REGISTRATION OF A COMPANY IN HONG KONG

On 5 Sept., 2022

Registering a company in Hong Kong is a guarantee of reliability, high reputation and accessibility to the world market. As the heiress to the empire, Hong Kong has permanent double tax treaties with 146 countries.

REGISTRATION OF A COMPANY IN HONG KONG

What you need to know to open a company in Hong Kong

Hong Kong is one of the "Asian tigers", which has been demonstrating tremendous economic growth since the end of the last century. At the moment, the metropolis is a global financial center that attracts thousands of investors and entrepreneurs.

The undoubted advantages of Hong Kong for company registration:

 - center of trade and entrepreneurship;
 - many companies are exempted from paying corporate tax;
 - no VAT, taxes on dividends or interest;
 - English legal system;
 - prestige. Regular business exhibitions, events and the opportunity to become a partner of any company in the world.

Among the nuances of registering a company in Hong Kong, it is worth noting the skepticism of a number of European banks, which are reluctant to open accounts for Hong Kong businesses. In addition, there is also the risk of being denied corporate tax exemption if the place of contract was Hong Kong itself. If you yourself do not want to understand all the nuances, then we advise you to contact professionals. For example, to the company https://www.fintecharbor.com/company-registration-in-hong-kong/

In what form is it better to open a company in Hong Kong?
The most advantageous organizational and legal form of doing business for non-residents is an LLC (a private limited liability company, which is an analogue of an LLC). This form is used everywhere - local and international firms use its advantages.

It is worth noting that in order to register a company in Hong Kong, as a general rule, the applicant will not be required to issue the relevant permits. As an exception, a license is required for export-import, tourism, catering, financial services or export-import activities.

What documents are required for registration?
The legacy of the English legal system also affects the list of documents that will need to be prepared for registration:

 - founding agreement (Memorandum);
 - company charter;
 - order to appoint a director;
 - decision of the board of directors;
 - register of directors and shareholders;
 - statement.

Since there are two official languages ​​in Hong Kong, the applicant can prepare these documents in both English and Chinese. Each certificate must be certified by a notary. An alternative is to affix an apostille.

Features of taxation in Hong Kong
The strength of Hong Kong is the almost complete absence of tax liabilities. The only tax levied by the administration of the metropolis is the corporate tax, the rate of which is 16.5%. It is noteworthy that if the company receives income outside the city, then it is exempt from corporate tax.

As a general rule, if an enterprise registered in Hong Kong operates outside of it, then no mandatory contributions need to be paid. Otherwise, the base rate is 5%.

Thus, Hong Kong is an extremely profitable "free haven" for every businessman who dreams of a promising partnership, high profits and reliability.

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