Hong Kong incorporation services
Introduction
Large multi-national corporations set up overseas companies to reinforce the competitive edge of the as a whole, and hence maximize profitability. For example, they can reduce taxation expenses legally by booking some incomes to lower taxation regions, such as Hong Kong, which we rate as one of our top 10 countries to incorporate. Established in 1989, we take pride in helping you with our Hong Kong incorporation services.
TBA assists small and medium size corporations and individuals to set up their companies and bank accounts in Hong Kong, through which they can enjoy the privilege as large corporations.
After you set up your company in Hong Kong, it is not a must for you to stay here while you can remote control your Hong Kong company by making use of our all-round office back up services selectively to meet your business requirement. You do not need to employ any staff or rent an office. It is just like our staff is your staff and our office is your office. As such, your operating costs are reduced substantially while you can enjoy the benefits brought to you by your Hong Kong company.
Freest economy in the world, no foreign exchange control, low taxes and simple tax system, major financial center, English common law legal system, prime geographic location, gateway to China, business orientated culture, free flow of information and world class infrastructure on the whole make Hong Kong a business platform that you cannot miss. If you are engaged in trading business connected with Asia, it is already worth for you to consider forming a company in Hong Kong.
Our company was founded in 1998 and has been providing six major lines of services in Hong Kong and China, namely:
- Formation of company services
- Company secretarial services
- Accounting and taxation services
- Trade supporting services
- Application for visa and other certificates services
- Financial consulting services
Services include but not limited to the following: company secretary; nominee shareholder/nominee director; registered office address; temporary virtual office; opening of bank account; accounting and statutory audit; preparation of management account; tax advice; filing of tax return.
Please feel free to contact us for any query you may have and we can discuss in more details how our services can assist you to maximize profitability.
Why Hong Kong?
Reliable banking system
HK, being an International Finance Centre & a Tax Haven, has a lot of branches of major international banks which are trustworthy and have a lot of branches all over the world. HK banks will only need a passport copy and the address of the client to comply with the HK law, which also requires that no HK banks can disclose their clients’ details to any one without their permission. We always assist our clients to open bank accounts with a major international bank in HK.
HK-established legal system
HK has a well-established legal system, which is based on the English legal system.
Genuine trading
HK has a lot of genuine trading activities. Therefore an offshore company with a HK correspondence address will have an advantage over those without a HK correspondence address.
No exchange control
HK has no exchange control. Money can be deposited, withdrawn or transferred out of a HK bank account freely without paying any taxes, including withholding taxes.
Confidentiality
All banks in HK are under the HK law, not to disclose any customer’s information to any one without the customer’s prior consent, except if the customer is suspected for money laundry or criminal offence, or the HK Inland Revenue Department suspects that he/she has evaded HK taxes (not taxes in other countries). Further the HK Inland Revenue Department is not allowed by the HK law to disclose any information to any one, including local or overseas governments.
Better communication
We provide mail forwarding service & telephone/fax service (with or without dedicated telephone line & answering in your company name) with all voice/fax messages sent to you by email.
A HK company provides a HK telephone number for tape recording of telephone messages and receiving fax at reasonable fees (please see attached sheet). All voice and fax messages will be automatically forwarded to your designated email address.
Simple procedures
Formation procedures for offshore companies are simple. There is no need to come to HK for company formation or opening of HK bank accounts, and the bank accounts can be operated at overseas without coming to HK.
General information
Population
About 7 million.
Political structure
The future of Hong Kong
Exchange control
None.
Type of law
Infrastructure and Economy
Language
Currency
Principal corporate legislation
Company information
Type of company or international trade and investment
Procedure to incorporate
Restrictions on trading
Powers of company
Language of legislation and corporate documents
Registered office required
Name approval required
Shelf companies available
Yes.
Time to incorporate
Name restrictions
Names requiring consent or license
Suffixes to denote Limited Liability
Disclosure of beneficial ownership to authorities
No.
Compliance
Authorised and issued share capital
Bearer xhares permitted
No.
Other shares permitted
Financial statement requirements
License fees
Double taxation agreements
The Hong Kong Inland Revenue Department allows a deduction for foreign tax paid on a turnover basis in respect of income which is also subject to tax in Hong Kong. Therefore, businesses operating in Hong Kong do not generally have problems with double taxation of income.
The respective comprehensive double tax agreements with Canada, Jersey, Kuwait, Mexico and Quatar will become effective from 1st April 2014 to relieve the applicable double taxable on various incomes.
Classes of shares permitted
Ordinary shares, preference shares, redeemable shares and shares with or without voting rights.
Taxation
Many countries levy tax on a different basis and they tax the world-wide profits of a business, including profits derived from an offshore source. Hong Kong profits tax is ONLY charged on profits derived from a trade, profession or business carried on in Hong Kong. Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. Hong Kong sourced income is currently subject to a rate of taxation of 16.5%. There is no tax in Hong Kong on capital gains, dividends and interest earned.
The principle of Hong Kong profits tax is that it is a tax on profits that has its source in Hong Kong rather than a tax based on residence. Income sourced elsewhere, even remitted to Hong Kong, is not subject to Hong Kong profits tax at all. Consequently, if a Hong Kong company’s trading or business activities are based outside Hong Kong no taxation will be levied.
A factor that determines the locality of profits from trading in goods and commodities is generally the place where the contracts for purchase and sale are effected. ‘Effected’ does not only mean that the contracts are legally executed. It also covers the negotiation, conclusion and execution of the terms of the contracts.
If a business earns commission by securing buyers for products or by securing suppliers of products required by customers, the activity which gives rise to the commission income is the arrangement of the business to be transacted between the principals. The source of the income is the place where the activities of the commission agent are performed. If such activities are performed through an office in Hong Kong, the income has a source in Hong Kong.
Certain sums, like royalties, paid or payable to non-resident persons for use of or right to use certain intellectual property are subject to withholding tax. The payer who claims deduction for the use of the intellectual property against its assessable income is required to withhold a prescribed percentage from the payment while that recipient is not subject to Hong Kong profits tax. The prescribed percentage is 4.95% on the gross payment if the payer and the recipient are not related, but 16.5% if the payer and recipient are related. The recipients of the royalties may enjoy different treaty rates under double taxation agreements.
Our company licensing services
— What we do and do not do
Our company is EXCLUSIVELY engaged in assisting worldwide clients, either individuals or corporate entities, to get duly and properly licensed with local Regulators and Financial Authorities to get respective official licenses to legally carry out their cryptocurrency or financial related business activities.
TBA & Associates Tax Business Advisors does not provide or carry out any sort of Cryptocurrency or Financial services!
Disclaimer: While TBA & Associates strives to make the information on this website as timely and accurate as possible, the information itself is for reference purposes only. You should not substitute the information provided in this article for competent legal advice. Feel free to contact TBA Customer Services for advice on your specific cases.