hongkong.gif (982 bytes)Hong Kong
General:

Hong Kong was a British colony until 1997, and its retains its English common law background. Its legislative system is based on the prior British legislative system; its legal system is also firmly British based. It is extremely stable and has managed to escape most of the recent economic problems of South East Asia. It has the largest container port, and it is the largest location for trading with China. It is a top ranking financial center internationally, very well served by its infrastructure, location, local financial services industry, and its professional services. Due to its commanding trade identity, it is not viewed as a tax haven by other tax authorities: the majority of its approximately 50,000 local companies are actively engaged in trade. English is widely used in business, and also often used socially. Most local Chinese business people and professionals speak English well.

It is possible to create or obtain a local company presence either by registering an existing foreign company in Hong Kong, or by forming (or buying) a Hong Kong company.

Hong Kong Companies:

Hong Kong companies can take several weeks to incorporate, but NACS sells off the shelf Hong Kong companies.

Buying an off the shelf company:

NACS offers off the shelf companies upon request. Name changes can be accomplished rapidly.

Company name guidelines and restrictions:

The name must be in the Latin alphabet, any name can be chosen provided it is not already in use, it is not obscene, and it does not imply insurance, banking, royal, or governmental related operations or sponsorship. It may end with the usual designation to indicate limited liability: "Limited", or Ltd.). Names implying or conveying an involvement in banking or insurance operations require consent.

Capital Requirements:

No minimum level required.

Local Registered Office Requirements:

A Hong Kong company must always maintain a registered office (and not just a Post Office Box) in Hong Kong, and must appoint and retain a Hong Kong resident as the company's registered agent. NACS provides these services for a fee.

Annual Company License:

This is acquired at the beginning and must be maintained annually thereafter. The annual license fees vary with the share capital of the company. Annual license fees not paid on time incur penalties.

Director Requirements:

A minimum of one director must be appointed and maintained (who can be corporate directors ¡V which can be supplied by NACS). Meetings can be held anywhere. There is no residence or nationality requirement.

Shareholder Requirements:

1 subscriber is the minimum. A register of the HK Company's shareholders must be filed in the company registry: ownership anonymity can be achieved by using nominee shareholders (which can be supplied by NACS).

Company Secretary Requirements:

A company secretary must be appointed for the company and must be a HK resident. NACS normally will perform this function, for a fee.

Share Types Allowed:

Registered shares are permissible; bearer shares are not permitted.

Taxation Requirements:

There is a 17.5% tax on all income sourced in Hong Kong. Other income is not taxed.

Exchange Controls:

There are no exchange controls.

Reporting Requirements:

Company financial accounts and an annual report are required to be filed annually.

Secrecy:

No explicit secrecy legislation for Hong Kong companies, but English law places a clear and heavy responsibility on professionals to keep their client's affairs confidential.

Annual Tax/Filing Fee:

There is a minimum annual business registration fee of US$ 334.00, which is subject to change each fiscal year on 1st April.

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Summary Corporate Requirements:
Capital Standard authorized: HK$10,000.00 Registered Office/Agent Yes
Min. Number of Shareholders
               One
Company Secretary Required Yes (local)
Min. Number of Directors
               One
Local Meetings Required No
Corporate Director Permitted Yes Gov't Register of Directors Yes
Bearer Shares Permitted No Gov't Register of Shareholders Yes

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Annual Reporting Requirements:
Annual Company Return Yes Annual Audited Accounts Reported Yes

Annual Profits

Tax Return Filing

Yes    

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NACS Services Available:

Director/Company Secretary

Banking services

Office facilities and services available (address, telephone number, fax, mail handling, etc.)