Hong Kong company formation

Hong Kong is a special administrative region of the People’s Republic of China, located on the Kowloon Peninsula. The territory of Hong Kong is not officially considered as an offshore jurisdiction which ensures a loyal attitude of the controlling bodies of most states to money transfers to Hong Kong banks. Companies registered in Hong Kong are used to conduct international trade operations, create holding structures, receive royalties and dividends and for intra-group financing.

Benefits of registering a company in Hong Kong:

  • The English legal system, recognized as one of the complete in the world;
  • Impeccable reputation and good positions in the OECD ranking;
  • A personal presence to register a company in Hong Kong is not required;
  • Nominee service is allowed;
  • There are no requirements to the number and residency of directors and shareholders of the company;
  • VAT exemption (for activities outside Hong Kong);
  • Two-tier tax regime is adopted for companies with bank accounts in Hong Kong: the first HK$ 2 million profits is taxed at 8.25%, while the outstanding will be taxed at 16.5%;
  • Dividends and capital gains are not subject to taxation;
    The accounting system is simplified, the tax return is submitted once a year;
  • The possibility of immigration when creating a business in Hong Kong.

Requirements for Hong Kong companies:

  • It is necessary to maintain a Registration of Persons with significant control over the company (new requirement );
    It needs to have a registered office in Hong Kong, a virtual office is allowed;
  • The company must have at least one director, necessarily an individual;
  • Each company must appoint a secretary who lives in Hong Kong, he / she should not be the only director of the company;
  • Minimum authorized capital – one share with a par value of HK$1;
  • Each company should appoint an auditor who must be a member of the Hong Kong CPA and have a certificate of eligibility for professional activities;
  • A Hong Kong company must prepare accounts giving details of all transactions undertaking during the accounting year whether these produce Hong Kong sourced profit or not. Additionally, the company will be required to submit different reports to the Hong Kong Inland Revenue including a “Profits Tax Return” and an “Employers Return of Remunerations and Pensions”. All these reports must be made in a timely fashion if penalties are not to be visited upon the company for late filing.

Aligorex Group will analyze your business model and will help you to open bank account in Hong Kong or any other country.

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