Hong Kong Companies are Useful for International Trading
Those who want to register a Hong Kong company will be aware of the many advantages the Asian city state offers. While it has suffered from negative publicity in the west in recent years this has not diluted the benefits of Hong Kong as an offshore jurisdiction.
Register a Hong Kong Company for Tax Free Trading Worldwide
One of the biggest benefits of a Hong Kong company is that Hong Kong is not an obvious tax haven. This may seem paradoxical. But you don’t want to register an offshore company that’s on the blacklist of some international organisation. We don’t care what international organizations like the EU and the OECD say, but companies from jurisdictions on their backlists find it more difficult to open bank accounts, merchant accounts and other things essential for day to day business.
Benefits When you Register a Hong Kong Company
Although Hong Kong is now part of China, it was a British colony until 1997. This means that the legal system is based on British law. This makes everything familiar and easy to understand.
Tax Free Trading Worldwide – Hong Kong has a corporation tax of 16.5% for companies trading in Hong Kong. But all trading outside Hong Kong is tax free. There’s no sales tax or capital gains tax either. There’s no distinction between local companies and offshore companies as with many other offshore jurisdictions.
Access to global markets: Hong Kong has a well-developed infrastructure, including an international airport, seaport, and telecommunications system, making it easy to access global markets.
Talented workforce: Hong Kong has a highly educated and skilled workforce, with a high level of English proficiency. This makes it an attractive location for companies that need to hire employees with specialized skills.
Flexibility: Hong Kong has a flexible business environment, with few restrictions on foreign investment and ownership. This makes it easy for companies to set up and operate in the city.
Strategic location: Hong Kong is a major business and financial center, and its strategic location at the gateway to China makes it an ideal base for doing business in the region.
Follow these steps to Register a Hong Kong Company
- Choose your company name. You can check available names online with the Hong Kong companies registry.
- You’ll need an address in Hong Kong and a local agent to deal with company filings. The local agent will prepare the memorandum and articles for the company. They will maintain the shareholder register.
- File the documents with the Hong Kong companies registry. This will normally be done by the local agent but you can do it in person or online too.
- You’ll need a business registration certificate from the tax department. These documents will be needed to set up a bank account.
- Set up a bank account, either in Hong Kong or with an international bank.
That’s all you need to do to set up a Hong Kong company. In practice, if you’re doing this remotely the local agent will handle everything. You’ll simply have to choose a name, appoint a director and shareholder and they will do the rest.
Details on business registration in Hong Kong
Ongoing Filing Requirements
To keep your Hong Kong company up to date you must file an annual return. This includes basic information about the company, its address and its directors and shareholders. Accounts will have to be filed if the company is trading.
Privacy When you Register a Hong Kong Company
Everything is transparent with the Hong Kong companies registry. All directors and shareholders are available to the public. If you want privacy you’ll have to use nominee directors and shareholders. You will then use a Power of Attorney to operate the company day to day. This will maintain your privacy if this is important for you. Anyone can search the company register by paying a small fee.
Hong Kong company registry search
Conclusion
The procedure to register a Hong Kong Company is fast and efficient. As it’s not a traditional tax haven you’ll find operating with a Hong Kong company much easier. There will be fewer issues in setting up bank accounts and merchant accounts. Hong Kong companies are the ideal vehicle if you want to trade. If you are running a business with many transactions every day, a Hong Kong company is the ideal vehicle. It’ll give you the same tax free trading for operations outside Hong Kong as a traditional offshore company.
How much does it cost to register a company in Hong Kong?
The current price is around $2,000. You can find out he exact price here
Can foreigners register a company in Hong Kong?
Yes, foreigners can register a company in Hong Kong. You’ll need to provide a copy of your passport and confirmation of your address.
Can I register a business in Hong Kong?
Yes, anyone can register a company in Hong Kong. It’s much easier than in many other jurisdictions. You will need an address and a local agent in Hong Kong if you’re not a resident there.
How long does it take to register a company in Hong Kong?
You can set up a company in Hong Kong within a few days. It’s a fast and efficient procedure.
Requirements to register a company in Hong Kong
The main requirements are that you have an address in Hong Kong. This can be easily arranged. You’ll also need to provide the ID for directors and major shareholders.
How to Register a Company in Hong Kong as a Foreigner
You will normally set up a company in Hong Kong by using a local agent. They will provide you with a local address. It’s possible to go to the companies registry in Hong Kong and do everything yourself too.
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