Company Formation in Hong Kong

A properly-structured company formation in Hong Kong is an excellent tax-efficient corporate vehicle through which international business can be conducted. The following information will help you determine if company formation in Hong Kong is the optimum solution for your business.
1.	Company formation in Hong Kong is not perceived as a tax avoidance mechanism in an offshore tax haven, hence tax planning in Hong Kong is an advantage of this jurisdiction.
2.	Because of its regulated business environment and stable economy, company formation in Hong Kong ensures the creation of a secure, long-term structure.
3.	If properly structured, Hong Kong company formation is a tax-free way of booking profits sourced outside Hong Kong (visit the Hong Kong Inland Revenue Department website).
4.	Because of the positive image of company formation in Hong Kong, it is an excellent structure to promote to investors and venture capitalists.
5.	Formation of a company in Hong Kong is an excellent way to enter China, particularly when supported with a Hong Kong Virtual Office. This gateway to China will be made more significant and accessible when the Shenzhen-Hong Kong Innovation Circle, designed to encourage overseas enterprises to do scientific research in Hong Kong, is established. In addition, Hong Kong and Shenzhen are also jointly funding eight more R&D projects.
6.	A Hong Kong corporate bank account is a good way to support company formation in Hong Kong. Hong Kong offers the best corporate banking facilities in Asia.
7.	Hong Kong company formation is quick and easy. According to a World Bank survey, Hong Kong is one of the easiest places in the world to do business (see the survey here).
8.	Following company formation in Hong Kong and according to Hong Kong law, annual accounts must be submitted for audit.
9.	Company formation in Hong Kong benefits from a growing network of double taxation treaties. Hong Kong's latest Double Tax Agreement (DTA) is with Ireland.
10.	Neighbouring China has one of the world's fastest-growing economies, encouraging many international business people to start incorporating a Hong Kong company.
11.	Incorporating a Hong Kong company is straightforward. Healy Consultants has assisted many Clients in starting a company in Hong Kong.
12.	When incorporating a Hong Kong company, it is necessary to be aware of the legal corporate and accounting requirements of company formation in Hong Kong.
13.	At least one director is required when incorporating a Hong Kong company. After setting up a company in Hong Kong, the directors' details are filed with the Hong Kong Public Registry. The directors can be any nationality and resident anywhere in the world.
14.	After incorporating a Hong Kong company, the company does not need to hold board meetings in the city.
15.	When incorporating a Hong Kong company, a minimum of one shareholder is required.
16.	When incorporating a Hong Kong company, every company is required to appoint a company secretary, who may be a natural person or a body corporate. The company secretary is required to be Hong Kong resident.
17.	When incorporating a Hong Kong company, the sole director cannot be the company secretary.
18.	When setting up a company in Hong Kong, every Hong Kong company is required to have a registered office in the territory.
19.	The standard authorised share capital when incorporating a Hong Kong company is HK$10,000. An increase in the authorised share capital above this amount incurs an increase in annual statutory fees to incorporate a company in Hong Kong. The minimum issued capital when forming a company in Hong Kong is one share of HK$1 each.
20.	When starting a company in Hong Kong, a Business Registration fee, currently US$335 (HK$2,600), is payable to the Hong Kong Companies Registry within one month of incorporating in Hong Kong. This fee is to be paid annually thereafter on the anniversary of incorporating in Hong Kong.
21.	When a company search is performed after starting company formation in Hong Kong, the following particulars are available for public viewing:
	i)	Memorandum & Articles of Association;
	ii)	Certificate of Incorporation;
	iii)	Particulars of the directors, company secretary and registered office;
	iv)	Share capital structure and shareholding information;
	v)	Mortgage information, if any.
22.	After completing Hong Kong company formation, all limited Hong Kong companies must undergo an annual audit conducted by a professional auditing company, to comply with Hong Kong company ordinance. After setting up a company in Hong Kong an audited financial statement must be submitted to the Hong Kong Inland Revenue Department, together with a Profits Tax Return. Healy Consultants can assist Clients starting a company in Hong Kong with all of their Hong Kong accounting and tax requirements.
23.	Business etiquette is a vital component of company formation in Hong Kong. Typical protocol includes:
	i)	After completing company formation in Hong Kong, you should address local people with their title and surname in all your business transactions. This formality should be remembered long after forming a company in Hong Kong;
	ii)	One error some entrepreneurs make when first setting up a company in Hong Kong is to make physical contact with their business contacts. Business people should avoid patting people on the back or holding someone’s shoulder;
	iii)	Gift giving is integral to the Hong Kong business culture and will be expected after incorporating a Hong Kong company. Entrepreneurs setting up a company in Hong Kong should avoid giving clocks, books, blankets, anything unwrapped or wrapped in blue and green hats;
	iv)	Those incorporating a Hong Kong company will find that entertaining is a critical part of the business culture. In the years after incorporating in Hong Kong, entertaining may play a critical role in maintaining strong business ties in the region;
	v)	After setting up a company in Hong Kong, note that appointments should be made well in advance. When meeting with a group of business associates always ensure to greet the most senior member first and then the next senior, working your way down the ranks;
	vi)	Hong Kong Chinese are impressed by status and rank. Businesspeople setting up a company in Hong Kongshould take care to to give the appearance of wealth and position. Formal business attire is the norm;
	vii)	Entrepreneurs incorporating a Hong Kong company often note that business is often more price than quality-driven. Service standards may at times seem poor, particularly after-sales;
	viii)	Using the telephone when incorporating a Hong Kong company can be a trying experience. Hong Kong professionals are generally more business-savvy and are more conscious of time (theirs and yours) than elsewhere in Asia. Understanding the telephone etiquette used in the city will be an important point to remember when incorporating a Hong Kong company. Business people undertaking company formation in Hong Kong. may notice that people appear rude, particularly on the telephone;
	ix)	When setting up a company in Hong Kong or planning on incorporating a Hong Kong company it is important to note that many Hong Kong Chinese may in fact consult an astrologer or feng shui advisor before finalising any deal. In any contract talks after forming a company in Hong Kong, it is not unusual for a businessperson in Hong Kong to consult a feng shui practitioner to determine the optimum signing date.
24.	Setting up a company in Hong Kong is easy. The ease of incorporating a Hong Kong company is a key factor for some business people, and is recognised by the World Bank's Doing Business Survey as the third easiest place to do business.
25.	According to the 2009 Index of Economic Freedom by the US-based Heritage Foundation, Hong Kong has the freest economy in the world. Entrepreneurs planning on setting up a company in Hong Kong should note that Hong Kong enjoys business, trade, fiscal and labour freedom, low levels of political corruption and open investment policies.
26.	Hong Kong's low corporate taxes are attractive aspect of tax planning in Hong Kong. If properly structured, setting up a company in Hong Kong offers many tax advantages. For example, a Hong Kong Company is a tax-free way of booking profits sourced outside Hong Kong (visit the Hong Kong Inland Revenue Department website). In addition, if image is important, setting up a company in Hong Kong is not portrayed as a tax avoidance measure.
27.	Hong Kong's unique geographic and geo-political position allow it to thrive as a bridge between the West and East. Entrepreneurs setting up a Company in Hong Kong can use Hong Kong's excellent economic infrastructure as the ideal way to access China's vast potential markets. When setting up a company in Hong Kong , many of our Clients choose a Hong Kong Virtual Office to support their regional operations.
28.	Setting up a company in Hong Kong is also supported by the best corporate banking facilities in Asia. For more information, please follow this link.
29.	Setting up a company in Hong Kong is seen by many analysts as a prudent long-term investment. Many offshore investors are focusing on markets like Hong Kong that provide some of the key economic features needed to sustain long term investment. Hong Kong has agreed to commit to the standards set by the Organisation for Economic Cooperation and Development (OECD), which will not diminish Hong Kong’s position as a confidential, secure and long-term solution for many entrepreneurs.
30.	In the last decade, Hong Kong has spent US$7.8 billion on infrastructure, three-quarters of which have been undertaken by foreign contractors. There are also 10 new major infrastructure projects planned, presenting greater opportunities for company formation or business opportunities in Hong Kong. An example of an upcoming major infrastructure project is the Guangzhou-Shenzhen-Hong Kong Express Rail link.
Contact Us
For more information on company formation in Hong Kong or any other aspect starting a company in Hong Kong, please email email@healyconsultants.com or telephone us at +(852) 8331 1911.
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