Company Incorporation
Hong Kong possesses a sound legal and taxation system; contract payments received are not subject to foreign exchange controls and can flow freely. Offshore income can enjoy tax exemptions. Along with the "Belt and Road" initiative, which unleashes the massive economic development potential of over 60 countries along the route—especially the potential opportunities in Mainland China and ASEAN countries—new business opportunities are brought to large, medium, and small enterprises. Incorporate a Hong Kong limited company early to expand your overseas business and unlock infinite business opportunities!
Incorporating a Hong Kong Company
- Many foreign-invested enterprises conduct trade business with domestic enterprises. Due to foreign exchange control or taxation issues, foreign-invested enterprises will set up a Hong Kong company to easily resolve these foreign exchange and taxation issues.
Company Name
- According to Hong Kong's Companies Ordinance, a new company cannot be incorporated using a company name that is already registered;
- The Companies Registry accepts company names in Chinese, English, or a combination of both Chinese and English.
Characteristics of a Hong Kong Limited Company
- There are no nationality restrictions for shareholders and directors;
- The minimum statutory requirement is one shareholder and one director, and corporate shareholders and directors are permitted;
- Clients must provide copies of their identity documents and proof of residential address for company registration purposes;
- A company secretary must be appointed and a registered office address in Hong Kong must be provided (Axe Group can provide this for a fee);
- A company with share capital must set a par value for its shares;
- The minimum number of shares that can be issued is 1 share, equivalent to HKD 1.00 net; and
- Currently, the first 2 million of profits can enjoy a profits tax concession of 8.25%.
Offshore Companies
Compared to the incorporation of an ordinary company, the confidentiality of company information is the main advantage of an offshore company. In addition, the government of an offshore jurisdiction only collects an annual government fee from the offshore company, and the company can enjoy tax exemptions; this is also the primary distinction between an offshore company and an ordinary company.
Advantages of Registering an Offshore Company:
- Expand cross-border business and enhance corporate image
- Facilitate investment and financing; the first step to listing overseas
- Convenient registration procedures
- Legitimate tax planning
- Simple company management
- Confidentiality of company registration data and documents
- Effective protection of assets
- Facilitate international trade
- No restrictions on investors, shareholders, or directors
- No restrictions on business scope