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Hong KongMain » Jurisdictions » Hong Kong
GENERAL INFORMATION ABOUT THE JURISDICTION
Hong Kong (a Special Administrative Region of China). It is the most attractive and leading financial center in Asia and in the world, which is developing by leaps and bounds. Hong Kong was an English colony by 1997, after it has been transferred under China’s control, while maintaining broad autonomous rights.
The special administrative region of the People's Republic of China offers the lowest tax rates, ensures state non-interference in the economy and allows to trade across the border under the best conditions in the world.
The main trading partners of Hong Kong are China, Korea, Japan, Taiwan, the Philippines, Vietnam and Thailand.
It should be noted that the priorities of the administrative center are also a reliable banking system, the absence of corruption and the highest index of economic freedom.
A lot of people are wondering whether Hong Kong is offshore or not?. In order to answer correctly it should be noted that the taxation on the territorial type is applied there, so only income received within the country is taxed. That is why many people think that the administrative center of China falls into the category of "classic offshore." But the truth is that this jurisdiction with flexible tax laws, a high level of confidentiality, and a liberal market is called the “offshore zone” only indirectly.
The services and tourism sectors are widely developed, and trade, IT technology, and industry are welcomed to open a new business in Hong Kong.
HONG KONG COMPANY REGISTRATION ADVANTAGES:
- Developed trade and economic network and favorable terms of trade across the border. Lack of customs payments for the export of goods.
- One of the highest levels of economic freedom in the world, every year Hong Kong enter the top 3 ratings of jurisdictions with the best conditions for doing business.
- A stable banking system, many Hong Kong banks open accounts for all jurisdictions, including offshore ones.
- Flexible tax system: the territorial principle of taxation, the absence of taxes on VAT, dividends and capital gains.
- There is an opportunity to open a new company in a matter of days, as there is a minimum of registration procedures for a new business in the country.
To Buy offshore in Hong Kong/Registration of an offshore company in Hong Kong
Hong Kong's regulatory framework, which governs the activities of all companies in the territory, primarily includes Companies Ordinance, cap. 32 (Hong Kong Companies Act).
HONG KONG COMPANY REGISTRATION
Types of companies:
The most suitable legal form to register a business in Hong Kong is a Limited Liability Company (Ltd).
Limited Liability Company (Ltd):
- There are no requirements for the minimum authorized capital and its contribution, usually the authorized capital is indicated in the amount of HKD 10,000 (≈ $ 1,300).
- Bearer Shares and the shares without a par value are prohibited in the country.
- The director of a company could be either an individual or a legal entity (at least one), a non-resident is also sufficient.
- A shareholder of a company could be either an individual or a legal entity (at least one), while a non-resident is also sufficient. If necessary, there is the possibility of using a nominee service.
- The secretary of the company could be both an individual and a legal entity, but at the same time a Hong Kong resident is required.
- Information on the director of the company, shareholders and secretary is available in the general Register. But, when using a nominee service, the information will be confidential.
- Mandatory annual reporting - financial report and audit.
- Each company is required to maintain a register of controlling persons (ultimate owners) and keep it at the address of the registration office in Hong Kong. The registry is not publicly available, information can be obtained at the request of the relevant authorities.
- The company should have a Designated Representative (usually representative provided by the Secretary of the Company), who will be authorized to negotiate with a number of government agencies, including law enforcement agencies, to provide information about the controlling persons if requested.
- The company must have a registered office in Hong Kong.
Hong Kong's tax system is defers from China’s and is completely independent. The autonomous center has built its economic attractiveness due to the territorial taxation principle and the absence of key taxes. Moreover, in order for the company to apply the principle of non-taxation of profits from outside the country, it is necessary to prove that it works exclusively with the foreign market. That is, the Hong Kong authorities will check the availability of suppliers and contractors, contracts concluded, whether the products sold are sold in Hong Kong, whether employees work and how the goods are transported.
Basic tax rates:
Corporate income - 16.5%.
Dividend tax - 0%
Capital Gains Tax - 0%
VAT – no
In Hong Kong, foreign exchange control is not applied.
DOUBLE TAX TREATIES
It should be noted, the Autonomous Region Hong Kong has signed many double taxation avoidance agreements, but such treaty has not been signed with Ukraine at the moment. At the same time, our country has signed an agreement with the Government of the People’s Republic of China and some automatically include the territory of Hong Kong here. This is not a good precedent, because this agreement between Ukraine and China does not apply to territories with separate legislation and a tax system, such as Hong Kong, Macau and Taiwan.
Many countries consider Hong Kong to be the “offshore zones” and carefully monitor the business activities associated with this country, including Ukraine at the time, namely 2001, which made it a “black list of jurisdictions”. Nowadays, Ukraine does not consider Hong Kong as offshore.
If you want to register a company in Hong Kong or buy an offshore in Hong Kong, contact our lawyers for advice:
+38 (044) 383-48-88
+38 (044) 383-28-88
We will help you buy a company in Hong Kong or in any other jurisdiction to choose from. Opening an offshore in Hong Kong with Campio Group is reliable and profitable.