Register A Hong Kong Company

Hong Kong is the freest trade port in the world. It has established a sound legal system and good infrastructure, providing entrepreneurs and businessmen with a unique business environment. The company incorporation hong kong can quickly provide the company’s reputation and company. Business development, let’s take a closer look at the new policy for registering a Hong Kong company.


Hong Kong Company Registration Meets The Conditions And Required Materials


1. Conditions to be met for Hong Kong company registration 

i. One or more shareholders over the age of 18

ii. All shareholders must present a photocopy of their valid ID card or Chinese passport;

iii. The registered capital is not less than 10,000 Hong Kong dollars;

iv. Provide the actual registered address in Hong Kong; (usually provided by us)

v. A Hong Kong legal secretary is required. (generally provided by us)


2. Information to be submitted for Hong Kong company registration 

i. Provide multiple new company names for verification.

ii. Provide photocopies of ID cards or passports of directors and shareholders (at least 1 director and shareholder must be at least 18 years old, any nationality is acceptable, and the director and shareholder can be the same person).

iii. The minimum registered capital is 10,000 Hong Kong dollars, and it does not need to be actually in place. (Reminder: If the registered capital is very high, the transfer of shares will be involved in the future, and the transferor and transferee will need to pay 1/1000 stamp duty for each person)

iv. Share ratio of shareholders.

v. Contact information of the contact person.


Hong Kong Company Registration Process And Benefits


1. The process of applying for Hong Kong company registration 

i. The client will determine the Chinese and English name of the company to be registered, the registered capital, determine the company director and shareholder candidates and share distribution ratio, and provide the identity certificate of the registrant;

ii. Sign an agreement based on the information provided;

iii. Arrange payment according to the agreement;

iv. Apply for the Form NNC1 document for the establishment of a government corporation, and arrange for all directors and shareholders to sign it, or company secretary hong kong express it to the place designated by the customer to sign (usually a PDF electronic document);

v. Return the signed NNC1 document, which will be completed in about 8 to 10 working days;

vi. Pay the registration balance, receive a full set of company information, and complete the process.


2. The advantages of applying for Hong Kong company registration 

i. Free choice of company name;

ii. The company’s business scope is very limited;

iii. Hong Kong companies do not need capital verification, and the registered capital can be increased arbitrarily, but the funds in place are not limited, which has laid the foundation for us to establish an international group company;

iv. Hong Kong has a low tax rate and few types of tax; no profit, no tax payment, use Hong Kong’s low tax rate and tax plan to achieve reasonable tax;

v. Hong Kong companies are allowed to have no business, and shell companies are allowed to exist. The establishment of a Hong Kong shell company turned into a powerful advertising campaign.


3. There are many preferential tax policies 

Hong Kong has always taken the development of trade as the main policy. In order to facilitate the development of the enterprises under its jurisdiction, in addition to the extremely loose foreign exchange management policies, the tax policies implemented by Hong Kong companies are also extremely simple.

Generally speaking, Hong Kong companies only involve: profits tax, property tax, and salaries tax.

Profits tax in Hong Kong adopts a two-tier system: the income tax rate is 8.25% for the first 2 million Hong Kong dollars of corporate profits, and 16.5% for corporate profits above 2 million (lower than the benchmark income tax rate of 25% in mainland China).

Under normal circumstances, the main taxes involved in Hong Kong companies are corporate profits tax and salaries tax. Property tax is only generated when it involves properties in Hong Kong, and if there is no profit, profits tax is not required.

What’s more, Hong Kong also adopts the “territorial source” principle for taxation.

What does that mean?

That is to say, only profits derived from Hong Kong are subject to profits tax in Hong Kong, and profits derived from other places are not subject to profits tax in Hong Kong. (but still subject to tax in the country of origin of the income)

As a world financial center, Hong Kong has signed bilateral agreements with a number of countries to regulate economic and trade activities, including the “Avoidance of Double Taxation Agreement” to prevent Hong Kong and other countries and regions from duplicating taxation on the same taxpayer and aggravating taxpayers. burden.

Most foreign trade companies registered in Hong Kong do not actually generate income in Hong Kong, so they are very compatible with the offshore exemption from profits tax in Hong Kong, and they do not need to pay tax to the Hong Kong government again.

To sum up, Hong Kong companies have extremely favourable tax advantages: less tax, low tax rate, and no turnover tax.

In the context of the implementation of the CRS agreement and the global anti-tax avoidance environment, it is undoubtedly a wise choice to make reasonable use of Hong Kong companies for tax planning and effectively reduce tax pressure.