Conpak CPA Limited > Company Formation > Hong Kong Company Formation

Hong Kong Company Formation

As an international financial center, Hong Kong is favored by investors. Many multinational companies set up their Asia Pacific headquarters in Hong Kong, leveraging Hong Kong’s strength as a famous international trade center.

Although Hong Kong is now a part of China, being a highly autonomous Special Administrative Region Hong Kong has retained the British common law legal system under the "one country, two systems". principle.Under a solid background of trade and economic freedom, Hong Kong has also become an excellent platform for overseas investors to enter the China market.

Conpak provides investors with one-stop Hong Kong company formation service, including formation -of a new Hong Kong company formation and purchasing a ready-made company.

Advantages

  • Stable social and political environment
  • Following the sound British legal system
  • Freedom of funds management
  • World-class banking services
  • Low tax rate and offshore income exemption from Hong Kong tax
  • High quality and professional service organizations
  • As a key to enter China market for overseas investors
  • As springboards to open up overseas markets for Mainland investors

Requirements

  • Shareholders: at least one person, no restriction on nationality and residence.
  • Directors: at least one person, no restriction on nationality and residence, shareholder and director can be the same person
  • Company Secretary: should be Hong Kong resident or Hong Kong legal entity
  • Address: should have a registered address in Hong Kong

Required Information

  • Company names in English and Chinese
  • Copies of ID cards or passports of shareholders and directors
  • Registered address of the company
  • Copy of ID card of the company's legal secretary.In case the part of legal secretary is taken by a company, a copy of the Certificate of Incorporation and Business Registration Certificate shall be provided.

Registration Form and Required Time

  • Registration of a limited liability company (requires 10 days or so)
  • Shelf company purchase process (requires 2 days or so)
  • E-filing formation (requires 1 day)

Notes

Setting up a Hong Kong company requires professional knowledge and cautiousness. Investors need to pay more attention to its company name, registered capital, shareholders and statutory secretary.

Company Name

Hong Kong companies can choose a name liberally, regardless on the amount of registered capital. With the permission of Hong Kong government, the name of company may contain words as follows: international , group, holding, industry, investment, fund , publishers, logistics, construction, tourism, finance, colleges, health care, center, institute, enterprises, associations, chambers of commerce, federations, foundations, association, etc.

However, there are certain restrictions on the name of company according to the Hong Kong Company Law. Generally,names identical to the following situations name will not be allowed to register:

  • If an identical name has been taken by an existing registered company.
  • The name is the same as a body corporate formed or established under any other ordinance.
  • The name will constitute criminal offense.
  • The name is offensive or against public interest.

Hong Kong companies can register either only an English name or both English and Chinese name but a combination in English and Chinese is not allowed.

Registered Capital

The amount of the registered capital is determined according to the actual needs of the company. In the case of investments in China, there are specific requirements of the registered capital for Hong Kong companies. The requirements are subject to regional policy.

Regulations for Shareholders

The company shall have at least one shareholder. The shareholder can be a natural person or an enterprise.Shareholder shall be at least 18 years old but no restriction on his/her nationality is imposed.An enterprise taking part as a shareholder shall provide its Business Registration Certificate and Company Registration Certificate.

Legal Secretary

There shall be at least one legal secretary.

Maintenance

The follow up maintenance of Hong Kong companies mainly includes Annual Audit and Tax returns.

Annual Audit

Upon the second day of registration to one year as an anniversary, Hong Kong companies should submit an Annual Return to Hong Kong Inland Revenue Department and obtain a new Annual Business Registration Certificates and Annual Returns File.

The contents of Annual Returns shall include directors’information, shareholders structure, and appointed secretary.

Tax Returns

The corporate tax in Hong Kong mainly includes profit tax, payroll tax and property tax.

Having business taken place outside Hong Kong, upon at least 18 months for formation, the company is required to submit audit reports and declare a zero tax report.

Having business in Hong Kong or with Hong Kong companies, upon at least 18 months of formation, the company is required to submit audit reports and a profit tax report with tax rate at 16.5% on the company’s net profit.

If there is no operation,the company can directly report a zero tax declaration.