Hong kong

——

Overview

Hong Kong faces the South China Sea, 100 miles southeast of Guangzhou. According to the Sino-British Agreement signed in December 1984, Hong Kong returned to China on July 1, 1997 and became the Hong Kong Special Administrative Region of China (HKSAR). The Basic Law is the constitution of the Hong Kong Special Administrative Region, which provides for the maintenance of Hong Kong's independent political, judicial and economic systems. This is known as the "one country, two systems" policy. The governing body of Hong Kong consists of the Chief Executive, the Executive Council and the Legislative Council of the Hong Kong Special Administrative Region. The Chief Executive is elected by a 1200-member Election Committee; the members of the Executive Committee are appointed by the Chief Executive. Half of the members of the Legislative Council are elected by universal suffrage and the other half by indirect elections. The Basic Law stipulates that the ultimate goal is to achieve the election of the Chief Executive and all members of the Legislative Council by universal suffrage, but when it can be implemented remains to be seen.

Hong Kong's legal system is dominated by English common law, supplemented by local ordinances. Under the Basic Law, the English court system and English law (with the exception of the Court of Final Appeal replacing the Privy Council in London) remain unchanged for 50 years, except in matters involving threats to the People's Republic of China national security. A bilingual legal system is currently in place and the regulations have been translated into Chinese, but the English version still prevails. Hong Kong is an important business center for the entire Far East, offering a wide range of excellent professional services. The situation will remain unchanged for the foreseeable future.

The local currency is Hong Kong dollars and is freely convertible, the exchange rate to US dollars is fixed. Hong Kong does not have exchange controls and continues to be selected as the most open and easy place to do business.

Hong Kong itself is a major trading entity. Therefore, one of the biggest benefits of registering a Hong Kong company is that it is not immediately recognized as a tax avoidance vehicle. Hong Kong ranks tenth in the world in terms of imports and twelfth in terms of exports. The vast majority of companies incorporated in Hong Kong each year are local trading companies with physical business in Hong Kong.

Hong Kong has formally signed 29 double taxation treaties and is currently negotiating for the signing of another 10 tax treaties.

Companies Incorporated in Hong Kong

Companies incorporated in Hong Kong have the following characteristics:

Taxes

Tax rate is 16.5 per cent and is limited to Hong Kong source income. In fact, after careful organization, as long as Hong Kong companies have no actual business in Hong Kong and only deal with corporate affairs, they do not have to pay any tax. If necessary, we can provide relevant detailed suggestions.

Shareholders

Requires at least one shareholder and shareholder information is included in the public register. Corporate shareholders are acceptable, and in the case of shareholder representation, there is no need to disclose corporate shareholder information.

Director

And information about directors must be filed in the public registry. Hong Kong companies must appoint at least one natural person as a director. The Board need not convene in Hong Kong and the Directors may reside anywhere in the world.

Directors are legally responsible for the performance of the relevant provisions of the Hong Kong Companies Ordinance and the Inland Revenue Ordinance.

Annual Report

Are required to submit audited and complete financial statements, and all Hong Kong companies are also required to prepare and report annual earnings, which contain information on the current directors and shareholders holding shares during the reporting period.

Schedule

The incorporation of a Hong Kong company typically takes about five working days, there are ready-made companies available for immediate purchase.

Name and Activity Restrictions

Words relating to the Head of England shall not normally appear in the name of the company, and words denoting special businesses (such as banks, insurance companies and other special financial enterprises) shall be used only with the appropriate permission.

Local regulations

According to the local company law, the company must retain its registered office address under the jurisdiction of Hong Kong and must appoint a Hong Kong resident as the company secretary. The secretary shall not be the sole director of the company. We generally provide these services and the cost is included in the Domestic Service Fee.

Hong Kong Company Establishment Process