Hong Kong Offshore

Registering a company in Hong Kong takes 5 working days plus a few days for document delivery; we offer to purchase a shelf company.

Company name

The company name must end in Limited and must not be similar or identical to an existing name.

Corporate legislation

All Hong Kong companies are governed by the Companies Ordinance (Chapter 32)

There is no minimum share capital. The minimum share capital issued by the company is two shares with a par value

Directors

The minimum number of directors is one; directors may be individuals or legal entities. A director may be of any nationality and does not have to be a Hong Kong resident

Shareholders

Minimum 1. An individual or a legal entity, resident or non-resident (the director and the shareholder may be the same person)

Company secretary

May be an individual or a legal entity, but must be a Hong Kong resident

Currency control

None

Annual government fees

Hong Kong companies must pay the business registration fee every year

Annual meeting

The first general annual meeting must be held no later than 18 months from the date of incorporation

Annual audit

The accounts must be audited by Certified public accountants licensed to practise in Hong Kong within 18 months from the date of registration. Thereafter the audit is carried out annually. The annual return is filed within 42 days from the date of the company's registration

Filing documents with government authorities

The tax return (profits tax) and financial statements are filed with the Hong Kong Inland revenue department. The employer's return is filed with the Hong Kong Inland revenue department

Tax system

Hong Kong is a low-tax jurisdiction. As of the end of 2005, Hong Kong had concluded double taxation avoidance agreements with China, Belgium, Luxembourg and Thailand, and limited agreements with Canada, Germany, Israel, Mauritius, the Netherlands, New Zealand, the Russian Federation, South Korea, the United Kingdom, the USA and other countries.

Types of taxes

Salaries tax is paid by individuals whose employment income is sourced directly in Hong Kong. The tax is calculated at a progressive or a standard rate. A progressive rate of 2% to 17%, depending on the amount of income, applies to net chargeable income. A standard rate of 15% applies to net income.
Corporate profits tax. Hong Kong levies profits tax on all companies at 16.5% of net profits arising in or derived from Hong Kong. If the source of profits is outside Hong Kong, the profits tax rate is 0%. There is no tax on interest income.
Royalties. If non-resident companies receive profits in Hong Kong from the use of a trademark name, patent or copyright, the tax rate on this type of profit is 30% of the amount taxable at the 16.5% profits tax.
Capital gains tax. There is no capital gains tax in Hong Kong.
Property tax. There is no property tax in Hong Kong; it was abolished in 2006.
Gift and inheritance tax. Hong Kong tax law sets a progressive tax rate on gifted property, from 0% on property worth less than $256,000 to 3.75% on gifted property worth more than $862,000. Property gifted to charitable organisations is not taxed.

Audit

Under the Hong Kong Companies Ordinance, every company registered in Hong Kong must file a profit and loss account and a balance sheet every year, accompanied by a directors' report. The company must keep books of account that give a true picture of the company's affairs and financial transactions. In addition, the first General Annual Meeting must be held no later than 18 months from the date of incorporation to approve the accounts and the directors' and auditors' reports.
The accounts must be audited by Certified Public Accountants licensed to practise in Hong Kong. Thereafter the company must submit its accounts for audit every year. The shareholders' meeting must be held no later than 9 months after the accounts are filed.
As a rule, a duly completed profits tax return is filed with the Hong Kong tax authority (Inland Revenue Department) every year together with the audited accounts.