Guide to Forming a Hong Kong Private Limited Company.
Hong Kong is ranked as one of the easiest places to do business in the world.
Companies looking to enter Hong Kong often choose to set up a legal entity in the country. This allows them to establish their presence and expand their business according to their own objectives.
At New Horizons Global Partners, we assist with the company setup process form start to finish. We use our industry knowledge to help you tap into new markets and expand your global reach. We provide the following company setup services:
Hong Kong Company - Benefits
Forming a Hong Kong company offers variable beneficial reasons. The most common are:
Simplicity of setting up a company
Setting up a company in Hong Kong can be considered fast and easy, without having to go to unnecessary bureaucracy.
In addition, Hong Kong has always been in favor of foreign ownership policy by entitling the shares of a company to be 100% foreign-owned.
It is well known that the taxes in Hong Kong are among the lowest in the world. The tax system is simple and favors foreign owned company creations.
Note that Hong Kong’s corporate income tax rate is as low as 16.5%, without any profit tax, VAT/GST, and also no withholding tax (wiring funds out of Hong Kong) on dividends or interest.
Additionally, foreign income is exempt from tax in Hong Kong. Hence, a Hong Kong Limited company that derives income from abroad is free from tax liabilities, making it a huge advantage to incorporate a company in Hong Kong.
Despite Hong Kong being a Special Administrative Region of China, it fully retains its political, economic and judicial systems.
According to a recent survey conducted by the Political and Economic Risk Consultancy (PERC), Hong Kong’s investment climate and financial stability has been ranked as the second best bureaucracy in Asia.
Hong Kong Company - Incorporation Information
- Company Name: Selected prior the incorporation process and approved by the Hong Kong Companies Registry.
- Company’s Directors:
- Minimum one director required;
- Unlimited maximum number of directors;
- Directors can be natural persons or companies;
- Directors can be of any nationality.
- Minimum one shareholder required / maximum 50 shareholders allowed;
- Natural persons or companies abroad;
Shareholders can be of any nationality.
- Company Secretary:
- Mandatory by law to appoint a company secretary;
- Can be a local individual or corporate resident;
- No professional qualification required;
- Note that the director/shareholder cannot be the company secretary;
- New Horizons can act as the local company secretary.
- Company Address: The incorporation requires a physical address as the registered address of the Hong Kong company. New Horizons offers a company address to use for our client’s registered company in Hong Kong.
- Share Capital:
- No minimum / maximum amount to be infused.
- Taxation: Income generated abroad is generally exempt from Hong Kong tax. Only income generated in Hong Kong is subject to a corporate tax rate of 16.5%.
- Monthly & Annual Activities:
- Annual audit of company accounts; intimating the Companies Registry of any changes to the company or its members;
- Filing annual returns with the Companies Registry;
- Filing tax returns with the Inland Revenue Department;
- Holding timely AGMs;
- Maintaining company records, accounting records and other business documents; renewing business registration certificate; etc.