Hong Kong Company Formation
Located on the southern coast of China, Hong Kong is an autonomous territory. The Hong Kong dollar is also one of the most traded currencies globally. The Registrar of Companies is the official body responsible for the registration and record keeping of new companies in Hong Kong.
Hong Kong limited liability company
1. Legal system
The Hong Kong legal system is built on the English Common Law.
Restrictions on foreigners
None, anyone can register a Cyprus company.
2. Timeframe for company registration
3. Share capital
The share capital may be denominated in any other currency. However, at the time of the company registration, at least one share must be issued. Bearer shares are prohibited.
Any company in Hong Kong is expected to have at least one shareholder, that may either be a body corporate or neutral person. The adoption of nominee shareholders is also allowed.
At least one director must be chosen as at the time of the company formation; this may be a neutral person or a member of another company. The directors may live in any part of the world, and professional directors are also allowed.
6. Shareholder and director meetings
Meetings between shareholders and directors may be held anywhere (even outside Hong Kong) and a telephone conference is legally permitted. Also, an annual general meeting (AGM) of the shareholders must be held annually, with corresponding meetings not held later than 9 months later. The company must hold its first AGM within the first 18 months of its incorporation.
7. Registered office
The company must occupy a registered office in Hong Kong, where it must keep all of its records and statutory registers. Important document regarding the company may be kept at another location, provided it is still in Hong Kong.
8. Company secretary
A company secretary who may either be a natural or company person must be selected. The secretary may reside in Hong Kong. Similarly, a secretary and sole shareholder is possible if someone else is appointed a director.
9. Financial statements
All companies in Hong Kong are mandated to prepare a yearly financial statement. Unless the company is a private company, a copy of its financial statement must be available to the public and be filed with the Registrar of Companies.
10. Annual filing and statutory obligations
The company is also required to file a financial statement and annual returns every year with the Registrar of Companies. Also, an annual tax return should be submitted to the Inland Revenue Department.
Companies that conduct business activities within Hong Kong are liable to Profit Tax on their net profit. Presently, the current profit tax rate stands at 16.5%. Interest, Dividends or other forms of income incurred by a Hong Kong company to a resident or non-resident of Hong Kong is not liable to any form of withholding tax.
12. Double tax treaties
Hong Kong has previously agreed numerous double treaties with other jurisdictions, however, certain conditions must be met before nay Hong Kong company qualifies for any of the merits of the treaties.