Hong Kong Investment and Residence focuses on Hong Kong Economic Trends: The Advantages of Hong Kong Companies
1. Company naming in Hong Kong is very flexible, with no restrictions based on registered capital. The name may include terms such as Group, International, Holding, Investment, etc. Additionally, the name can include preferred countries or place names, such as Asia, China, France, the United States, Hong Kong, Shanghai, and others. The company name can be in both Chinese and English or exclusively in one language, with the English name required to end with “LIMITED” and the Chinese name required to end with “有限公司”。
2. Shareholders and directors can be legal entities or natural persons. If a natural person serves as a shareholder or director, they must be at least 18 years old (no nationality restrictions). A director can also be someone other than a shareholder, and one person can be both a shareholder and a director.
3. There are no restrictions on the business scope of a Hong Kong company; it can operate any legal business without industry limitations.
4. There is no minimum requirement for registered capital in Hong Kong. The standard equity capital for a Hong Kong company is 10,000 shares, with a minimum of one share (no capital verification required); the capital is not reflected on the company’s registration certificate or business registration certificate. If the registered capital exceeds the standard equity capital of 10,000 Hong Kong Dollars, an additional stamp duty of one-thousandth of the increased capital portion must be paid to the government (similar to internal stamp duty). Registered capital does not need to be deposited into an account, and no verification is required.
5. The Hong Kong corporate tax rate is low with a limited number of tax types; generally, companies are only subject to profits tax at a rate as low as 16.5%. Importantly, profits tax is based on the source of income, meaning only profits generated or received in Hong Kong (i.e. sourced from Hong Kong) are subject to profits tax. Profits sourced from outside Hong Kong are not taxed even if funds are remitted into Hong Kong, but an application for tax exemption must be submitted to the tax authority; there are also no customs duties on the import of general goods, and the low-tax environment is conducive to development. Many international organizations take advantage of Hong Kong’s tax structure to achieve reasonable tax savings.
6. Hong Kong is a free trade port with unrestricted logistics. Generally, goods imported and exported are not subject to customs duties, and logistics via sea, land, and air are very fast. Funds can be moved freely; Hong Kong has no currency control, allowing for the exchange and movement of various foreign currencies at any time, without restrictions on fund transfers. Businesspersons often prefer to use the convenience of Hong Kong banks for handling letters of credit.
7. Hong Kong is an Asian financial center where credit is fundamental to developing WorldWay. Companies in Hong Kong can easily obtain international credit and financing. You can open a corporate account at a Hong Kong bank and use the bank’s credit to handle letters of credit with foreign business partners. Hong Kong's international status is significant; emerging enterprises often use Hong Kong's reputation to enhance their own branding and compete effectively internationally. Establishing a company in Hong Kong immediately allows you to share in the overall international image and status, enhancing your company’s competitive ability.
8. Hong Kong companies report their accounts and pay taxes once a year according to the accounting year; 18 months after registration, the company will receive a tax return from the tax bureau, with subsequent tax returns filed annually.
9. Hong Kong companies can open offshore accounts and local accounts. Hong Kong companies can establish foreign currency public accounts at major banks worldwide (for withdrawals, transfers, and deposits), and they can also open their offshore accounts outside of Hong Kong.