Hong Kong is by many conceived as one of the world’s most reliable and efficient financial centres, inter alia, due to its solid legal system and efficient transport/communication networks, thus, rendering it a likely choice for company formation. GFA TRUST is an expert in Asian jurisdictions and specifically Hong Kong.
The type of company formed is that of a Private Limited company (Ltd) with the incorporation process taking 4 to 5 days. The tax on offshore profits and exchange controls are non-existent.
Via Honk Kong’s principle of a territorial approach, when it comes to taxation, only profits which have a Hong Kong source are taxable hence all business transactions taking place outside Hong Kong are tax-free with no capital gains tax attached. Overall companies which are incorporated in Hong Kong benefit from its low and simple tax system, from its proximity with key regional markets and by the numerous banks available for the opening of global corporate bank accounts.
The jurisdiction’s Local Requirements are the existence of a Registered Office/Registered Agent which/who is to be located in Hong Kong, as also with the existence of a Local Company Secretary with certain restrictions in connection to the appointment of the Company Secretary (i.e. The sole Director of a Private Company, cannot, also function as its Secretary, etc). There is no obligation attached as to the presence of a local Company Director or a legal obligation that the meetings of the company take place in Hong Kong, as the location of the Board Meetings, can be placed anywhere in the world as also the company’s administration. The minimum number of Directors and Shareholders for a Private Limited Company is 1.
Public filings are obligatory both for the Director(s) and Shareholder(s) of the Company, hence, seldom safeguarding the Ultimate Beneficial Owner(s) identity from publicly disclosing their information. Furthermore the Annual Filing Requirements, of both submission of the company’s Annual Return and Audited Accounts, are considered as obligatory with the requirement that the first audited accounts be prepared within 18 months after the Hong Kong company incorporation.
The issuance of bearer shares is non-acceptable, neither company re-domiciliation is permitted. In contrast the acquiring of shelf companies as also the appointment of Corporate Director(s), provided the company is not a member of the list of the publicly held companies, is permissible.