Register Offshore Company in Hong Kong

As per Hong Kong Law any person (foreign or local) above the age of 18 can setup a Hong Kong company. The most common type of business entity registered in Hong Kong is a private limited liability company. Foreign business professionals often refer to this type of entity as an offshore company in Hong Kong.

Why choose Hong Kong Offshore?

Setting up a company in Hong Kong is fairly fast and simple, without having to go through unnecessary bureaucracy. In addition, Hong Kong allows foreign ownership policy by entitling the shares of a company to be 100% foreign-owned. Besides setting up a company in Hong Kong, foreign investors can also open branches or representative offices.

Tax benefits in Hong Kong?

It is well known that the taxes in Hong Kong are among the lowest in the world. The tax system is simple and favors foreign owned company creations. Hong Kong’s corporate income tax rate is as low as 16.5%, without any profit tax, VAT/GST, and also no withholding tax (wiring funds out of Hong Kong) on dividends or interest. Also foreign income is exempt from tax in Hong Kong. Hence, a Hong Kong Limited company that derives income from abroad is free from tax liabilities, making it a huge advantage to incorporate a company in Hong Kong.

Requirements to open offshore company

In order to open an offshore company in Hong Kong, the following requirements must be met:

• Company must have at least one shareholder;
• Company must have at least one director;
• Minimum share capital of the company is 1 Hong Kong dollar;
• Company must have a registered address in this country;
• Company must appoint a secretary
• The shareholder can be an individual or a company. There are no restrictions on the residency of the director and the shareholder; however the secretary must be a Hong Kong resident (we provide the same)

Documents required for company registration are:

The documentation for forming a company in Hong Kong is quite simple. Some basic documents are as below: 1) For non-resident shareholders and directors: • Copy of passport, overseas residential address proof 2) For resident shareholders and directors: • Copy of Hong Kong identity card • Copy of residential address proof 3) For corporate shareholders and directors: • Copy of parent company registration documents such as Certificate of Incorporation and Articles of Association Note: Officially certified translated versions for any non-English documents must be provided.

Bank Account Requirements

Once the company is incorporated clients would like to open a bank account. Each bank has their sets of requirements to open a Remote account without physically visiting the bank. They can do online interviews using video conference for KYC and would request for the documents to be courier to them.

SOME FAQ’s:

What are the requirements for opening a private limited liability company?

In order to incorporate a limited liability company or an offshore in Hong-Kong, its founders will need to draw up the Memorandum of Association and the Articles of Incorporation. At least one shareholder, one director and a secretary (either an individual or corporation, having Hong-Kong residence) are needed to establish this legal form. When the company only has one shareholder/or director, he cannot act as the company secretary. The number of members cannot exceed 50; however, there are no restrictions on nationality. The shares of a private limited liability company cannot be made available to the public. The members are only liable to the extent of the invested capital. A Hong Kong registered company is required to have a registered address that is a physical address and not a PO Box.

What is the Timeframe?

We can have your company approved by and registered within 5-7 days upon receiving complete set of signed documents from you.

What are the taxes that I have to pay in Hong Kong?

The profits tax in Hong Kong is 16.5% for income earned in Hong Kong and 15% for unincorporated businesses. Other taxes for companies in Hong Kong are the social security contributions, the real estate tax, stamp duty. There is no payroll tax, no gift or capital taxes and no withholding tax on dividends and interest. Duties are charged for a number of products, among which most importantly alcohol and tobacco.

Is VAT registration mandatory in Hong Kong?

The Value Added Tax is one of the taxes that do not apply in Hong Kong. This blog is written by Ms. Nirmala, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. For more information on offshore company setup in Hong Kong, kindly contact us at info@flyingcolour.com or call +971 4 4542366 for quality consultation. Please Note: This article was published on 16th September, 2020. The information provided in the article is based on the policies and rules applicable at the time of writing it. Talk to one of our consultants for any recent update or change.