HK is located at South- east of the South China Sea.The three main regions are HK Island, Kowloon Peninsula and New Territories.As one of the world's leading international financial centers, HK has a major capitalist service economy characterized by low taxation, free trade and currency in the world. Hong Kong has no restriction on foreign exchange and trade, and there is no Withholding Tax (WHT).
In HK, Geographical concept has always been the main basis for the profit taxation, it is only taxable on the profit gain in HK. HK Taxation is one of the best systems for business. In 2018 HK became two-tiered profits tax rates for the first $2 million of assessable profits will be 8.25% above $2 million will be subject to the rate of 16.5% and 15% of Individual Income Tax. There is no Value Added Tax, Sales Tax, Capital Gain Tax, Dividend Tax, Dividend Withholding Tax and Interest Income Tax. In HK, the common types of conducting business are Limited Company, Partnership and Sole Proprietorship. Generally, most of the foreign investors set up Limited Company, which is required to submit tax return and annual report every year.
Key Features
A HK company is incorporated under CAP 622 Companies Ordinance.
| 1. |
Company name can be included both Traditional Chinese and English, and the English company name must end with (Limited). |
| 2. |
Minimum 1 director and shareholder, can be individual or corporation. At least I director must be lindividual. |
| 3. |
Local secretary (individual or corporate) and local registered office (physical address) are required. |
| 4. |
HK Government allows foreigner to fully-owned a HK company. |
| 5. |
Details of the company's director, shareholder and secretary must be filed at the Company Registry and are disclosed on HK Government website to the public. |
| 6. |
HK company is required to file annual tax return to Company Registry. Penalty is imposed for late filing. |
| 7. |
With no other tax systems such as CAT, sales tax, capital gains tax, etc. |
| 8. |
The company must renew their Business Registration Certificates annually.
|