Hong Kong Company Formation
Overview of a Hong Kong Private Limited Company
Currently, Hong Kong is the absolute best option out there for a multi-currency corporate account (16 different currencies), with internet banking at one of the largest banks in the world, in one of the world’s premier and largest offshore banking jurisdictions. Only Hong Kong Private Limited Companies are eligible.
The Hong Kong Private Limited Company formation offered by Offshore-Protection.com is a private corporation limited by shares. This is the most popular form of incorporation in Hong Kong. This type of company is an appropriate vehicle for a business that desires to limit its liability, seek solely private funding, and produce financial returns for its shareholders.
Hong Kong offshore companies benefit from the jurisdiction not being on the list of worldwide 'tax havens', thereby avoiding potential complications from authorities. Offshore companies also benefit from a politically stable environment, a free port, free flow of capital and a freely convertible HK dollar, in a jurisdiction being ranked the freest economy in world for the 20th consecutive year.
Since the British handover in 1997, Hong Kong has become the gateway into China and with the development of the Closer Economic Partnership Arrangement (CEPA) economic and trade relations will continue to tighten. The new CEPA arrangement offers preferential access to China’s markets, adding another reason why international businesses choose Hong Kong as a their base of operations.
Honk Kong is one of the most popular formation jurisdictions due to the city being an international center of information exchange, finance and trade. It is the third largest financial center in the world and the largest in South East Asia. Since the inception of Hong Kong’s offshore sector, it has had over a million companies incorporate, thanks in part by its regulatory environment and competitive tax system.
For more information on the Advantages of Hong Kong as an Offshore Financial Center, click here.
Key Corporate Features of a Hong Kong Company
|Hong Kong Company||Corporate Details|
|Type of Entity||Limited by Shares|
|Type of Law||English Common Law with local ordinances|
|Governed by||Companies Ordinance (Cap 32)|
|Registered Office in Hong Kong||Yes|
|Shelf company availability||Yes|
|Our time to establish a new company||1 Day – Ready-made Company
6-7 Days – New tailor-made Company
|Minimum government fees (excluding taxation)||USD$295|
|Corporate Taxation||No (16,5% tax for profits derived in HK, offshore transactions are not subject to tax)|
|Access to Double Taxation Treaties||Yes|
|Share capital or equivalent|
|Standard currency||HKD Hong Kong Dollar
(pegged to the USD1.0 =H KD 7.74)
|Minimum paid up||HKD 1|
|Usual authorized||HKD 10,000|
|Bearer Shares allowed||No|
|No par value shares allowed||No|
|Publicly accessible records||Yes (for anonymity Nominee Shareholders allowed)|
|Location of meetings||Anywhere|
|Corporate directorship allowed||Yes|
|Publicly accessible records||Yes (For anonymity Nominee shareholders allowed)|
|Corporate shareholder allowed||Yes|
|Location of meetings||Anywhere|
|Local or qualified||Yes (Local individual or corporate body)|
|Requirements to prepare||Yes|
|Audit requirements||No (Only if a Company does business within HK)|
|Requirements to file accounts||Yes|
|Publicly accessible accounts||No|
|Recurring Government Costs|
|Minimum Annual Tax / License Fee||USD $1200|
|Annual Return Filing Fee||USD $700|
|Requirement to file annual return||Yes|
|Migration of domicile permitted||No|
Advantages & Top Uses of a Hong Kong Company
There are a number of advantages in forming an offshore company in Hong Kong, including but no limited to:
- Hong Kong is major trading entity in its own right and is one of the largest importer and exporter centers in the world.
- Hong Kong incorporates more companies per annum than any other jurisdiction (about 50,000 each year).
- The vast majority of Hong Kong companies are conducting real trade business in the region, and do not serve as asset protection companies or vehicles, making HK more credible than other tax havens.
- Hong Kong is a well-known and respected jurisdiction that is not blacklisted anywhere.
- Forming a Hong Kong company through our special service allows you to obtain an account in Hong Kong with one of the largest financial institutions in the world without the usual requirement of reference letters of any type.
- A Hong Kong company is an essential element of doing almost any type of business in Mainland China.
- Hong Kong is a PayPal-approved jurisdiction and one of very few no-tax jurisdictions where it is possible to have an unrestricted PayPal account. (The only other two jurisdictions where this is possible are Cyprus and Gibraltar).
- World-class multi-currency banking is available with some of the largest international banks in the world.
- Good banking secrecy. The company can be anonymous if you use our nominee director/shareholder services or set up a foundation to own all the shares in the company.
- English is the main business and banking language.
There are many uses for a Honk Kong Offshore Company. One can be set up and used for any legal purpose and for any legal activity, including but not limited to:
- International trading
- Asset protection
- Yacht registration
- Tax avoidance
- Protection and ownership of intellectual property
- Estate planning
- Share ownership in other companies
- Financial management
- Investment holding
- Leasing of other assets
- Ownership of intellectual property
However, a Hong Kong-based Offshore Company cannot undertake any business in the banking or insurance sectors unless the relevant licenses are obtained.
Hong Kong Company Formation with Offshore-Protection.com
Join thousands of satisfied clients who have experienced the Offshore-Protection advantage for more than 18 years. When you purchase any offshore company formation product from us, you'll get FREE support from our lawyers to help answer your overseas company day-to-day management questions.