Background & General Outline
Hong Kong is on the south east coast of China and consists of a large number of islands and a part of the mainland totalling approximately 1,064 sq km. On 1 July 1997 all of Hong Kong reverted from British Control back to China and became a Special Administration Region 'SAR' within the People's Republic of China (PRC).
The population of Hong Kong is approximately 7 Million
Political System
Hong Kong elects its own legislature and maintains its own court structure.
The Future of Hong Kong Under the “one country – two systems” philosophy, the SAR has executive, legislative and independent judicial power. The capitalist system, legal structure and lifestyle remain unchanged. Hong Kong remains a free port with a free flow of capital and a freely convertible Hong Kong dollar. With China pushing forward with the modernisation of its own economy, the PRC has expressed the wish that Hong Kong should assist in this endeavour. It has stated that its future development will be based on market led reforms with socialist characteristics and this has led to the opening up of its economy to foreign investments. It is widely recognised that Hong Kong is and will continue to be a significant gateway to China.
Currency
The Hong Kong Dollar, which is officially pegged to the US Dollar. (1 US$ = HK$ 7.74 to HK$ 7.78)
Language
The official languages are English and Chinese, with English being used in the commercial and political context and Cantonese Chinese used widely in industry and domestic trade.
Disclosure of the Beneficial Owner
Although disclosure of beneficial owners to the government authorities is not required, all practioners are required to have performed adequate due diligence. The identity of the beneficial owners of Hong Kong Corporations may be further protected if a foundation or corporate shareholder (Nominee) is used to act as the shareholder on behalf of the ultimate beneficial owners. All confidentiality is maintained as long as the company and its ultimate beneficial owners are not involved in any criminal activity.
Taxation
Much like Hong Kong, Hong Kong is one of the few countries in the world that tax on
a territorial basis. Hong Kong tax is ONLY
charged on profits derived from a trade, profession or business
carried on in Hong Kong. This means that a company
which carries on a business in Hong Kong, but derives profits
from another place, is not required to pay tax in Hong Kong on
those profits. Hong Kong sourced income is currently subject to
a rate of taxation of 17.5 per cent. There is no tax in Hong Kong
on capital gains, dividends and interest earned.
Double Tax Treaties
Hong Kong has entered into a number of double taxation treaties, specifically for relief of shipping or airline income. It has also comprehensive double tax agreements with Belgium and Thailand respectively to relieve taxation on income. The Hong Kong Inland Revenue Department allows a deduction for foreign tax paid on a turnover basis in respect of income which is also subject to tax in Hong Kong.
Exchange Control
NONE.
Name Restrictions
A name that is similar to or identical to an existing company. A name that constitutes a criminal offence or is otherwise contrary to the public interest. A name that gives the impression of which it is connected with the Government of PRC, the Government of HKSAR or any departments of either Governments.
The name of a limited company, shall end with the word "Limited".
Trading Restriction
A Hong Kong company cannot undertake to the business of banking, insurance or the rendering of financial services to the public unless special permission is granted. Companies cannot trade with resident individuals or companies situated in Hong Kong other than in relation to the maintenance of premises, banking and professional services, unless they have special permission from the Hong Kong authorities.
Summary & Features
We can offer you your own Hong Kong Corporation. You may choose from a NEWLY FORMED Hong Kong Corporation which takes approximately 3-4 weeks to incorporate, or an OFF-THE-SHELF Hong Kong Corporation ready for delivery within 1-2 weeks. Both options are available without YOUR name ever appearing in the public registries.
A Hong Kong Corporation is free to engage in many types of business activities, both in Hong Kong and in other countries and it pays NO taxes in Hong Kong on what it earns outside of Hong Kong.
Local laws require that a yearly tax reports must be filed and our office, will handle this with you. Should there be NO INCOME gained WITHIN Hong Kong to report there will be NO TAX consequences. However, even without income it is still necessary to file the documents.
OUR Hong Kong Corporations Include:
- Resident Registered Agent
- Registered Office
- Nominee Corporate Shareholders (If desired)
- ALL Original Documents
- Notarizations & Apostilles
Hong Kong's legislation has long created favorable tax conditions for offshore operations but the country's popularity as such has only caught on over the last few years. Information given to local attorneys/notaries is protected by professional privelege and secrecy.
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