Hong Kong Offshore Incorporation

Hong Kong’s continuing success is largely due to a simple tax structure, low rates of tax, excellent infrastructure and the government’s firm commitment to free trade and free enterprise.

Features of Hong Kong IBC

• There is no minimum capital requirement.
• Shares can be issued with or without par value in a variety of forms and classifications and may include voting or non-voting, Preferential or Common etc.
• Shares may be issued for money or for other valuable consideration.
• Shares are issued in registered form only; Bearer shares are no longer permitted.
• Minimum one shareholder and one director are required.
• Shareholders, directors and officers need not be resident in Hong Kong and can be of any nationality.
• Directors and/or officers can be either corporate entities or natural persons
• Appointment of company secretary is required. The secretary, if an individual, should ordinarily reside in Hong Kong. For corporate secretary, its registered office or place of business should be in Hong Kong.

Merits of a Hong Kong company

Some of the key consideration in a Hong Kong company are:

• Simple and efficient setup
  Hong Kong is one of the most efficient places to do business in the world. Incorporating a Hong Kong company is fuss-free and simple. With it’s foreign ownership friendly policies, it allows the shares of a company to be 100% foreign-owned. There are hardly any hurdles from the authorities that hinder the setting up of Hong Kong company.
• Tax benefits
  The tax rates in Hong Kong are among the lowest in the world. It’s tax regime is simple and efficient and extremely favourable to offshore companies. Here are some highlights:
  • Corporate income tax rate is 16.5%.
  • No capitals gains tax, no VAT/GST, no estate duty, and no withholding tax on dividends or interest.
  • Foreign sourced income is tax-exempt. This means that a company that generates in income abroad has zero tax liabilities in Hong Kong.
  • No foreign exchange controls.
• Political stability
  Although Hong Kong is part of China, it is zoned as a Special Administrative Region. This means that it retains most of its political, economic and judicial systems of administration while it was British colony. As a result, Political and Economic Risk Consultancy (PERC) has rated Hong Kong second in the Best Bureaucracies of Asia.
• Positive Global Image
  Hong Kong a strong reputation as being governed by the rule of law. It has a strong commitment to international standards and practices. Instead of being mistaken as a tax haven, it is increasingly being recognized as a tax-efficient jurisdiction. The Hong Kong brand carries a strong favourable global recognition with none of the stigma attached to some other offshore jurisdictions.
• Speed of Incorporation
  The official processing time of the authorities is 4 working days.
• Favourable to foreign holding
  Directors, officers and shareholders may be of any nationality and may reside anywhere. The meetings may be held in any location or proxy if desired.

Some other considerations to take into account include:

• The corporate headquarters (where the records are kept) can be located in any country.
• Facsimile filing is permitted but the signature must be legible and accompanies the printed name and title of the signatory.
• Corporate documents may be executed by a single officer or an authorized personnel of the corporation. Notarization and consular approval are not required.
• Filing of Annual Returns and audit is mandatory for all Hong Kong companies and non-Hong Kong companies.
• There is no foreign exchange control.
• Competitive incorporation fees and license fees.
• The particulars and image records of the registered documents of the company are available for search on the date of incorporation of the company, including NC1 and AR1 and other forms related to changes of company particulars. The details of the shareholders, directors and officers are retrievable by the public.
• Ready-made shelf companies are available.

Overview of the Incorporation Process

Submission of the following necessary documents to the Companies Registry:

• Memorandum and Articles
• Copy of passport, overseas residential address proof, bank reference letter for non-resident shareholders or directors.
• Copy of Hong Kong identity card for Hong Kong resident shareholders or directors.
• Copy of parent company registration documents for corporate shareholders.
• Form NC1 for companies limited by shares.  In this event, identification documents as above are not required to be submitted.

Post-Incorporation Compliance

The usual processing time for incorporating a Hong Kong Company is 4-7 working days. Once incorporated, the following steps of compliance must be observed.

• Documentation Filing
  Upon incorporation, the following documents must be filed with the Companies Registry within 14 days:
  • Appointment notification of directors and secretary.
  • Consent to act as director.
  • Notification of company’s registered address.
  • Any other documents as may be required or mandated by the Companies Registry.
• Open a corporate offshore bank account
  It is easy to open global corporate bank accounts in Singapore or Hong Kong in most world currencies to support Hong Kong company formation. Rikvin works with internationally recognised banks such as HSBC, Standard Chartered, Citibank, UOB and DBS to provide Singapore corporate bank account opening service.
• Register with Inland Revenue Department
  A Business Registration Certificate is to be obtained within one month of incorporation. The Hong Kong offshore company must register with the Inland Revenue Department in order to obtain this Certificate.
• Apply for Business Licenses (if required)
  Where necessary, some businesses will require a license to operate. Our incorporation specialists will advise you on the necessary licenses and the guide you through the application process of these licenses.

Step 1 – Submit Incorporation order form.

Complete the order form on PRICING & SIGNUP tab above. Upon receiving your order, we will:

• Check your proposed company’s name availability
• Follow-up with you to clarify queries (if any) and advise accordingly
• Send you an invoice for our services.

Step 2 – Make Payment

Upon receiving the payment for our services, we will prepare the incorporation documents to be duly signed either in Singapore before us or overseas before Notary Public.

Step 3 – Incorporate Company

Upon the signing of the incorporation documents, we will proceed to register the Hong Kong Company. Once the company has been incorporated, you may proceed to open a corporate bank account.