By Vlad Cuc, specialist in company formation matters
Hong Kong is a top financial hub and at the same time one of the most competitive economies in the Asia-Pacific Region occupying top positions in the most prestigious surveys in 2016. Among these, the Global Competitiveness Index and the Ease of Doing Business Report placed Hong Kong among the first countries in the world in terms of economic development.
Foreign investors seeking to open a company in Hong Kong can choose between several types of structures. However, the most common one is the Hong Kong limited liability company. This type of entity is also used to open offshore companies in Hong Kong.
Our Hong Kong incorporation experts can assist foreign investors who want to register any type of company here.
There are two ways of starting an offshore company in Hong Kong:
No matter the option of the enterpriser, both types of structures have their own advantages which can be explained by our company registration agents in Hong Kong.
As mentioned above one of the two methods used by foreign investors who want to open an offshore company in Hong Kong is to register a new company with the Companies Registrar in this country. In order to open an offshore company in Hong Kong, the following requirements must be met:
The shareholder can be an individual or a company. Also, if there are no restrictions on the residency of the director and the shareholder, the secretary must be a Hong Kong resident. However, it is also possible to appoint a local company as a company secretary and our company formation representatives offer nominee secretary services in Hong Kong.
If the requirements above are met, the foreign investor or company can proceed with the company registration process of the offshore company. However, one must appoint a local firm or representative who carries out the incorporation procedure.
The following documents are required when opening an offshore company in Hong Kong:
In the case of corporate shareholders, the certificate of incorporation of the company will be required. The company must also have an original name which can be checked with the Hong Kong Trade Register. In maximum 14 days after the company was registered, the owners must notify the Trade Register about the offshore company’s address in Hong Kong and the appointed directors and secretary. Declarations from the last two must also be submitted with the Companies Registrar.
Our Hong Kong company formation consultants can assist with the company registration procedure for offshore companies. We can offer you additional information about these steps as well as personalized information according to the business field in which you wish to enter and the type of company that will be incorporated.
The second option for foreign investors who are interested in opening an offshore company in Hong Kong is to buy a ready-made company. The greatest advantage of Hong Kong shelf companies is that they come registered and with all documents and appointed personnel. However, the owner can amend the incorporation documents and can also replace the director and the secretary, if needed.
In order to purchase a shelf company, the owner and the seller must sign a sale-purchase agreement before a notary. The Companies Register will then be notified about the new owner. Our company registration agents in Hong Kong offer already registered companies tailored to the clients’ needs.
One of the main reasons to choose Hong Kong as an investment destination for registering a new or an offshore company is the Commercial Law which is based on the English legal system and the low corporate tax rate which is around 16,5%. It should also be noted that an offshore company will only be taxed on the income it makes in Hong Kong. In case you need to calculate your taxes in Hong Kong, do not hesitate to use our tax calculator. Considering Hong Kong allows the use of nominee shareholders, privacy is also an important aspect to consider when choosing this country to register an offshore company.
For personalized consultancy please feel free to contact our local specialists in Hong Kong company formation matters. If you happen to be in need of professional company incorporation services in Montenegro we can put you in touch with our partners.
The openness of the business environment, the ease of doing business and opening a company and the fact that it is an international financial center are also strong reasons why investors should choose Hong Kong as their location to base their Asian business. What’s more, a special advantage for trade businesses is that Hong Kong has a free-port status.
Please ask our company formation specialists in Hong Kong for more details about setting up your business here or reach out to our partners who are lawyers in Hong Kong for various legal inquiries.
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