HK Company Formation
The advantages of forming a Hong Kong Company
1. Free to choose companynames: Hong Kong government allows the names contain words as international、group、holding、industry、investment.
2. Wider business scope: medicine、shipping agent、import & export trading、real estate、information network、tourism、publishing house、academy、association、research institute and other high-tech industry, all of them could be registered.
3. Very low tax rate : Few tax category with very low tax ratein Hong Kong. One is disposable stamp tax (receive according to real registered capital); Another is profit tax ,the tax rate. is16.5%(calculated by practical profit), No profits no tax in Hong Kong. There is no import & Export taxes in Hong Kong Except for cigarettes and wine.
4. Low Registration capital and no requirement on capital verification in Hong Kong: There’s no mininum registration capital and no capital verification requirement in Hong Kong ,you can increase registration capital according to your practical situation.
5. Make use of the popularity of Hong Kong to upgrade the brand image: Being international center of information exchange and transportation hub, Hong Kong can promote the international brand image of the products and competitive capacity if establish a Hong Kong Company.
6. The follow-up service is simple and efficient, Hong Kong has very important position being transfer station on international trading and the center of international finance.
7. No restriction in fund transfer to and from most part of the world: No foreign exchange control, the capital and profits could be transferred out freely.
8. No regional Limitation on bank account opening: It’s allowed to open company bank account in worldwide.
Requirements for registering a Hong Kong Company
1. Provide new company name for name checking;
2. Provide ID card or passport copy of the shareholder ( any nationality more than 18 years old );
3. Registered capital (No capital verification, if the registered capital more than 10 thousand HK$, 0.1% stamp tax shall be paid to the government. E.g.: 0.1million HK$ pay 100 HK$ of stamp tax ,1 million HK$ pay 1000R HK$ of stamp tax;
4. The stock proportion of the shareholders;
5. Address and phone number.
Service procedure of Hong Kong Company
1. Sign the agreement;
2. Pay the 50% of service fee to us ;
3. Making documents base on provided materials;
4. Shareholder sign the documents after verification;
5. It will take about 12 working days to finish the Hong Kong company registration procedure, , below materials could be provided finally :
1) Government documents(b business registration certificate, Certificate of Incorporation);
2) 18 books of Articles of Incorporations in English and additional Chinese sample;
3) Three company stamps(One steel stamp, one round stamp and one signature stamp);
4) One stock book;
5) One Statutory book;
6) One Green box to keep all above documents.
The general project for tax collection in Hong Kong
Hong Kong is a free port with few tax types and low tax rate.
Main taxes as follows: profits tax (levied on net profit. Any business is carried on in Hong Kong and derived profits from Hong Kong or from HK’S business should pay profit tax, the profit tax rate in Hong Kong limited companies is 16.5%); Salaries tax (it is collected by individual income), property tax, stamp tax(it is a lump sum levy of millesimal of the registered capital ),personal assessment, custom tax etc.
The invoice system in Hong Kong
The invoice and receipts in Hong Kong are not uniformly printed by the tax bureau (no invoice tax), but issued by the board of directors in accordance with the company business and printed by the company directly. The invoices and receipts shall take effect as long as sealed by the company and signed by the responsible person.
