• Registering the company € 2995
  • Nominee Director € 950
  • Nominee Shareholder €950
  • Bank Account opening

Hong Kong Offshore Company Formation

Occupied by the United Kingdom in 1841, the city-state of Hong Kong was officially ceded by China the following year. Following an arrangement signed on 19 December 1984 between China and the United Kingdom, Hong Kong became the People’s Republic of China’s Special Administrative Region (SAR) of Hong Kong on 1 July 1997. In this contract, China pledged that it would not impose the socialist economic system of China on Hong Kong under its formula of “one nation, two systems” and that Hong Kong would enjoy a “high degree of independence” in all issues except overseas and defence relations for the following 50 years.

General Business Information

Hong Kong has a large capitalist economy characterized by a low level of taxation and free trade, as one of the leading global financial centres. In fact, Hong Kong’s currency is the world’s eighth traded currency since 2010.

For a range of reasons, Hong Kong offshore enterprise formation is an appealing location for global enterprises. Hong Kong is an appealing location for building an offshore business, as it does not impose taxes on revenues made outside of Hong Kong. Only profit gained in Hong Kong is subject to 16.5% corporate taxation under the territorial tax scheme.

Good to know about Hong Kong

  • Is a part of China
  •  Official languages: Chinese
  • Area: 1,108km2
  • Population: 7.482.500
  • Currency: Hong Kong dollar (HKD)
Favourable Tax Regime

The easy tax code of Hong Kong and comparatively small taxes make it one of the world’s most commercially friendly environment in the world. Foreign sourced profits are exempt. There is no tax on foreign capital gains, no withholding income tax and a comprehensive network of double tax treaties.

Favourable Business Environment

Hong Kong is always considered as one of the most favourable jurisdictions in the world for business. In Hong Kong, the benefits of doing business goes far beyond low taxes. The method of registering businesses is free from bureaucracy and red tape. Hong Kong’s company environment, including a highly advanced financial system, is extremely vast and can satisfy the most complicated security, monetary and digital finance requirements.

Trusted Image

Hong Kong maintains an image as a centre for legitimate global business, rather than simply being a location for money laundering and tax evasion, and it so because the system is transparent and clear. Although it is well known for its low tax and business-friendly rules, its reputation among tax and regulatory authorities overseas remains stable and respectable. Hong Kong needs the names of its shareholders and managers to be disclosed openly, distinguishing it from the notorious tax paradises and making proper supervision and regulation.

World Class Infrastructure

Hong Kong is home to one of the world’s busiest ports, with world-class infrastructure it is regarded as one of the world’s best place for business.

Public and Economical Stability

The clear and straightforward laws of Hong Kong are key to Hong Kong’s economy.  As such, they are likely to be maintained and stable over the long term. This contrasts with other jurisdictions, such as the Chinese peninsula, where regulatory adjustments and ongoing reforms are relatively frequent. This contributes to low legal and accounting costs and minimizes regulatory and policy risks.

Requirements for Offshore company formation in Hong Kong
  • Company Name Approval

You must submit an offshore company name and the name must be approved by the Hong Kong Register before the incorporation of the business is completed.

  • Director Requirement

It requires at least one director. As a company can be appointed director, a director does not need to be a human being. No maximum number of directors allowed.  There are no requirements for citizenship or residence. The director must be over the age of 18 and may not have been convicted of wrongdoing or filed for bankruptcy.

  • Shareholders

At least one shareholder must be allowed and up to 50 are allowed. An enterprise may be appointed as shareholder.

  • Company’s Secretary

A company secretary who can be either a local person or a corporate resident is legally mandatory. For this appointment, there are no professional qualifications required.

Share capital and Taxation

Share capital of any sum shall be included in the corporate bank account of the business for the creation of overseas enterprises in Hong Kong. On fiscal matters, corporate tax will only be imposed on revenues derived within Hong Kong at 16.5%. Profits from foreign or foreign sources are exempt from corporate taxation in Hong Kong.

Process to incorporate Offshore Company in Hong Kong
  • Submitting Documents

After successful approval of your company’s name, the following documents will be required:

  • Application file for Incorporation
  • Articles on Offshore Company
  • Resident directors and shareholders copy
  • Passport copy
  • Bank reference letter copy
  • Identity card copy
  • Overseas residential proof
  • Register with Inland Revenue Department

You must register with the Inland Revenue Department after one month of creation. This department is responsible for obtaining a certificate of business registration.

  • Business License

Before commencing operations or carrying out business activities in Hong Kong, you require proper business license.

Open Bank Account

For the formation of offshore companies in Hong Kong you can consider several banks.

  • File Documents with the Hong Kong Companies Registry

Within 14 days of incorporation the following documents must be submitted to the Hong Kong Companies Registry:

  • Notify your registered address
  • Appointment notification of directors and secretary
  • Consent to act as director