News: Company Formation Services in Hong Kong

COMPANY REGISTRATION IN HONG KONG

The first and most important step in starting your international business is to properly construct your future company structure, that meets your needs and the legal requirements of local jurisdiction as well. It is important to take into consideration all the pros and cons of your proposed business vehicle and compare them to your business goals.

Before making a choice, it is necessary to answer the following key questions.

1. What are your current and future business needs?
2. What is the size of your business?
3. What capital is required to set up your business? 
4. Do you need any third-party investors?
5. Can your business potentially attract such third-party investors?
6. What are the start-up procedures, costs, time frame and other requirements?
7. What are the tax implications in choosing a particular business vehicle?
8. What are your current and future business needs?

Lawyers of Law&Trust International provide services of company formation in more than 140 countries across the globe, including Hong Kong in particular. By understanding your goals and anticipating your needs. Our professionals, who possess expert knowledge of local business, guarantee efficiency and professionalism at all stages of the Hong Kong company set up. Law&Trust International also provides full range of legal, corporate, government, and business intelligence related services.

Advantages of business formation in Hong Kong

Hong Kong is an autonomous territory located on the southern coast of China. Its proper name is Hong Kong Special Administrative Region of the People’s Republic of China. Hong Kong is a major financial and commercial centre, where business registration is possible for non-residents from any country. Hong Kong is not an offshore jurisdiction and formation of an offshore company in Hong Kong is technically impossible . However, it is possible to set up a non-taxable company in Hong Kong, which will have some characteristics of an offshore counterpart.

Almost any local Hong Kong company can opt for a preferential tax regime that minimizes losses from taxation and because of that Hong Kong company may be similar to a traditional offshore company, e.g. the one that is set up in Seychelles. Although, such similarity does not mean equality. A Hong Kong company must submit an audit once a year, regardless of its tax status. Taxation of Hong Kong companies is unique in that it is based on the source of profit. As long as a Hong Kong company does not conduct any business in Hong Kong, and does not generate any income that is related to Hong Kong, such a company may apply for a Tax Exemption and will be taxable in Hong Kong at the rate of 0%. Because of this,  a company registered in Hong Kong does not have the reputation of an offshore, so potential worldwide partners will more likely establish business relationships with such a company. 

Registration of a non-taxable company in Hong Kong, as it has been mentioned above, is possible only if the local tax authority grants a Tax Exemption to such a company. In order to obtain said Tax Exemption offshore companies  in Hong Kong must keep complete accounting records and be audited annually. Furthermore, a company that had received the Tax Exemption, shall not conclude transactions with local companies and provide services or sell goods in Hong Kong.

However, if conditions mentioned above are not fulfilled, the company will be obliged to pay taxes in full at the rate of 16,5%. Take note that for all Hong Kong companies, preparation of audited accounts is required . However, the accounts are not publicly accessible and can only be obtained by third parties either following shareholders’ decision or a court ruling.

It is also important to know that a company with 100% foreign capital is not restricted from enjoying such instruments as loans, dividends, royalties, etc. Furthermore, there is no foreign currency control and non-residents are eligible for a unique procedure of credits or loans obtaining after establishing a company in Hong Kong.

Hong Kong Company Formation Requirements

Registration of a company in Hong Kong in the form of a Limited Liability Company (LLC)  may be performed remotely and under the simplified system , since legislation of the jurisdiction does not welcome severe bureaucratic formalities:  

• There is no minimum authorized share capital for Limited companies.
• It is necessary to pay up at least one (or more) share (s) of the nominal value of $1 Hong Kong Dollar; shares are purchased as part of the contribution to the initial capital of the company,
• A minimum of one shareholder residing in any country is required to form a Limited company,
•  At least one director in a Limited company must be appointed who can be a citizen and resident in any country, but not a legal entity, 
• It is neccessary to appoint a secretary for a Hong Kong Limited company. Only Chinese citizens can be designated as secretaries of a company. The position has to be takеn bу either a Hоng Kоng реrmanеnt rеѕіdеnt or a Hоng Kong Cоmрanу,    
• The process of incorporation involves getting a legal address on the territory of Hong Kong,
• English is the second language of Hong Kong and can be used in all company documents,
• Hong Kong does not impose any specific requirements for company naming, apart from its uniqueness (a Hong Kong Limited company must not use a name resembling any other Hong Kong company). The name has to be in Chinese and English languages, provided, however, it is possible to use a mixed name. Our experts recommend  providing several names for approval in case one or more names are rejected due to non-uniqueness or any other reason, 
• Hong Kong, as a common law jurisdiction, allows the use of nominee directors and /or nominee shareholders. It is allowed and will not harm your business reputation,
• The process of formation takes up to a month, but it is possible to accelerate the procedure if needed.

Our Company Formation Services in Hong Kong

Law&Trust lawyers provide complete support company formation process in Hong Kong. Our deep technical expertise earned through years of experience include:

1. Company name check for uniqueness and compliance with applicable laws of Hong Kong,
2. Collection of documents, and, if necessary, their translation,
3. KYC procedure, 
4. Preparation of required official documents,
5. Document submission to the register of companies,
6. We will notify you once the company is incorporated,
7. You may pick up company documents in our office or we may deliver them to you by courier service.

HONG KONG COMPANY FORMATION FAQS

• How to register a company in Hong Kong?

Registering a company in Hong Kong is done by filing an application to the Hong Kong Company Registry. Law and Trust International provide clearly defined details on how to register your company in Hong Kong. 

• What are the company incorporation requirements in Hong Kong?

The following are needed when planning to register a company in Hong Kong:

1. Incorporation Form (Form NNC1 for a company limited by shares)
2. A copy of the company’s articles of association
3. Notice to Business Registration Office (IRBR1)
4. Certificate of Incorporation and Business registration 

• How long does it take to register a company in Hong Kong?

Registering a company in Hong Kong could take as long as a week.  

• How much does it cost to register a company in Hong Kong?

The cost of registering a company for the first year is $2290 while from the second year, it costs $2190.

WHY INCORPORATE WITH LAW&TRUST INTERNATIONAL?

• Full range of related services: Provision of a full range of legal, corporate, government, and business intelligence related services.
• Professionals and expertise of Law: Worldwide registration and legal maintenance of companies, accounting services and audit, tax planning and optimization, trademark and patent registration, and many more. Top professionals are always available to help your business.
• Thorough domestic service: No matter where you decide, be rest assured we got the location covered.
• Free initial advice: Lawyers of Law and Trust provide free initial advice, as well as services for analyzing and developing a legal position on the issue you have raised.
• Fast and safe: Law&Trust keeps every clients’ details secured.
• Efficiency and productivity: Strategically providing up to date personalized services to help your business succeed.

READY FOR COMPANY FORMATION?

If you are interested in setting up a Hong Kong company, lawyers of Law and Trust International can help. Write us an email or simply call now to take the next step in your business!