Opening a business in Hong Kong is a guarantee of reliability, good reputation, and access to the world market. As the heir to the empire, Hong Kong has permanent double taxation treaties with 146 countries.
Hong Kong is one of the Asian Tigers and has been demonstrating colossal rates of economic growth since the end of the last century. The metropolis is now a global financial center that attracts thousands of investors and entrepreneurs.
The undoubted advantages of Hong Kong are as follows:
The specifics of registering a company in Hong Kong includes the skepticism of some European banks, which are reluctant to open accounts for Hong Kong business. Besides, there is also a risk of being denied corporate tax exemption if the contract was concluded at Hong Kong.
An LLC (private limited liability company) is the most beneficial organizational and legal form of doing business for non-residents. This form is widely used, as both local firms and international businesses benefit from it.
It must be noted that usually the company registration in Hong Kong does not require relevant permits from the applicant. As an exception, a license is required to conduct business in tourism, catering, financial services, and export/import activities.
The legacy of the English legal system also defines the list of documents that are required for registering a company in Hong Kong:
Since there are two official languages in Hong Kong, the applicant can prepare these documents in either English or Chinese. Each certificate must be notarized. Apostille is an alternative to notarization. Cortax is ready to provide professional translation of the content of documents and help with their notarization.
The following aspects must be taken into consideration:
It is recommended to deposit the authorized capital in the amount of 10 thous. Hong Kong dollars. The value of shares can be equal to 1 dollar. Shareholders and owners of the company can change the previously established amount of capital indefinitely.
Particular attention must be paid to the company name. Hong Kong has an extensive list of words that should not be used when creating a name for a business. Names containing "Cooperative" or "Trust" require a director with Chinese citizenship. It must be noted that the legislation allows mixing English and Chinese words to create a unique name, if necessary.
A legal address is also a must. Moreover, each firm must have a physical office and its own mailbox. Cortax helps non-residents to obtain the legal address that is required for starting a business.
The applicant receives an extract, NNC1, articles of association, and a certificate upon registering a company in Hong Kong. The certificate costs 250 Hong Kong dollars and serves as proof of successful completion of the procedure. The document has a limited validity period – the registration fee is charged annually.
Nearly complete absence of tax liabilities is the strong point of Hong Kong. A corporate tax with the rate of 16.5% is the only tax levied by the metropolitan administration. It must be noted that the company is exempt from corporate tax if it derives income outside the city limits.
As a general rule, no mandatory fees need to be paid if a company registered in Hong Kong operates outside of Hong Kong. Otherwise, the base rate is 5%.
As such, Hong Kong is a very beneficial "safe harbor" for every business that dreams of a promising partnership, high profits and reliability. That is why Cortax recommends to consider this metropolis for your company in the first place – we will help with the translation of documents and other important aspects.
