Hong Kong’s economy, during the last 15 years, has increased in size with GDP growing in real terms at an average annual rate of 5.3%.
In Hong Kong there is a high degree of internationalization, a business-friendly environment, open and fair competition, free flow of information, well-established and comprehensive financial network, superb network of transport and telecommunications infrastructure, sophisticated support services and a well-educated work force complemented by a pool of efficient entrepreneurs.
It also has a substantial amount of foreign exchange reserves, a fully convertible and stable currency, no exchange controls and a simple tax system with tax being levied at a low rate.
Advantages for foreign investors:
Usually, it takes about 4-7 working days to incorporate a company in Hong Kong.
Assessable profits of corporation are taxed at the corporate tax rate of 16.5%. There are some tax incentives for special business operations, such as tax exemption for profits derived by offshore funds and profits derived from operating ships in Hong Kong. Profits derived from the business of reinsurance of offshore risks as a professional reinsurer are taxed at half of the corporate tax rate.
It is mandatory for companies to prepare and maintain accounts. Accounts must be audited annually by Certified Public Accountants in Hong Kong.
There are two types of share capital for Hong Kong companies – authorized capital and issued / paid-up capital. Although there is no minimum share capital requirement, the general norm for companies incorporated in Hong Kong is to have an authorized share capital of HKD 10,000 represented by 10,000 ordinary shares of HKD 1.00 each.
Complete or partial transfer of ownership of companies can be done by selling all or part of its total shares, or through the issue of new shares to additional investors.
Business expansion is facilitated by the ease of raising finances, by bringing in new shareholders or issuing more shares to existing shareholders.
A minimum of one director and unlimited maximum number of directors allowed. The director could be a person or a company. The director can be of any nationality and need not be resident in Hong Kong.
In order to register a Hong Kong company, you must provide a local Hong Kong address as the registered address of the company.
A limited liability company in Hong Kong has a legal entity of its own, different from its members.
The liability of the shareholders is limited to the amount of their individual shareholdings/investment.
A change of membership does not affect the company’s continued existence.
Directors Board meetings can be held anywhere in the world.
Formation of the company
Provision of non-Hong Kong residence director services
Provision of non-Hong Kong residence nominee shareholders
Provision of registered office
Provision of registered agent