REGISTRATION OF HONG KONG COMPANIES
The most common type of business entity registered in HongKong is private
limited liability companies. Limited liability companies
have its own legal entity separate from its directors and shareholders. It means the liabilities of the directors and
shareholders are limited to the capital contributed to the Company.
Hong
Kong is a highly developed international city. Well known for the free trade
port in the world, plus a good infrastructure and a sound legal system, which
provides a unique business environment for entrepreneurs and businessmen. At
present, more and more businessmen around the world with different purposes set
up their own company and develop their business in the world Asia city.
The
advantages of set up Hong Kong Companies are as follows:
(1)
Limited liability of members: Hong Kong limited company is a legitimate and independent
entity. The liabilities of members are limited to their capital contributed.
(2)
The freedom to choose the company name: The
name of Company can contain all industries: For example: trade, Group holdings,
Industrial, development, investment, finance, science and technology, etc. as
long as the name has not been registered.
(3)
A low-tax environment conducive to the development of Hong Kong. The profits
tax rate of 16.5% levied on net earnings (after deducting all expenses) is the
lowest in the world. If the companies do not make profit, no taxes shall be
paid. There are no sales tax (value add tax) in Hong Kong.
(4)
There is no share capital requirements and tax on amount contributed to your
business as long as you have HK$1 as capital when you set up the company.
(5)
Hong Kong allows all shell companies do not have any business as long as you
continue paying the business registration fee and file the annual return timely.
Set up a shell company in Hong Kong has become a powerful advertising for your
commodities.
(6)
Hong Kong companies serve as a bridge to enter mainland China market. Hong
Kongs special historical conditions and geographical location provide a favorable
environment to businessmen who wish to develop business in China. Meanwhile, China
was just opening up to overseas investors who like to put their regional
headquarters in Hong Kong as a springboard for investment in China.
(7)
Easy access to international credit: As we all know, Hong Kong is an economic
and financial center in Asia. You can take advantage of the credit of the Hong
Kong Bankers for the development of international business. You can make use of
Hong Kong’s financing to open a letter of credit to overseas customers. If
necessary, you can also apply to the Hong Kong Government the SME funding loans
to finance your business.
(8)
To secure a work visa and the right of abode in Hong Kong: The directors and
employees of Hong Kong Companies can apply to the Hong Kong Immigration
Department for working visa(free entrance to Hong Kong). If you work and
continue stay in Hong Kong for a period of seven years, you can apply to become
permanent residents of Hong Kong.
(9)
Reliable images: Hong Kong is proud of its sound legal system and super global
financial center. It can give your partner and the collaborators and thus very
helpful in the promotion and development of your business.
Characteristics of Hong Kong limited companies
-
One person who can set up the company.
-
He can be the sole director and shareholder simultaneously.
- There is
no restriction of the nationality and place of residence of the shareholders
and directors.
- The Board
of Directors is responsible for the companys day-to-day operations and the
implementation of the resolution of the Annual General Meeting.
- The
shareholders meeting is the highest authority, must be held at least once each
year. The first AGM shall not more than 18 months after its incorporation.
- The minimum
share capital is HK$1.00 and no upper limited. No capital duty levied on the
amount of the capital contributed.
- Companies
registered in Hong Kong can go public in Hong Kong and USA.
How to
set up a tailor make companies:
- Check the company name available or not through the Companies Registry
website
- Sign the memorandum and article of association, Incorporation
form (NC1) and consent to act as director.
- Send all documents to Companies Registry with
the incorporation fee.
Shell
companies
If
you have no favorite name, you can buy the companies which are already incorporated
but have not yet commenced business.
Fee
A lump sum fee of HK$7,000 will be charged on each tailor made company or shelf company.
Fees included:
1. Name search fee
2. Government incorporation fee and business registration fee
3. Certified document for opening bank accounts
4. A green box with Statutory books, stamp chops, M & A.