Company in Hong Kong
Company in Hong Kong
Hong Kong is a special administrative region of the People’s Republic of China, which decided to leave Hong Kong’s autonomy until 2047. The richest city in China. In the years 1842-1997 he was a British colony, currently under Chinese rule. Hong Kong is one of the largest financial centers in the world. It is also the largest port in the world. According to many indicators, this is one of the fastest growing economies in the world. It has one of the highest export and import values per capita in the world (with a population of 7 million). The port in Hong Kong serves the largest number of containers in the world.
Taxes in Hong Kong
Taxes in Hong Kong and the related tax system are fairly simple. It is based on the principle of territoriality, which means that a company that makes a profit by selling or providing services outside of Hong Kong is, as a rule, not subject to income tax.
Hong Kong links to the People’s Republic of China, Belgium, Luxembourg, Thailand, Great Britain, UAE, Switzerland, Portugal, New Zealand, Malta, the Czech Republic and France beneficial double taxation treaties. A company incorporated in Hong Kong may therefore be a convenient instrument for brokering trade between the European Union and the People’s Republic of China. A company in Hong Kong can also be used as a holding entity to invest European capital in China.
Company registration in Hong Kong
The opening of the company in Hong Kong and the entire procedure associated with it has been maximally shortened. According to local legal regulations, to open a company in Hong Kong and entering it in the register should not take more than half an hour (assuming that all required documents are provided, including a valid passport, for example). It is customary, however, due to the registration authority’s doubts, it takes up to 2 weeks. The equivalent of the National Court Register in Hong Kong is Companies Registry.
Establishing a company in Hong Kong is conditioned, among others from obtaining (organizing) the company’s registered address. The registration agent, who supervises the correct circulation of documents between the company and the counterpart of the National Court Register is not obligatory. The company secretary must be a resident of Hong Kong. The secretary cannot simultaneously act as the company’s director.
Bank account for a business in Hong Kong
In the past, opening a bank account in Hong Kong was not difficult. Currently, however, banks have expanded the control apparatus based on the premises of the government and applicable regulations. These recommendations significantly reduced the number of newly opened bank accounts. Most banks in Hong Kong require justification for opening an account. It is customary to point out the business case, list of potential customers or suppliers in Hong Kong or the surrounding area, company office address, letters of recommendation from other entrepreneurs, or simply to present a business plan that will result in the need to have a Hong Kong account.
Purchase of a ready made company in Hongkong
Establishing a company in Hong Kong or a purchase of ready made company in Hong Kong, i.e. one that is already registered, can be a solution to the need to find a kind of connection between Europe and China.
Company registration in Hong Kong
To set up a limited company in Hong Kong, one shareholder, one member of the board and a minimum share capital of HKD 1 (i.e. less than 0.50 PLN) is sufficient. In a situation where the sole shareholder would be a natural person, it is recommended that there be at least two shareholders.
Hong Kong limited liability companies are transparent, which means they are well perceived by contractors, as information on shareholders and board members is public. Obstacles to the disclosure of shareholders and board members can be minimized by appointing so-called trustees and directors.
When considering establishing or buying a company in Hong Kong, you must remember to implement the Common Reporting Standard (CRS), which is a procedure that allows the automatic exchange of tax information with countries outside the European Union. The key is for banks to provide information on the beneficiaries of their accounts, in particular if they indicate his Polish residence. For this reason, it is crucial that the Polish tax residence is definitely lost.
Interestingly, dividend income from foreign investment is not taxable in Hong Kong.
Advantages of company formation in Hongkong
What can you gain after you open company in Hong Kong? First of all, reduced formalities to a minimum, reduced tax costs and achieved business goals in the country with the greatest economic freedom in the world. Our law office creates any type of companies, which guarantees you a quick start to open business in Hong Kong.
Many entrepreneurs who intend to open a business in Hong Kong have concerns not only about proper knowledge of the legal system, but also about the specifics of the Eastern market. Our many years of experience mean that we perfectly recognize the needs of investors and are able to meet all expectations.
Hong Kong is recognized as one of the largest shopping and business centers in the world. This is due to the high quality of financial services, free flow of international capital and the lack of unnecessary bureaucracy. There is a tax system in Hong Kong that is based on a territorial principle (profits from outside Hong Kong are not taxed) and includes three types of tax: payroll tax, profits tax and real estate tax. Thanks to the support of our Law Firm, you can optimize tax costs, which translates directly into reducing the costs of running your own business.
Are you interested in establishing a company in Hong Kong or do you want to talk about it? Entrust this task to professionals. Contact us.