Hong Kong Offshore Company
Hong Kong companies are regular business corporations that are used either as a resident company or anon-resident company.. Resident Hong Kong companies are liable to corporate tax on income and profits whereas non-resident Hong Kong companies are like offshore companies; they are not subject to any local taxation.
All Hong Kong companies can do business in and out of Hong Kong. The Hong Kong corporation is a business company that is well recognized worldwide, and often used by businesses with dealing in and around Asia.
There are three (3) corporate forms of Hong Kong companies.
- Hong Kong companies limited by shares,
- companies limited by guarantee
- Unlimited companies.
A Hong Kong company which is limited by guarantee is unable to have any share capital. The Hong Kong Private Limited Company (limited by shares) is the preferred Hong Kong company used for international trade and investment purposes.
In most instances, the type of Hong Kong Company selected, is based on the needs of the company’s owners and the type of company best suited to the type of business conducted, whether offshore or domestic.
All of the Hong Kong companies must be incorporated by one or more persons and every Hong Kong Company must have at least one shareholder and two (2) company directors.
As previously mentioned, the Hong Kong Company best suited for offshore operations is the share limited Hong Kong Private Limited Company. For incorporation of this type of Hong Kong Company, the shareholder and the director of a Hong Kong Company can be the same person and corporate directors are permitted. Each company must have an appointed secretary who must be a resident of Hong Kong. In the event a corporate body holds the position of secretary that company must be a resident company in Hong Kong as well.
A memorandum of Association and Articles of Association for Hong Kong offshore companies has to be submitted to the Registrar of Companies. These documents containing the name of the offshore company (in Chinese or English), the number of members the Hong Kong company, the registered address of the company, the objectives and by-laws of the company and lastly, a statement declaring the type of company. While the name and signature of every member of a Hong Kong company must be noted in the memorandum and articles, the names of the beneficial owners (shareholders) and the directors of Hong Kong companies is not of public record. Further identity protection can be provided if nominee shareholders and nominee directors are used for the Hong Kong Corporation.
A Hong Kong Limited Company (limited by shares) cannot issue bearer shares, but may issues other types of shares such as ordinary and preferences shares, to shares with or without voting rights and redeemable shares. There is no limit on the number of authorized or paid up shares. The usual authorized share capital is HK$1,000. The minimum issued capital is one share of par value..
There are corporate duties that Hong Kong companies must fulfill. All Hong Kong offshore companies must keep accounting records which must be presented to tax authorities at the end of each financial year, All Hong Kong Corporations must employ an auditor who must be a member of the Hong Kong Society of Accountants. In addition to the duties set out above, Hong Kong companies must also always maintain a registered address in Hong Kong.
As the official languages are both Chinese and English for the Hong Kong jurisdiction, The corporate documents are accepted in either language. Banking and Insurance business can be conducted by Hong Kong companies only if the appropriate license is granted.
Shelf companies are widely available in Hong Kong, and are very useful to investors who desire a company that has a history of establishment with it. Hong Kong does not impose exchange controls on companies and the Hong Kong companies may operate in any currency.
Hong Kong offshore companies are very easy to set up and inexpensive to incorporate. Firm production, like Belize company registration,s is longer than some jurisdictions offering one day incorporation, and corporation creation, similar to Belize companies registration, is completed within one (1) working week.
Hong Kong is bases its taxes on a territorial level so that a Hong Kong company only pays taxes on income generated within Hong Kong. and income generated outside of Hong Kong is not taxed. Hong Kong companies that have business operations in Hong Kong are taxed at a rate of 17.5% taxation on annual profits. Hong Kong has none of his taxes in place for Hong Kong Companies: capital gains tax, estate tax, withholding tax, Sales tax and VAT. Hong Kong Companies will pay Stamp Duty on transactions such as transfer of company shares.