MAIN ASPECTS TO CONSIDER WHEN FORMING A COMPANY IN HONG KONG Hereby, we provide a description of our services for the formation of a Limited Liability Company in Hong Kong, the management of opening international bank accounts in Hong Kong, as well as all related services, until your company is formally established. We also provide information on annual maintenance and accounting obligations, and detail the legal, tax regime, and benefits of Hong Kong. OUR SERVICES INCLUDE: 1. Registration of a Limited Liability Company in Hong Kong. To incorporate the company, one (1) shareholder, natural person or legal entity, and one (1) director, natural person, are required. If the shareholder is a natural person, you must provide the following documents: passport, ID (front and back), a selfie photo with passport in hand and a sign with the current date, and two documents verifying the address: driver's license, water, gas, electricity, telephone and internet. In case the shareholder is a company: 1. Constitutive Documents and Certificate of Registration of the Company. 2. Balance sheet for the last year submitted. 3. Shareholders' Meeting for the last year. 4. The latest corporate amendments. With their corresponding translation. The company registration process in Hong Kong can be done remotely, without the need for the physical presence of foreign directors or shareholders. 2. We provide a legal and tax address and the legal position of secretary for one year (more information). Once the registration is complete, you will receive a physical folder with all the corporate documents and the company's seals by post. 3. We manage the opening of bank accounts. A) We manage the opening of an online bank account remotely, tested and working perfectly. The Online Bank grants a bank account from the Standard Chartered Bank of Hong Kong. B) After 5-6 months of operations, you can request the opening of a remote account at the physical banks DBS or Citigroup, both in Hong Kong. C) For companies that trade commodities, we can manage an account at the Bank of China (Hong Kong). D). For international trade with Russia, we can manage the opening of an account in mainland China at the Zhejiang Chouzhou Commercial Bank. E). Other bank accounts: Management of opening a corporate account at CBi Bank Banque in Puerto Rico (free state of the USA), widely used by Hong Kong traders owned by Chinese companies. We can also manage an account at the CIM Banque in Switzerland, with not very favorable commissions but good services. 4. During the process of opening bank accounts, we will provide you with .com or .hk domains, a website, creation of accounts and presence on social networks and all the public profiles necessary to give your company a presence. 5. Once the company is established, a professional will provide you with training in administration and accounting software, according to HK accounting standards. With which you will be able to manage the company in a practical, orderly, and neat manner, keeping the accounting documentation up to date. In addition, we offer accounting and tax advice for the first 3 months, which is more than enough time to learn the simple HK tax regime. At the end of our work, you will have a company based in HK, with bank accounts, addresses, an online presence and in a position to manage it on your own, with the tools we provide. COMPANY FORMATION FEES We are committed to quality and integrity, so it is essential that potential clients approve our compliance policies. This includes a detailed assessment of the object and purpose of the entity. This approval guarantees compliance with relevant local and international regulations and ensures that our services remain in line with the ethical commitments we have with the banks we collaborate with. As for our fees, we work with an advance of 20% and the remaining balance of 80% upon completion of the work. CORPORATE MAINTENANCE AND ANNUAL ACCOUNTING The fees for annual renewal and compliance with corporate (non-accounting) obligations are U$S300, and involve: Renewal of the position of secretary for another year, Corporate domicile for another year, Holding of the Annual Meeting, Renewal of the Commercial Registration Certificate before the Inland Revenue Department, Annual declaration before the Companies Registry. Regarding the annual Accounting fees, per fiscal year, they vary according to the billing. I detail them below: BILLING within: FEES HKD 1,000,000 USD 130,000 USD 763 HKD 2,000,000 USD 260,000 USD 810 HKD 3,000,000 USD 390,000 USD 888 HKD 4,000,000 USD 520,000 USD 1,045 HKD 5,000,000 USD 650,000 USD 1,140 HKD 10,000,000 USD 1,300,000 USD 1,297 HKD 20,000,000 USD 2,600,000 USD 1,438 HKD 30,000,000 USD 3,900,000 USD 1,611 HKD 40,000,000 USD 5,200,000 USD 2,054 HKD 50,000,000 USD 6,500,000 USD 2,369 HKD 60,000,000 USD 7,800,000 USD 2,840 HKD 70,000,000 USD 9,100,000 USD 2,997 HKD 80,000,000 USD 10,400,000 USD 3,154 HKD 90,000,000 USD 11,700,000 USD 3,343 Please note that the accounting is kept on an annual basis and no filing is required during the year. COMPANY REGULATIONS Share Capital: There is no minimum amount of share capital required. The currency and amount of the company’s share capital are free to choose. Shareholders: A Hong Kong limited company may have from one (1) to fifty (50) shareholders. Shareholders need not be resident in Hong Kong. Shareholders may be individuals or legal entities (companies), local or foreign. Shareholders’ meetings may be held anywhere in the world. Directors: A minimum of one individual director is required. Other directors may be individuals or legal entities, local or foreign. Directors need not be resident in Hong Kong. Board meetings may be held anywhere in the world. Company Secretary: The company secretary is the point of contact and your representative in dealing with the Hong Kong authorities. Hong Kong Companies Registry: The “Companies Registry” (CR) is the government department in charge of company formation and annual filings in Hong Kong. Hong Kong Inland Revenue Department – The Inland Revenue Department (IRD) is the government department in charge of taxes and duties in Hong Kong. Simply put, you must file a company tax return with the IRD every year to determine what taxes the company is liable for. TAX REGIME If the company does business outside of Hong Kong (offshore limited company), it is not subject to Hong Kong profits tax and can apply for the offshore exemption. If the company does business in Hong Kong (onshore limited company), the profits tax rate is 8.25 % on the first HK$2 million (equivalent to HK$256,000) of profits and 16.5 % on all profits thereafter (not annually, but a one-off). Category Tax Rate Offshore Business 0% Onshore Business - First HK$2 million 8,25% Onshore Business - Above HK$2 million 16,5% In addition, the company can take advantage of many tax deductions that will reduce the income tax. There is no VAT, no capital gains tax (or dividend distribution tax), no gross income tax, no trade and industry tax, no wealth tax, and no inheritance tax. WHY HONG KONG? Hong Kong stands out as the fourth most prestigious and internationally reputable global financial centre, preceded by New York, London and Singapore. It is strategically located in the economic heart of Asia, acting as a bridge between China and the world. The growing demand for business opportunities in the Asian market has motivated companies from all over the world to establish themselves in Hong Kong, a highly attractive region to capitalize on these opportunities. Hong Kong is renowned for its attractive tax regime. Its tax system is simple and advantageous, including a single tax on profits as well as potential exemptions for offshore companies. Its legal system, based on common law, guarantees a solid, safe and stable business environment, protecting the privacy of companies. Hong Kong offers important advantages to international companies, such as the absence of exchange controls and the possibility of making global payments in multiple currencies. Its economic freedom provides greater flexibility in foreign trade operations. In addition, a bank account in Hong Kong allows trading in Yuan (among many other currencies). In 2023, the Chinese Yuan is emerging as a strong competitor to the US dollar in international trade, driven by China's growing economic influence. Several countries, including Russia, India, Brazil, Argentina and Bolivia, are adopting the Yuan for their international transactions. All these advantages position Hong Kong as a preferred destination for companies looking to expand their international operations. If you would like more detailed information, please do not hesitate to get in touch. We are at your disposal to help you.
