HONG KONG
Hong Kong is located on the south-eastern coast of the People's Republic of China and adjacent islands. Since 1st July 1997 it has become a special administrative region of the PRC. The Chinese government is responsible for its defence and foreign affairs, and also can influence its economic relations with the other countries. The financial system and tax policy remain under the governance of the local government. The national currency is the Hong Kong dollar that is fixed to the USD exchange rate (approx. 7,8 HK$ = 1 USD). The official language is Chinese and English is commonly used in the field of commerce and politics.
Hong Kong´s legal system is based on English law and it does not contain International Business Company term, not does it deal with the resident or non-resident company terms. Every company founded in Hong Kong is evaluated in the same way. Each of them has the possibility of using the local minimum taxation. Income tax is not imposed on income acquired by the business company outside Hong Kong, or if the income is transferred to Hong Kong. To this end, deferrals are not evaluated from a residency point of view, but based on the source of income.
The most common type of company founded is the limited company (Private Limited Company - Ltd.). The minimum share capital amount is not fixed for this kind of company, but the approved share capital is subject to a fee payable to the registry administrator to the amount of 0.1 %, while the usual sum of paid capital is 1 000 HK$. The share capital can be in any currency, while any later exchange of this currency requires the approval of the Supreme Court. The account books can also be conducted in a different currency to that of the share capital. A company can emit ordinary preferential shares, however, it may not emit bearer shares. Also, a Hong Kong company may not conduct business without having the relevant license as a bank, insurance company, foundation or trust. It may not sell its shares to the public, nor may it accept contributions from the public. The accounts have to be audited once a year by a nominated auditor, who must be a member of the Hong Kong Society of Accountants and they must subsequently be sent to the tax authority (Hong Kong Inland Revenue Department) and to the Commercial Register, together with the annual report.
Suitable conditions for international transactions:
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Legal form
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Ltd
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Time required to establish a company
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10 – 14 days
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Registry of executives / shareholders
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Accessible to public
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Basic capital / minimum paid capital
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1 000 HK$/ 2 HK$
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Minimum number of shareholders / executives
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1 / 1
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Executives – non-residents / legal entities permitted
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Yes / Yes
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Bearer shares / name permitted
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Yes /Yes
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Required registered agent / address
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Yes / Yes
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Required local secretary of the company / local General Assembly
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No / No (anywhere in the world)
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Submission of accounting reports / Annual report
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Yes/ Yes
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Obligatory audit / tax declaration
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Yes/ Yes
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Taxation of company income
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No
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Minimum yearly lump sum fee paid to the state
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350 USD
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Possibility to use the double-taxation agreement
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No
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