Hong Kong Company Formation
Benefits of an Hong Kong International Company Formation
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Reputable Offshore Financial Centre
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Ideal as an Operational Company
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Tax Free Regime for Offshore Profits
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Fast and Easy Company Registration Process
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Opening of Business Account in Just a Few Days
from £1,895.00
Why Set Up a Hong Kong Company?
Hong Kong is one of the oldest and leading financial centres in the world. Its unique position makes it a primary gateway to mainland China and other Asian countries.
Primary Financial Centre in Asia
Offshore company registration in Hong Kong opens up considerable opportunities to operate in Asia and globally within its low tax environment. The territory has a longstanding reputation as a world-leading business hub. Therefore, Hong Kong companies are recognised by business partners, banks and other institutions for the jurisdiction’s excellent reputation as a renowned financial centre.
Territorial Tax System
The territorial tax system allows for the effective optimisation of taxation to 0% for profits not derived from the territory of Hong Kong. No VAT or other indirect taxes are applicable.
Effective company registration and sophisticated financial infrastructure make Hong Kong company formation processes quick and easy. In addition, there are many certified accountants, lawyers and trust professionals residing in Hong Kong, all of whom are ready to serve the needs of your business. Glenmuir Trust can help you incorporate a Hong Kong company cost-effectively and quickly.
Excellent Financial Centre for Banking
Hong Kong company formation with a bank account at a local bank is also possible. There are numerous reliable and highly prestigious banks operating within the territory. It is possible to incorporate a company and open a bank account without a personal visit to Hong Kong. Glenmuir Trust can assist with Hong Kong company formation with a bank account at a local or foreign bank. Other services such as a local director and nominee shareholders are also available.
By setting up a company in Hong Kong, you can create a reputable tax-effective structure that will bring value to your business.
Taxation of a Hong Kong Company
Taxation in Hong Kong is based on a territorial tax system. This means that taxation in Hong Kong only applies to income derived within the territory. Therefore, the tax resident status of an individual is generally irrelevant in determining their tax liability in Hong Kong.
Consequently, both residents and non-residents are taxed in the same manner on profits earned in the territory of Hong Kong. Moreover, Hong Kong does not levy an income tax on all types of income from its territory, but rather a set of special taxes that apply only to certain types of income. That is where offshore company registration in Hong Kong can provide significant tax benefits to a business.
Offshore Profit Claim
To benefit from the offshore status the Hong Kong company shall submit the offshore claim to the tax authorities with evidence that no income was generated from the business transactions in the territory of Hong Kong. After the confirmation of such a claim by the tax authorities, the Hong Kong company would benefit from a 0% corporate profit tax rate.
Onshore Tax Rates
As for the companies that do not fall under the scope of offshore claims and cannot benefit from 0% tax, the Corporate Profit Tax rates are still very low. The small and mid-sized companies with profits under the first HK$ 2 million cap are taxed at the rate of 8.25%. All profits above HK$ 2 million will be taxed at a rate of 16.5%.
Dividends distributed by a Hong Kong entity are not subject to tax in the territory of Hong Kong. The same applies to interest paid from a Hong Kong entity to overseas legal entities.
There is no capital gains tax or value-added tax (VAT) in Hong Kong.
All of this provides ample opportunities to optimise international tax burdens by Hong Kong company formation.
The official currency is the Hong Kong dollar (HK$), which is extremely stable. All other major currencies are also widely used in Hong Kong.
Corporate Legislation in Hong Kong
One Country Two Systems
Following the principle of “one country, two systems”, Hong Kong’s legislation differs from that of mainland China. It is based on common law and equity principles, which are supported by statutory law. For this reason, the company set up in Hong Kong is considerably more appealing than in mainland China.
Hong Kong is authorised to exercise its own independent judicial power. The highest court in the territory is the Court of Final Appeal of Hong Kong.
Common Law Legal System
Since the legislation is based on common law, trusts are recognised in Hong Kong and can be established with a local trust company. Indeed, trusts are quite popular in this jurisdiction. Although there are no specific provisions in Hong Kong law to protect trust assets, this is a jurisdiction of choice for many who wish to establish their own trust.
Hong Kong Limited Company Model
The Hong Kong companies law is based on the English model of the limited company. Regarding the UBO reporting, Hong Kong adopted the UK model of Persons with Significant Control reporting, with the difference that such a register is not accessible by the public and is privately stored by the secretary of the company at the registered office.
The Standard Company Registration in our Hong Kong Package Includes:
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Certificate of Incorporation issued by the Hong Kong company registry
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Memorandum of Association stamped by the Hong Kong company registry
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Articles of Association stamped by the Hong Kong company registry
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Business Registration Certificate
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Register of directors
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Register of shareholders
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Register of significant controllers
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Resolution of appointment of first directors
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Written resolution adopted by directors upon incorporation
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Share certificate
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Consent letter of the director
** Payment Plan Also Available For New Incorporations
