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Corporate Services in Hong Kong

Hong Kong is one of the most important financial hubs, business centers, and trading port in the planet. It is the largest free port in the world, surpassing even the Colon Free Zone in Panama. Plus, its unique status with China thanks to the One Country, Two Systems regime has made it the top entryway to China.

China is the largest market in the world but is hard to enter there. Hong Kong is the easiest way to do so. It is the only part of Mainland China that allows free capital flow, which means that over half of the FDI in China flows through Hong Kong.

Further, Hong Kong led the Index of Economic Freedom for 25 years, and only moved to the second position last year. Thus, it is well-known as a free market paradise and one of the most important financial centers in the entire planet. The fact that, even though Hong Kong is a city with less than 10 million inhabitants, the Hong Kong Dollar (HKD) is the 9th-most traded currency in the world, proves it.

Hong Kong is a global crossroads in a highly deregulated, tax-optimized, and sophisticate environment. If you want to start doing business in the Far East, Hong Kong is the place to start.

Some might argue that Singapore es even freer and more stable. This is arguable, but some consider it true. Yet, when you consider that Hong Kong gives you direct access to the Chinese economy, things change.

So, in a nutshell, why should Hong Kong be your next destination?

It’s the easiest and best entryway to the Chinese market. It is the only part of Mainland China that allows free capital flow.
The HKD is the 9th most traded currency on the world.
Its simple incorporation process and tax system makes it a first-level destination for holdings.
It is a whitelisted destination with many of the typical offshore benefits.
It has a first-level banking system with multi-currency bank accounts.
Banks in Hong Kong are highly liquid, offering an additional layer of protection. That means your money is well safe in HK.
Hong Kong has a territorial tax system that goes from 8.25% for income under HK$2m and 16.5% for income above. Plus, there are no capital gains, VAT, dividends, and interests’ taxes.
Setting up a limited company in Hong Kong reduces your overall liability effectively, protecting your company’s assets and differentiating them from your personal assets.
The process to incorporate a corporate structure is straightforward and affordable. The government approved a fee waiver until March 31, 2021, meaning you will only have to pay professional fees to our experts. Plus, maintaining a corporate structure in HK is incredibly affordable, especially for the type of jurisdiction we are talking about.
Hong Kong has first level service providers. We work with a top expert team. In HK, all companies must prepare accounts and yearly audits and must guarantee that they are prepared complying with the legal standards. Thus, you need a knowledgeable team by your side so you can rest easy on the compliance side of the deal.
Hong Kong is the freest port in the world. It is basically just one large free zone. That’s why it is the best place for a storage and shipping business in the Far East.

Corporate structures in Hong Kong

Incorporating a Hong Kong company is a swift process. Our experts can help you do it, open a bank account, and serving as your secretaries, accountants, and auditing partners.

Hong Kong offers different business structures for investors, but the one chosen for over 90% of HK companies is the limited company. It is the equivalent of your typical LLC, meaning it is an incorporated body and a limited liability entity at the same time.

Thus, the company is a different legal person from its owners and all liabilities over losses and debts are limited to the extent of the investment

Thus, it is a combination between a corporation (different legal entity) and partnership (limited liability).

There are four main reasons why 9 of every 10 companies in Hong Kong establish an LC:

It is a reputable, whitelisted structure that gives confidence to financial regulators around the world.
It is a separate legal entity from the shareholders. This protects personal assets from business risks and liabilities.
The company only needs to have one director and shareholder. The same person can be both and there are no residency restrictions.
You don’t need to be in Hong Kong to form such a company.
It only pays taxes over its Hong Kong-sourced income, making it a prime structure for holdings.

Hence, the LC is a deeply flexible structure that will increase your asset protection without requiring much factual presence in Hong Kong.

These are the primary requirements of an Hong Kong LC:

Company Name	It must be unique, and you must check it with the authority before incorporating the structure.
Ordinance	LCs must keep a control register of everyone with control over the company.
Directors	Companies can have an unlimited number of directors and they can be corporate bodies, but at least one must be a natural person. They are no limitations of nationality or residency. At least one director is required, but it can also be a shareholder. Bankrupt individuals and/or those that have been jailed for malpractices cannot be directors.
Shareholders	Natural and legal persons can hold shares. Both foreigners and locals can freely be shareholders. Companies can have up to 50 shareholders.
Secretary	LCs must appoint at least one secretary. It must be an HK resident or company. Director and/or shareholders can serve as secretaries unless it is a one-director company.
Share capital	No minimum share capital or number of shares. They can be expressed in any currency shareholders want and freely transferred.
Registered address	HK LCs must provide a HK address as the registered address of the company. Yet, they don’t need to directly use the address. Several companies can share the same address.
Public information	Registered address, directors, shareholders, secretaries, and share capitals are public. Yet, UBOs can appoint nominees to keep their identities private. All financial and tax info is private.

In fact, even if your income is taxed in Hong Kong, that's beneficial. The Hong Kong corporate tax rate is a flat $8.25 % on your first HK$2m and 16.5 % from there, which is significantly lower than most OECD countries. That means that if you absorb the majority of your profits in Hong Kong, you'll get ideal tax planning and optimization.

Foreigners can incorporate a Hong Kong limited company for varied purposes including tax planning, holding, trading, asset protection, and more. Aside from the above-mentioned, you should consider the following:

You should hire our experts as they can act as the local secretary and provide you an official address for the company
Preparing accounts and audits is mandatory. Companies must guarantee that the information is adequately prepared according to the regulator’s standards. Only a knowledgeable expert can guarantee this.
All documents not in English or Chinese must be translated

What documents do you need to open your Hong Kong company?

Company name

Local address

Description of activities

The following documents of directors and shareholders:

-Passport and proof of address, if non-residents
-Hong Kong ID and proof of address, if residents
-Copy of incorporation documents, for corporate bodies

Share capital and number of shares per member

Articles of association

In normal circumstances, you would need to pay a $250 registration fee. Yet, the government waivered the fee until March 31st, 2021 and the annual renewal fee was waived for the following two years.

Starting your business in Hong Kong

The Doing Business ranking says that Hong Kong is the third-best country to do business in the world and the fifth-easiest country to start a business.

Believe it or not, the process has just two steps:

Pick a company name and receive a certificate of incorporation and business registration.
Receive an EC (employee’s compensation) insurance and MPF (mandatory provident fund) with a local private provider.

Holding companies in Hong Kong

Ideally, your holding company should be in a no-tax offshore jurisdiction. However, you know that international organizations are cracking down on these structures. Thus, if you want some offshore benefits in a fully whitelisted jurisdiction, look no further.

Hong Kong does not have VAT, sales tax, or capital gains tax. There are no withholding taxes on dividends and interests. The tax system is territorial, meaning you will only be taxed on your HK-sourced income and you will pay only 8.5% over your first HK$2m ($250, approximately) and 16.5% henceforth. Further, HK has over 40 double taxation treaties in a continuously growing list.

Plus, you can appoint nominee directors and tax and financial information is private, which provides enhanced anonymity.

Add the easy incorporation process and top redomiciliation and dissolution rules, and it’s easy to see why HK is so appealing for investors.

Who are we, and what can we do for you?

We can help you establish any corporate structure imaginable in Hong Kong remotely. You need a top expert by your side during this process to deal with the regulatory compliance procedures in this country.

Our partners have a remote company formation package that includes: