Description
A BRIEF INTRODUCTION
OF
CORPORATE FORMATION AND MANAGEMENT IN
HONGKONG
Hong Kong is situated at the
south-eastern tip of the mainland of China. A total area of just
under 1,**0 square kilometers covers Hong Kong Island, Kowloon and
the New Territories and Islands. Its population is around 8
million. Varied people come to HONGKONG to set up varied companies
for varied purposes, since HONGKONG companies have their own varied
advantages.
ADVANTAGES OF HONGKONG
COMPANIES
Hong Kong is an ideal place to
invest - a free and liberal investment regime, absence of trade
barriers; Hong Kong is fully committed to the protection of human
rights non-discrimination against overseas investors; Complete
freedom of capital movement; Most people honor HONGKONG as a
gangway to mainland China for foreign investors and a springboard
to the outside world for mainland China’s investors; a deep water
harbor; an international corporate base; a small but efficient
government ; a perfect legal system; a free trade & free
market; a corruption-free & stable society; low &
predictable taxes; a sound & free banking system, an
independent judiciary; a comprehensive system of legal aid; and a
free and active press; and an independent
Ombudsman.
FLEXIBLE COMPANY’S
NAME
In HONGKONG we are free to make a
choice of companies’ names, if not registered before. We can use
the words such as INTERNATIONAL, GROUP, HOLDINGS, INDUSTRIAL,
INVESTMENT included in the company name. We also can use other
country name in the beginning of the company name if we like. But
you are advised to choose the name of your company carefully. It is
very important that you portray the image you want for your new
company. You are also required to avoid using any company name
which may be too similar to any existing company or trademark. A
company name can be in English, in Chinese, or both. The name must
end with "Limited".
REGISTERED AND PAID-UP
CAPITAL
For a HONGKONG limited company,
the minimum registered capital is HKD*0, **0(about USD1, **0). The
board of a company has a final say about paid-up capital. You don’t
have to pay up your capital.
SHAREHOLDER AND
DIRECTOR
One or more than one
directors and shareholders is required when establish a Hong Kong
company. The directors and shareholders can be the same one person.
The shareholder can be also acted by the naturalperson or the legal
person. If the shareholder is acted by the natural person, the
person must be more than *8years old who has the passport or ID.
Before incorporation, you must confirm the list of shareholder,
director, chairman of the director and the proportion of their
shares.
LEGAL SECRETARY AND
OFFICE ADDRESS
The office address of Hong
Kong Company must locate in Hong Kong. Hong Kong government
required every Hong Kong Company should have a legal secretary, and
the legal secretary must be local person or company. The legal
secretary and registered address can be provided by TANNET if
needed.
BUSINESS
SCOPE
One of the most exciting events
covered in the formation of a HONGKONG company is the free business
scope. Business scope is not really defined by the government for
the businesses you carry on in Hong Kong. If we finish business
registration, we can involve in any sectors we want. Generally
speaking, business scope is not really limited in
HONGKONG.
REQUIREMENTS
If incorporate a limited company in HONGKONG,
we are required to offer:
※ Passports of one or more
shareholders at age of *8 or above and the proportion of their
shares;
※ Registered capital: HKD*0,
**0. Paid-up capital is not required.
※ A registered address, which
is usually provided by TANNET.
※A legal secretary,
who is usually acted by TANNET, who will deal with the government
documents on behalf of you.
PROCEDURE
Fill in application
form→Prepay→Sign
legal documents→Handle to Hong Kong
government→Finish within ****5 working
days→Collect the
documents
SERVICE AND
PRICE
At TANNET, we are able to prepare all the
application forms and relevant documents and take care of all the
procedures for you.
※ Certificate of
incorporation;
※ Business
license;
※ *6 copies of memorandum and
articles of association of the company;
※ Share
book;
※ Statutory
book;
※Three pieces of
chops;
※ A book of
receipt;
OPEN BANK
ACCOUNT
You can open bank account
in local Hong Kong or open offshore bank account in other
countries. All shareholders and directors should go to bank in
person when open bank account.
ANNUAL
RETURN
Any limited companies in HONGKONG should carry
on annual return to the Company Registry and the Inland Revenue
Department. This return is mandatory and different from the tax
return
processing.
BOOKKEEPING, AUDITING& TAX
REPORT
Every company is
required to record the
company’s accounts accurately and keep the books more than 7
years,
to appoint a Certified Public Accountant to audit the account books
before an audit report is prepared and filed with the HONGKONG
Inland Revenue Department, who must be
qualified by virtue of the Hong Kong Professional Accountants
Ordinance and completely independent of the
company.
TAXATION There
are several distinctive features of the Hong Kong tax system.
The tax for registered capital is 0.1%.You can increase the
volume of the capital as freely as required. There is no capital
gains tax and dividend income tax. The standard corporate profit
tax rate of *6.5%,while the unlimited company’s profit tax rate
is only *6%, it is relatively low compared with the other developed
countries. In HONGKONG, any enterprises are required to have a
financial report annually to the Inland Revenue Department. More
details about the tax information are available upon request of our
valued customers.
