Company Formation Services

Why forming a new company in Hong Kong?

Hong Kong, Asia’s most popular city for international business is a city that works. This city is an excellence choice to setup a business as it is one of the world’s major trading and financial centres, has a simple tax system and a low tax rate. The city only imposes on 3 major taxes – on profit, salaries and property.

Furthermore, Hong Kong was the second largest recipient of foreign direct investment in Asia in 2010 and the third lowest tax in the world. As per 2010 Annual Survey from HKSAR government Census & Statistics Department, Hong Kong is the best location for regional operations and good infra-structure links across Asia Pacific. As income which does not have a Hong Kong source continues to be exempt from tax, the structuring benefits of Hong Kong are obvious.

Gateway to China

As China has entered the World Trade Organization, there is increasing demand for thedevelopment of new enterprises in Hong Kong as well as China. Hong Kong’s renowned freeeconomy and internationally business environment continues to provide a safe, familiar, faster and smarter route into Mainland China for overseas businesses. Today, over 3,000 internationally minded Mainland Chinese enterprises are based in Hong Kong.

Third lowest tax in the world:

  • 16.5% profit tax
  • 15% salary tax
  • No sales tax or VAT
  • No dividends tax
  • No capital gains tax
  • No Withholding tax
  • No individual’s estate tax

Other Advantages of opening Hong Kong company:

  • Political stability
  • pro-business governance
  • High degree of name use and business freedom
  • trust deed protection and hidden of ownership
  • English and Chinese are the official languages of business
  • Free market principles
  • Free flow of information
  • Free currency flow and free trade
  • Low business risk
  • Business friendliness
  • No exchange control
  • Cosmopolitan lifestyle in terms of social networking, language, housing, transport, shopping,nightlife, art and culture, sport, health care, schools, weather, safety, work life balance, etc

Company Formation Services in Hong Kong:

Skyplan Group can facilitate the smooth set up of a Hong Kong business for you:
We aim to give advice to overseas companies and let them make an informed choice and help company to setup as well as to expand their business in Hong Kong in order to be more competitive and make more profit. Besides, we want companies to succeed and minimize their risk by using Hong Kong as a business center to access their business opportunities in China and across East Asia.
We can help our clients on a long term basis and help at any stage of their business development process in Hong Kong. For example:

  • Recruitment / hire staff
  • Housing ( Office / Residential premise)
  • Investment

Company Formation in Hong Kong

Before a decision is made to start a new business, the various types of business organizations mustbe considered. If a choice is made to carry on a business in the form of a company registered under the companies ordinance, then before the company is incorporated the type of company needs to be decided. Consideration should also be given to whether it would be more beneficial to buy a ready-made company (‘shelf company’) than to go through the procedure of forming a new company.

Types of companies can be classified into the following types:

  • Limited company
  • Unlimited company
  • Private company
  • Public company
  • Listed company

Most of the limited companies incorporated in Hong Kong are private companies limited by shares.

Company Formation requirements

  • A Hong Kong private company (limited liability company) requires one shareholder, one director, a Hong Kong address (registered office) and one company secretary.
  • All this information is a matter of public record in Hong Kong, i.e. anyone can search for and find the information.
  • Only the company secretary needs to be from Hong Kong.
  • The director and shareholder can be another company (corporate), over 18 years old and can be of any nationality, whether a company or an individual.
  • If the company has one director only, the sole director cannot be the secretary of the company at the same time.
  • A non-Hong Kong resident can be appointed as a director.
  • If the secretary is an individual, he/she should ordinarily reside in Hong Kong. If the secretary is a body corporate, its registered office or place of business should be in Hong Kong.
  • The registered office of the company must be situated in Hong Kong.
  • There is no requirement for shareholders to be Hong Kong residents. The sole shareholdercan be a director of the company.

Processing time

Hong Kong company formation incorporation time is approximately two weeks once we receive the completed incorporation documents from you. If a shelf company (or ready made) company is acquired, the registration process can be reduced by a week, with the company itself being ready within as little as one day.

Share Capital

The minimum share capital is 1 x HK$1: there is no maximum amount.

Most private companies have an authorised share capital of HK$10,000 divided into 10,000 shares of HK$1 each with an issued share capital of between HK$1 and HK$100.