Company in Hong Kong: Choice for the Wise

Hong Kong is a major financial and business center, a stable and predictable jurisdiction with a pro-business environment, and a place where the East and the West meet. This is a midshore, which means that it is not a zero-tax jurisdiction (like offshores), and at the same time, its tax rates are quite reasonable and are not as high as, for instance, in Europe or the USA. Set up your company in a bustling environment that changes for the better every year to create more beneficial conditions for investors from all over the world!

If you need to get first-hand information about Hong Kong, we would like to invite you to our portal where you can read a more detailed article on setting up a company in Hong Kong. We help entrepreneurs from across the globe establish businesses, open accounts, obtain citizenship by investment, and much more. If you are seriously considering international business, visit our portal where all articles are written by practical specialists.

You are welcome to book a session with our expert who will answer all your questions, help you for free if you struggle with the choice, and advise you on any international business matters, including accounting, banking, or tax optimization. If you want to seamlessly form a company in Hong Kong or in another jurisdiction with minimum effort on your part, you can buy our turnkey package and delegate all the administrative nuances to us. Click on the link – the help is close by!

Why Hong Kong?

Why do we recommend Hong Kong to our customers as a jurisdiction they can trust? Let’s look at the main reasons why we have selected this territory among many others:

• The government is doing its best to encourage business development: the corporate regulations are really stimulating
• You can rely on Hong Kong’s financial and political stability
• You can benefit from a well-developed business infrastructure
• The taxation here is flexible. It means that your company will not have the status of an offshore entity (and will not face any applicable restrictions), but the tax rates will still be low as there are a lot of tax incentives – especially for new players on the market
• Opening a company here will require a number of formalities, but we can help you complete them within a reasonable timeframe.
• If you need a corporate account in Hong Kong, you may encounter a number of difficulties. However experts can either help you overcome them or suggest other options, like an account with a Hong Kong payment system or an account in another jurisdiction.
• Hong Kong acts like an offshore jurisdiction: if you make 100% of your profits abroad, you are not liable for taxes.
• If you are going to work with Chinese (or, in general, Asian) partners, Hong Kong is an ideal location for your business.

If you have any questions about Hong Kong, do not hesitate to book a session with our experts to make a well-informed decision!

Establishing an LLC in Hong Kong: Requirements

The procedure of company incorporation in Hong Kong is quite transparent. All you need to do is to fulfill a number of requirements:

• Any individual or legal entity can set up a company in Hong Kong: there are no restrictions.
• You will need one shareholder and one director to set up a company, and these two positions may be combined by one person. This person (or persons) can be a resident of any country and must be aged 18 or more. You can use the services of professional local directors or shareholders.
• You can start your offshore company with any amount of share capital. However, if you want to know a standard that most entrepreneurs comply with, it equals HKD 10,000. Mind that you cannot issue bearer shares.
• A Hong Kong company must have at least a registered office in the city-state or (if you mean serious business) a full-fledged presence in Hong Kong. You cannot get just a post box.
• A company secretary is a mandatory position. You can use an individual (and in this case, it must be a Hong Kong resident) or a legal entity (with an office in Hong Kong).
• There is one more person you will need: the company’s designated representative (an individual or a legal entity). This person is responsible for the submission of reports to the local authorities and compliance with Significant Controllers Register requirements.
• The name of your company must be registered before you actually start the registration of your LLC in Hong Kong.
• The information on the company directors, shareholders, and secretary will be publicly available. If you need confidentiality, you can use the nominee service.
• Hong Kong uses the territorial principle of taxation, which means that you will not pay any taxes if you derive your profits outside the territory of the city-state.
• You will need to pay an annual registration fee, carry out an annual audit, and submit tax returns and annual reports to the local authorities.
• Make sure to extend your Company Registration Certificate one month before it expires.
• The Annual General Meeting is required to be held on an annual basis (or can be replaced with a written resolution).
• You may need to obtain a license – however, it depends on the type of your business.

If anything sounds complicated, don’t worry: we will help you with any aspect of your business. Competent company establishment will help you avoid a lot of problems in the future!

Company Renewal

You will need to renew the company one year after its incorporation. The following steps will be required:

• Business license extension
• Filing an annual report on the corporate structure of your Hong Kong company
• Payment for the services of an authorized company secretary
• Payment for another year of using the legal address
• Payment for the services of a representative who keeps and updates the significant controllers register

Conclusion

A company in Hong Kong is not a choice that suits everyone! However, it can be an excellent solution in some cases. If you struggle with the choice, please contact our experts to get free assistance. We will analyze your requirements and shortlist the best available options for you. Make your first step into international business – delegate all the administrative procedures to us and focus on your business plans!