Hong Kong

HONG KONG CORPORATIONS

Introduction

Our Firm is represented by reputable local corporate agencies and is actively engaged in corporate services in Hong Kong and other oriental destinations, such as Singapore, the Mauritius and the Cook Islands.

About Hong Kong

Hong Kong remains one of Asia’s most vigorous and dynamic business, financial, and trading centers. It has long been the principal entrepot for international trade with much of China, particularly South China. It is one of the world’s largest financial centers ranking next after New York, Frankfurt, Tokyo, and London. With its continuing role as the major location for the international stock market capitalization of leading Chinese companies, its financial operations have taken on an importance far beyond that which would be expected if it was solely concerned with Hong Kong companies and the Hong Kong economy.

Hong Kong reverted to China in 1997, as a Special Administrative Region (SAR) of China, and for 50 years its property, legal, economic, social, financial, taxation and free customs systems are bound to remain largely unchanged. Hong Kong has a very well developed legal system firmly rooted in English law, which is also bound by international treaty to be maintained, as all parties understand that this element is a vital part of the continued success of Hong Kong economically. The treaty bound new locally dominated Hong Kong government is highly professional and stable. The work ethic of the Hong Kong people is famous around the world. The Chinese links with Hong Kong are fast coming to the fore.

Hong Kong provides capital, services, and management to Chinese based enterprises, and to major Chinese infrastructure developments. These vitally important factors, coupled with China’s supply of land, low cost but efficient labor, and an enormous developing market, have led Hong Kong to become China’s leading source of capital, and for China to continue its very rapid growth in international trade very much through Hong Kong, its main trading partner. Its banking and communications systems are very advanced; they handle its huge regional and international trade operations routinely, and are rated very highly internationally.

Its legislative system is based on the prior British legislative system; its legal system is also firmly British based. It is extremely stable and has managed to escape most of the recent economic problems of South East Asia.

It has the largest container port, and it is the largest location for trading with China. It is a top ranking financial center internationally, very well served by its infrastructure, location, local financial services industry, and its professional services. Due to its commanding trade identity, it is not viewed as a tax haven by other tax authorities: the majority of its approximately 50,000 local companies are actively engaged in trade. English is widely used in business, and also often used socially. Most local Chinese business people and professionals speak English well.

Incorporation of a Hong Kong company

It is possible to create or obtain a local company presence either by registering an existing foreign company in Hong Kong, or by forming (or buying) a Hong Kong company.

How to Incorporate

Hong Kong companies can take several weeks to incorporate, but our office sells off the shelf Hong Kong companies.

Buying an off the shelf company

We offer off the shelf companies upon request. Name changes can be accomplished rapidly.

Company name guidelines and restrictions

The name must be in the Latin alphabet, any name can be chosen provided it is not already in use, it is not obscene, and it does not imply insurance, banking, royal, or governmental related operations or sponsorship. It may end with the usual designation to indicate limited liability: “Limited” or Ltd.). Names implying or conveying an involvement in banking or insurance operations require consent.

Capital Requirements

No minimum level required.

Local Registered Office Requirements

A Hong Kong company must always maintain a registered office (and not just a Post Office Box) in Hong Kong, and must appoint and retain a Hong Kong resident as the company’s registered agent. NACS provides these services for a fee.

Annual Company License

This is acquired at the beginning and must be maintained annually thereafter. The annual license fees vary with the share capital of the company. Annual license fees not paid on time incur penalties.

Directors

A minimum of one director must be appointed and maintained (who can be corporate directors which can be supplied by our office). Meetings can be held anywhere. There is no residence or nationality requirement.Shareholders

1 subscriber is the minimum. A register of the HK Company’s shareholders must be filed in the company registry: ownership anonymity can be achieved by using nominee shareholders (which can be supplied by our office).

Company Secretary

A company secretary must be appointed for the company and must be a HK resident. Our office normally will perform this function through our local representative, for a fee.

Share Types Allowed

Registered shares are permissible; bearer shares are not permitted.

Taxation Requirements

There is a 17.5% tax on all income sourced in Hong Kong. Other income is not taxed.

Exchange Controls

There are no exchange controls.

Reporting Requirements

Company financial accounts and an annual report are required to be filed annually.

Secrecy

No explicit secrecy legislation for Hong Kong companies, but English law places a clear and heavy responsibility on professionals to keep their client’s affairs confidential.

Annual Tax/Filing Fee

There is a minimum annual business registration fee of US$ 334.00, which is subject to change each fiscal year on 1st April.

Summary Corporate Requirements:
Capital Standard authorized: HK$10,000.00 Registered Office/Agent Yes
Min. Number of Shareholders One Company Secretary Required Yes (local)
Min. Number of Directors One Local Meetings Required No
Corporate Director Permitted Yes Yes

Annual Reporting Requirements:
Annual Company Return Yes Annual Audited Accounts Reported Yes
Annual ProfitsTax Return Filing Yes
Bearer Shares Permitted No Gov′t Register of Shareholders Yes

Services Available

Director/Company Secretary
Banking services
Office facilities and services available (address, telephone number, fax, mail handling, etc.)

OTHER ORIENTAL JURISDICTIONS

• Mauritius: is often used in a way that6 is very similar to BVI: as a lowest cost, lowest compliance, general-purpose offshore center
• The Cook Islands: is often used for Pacific based operations as a low cost, low compliance, offshore location for trading and personal services operations
• Singapore: is often used by companies with a specific need for operations in South East Asia, centered on or around Singapore.

For any of the above, in case of interest, please contact our Office. Price lists are provided upon request.