AAA International Services - An International Corporate Service Provider

Hong Kong

Overview of Key Features

There is no “offshore” legislation in Hong Kong. All companies are incorporated under the same legislation, whether they are doing business locally or “offshore”. If a Hong Kong company does NO business in Hong Kong and derives no income from Hong Kong sources, then it is not taxable in Hong Kong. So as long as a Hong Kong company does business anywhere else in the world, it is in effect similar to a BVI IBC.

A Hong Kong company can even set up and staff an office in Hong Kong as a COST CENTER without paying taxes. For example, a company outside of Hong Kong could set up a Finance Management Center for its company or group, paying no tax, so long as it does not receive any income, only expenses. Similarly one could set up a tax free document processing company in Hong Kong as a Cost Centre.

If a company does not have business in Hong Kong, there is generally no requirement to file financial statements and no audit is required. It is only necessary to file a Declaration of “No business activity in Hong Kong”.

Hong Kong companies are advantageous because they are not perceived as “tax havens”. The legal system is based on British common law; the political environment is stable; finance and banking is excellent, and there are no exchange controls. A Hong Kong company may do business anywhere in the world and there is no requirement for the Directors and Shareholders to be resident in Hong Kong.

Starting at $1200

Overview of Hong Kong companies:

GENERAL
Location of Jurisdiction	Hong Kong – South East Asia
Official Language	English and Chinese
Political Stability	Excellent
EU Savings Tax Directive Applies	No
Tax on Offshore Profits	Nil
Disclosure of Beneficial Owner	Yes, but Nominees may be used
Submit Audited Accounts	Yes
Time to incorporate	7-10 working days

CORPORATE
Type of Offshore Company	Private Limited Company
Type of Law	English Common Law plus local Ordinances
Allowed Business Activities
Local Registered Office/ Agent Required	Yes
Change of Domicile	Not allowed
Shelf companies Available	Yes
Language of Documents	English/Chinese or both
Name of Company	English/Chinese or both
Corporate Seal	A metal corporate seal is mandatory

DIRECTORS
Eligibility	Any person or company of any nationality
Minimum Number of Directors	1 (individual or body corporate)
Disclosure to Authorities & Public	Yes, but Nominees can be used
Residence Required	May reside anywhere
Local Director Required	No
Nominee Director Available	Yes. Provided by TNC
Location of Meetings	Anywhere

COMPANY SECRETARY

Secretary Required

Yes, Local (must be HK resident or HK company).

Can be provided by TNC

SHAREHOLDERS
Minimum number of shareholders	1
Maximum number of Shareholders	50
Eligibility	Any person of any nationality or body corporate
Disclosure to Authorities & Public	Yes, but nominees can be used
Nominee shareholders available	Yes, provided by TNC
Annual General Meetings	Required
Location of Meetings	Anywhere

SHARES
Minimum Number of shares	1
Maximum Number of shares	Unlimited
Bearer Shares Permitted	No
Classes of shares permitted	Ordinary shares, preference shares, redeemable share and shares with or without voting rights. * No par value shares are not permitted

SHARE CAPITAL
Permitted currencies	Any
Minimum paid up share capital	HK$1.00
Maximum share capital	Unlimited, but government charge of HK$1.00 for every HK$1,000 in share capital over HK$10,000.00
Recommended share capital	HK$10,000 or US$1,000 (other currencies are allowed)
Requirement to be paid up	No

Restrictions on Name and Activity

Names which suggest any connection to the Central People’s Government or the Government of Hong Kong Special Administrative Region or which are offensive or otherwise contrary to the public interest or whose use would constitute a criminal offence are generally prohibited. Certain words which suggest specialist activity can only be used when the appropriate licenses have been obtained such as Asset management, Building society, Fund management Chamber of Commerce, Kaifong, Municipal, Royal, Savings, Trust, Bank, Insurance and Assurance.

Financial Statement Requirements

Every Hong Kong companies must produce annual audited accounts and appoint an auditor, who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate. The company must keep accounting records, which may be kept at the registered office address or elsewhere at the discretion of the directors.

Annual Filings/ Requirements

Filing of Annual Return

Filing of Profit Tax Return

Accounts Auditing

Renewal of Business Registration

Other Jurisdiction