Hong Kong (HK) is a vibrant city and major gateway to China. Located at the mouth of the Pearl River Delta on the southern coast of China, its geographical location and skilled workforce has made it an attractive centre for doing business.
Ideal location for business in the Far East
HK is ideally located for growing companies that want to do business with Mainland China and Asia. Its economy is characterised by free trade, low taxation and minimum government intervention. For the last 20 years it has held the title of the World’s Freest Economy as ranked by the Index of Economic Freedom.
There are a number of reasons why you may wish to consider setting-up an offshore company in HK, including but not limited to:
• It is an easy way to access the Asian market
• HK has a stable and legitimate business environment
• HK corporations don’t pay tax on business outside of HK making it ideal for export work.
• Both Chinese and English are official languages
Company Formation in Hong Kong: a quick guide
|Company Law||Includes but not limited to Companies Ordinance (CO) Cap 32 (commenced 3rd March 14); Business Registration Ordinance Cap 310; Partnership Ordinance Cap 38; Limited Partnership Ordinance Cap 37. All companies must register for a Business Registration Certificate.|
|Types of Company||Public Limited Company (PLC); Private Limited Company; Company Limited by Guarantee without a share capital; Limited Partnership, Partnership, Sole Proprietorship.|
|Taxation rates applied to Companies||Corporate tax is 16.5% with various allowances for costs and depreciation.|
|Capital Requirements||No minimum capital stipulated but must have a nominal share capital if a limited company having shares. There is a minimum share capital requirement for IPOs.|
|Members||Minimum number of members for a private for a private limited company incorporated on or after 13 Feb 2004. All other limited companies must have at least two members.|
|Directors||Directors do not need to be residents in HK. Every private company has to have at least one director who is a natural person (as of 3 March 2014). Corporate directors are allowed.|
|Secretary||Every Hong Kong company must have a secretary who is resident in Hong Kong, it may also be a HK corporation. No registered agent required but Registered Office must be a physical address in HK.|
|Annual Meetings||Each company must hold an Annual General Meeting (AGM) with a minimum of 21 days written notice; members may call EGMs with a minimum of 14 days written notice. Notice can be shortened by consent of all members.|
|Accounts||Annual Profits Tax Return must be filed with the Inland Revenue Department. Financial statements must be audited but the IRD may discretionarily waive the requirement if profits are less than HKD 500,000.|
|Incorporation Fees paid to authorities||Company Registration Fee: HKD 1,720|
|Method of incorporation and timescale||One subscriber/shareholder signs the Incorporation Form and the Articles of Association. The incorporation form and Articles should be submitted to the Companies Registry with payment of registration. Six working days for a new limited company.|
Download this information as a PDF – click to access our Hong Kong Company factsheet.
To incorporate your HK company today email us for further information – firstname.lastname@example.org – or find out more about our corporate governance services.