Offshore Business

Hong Kong is the largest Asian business center and the richest city in China. It offers attractive taxation and commercial services, financial and legal at the highest level. Hong Kong brings together every kind of business, whether it is the import, export, Internet sales, international trade, or any other type of intangible services. Economic and political stability of Hong Kong is the key why investors enjoy making business in this part of the world.

Benefits

  • -favorauble system of taxation
  • company in Hong Kong can serve as an instrument to mediate in trade between the European Union and China
  • high level of banking secrecy
  • free foreign exchange
Types of Company

Sole proprietorship

A person wishing to act as a Sole Trader must obtain official permission to conduct business from government. The decision is issued by the Business Registration Office.

Hongkong Private Limited Company

  • responsibility of the owners is limited to the value of its property,
  • is regulated by the Hong Kong New Companies Ordinance,
  • It should have its headquarters in Hong Kong
  • should have at least one director may be an individual or a legal person
  • the director can be a shareholder in the company.
  • The minimum number of shareholders is 1 and the maximum is 50
  • shareholders are paid a dividend depending on the percentage of shares.
  • there is no minimum capital income
  • every company should appoint a Secretary – required beyond management authority, must be RESIDENT Chinese.
  • member of the board may be a non-resident
Requirements
All companies in Hong Kong are required to register within one month from the start of operating
Steps of the process:

  • Entry in the register of companies
  • Obtaining a Certificate of Registration Tax Office (Business Registration Certificate)
  • Obtaining a License to engage in certain of Economic Activities (only required in some cases)
  • Applications for entry in the Register of Companies must be submitted, after checking the originality of the proposed company name in the register of companies (Companies Registry), at the head of the Registry (Registrar of Companies) at the following address:

14/F, Queensway Government Offices

66 Queensway; Central; Hong Kong
Tel: (852)2867 2587; Fax: (852) 2526 9843
http://www.info.gov.hk/cr

4/F; Revenue Tower,
5 Gloucester Road; Wanchai; Hong Kong
Tel: (852) 187 8088; Fax: (852) 2519 6716
Website: http://www.info.gov.hk/ird/eng/tax/bre.htm

Some forms of business in Hong Kong must obtain a permit (license). Detailed information on this can be obtained from the Department of Trade and Industry (Trade and Industry Department) at:

M/F; Trade and Industry Department Tower
700 Nathan Road; Kowloon; Hong Kong.
Tel: (852) 2398 5133; Fax: (852) 2737 2377

Taxation

An individual

Personal income tax – depending on the rate of profit: 2%, 7%, 12%, 17%;

  • 40.000 HKD – 2%
  • 40.000 – 80.000 HKD -7%
  • 80.000 – 120.000 HKD – 12%
  • Over 120.000 HKD – 17%

Income tax is levied based on the principle of territoriality. Detailed rules for the taxation of income in Hong Kong are contained in the Inland Revenue’s Practice Note No 21.

Legal person

CIT – 16,5 %
VAT – None

Legal regulations

Following acts regulate the business activities in Hong Kong:

  • Company Law (Companies Ordinance)
  • The Law on Registration of Enterprises (Business Registration Ordinance)
  • Tax Law (Inland Revenue Ordinance).

Agreement on avoidance of double taxation:

Austria, Belgium, Brunei, Canada, China, Czech Republic, France, Hungary, Indonesia, Ireland, Italy, Japan, Jersey, Kuwait, Liechtenstein, Luxembourg, Malaysia, Malta, Mexico, Netherlands, New Zealand, Portugal, Spain, Switzerland, Thailand , United Kingdom, Vietnam.

Hong Kong has not signed the Agreement on Exchange of Tax Information with any country.

Agreement on avoidance of double taxation:
Austria, Belgium, Brunei, Canada, China, Czech Republic, France, Hungary, Indonesia, Ireland, Italy, Japan, Jersey, Kuwait, Liechtenstein, Luxembourg, Malaysia, Malta, Mexico, Netherlands, New Zealand, Portugal, Spain, Switzerland, Thailand , United Kingdom, Vietnam.

Hong Kong has not signed the Agreement on Exchange of Tax Information with any country.

Accounting and Auditing
All companies in Hong Kong are obliged to maintain accounting records. Accounting records should be archived for 7 years. Companies are obliged to submit financial reports and hold an annual audit.
Otwarcie rachunku w banku z siedzibą w Hongkongu wymaga osobistego stawiennictwa. Nadto w przypadku gdyby zdecydowali się Państwo na otwarcie rachunku w banku z siedzibą w Hongkongu spółka nie może korzystać z usług dyrektorów nominowanych.

Po zarejestrowaniu się w Rejestrze Firm oraz uzyskaniu Świadectwa Rejestracji w Biurze Podatkowym firma może złożyć wniosek o otwarcie konta bankowego. Zazwyczaj podczas zakładaniu rachunku bankowego wymagany jest minimalny wkład w wysokości ok. 2.000HK$.

Bank accounts and banking
Opening an account at a bank based in Hong Kong requires a personal appearance. In the event that you have decided to open an account at a bank based in Hong Kong company  you  cannot use the services of nominated directors.

Once you have registered your company and obtained the Certificate of Registration you can submit an application for opening a bank account. Usually when setting up a bank account it requires a minimum contribution of approx. 2.000HK $.

Otwarcie rachunku w banku z siedzibą w Hongkongu wymaga osobistego stawiennictwa. Nadto w przypadku gdyby zdecydowali się Państwo na otwarcie rachunku w banku z siedzibą w Hongkongu spółka nie może korzystać z usług dyrektorów nominowanych.

Po zarejestrowaniu się w Rejestrze Firm oraz uzyskaniu Świadectwa Rejestracji w Biurze Podatkowym firma może złożyć wniosek o otwarcie konta bankowego. Zazwyczaj podczas zakładaniu rachunku bankowego wymagany jest minimalny wkład w wysokości ok. 2.000HK$.

Company registration form