Hong Kong company system is divided into two types
- Limited company
- Limited by shares
- Limited by guarantee
- Unlimited company
- Sole-proprietorship
- Partnership
Hong Kong is an international financial centre, having established legal system, simplified taxation system, low tax rate as well as offering unlimited business opportunities, and serving as a platform to global economy and commerce. Therefore, many of international businesses benefit from the establishing companies in Hong Kong.
We will evaluate the business model and assist to set up a company of appropriate type.
The advantages of registering Hong Kong limited company
- The PR and travel expenses are completely deductible as the expenses of the company.
- The salary of the director (owner) and his/her spouse can be deducted as the company's expensesThe limited company's profit from oversea is not included in the taxing system.
- Save a fortune from Profits Tax, Stamp Duty and documentation fees of the lawyer when transferring a property with limited company.
- The profits tax of a limited company in Hong Kong is almost the lowest in the world (8.25% for the first $2 million of assessable profits and 16.5% for the assessable profits above $2 million after deducting the expenses of the company).
- People who migrated to overseas country (e.g.AmericalCanada) can use limited company to prevent double taxation from Hong Kong and the overseas country.
- The interests of buying a property/car can be deducted as the expenses of the company. Moreover, the assets of the company would also depreciate, hence minimizing the tax of the company.
- Businessman who invests in China can use a limited company to sign an agreement of local and overseas capitalization to exclude the profits earned from overseas, therefore paying lesser ProfitsTax in Hong Kong.
Incorporation of Company Limited by Shares
This kind of company requires the members (shareholders) to invest in the capital in exchange for the shares of the company, and the members of the company's legal liability to its holdings of the number of shares of the unpaid amount is limited. It is suitable for bosses who run buiness for profits.
Required information
- Proposed company name in English or Chinese or both
- Shareholders' ID copies / Passports
- Directors' ID copies / Passports
- Residential address proof of shareholders and director (The best is the latest personal bank statement)
- Registered address proof (We can provide one for you if needed)
- Share proportion
Registration form and time to take
- E-filing incorporation (requires 1 day)
- Purchasing a shelf company (requires 2 days)
Our services including:
- Doing company search in HK government, checking whether new company name can be used by client
- Applying Certificate of Incorporation
- Applying Business Registration
- Printing 20 copies of Articles of Association
- Printing share certificate book in 20 pages
- Printing company registers
- Making a signing chop, a round chop and mental seal
- Submission of company secretary documents to HK government
- Certified true copies of documents for bank account opening by CPAs and make appointment for bank account opening
Should you have any enquires about Hong Kong Company Incorporation, please contact us and we will provide FREE consultation service.
Incorporation of Company Limited by Guarantee
Company Limited by Guarantee in which the Shareholders' liability is limited to the amount of assets provided to the Company at the time of the liquidation of the Company, or not only to its contribution to the company is limited.
Most of the guarantee companies are "non-profit organizations" ("NPO").
Purpose including:
- Enhancement of education / training (like Association or Society)
- Religion
- Relief of poverty
- Environment protection
- Community
The basic structure of a Hong Kong company limited by guarantee is having:
- at least 2 members;
- at least 2 directors; (A body corporate shall not be a director of a public company or a guarantee company) and
- at least 1 company secretary
Our services including:
- Doing company search in HK government, checking whether new company name can be used by client
- Applying Certificate of Incorporation
- Applying Business Registration
- Printing Articles of Association 20 copies
- Printing share certificate book in 20 pages
- Printing company registers
- Making a signing chop, a round chop and mental seal
- Submission of company secretary documents to HK government
- Certified true copies of documents for bank account opening by CPAs and make appointment for bank account opening
- Assisting in applying to the Inland Revenue Department as a recognized charity body
Set up Approved Charitable Institution ("ACI")
"Approved charitable donation" means a donation of money to any charitable institution or trust of a public character, which is exempt from tax under section 88 of the Inland Revenue
Ordinance, or to the Government, for charitable purposes. (Section 2 of the Inland Revenue Ordinance)
If a charity is successfully recognized as a charity, the company will be listed on the list of exempted charities and charitable trusts under section 88 of the Inland Revenue Ordinance (http://www.ird.gov.hk/chi/tax/ach_index.htm)
The public are able to check whether their contributions can be used for tax deduction or not.
Charitable purposes are:
- Relief of poverty
- Advancement of education
- Advancement of religion
- Other purposes of a charitable nature beneficial to the community not falling under any of the preceding heads
Tax advantages to Approved Charitable Institution:
- Exempted from tax
- Exempted from paying business registration fee unless a trade or business is carried on
- Exempted from profit tax only if it carries on a trade or business which
- its profits are applied solely for charitable purposes, and
- its profits are not expended substantially outside Hong Kong, and either
- (a) the trade or business is exercised in the course of the actual carrying out of the expressed objects of the institution or trust; or (b) the work in connection with the trade or business is mainly carried on by persons for whose benefit such institution or trust is established.
Dispense "Limited" after company name
If you want to dispense to use "Limited" after the company / organisation name, we can assist in this application. It is normally for organisations like association / society / education / foundation / charitable fund / church and religious mission etc… The process takes over around 3 months for existing Approved Charitable Institution and over 12 months if application is with incorporation at the same time.
Should you have any enquires about Incorporation of Company Limited by Guarantee, please contact us and we will provide FREE consultation service.
Offshore Company Formation
Some countries and regions (such as BVI, Samoa and Cayman etc.) have formulated some especially loose tax systems to attract worldwide investors coming to those countries for company incorporation. This kind of company is generally NOT subject to any tax, except an annual license fee. Therefore, it is usually the best choice for most of the multi-national enterprises to carry out structural arrangement.
Advantages of Offshore Company
- No tax declaration or collection
- Provide high privacy protection, without disclosing the identity of shareholders and directors
- No submission of annual return, audit report and financial statement required
- No registered capital required
Comparison Table
Our services including:
- Doing company search in government, checking whether new company name can be used by client
- Applying Certificate of Incorporation
- Applying Business Registration
- Printing Articles of Association 20 copies
- Printing share certificate book in 20 pages
- Printing company registers
- Making a signing chop, a round chop and mental seal
- Certified true copies of documents for bank account opening by CPAs and make appointment for bank account opening
Should you have any enquires about Offshore Company Incorporation, please contact us and we will provide FREE consultation service.
