HK Registration

About Hong Kong

Corporate Regulations

Social capital:  There is no minimum amount of share capital required. You are free to choose the currency and the amount of the company's share capital.

Shareholders: A Hong Kong limited liability company may have from one (1) to fifty (50) shareholders. Shareholders do not need to reside in Hong Kong. Shareholders can be natural or legal persons (companies), local or foreign. Shareholder meetings can be held anywhere in the world.

Directors: A minimum of one individual director is required. The other directors can be natural or legal persons, national or foreign. Directors do not need to reside in Hong Kong. Board of Directors meetings can be held anywhere in the world.

Positions and Authorities

The company secretary: The company secretary is the point of contact and your representative for dealing with the Hong Kong authorities.

The Hong Kong Companies Registry : “Companies Registry (CR)” is the government department in charge of company formation and annual filings in Hong Kong.

The 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, each year you must file the company's tax return with the IRD, to determine what taxes the company must pay.

Tax System

The company is automatically registered with the Hong Kong Excise Department when it is incorporated.

Hong Kong offers a very attractive and simple tax regime.

If the company does business outside Hong Kong (offshore limited liability company), it is not subject to income tax in Hong Kong.

If the company does business in Hong Kong (Onshore limited liability company), the income tax rate is 8,25 % on the first 2 million Hong Kong dollars (equivalent to U$S256,000) of profits and the 16,5 % especially from then on (Not annually, but only once).

Additionally, the company can take advantage of many tax deductions that will reduce income taxes.

There is no VAT (VAT), no capital gains tax (or dividend distribution), no gross receipts, no trade and industry, and no wealth tax, in Hong Kong.

Annual Obligations

The company has reporting obligations and it is important that you stay up to date.

Annual filing obligations include:

1. Renew the Registration Certificate (Bussines Registration Certificate – BRC) with the Inland Revenue Department – IRD.

2. The submission of an annual return FORM NAR1 to the Companies Registry each year on the company's anniversary date. To keep the registry informed about name, share capital, address, directors, shareholders. It must be submitted on the anniversary date.

3. Hold an Annual General Meeting (AGM – Annual General Meeting) within 18 months from the date of incorporation. At AGMs it is a review of the annual balance sheet and a management review. It does not have to be in person, it is held remotely.

4. The submission of the BIR51 income tax return to the Inland Revenue Department (IRD) for each year. The filing date depends on the closing of the company's financial year.

5. You must also inform the Companies Registry of certain changes in the company as soon as they occur. This includes the obligation to report changes in directors, shareholders, secretary, registered address, share capital, changes in shareholder or director data (including passports), normally within 15 days, under threat of sanctions.

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