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.