed deposit taking Finance Companies all of which play an active role in the financing of international trade and commerce.
The type of company for international trade and investment is Private Company Limited by Shares. Aestriction on these limited companies is that it cannot undertake banking or insurance activities. It cannot solicit funds from or sell its shares to the Public.
Name Restriction. A name that is similar to or identical to an existing company. A name that implies illegal activities. A name that implies Royal or U.K. or Hong Kong Government Patronage. Suffixes to denote Limited Liability is "Limited".
Company names that require consent or license include "British", "Building Society", "Chamber of Commerce", "Chartered", "Co-Operative", "Imperial", "Kaifong", "Mass Transit", "Municipal", "Royal", "Savings", "Tourist Association", "Trust", "Trustee" and "Underground Railway","Bank", "Insurance", "Assurance", "Re-Insurance", "Fund Management", "Asset Management", "Investment Fund".
The standard authorized share capital is HK $1,000 ($129). The minimum issued capital is two shares of par value.
Classes of shares which are permitted in HongKong:
Registered shares
Preference shares
Redeemable shares
Shares with or without voting rights.
The principle of Hong Kong income tax is that it is a tax on income that has its source in Hong Kong rather than a tax based on residence. Hong Kong does not therefore impose tax on non Hong Kong source income even when remitted to Hong Kong. Consequently, if a Hong Kong company's trading or business activities are based outside Hong Kong no taxation will be levied. Hong Kong companies with Hong Kong source income currently pay a rate of taxation on profits of 16.5 per cent and for individuals there is a maximum rate of taxation on income of 15 per cent.
Hong Kong has no double taxation agreement with any country, with the exception of a limited treaty with the United States of America relating to shipping matters only.
The Business Registration Fee ("BRF"), currently HK $2,250.00 ($300.00), is due and payable within one month of the date of incorporation and then annually on the anniversary of the first payment. A Hong Kong company must keep accounting records, which may be kept at the registered office address or elsewhere at the discretion of the directors. Every company must appoint an auditor who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate. Although there is no requirement to file accounts with the Registrar, there is a requirement to file the accounts with the tax authorities.
Information Summary
GENERAL
Political Stability Good
Common or Civil Law Common
Type of Company Limited
Disclosure of Beneficial Owner No
Migration of Domicile Permitted No
Tax on Offshore Profits Nil
Non‑English Language Names Allowed No
Currency HongKong$. 1US$=7.8HK$
Exchange Control None
Incorporation Time Scale Two Weeks.
CORPORATE REQUIREMENTS
Minimum Number of Shareholders Two
Minimum Number of Directors Two
Bearer Shares Allowed No
Corporate Directors Permitted Yes
Company Secretary Required Yes
Standard Authorized Share Capital HK$10,000
LOCAL REQUIREMENTS
Registered Office/Agent Yes
Company Secretary Yes
Local Directors No
Local Meetings No
Government Register of Directors Yes
Government Register of Shareholders Yes
ANNUAL REQUIREMENTS
Annual Return Yes
Submit Accounts Yes
RECURRING GOVERNMENT COSTS
Minimum Annual Tax/License Fee $300
Annual Return Filing Fee $13
