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Form a Corporation in Hong Kong – Introduction
Hong Kong company formation and bank account opening for the company has become popular for those who want to set up offshore corporations. Hong Kong is part of the People’s Republic of China, but houses a different type of legal system, following the standards of English common law. That’s because for nearly 100 years, Hong Kong was part of the British Empire until 1997. English is widely spoken amongst its population. In all of Asia, only Singapore comes close to offering incorporation benefits that Hong Kong does.
Benefits Hong Kong Company Setup
There are many benefits to foreigners seeking Hong Kong company registration. These benefits include the following:
However, one thing to remember about taxation in Hong Kong is that the exemptions from corporate taxes do not apply to individuals who are subject to income taxes in their home countries. For instance, if you own a Hong Kong corporation which pays you a salary, your wages will be subject to income taxes in the country in which you reside if it taxes worldwide income, or in some countries, the income of the corporation itself.
Hong Kong Company Formation Requirements
There are a few things a corporation must consider before deciding to form offshore incorporation in Hong Kong. These include:
Trading Company: Corporations can no longer open a sole trading company in Hong Kong unless obtaining residential status. However, a limited company can be opened without having to obtain residency. A foreigner has the option of traveling to Hong Kong to open the company, but this is not a requirement. A limited company simply needs to maintain an office and secretary in Hong Kong.
Office & Secretary: Hiring a secretary in Hong Kong is a relatively easy process. Finding an office to rent is more involved. However, several agencies exist that can help you obtain the required office for 5-6,000 HKD each year. Furthermore, not only are these agencies typically provide experienced secretaries for many companies. The same agencies also provide a registered office in Hong Kong.
Registration: Your corporation can be formed easily without traveling to Hong Kong. A corporation has the option of registering faster online. Registration for corporate status in Hong Kong typically takes place through your chosen agency, as you will complete the necessary documentation with them and then pay your fees.
Corporate Name: To start the documentation process, you need to pick a unique name for your company and have your agency make sure that no other Hong Kong Corporations have the same name.
Identification: Next, provide a copy of the corporation owner’s passport along with a second document proving residency (like a driver’s license), and completion of a basic questionnaire about the business as well as the names of the directors and shareholders must be completed.
Registered Agent: Upon completion of providing these documents, your registered agent will help set up your corporation by completing the electronic registration process. This process is short and fast with many foreigners reporting completion under two hours once the appropriate documentation is received by your agent.
Certificates: Once registration is complete, the corporation will be provided with a Certificate of Incorporation and Business Registration certificate.
Hong Kong Corporation Conclusion
The speed, ease, and affordability of forming an offshore corporation in Hong Kong have attracted many foreign investors. Because of the benefits, which Hong Kong offers to its corporations, and its unique location to the Chinese markets, many business opportunities exist.