Incorporation in Hong Kong

A Hong Kong Company is legally tax exempt if it has no operations in Hong Kong. This legitimate tax advantage makes the city attractive to entrepreneurs and established businesses. Setting up a Hong Kong offshore company is an excellent way to boost global profits as there is no withholding tax, sales tax, VAT, import and export tax or capital gains tax. For companies with operations in Hong Kong, the corporate tax rate is among the lowest in Asia at 16.5%. Furthermore, such a company will benefit from the 37 international double tax treaties signed by the Hong Kong government to minimise withholding tax in payments abroad.

Being a founding member of the World Trade Organisation, Hong Kong promotes free trade does not charge tariffs on imports and exports. Furthermore, bureaucratic procedures like licensing and government registration are kept to a minimum.

• There is no minimum paid up capital required.
• Hong Kong corporate tax rate is 16.5%, which is one of the lowest in Asia. Offshore companies do not have to pay any taxes in Hong Kong.
• Hong Kong is a leading financial centre whose regulation does not restrict foreign investment nor income repatriation.

The main steps to setup a business I Hong Kong as a foreigner are:

• Decide a unique company which adheres by the guidelines provided by the Companies Registry;
• Prepare the company’s constitution;
• Confirm (i) the corporate structure; (ii) the share capital and the value of the shares; (iii) the registered address and (iv) the company secretary;
• Notarise the passports of the directors and shareholder with a Hong Kong public notary and sign all incorporation documents;
• Prepare these Hong Kong Company documents: (i) incorporation form NNC1 (ii) articles of association (iii) IRB1 business registration form notice (iv) notarized copy of passport and proof of address for all directors and shareholders and (v) annual returns to the commissioner of Inland Revenue;
• Submit the complete incorporation package to the Companies Registry and the Inland Revenue Department for tax registration;

A copy of the Articles of Association for the company.

A fully completed incorporation form that includes the following:

• Company name (3 proposed company names either in English or Chinese)
• Address of the company
• Description of business activities
• Particulars of shareholders, directors and company secretary
• Liability of members
• Share capital registered on incorporation
• Number of shares taken up by subscribers

For non-resident shareholders and directors:

• Copy of passport, overseas residential address proof

For resident shareholders and directors:

• Copy of Hong Kong identity card
• Copy of residential address proof
• For corporate shareholders and directors:
• Copy of parent company registration documents such as Certificate of Incorporation and Articles of Association.

Note: For any non-English documents that must be translated to either in English or Chinese.