Establish Hong Kong company
· Advantages
· Set-up requirements
· Set-up procedure and time required
· Annual maintenance fee
· Our service
· The comparison with BVI company
· The comparison with unlimited company
1. Advantages
Generally, Hong Kong companies are being used because of following advantages:
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With British legal system as background which is well adopted, Hong Kong has very stable social and political environment. English and Chinese as bilingual legal language.
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Being international center of information exchange and transportation hub. Close to and with excellent relationship with Mainland China
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Wide freedom on choosing the company name
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No restriction on the business scope except special business which requires special certification
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With very low tax rate. Tax exempt for income not incurred in Hong Kong (offshore income)
f) No restriction on the capital and do not need capital verification
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With very active and freedom in manpower, logistic, fund transferring and financial activities. No restriction in fund transfer to and from most part of the world. No custom duty on the import-export goods, etc.
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Easy to get the residence certification. The client can apply for the multi-entry into Hong Kong when your company pay tax
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2. Set-up requirements
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Minimum 1 shareholder.
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Minimum 1director.
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Directors & shareholders can be same person. No nationality restriction for shareholders and directors.
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Minimum subscribed share capital is HK$1. (normally HK$10000.
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Company name should not be same as those already in company register and can be English only, or English plus Chinese
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Company should do the annual return and business license renewal.
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3. Set-up procedure and time required
4. Annual maintenance fee
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Company secretary as request
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Company registered address as request
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Business Registration renewal
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Company registry annual filing
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Accounting & audit as request
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Tax filing
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5. Our service
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Assisting client for set-up company and related issue
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Offering the registered address
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Assisting in opening company bank account
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Offering the company secretary, accounting and auditing service
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Providing advisory service on tax issue and other issue
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6. The comparison with BVI company
Generally, Hong Kong Company is more suitable for doing business while BVI Company is more suitable for asset holding. However as situation of client varies case-by-case, professional advice should be sought before making decision. Below comparison is highlight of certain areas and help client to consider using which type of company.
· Setup requirement
· Purpose and Benefit
· Cost in formation, maintenance and cancellation
1) Setup requirement
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Recommendation: BVI company is more simple in setup requirement.
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Hong Kong Company
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BVI Company
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Minimum No. of shareholde
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· 1
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· 1
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Minimum No. of director
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· 1
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· 1
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Minimum issued share capital
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· HK$1
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· US$1
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Company Secretary
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· 1 and should be Hong Kong resident
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· Not required
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Nationality and address of shareholder and director
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· No restriction
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· No restriction
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Hong Kong registered address
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· Required
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· Not required
. · Keeping of Hong Kong corresponding address is useful for corresponding with registration agent.
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Time required to incorporate
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· Ready-made: 1 day
· Tailor-made: 7 working days
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· Ready-made: 1 day
· Tailor-made: 12 working days
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2) Purpose and Benefit
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Recommendation: BVI company is more simple in setup requirement.
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Hong Kong Company
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BVI Company
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Business image
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· Better
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· Less good
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Resistance of customer and client
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· Less resistance as registration is open for public search
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· Higher resistance as registration is not open for public search
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Risk reduction
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· Same
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· Same
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Tax benefit
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· Profits Tax rate 17.5% but exempt for profit not deriving from Hong Kong
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· Profits Tax rate Zero but limited to profit not derived from BVI.
· Company may still subject to tax of another country
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Asset holding
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· Asset transfer can be achieved by share transfer
· Has to pay stamp duty for share transfer
· Updated financial statement is required for share transfer.
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· Asset transfer can be achieved by share transfer.
· No stamp duty and no financial statement is required for share transfer.
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Bank account opening
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· Easier and less requirement even for non-Hong Kong resident
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More requirement and always request for
· Personal banker's reference letter of directors.
· Disclosure of beneficiary owner.
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· Purpose of opening bank account.
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Accounting & tax filing per year - maybe as low as HK$2,000 because no audit is required. The actual charge depends on income, volumn of transaction and business nature of the company.
For tax purpose, the loss can be carried forward to setoff future year's profit.
For business purpose, an unlimited company can carry out all business just same as a limited company.
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