Incorporation of Companies in Hong Kong
"In Hong Kong it takes less time to form a company than to tailor a suit."

There are some 980,000 companies registered in Hong Kong and, although public records reveal little to that effect, it is fair to guess that at least tens of thousands thereof do not belong to our 7 million local residents but to people who hardly ever set foot here. So what makes Hong Kong so attractive as a corporate domicile?

Hong Kong is one of the world's leading centres for finance and trade. To be an attractive corporate haven, our laws must strive to keep red tape to the minimum and to warrant some degree of transparency; thus protecting the business partners of locally registered firms and ultimately Hong Kong's own reputation.

Governing regulations may be summarized as follows:

At least one shareholder (an individual or legal entity from anywhere in the world) may form a private limited company with a registered address in Hong Kong and a legal minimum capital of HK$ 1.- (US$ 0.13).

The corporation must have at least one Director (individual or legal entity, not necessarily a Hong Kong resident) and one Company Secretary (a person or company residing in Hong Kong); the latter taking care of the company's administrative requirements. The Company is governed by its Memorandum & Articles of Association (Our standard M & A).

Annually, the company has to i.) renew its business registration (HK$ 2,600.- = US$ 334.-), ii.) submit a report detailing its share capital, shareholders, directors and secretary and iii.) compile a balance sheet and profit & loss account, audited by a duly licensed accounting firm.

Corporate profit, where generated in Hong Kong, is taxed at 17.5 per cent; offshore profits (i.e. those generated abroad or in the PRC) are tax exempt. VAT is unknown, and Hong Kong is a duty-free port (cars, petrol, diesel, alcohol and cigarettes being the main exceptions). Import/export of any currency is free.