Hong Kong Companies

Hong Kong companies are sought after trading entities for entry into Asian markets. Hong Kong is a fast growing international financial centre and is closely associated economically, socially, and politically with China which is the world’s second largest economy after the United States of America. Incorporating a Hong Kong company can thus be beneficial if seeking to position oneself in any of these markets or Asia’s emerging economies.

Hong Kong companies are considered as ideal for both international and local business in that they are regulated to operate as nonresident or resident entities. A distinction does not exist between offshore and domestic entities in terms of structure, but the absence of taxation on the revenue generated by a Hong Kong company that conducts its business solely offshore makes the use of a Hong Kong company beneficial in many ways.

Hong Kong company formation is promoted by the country’s success as a financial centre for Asia. As a the leading international financial centre in this region for many years, Hong Kong continues to appeal to businesses and investors that wish to be part of the move towards financial integration within Asia. Using a Hong Kong company to attain this goal can facilitate entrance and quicker acceptance into these markets, based on the fact a Hong Kong company is already compliant as a legal structure for doing business.

Incorporation services for Hong Kong companies are equally available to local residents and nonresident foreign nationals. With the exception of licensing and work permit requirements, non residents are treated equally where the ownership of a Hong Kong company is concerned. As a result, a Hong Kong company, whether owned by locals or non nationals, operates under a single tax and regulatory regime.

This treatment is across the board regardless a company’s capital structure, as a company limited by guarantee, a company limited by shares or a company with unlimited liability, which are the three forms that a Hong Kong company may be structured into. Ownership by a corporate entity or natural person also does not affect the tax or legal treatment of Hong Kong Companies which can be incorporated by one or more legal entities or natural persons.

Hong Kong enterprise construction, same as Dominica company formation, is administered and supervised by the Business Registration Office of the Inland Revenue Department. Incorporation procedures are very similar to those at common law, with companies all being required to submit their Articles with the names and signatures of the members. The Articles of a Hong Kong company comprises the Memorandum and Articles of Association and set out objectives, share capital, rules of membership and ownership, members’ rights, powers and duties.

As a general rule, bearer shares are not allowed. However, shares with or without right to vote, ordinary and preference shares, redeemable shares and registered shares can be issued by Hong Kong companies, among others.

Besides the Hong Kong Company, businesses can be established as branches, sole proprietorships and foreign companies. Company incorporation of any of these depends on the intentions and preferences of a business and whichever of these corporate forms best suits its needs.

Hong Kong companies are however required to file annual accounts, appoint a local secretary and registered address. A local secretary can be either an individual or corporate entity that is authorized to offer such secretarial services. Hong Kong companies that do operate only offshore are not required to file annual returns. To care of this, a company must file a Declaration of ‘No business in Hong Kong’ to make it clear that the company does not trade or do business in Hong Kong.

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