Hong Kong: LTD

Why is it beneficial for a company to incorporate in Hong Kong?

Hong Kong is thought of as one of the best cities to ground and operate a business from, as it offers a lot of factors that are vital to business; a productive workforce, a stable political and economic environment, a strategic location, an attractive tax regime, world-class infrastructure and finally an appealing legal system. All these factors combined help make Hong Kong into the successful and powerful city it has become, we will go into further detail and analyse these factors.

Strategic Location: Due to Hong Kong’s location being in the heart of Asia, it is incredibly easy to travel to any major Asian city, making it easy to penetrate all Asian markets with ease. The Hong International Airport is the 5th busiest in the world, with airlines reaching over 180 destinations. Hong Kong is also considered a major port of the world, being responsible for a large part of maritime activities such as tonnage of shipping, handling cargo and passengers carried.

Ease of doing business: Hong Kong is ranked 5th best country to do business in, as it is possible to start a new company in under 2 weeks’ time, the infrastructure of the city is legendary and business locations and offices are easy to come by. Hong Kong is ranked 3rd having the best business environment and being the 2nd best nation for foreign trade and investments, foreigners can find it very easy to relocate their business after applying for the necessary work visa.

Free economy:
Hong Kong has contributed to GDP growth at about 5%, this is due to it’s limitless inward and outward investments, the fact that they have no foreign exchange controls nor ownership restrictions.  Even though Hong Kong is ranked the worlds freest economy, it is also ranked the 2nd most competitive economy.

Tax Regime: Hong Kong offers the lowest tax regime in the entire world, ranging from 2% to 17%. Corporate tax is currently at 16.5% and incorporated tax is at a steady 15%. Sales Tax is also non-existent in this city.
And for profits derived from outside Hong Kong, the tax is 0%!

What type of companies can be formed in Hong Kong?

A private limited company more commonly referred to as an Ltd has several advantages:

  • Lowest minimum share capital: Only 1HK$ is required.
  • One (wo)man show: Only one shareholder who can be an individual or a company is needed. Also only one director is required – who can be the same individual as the shareholder.
  • No Hong Kong residence: The shareholder and director can be any nationality and they are not required to be resident in Hong Kong.

Hong Kong incorporation factsheet

Basis of legal systemUnder Common Law.
Governing corporate legislationThe Hong Kong Company registry is the govering authority and companies are regulated under the Hong Kong Companies Ordinance 1984.
StabilityStable jurisdiction with a very good reputation.
Minimum directors/shareholdersMinimum of 1 director and 1 shareholder.
Information published relating to company officersUpon registration, names of company’s officers will appear in the public registry. Nominee officers can be used to avoid the director’s name appearing.
Secretary requiredYes.
Paid up capital requirementMinimum share capital: 1 HK$
Accounting requirementPreparation of accounts required.
Accounts are not publicly accessible.
TaxationNo taxes on foreign profits.
Timespan incorporationHong Kong has a fast and efficient registry. Company formation can be processed electronically within a few days.

Pricing

Hong Kong is one of the world’s most reliable and efficient financial centres, with no exchange control, a sound legal system and efficient transport and communication networks.

In Hong Kong there is no capital gains tax and dividends received or distributed by a Hong Kong company are also tax free. Even the standard rate of profits tax  applicable to Hong Kong sourced income is very competitive at 16.5 per cent.

In addition, a limited company can be formed within a few hours.

Basic
Premium
Executive
Price

1099.00€

1499.00€

2699.00€

Incorporation

Business Registration Fee (HK$2,250)

Digital Certificate of Incorporation

Digital copy of Memorandum and Articles of Association

Digital share certificate

Registered Office*

Printed Certificate of Incorporation

Printed Memorandum and Articles of Association

Local Company Secretary*

Bank introduction

Individual Director*

Corporate Director*

Nominee shareholder*

* included in first year, additional costs apply from the second year onwards.

Yearly fee of additional services from second year onwards:

Registered Office incl. ClevverMail LITE

599.00€

Registered Office incl. ClevverMail STANDARD

799.00€

Registered Office incl. ClevverMail PROFESSIONAL

999.00€

1 Individual Director

799.00€

1 Corporate Director

499.00€

1 Nominee Shareholder

99.00€

All prices excluded VAT

Benefits of ClevverCompany:

  • You can start your business in nearly every country in the most convenient way
  • Fast and fully digital incorporation process
  • Lawyer approved process and local legal teams on site
  • Meeting all legal requirements
  • Internationalize your business without a big budgets

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