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Hong Kong Companies

Large multi-national corporations set up overseas companies to reinforce the competitive edge of the company 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.

We, G.C.S. , assist 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 company by using 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. In this way your operating costs are reduced substantially while you can enjoy the benefits brought to you by your Hong Kong company. 

One example of such benefits is that Hong Kong taxes are among the lowest in the world , and the tax system is simple. There is no capital gains tax, no withholding tax on dividends and interests, no collection of social security benefit, no sales tax or VAT and estate duty has been abolished. Profits derived from offshore business is exempted from tax. For a trading company, offshore business refers to goods sourced outside Hong Kong, such as China, Korea, Japan, Taiwan, etc. and shipped directly to overseas countries such ;as USA,Europe, Australia, Middle East, Africa, other Asian countries, etc. and vice versa. Under these circumstances, you can easily obtain tax benefits by booking such transactions in 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.


COMPANY INFORMATION

TYPE OF COMPANY FOR INTERNATIONAL TRADE AND INVESTMENT 

Private Company limited by Shares.

PROCEDURE TO INCORPORATE

Submission of Memorandum and Articles of Association and a Declaration of Compliance. A Notice of Situation of Registered Office is also required to be filed within fourteen days of the date of incorporation.

RESTRICTIONS ON TRADING

Cannot undertake banking or insurance activities or solicit funds from or sell its shares to the Public.

POWERS OF COMPANY 

A Hong Kong Company has all the powers of a natural person.

LANGUAGE OF LEGISLATION AND CORPORATE DOCUMENTS

Chinese and English.

REGISTERED OFFICE REQUIRED 

Yes, must be maintained in Hong Kong.

NAME APPROVAL REQUIRED

It is not possible to reserve a name.It is essential to check that there is no similar or identical name on the register, which would prevent the company being incorporated

SHELF COMPANIES AVAILABLE 

Yes.

TIME TO INCORPORATE

Approximately two weeks from the submission of documentation.

NAME RESTRICTIONS

A name that is similar to or identical to an existing company. A name that constitutes a criminal offence or is otherwise contrary to the public interest. A name that implies royal or government patronage.

NAMES REQUIRING CONSENT OR LICENCE

Building society, Chamber of Commerce, co-operative, imperial, Kaifong, mass transit, municipal, royal, savings tourist association, trust, trustee underground railway, bank, insurance, assurance, reinsurance, fund management, asset management and investment fund.

SUFFIXES TO DENOTE LIMITED LIABILITY

Limited.

DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES

No.

COMPLIANCE AUTHORISED AND ISSUED SHARE CAPITAL

The standard authorized share capital is HK$1,000. The minimum issued capital is two shares of ear value.

CLASSES OF SHARES PERMITTED

Ordinary shares, preference shares, redeemable shares and shares with or without voting rights.

BEARER SHARES PERMITTED

No.

OTHER SHARES PERMITTED

Deferred, founders and management shares.

TAXATION

Hong Kong is one of the few countries in the world that tax on a territorial basis. 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. 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 17,5 per cent. There is no tax in Hong Kong on capital gains,dividend sand interests earned. The principle of Hong Kong income tax is that it's a tax on income 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 an Hong Kong company's trading or business activities are based outside Hong Kong no taxation will be levied. The 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 HK.

DOUBLE TAXATION AGREEMENTS

Hong Kong has no double tax agreement with any country,with the ;exception of a limited treaty with the United States of America relating to shipping matters only. As Hong Kong taxes are  on a territorial basis, the income derived from a local company from outside Hong Kong will not generally suffer double taxation in HK.Many countries which tax their residents on a world-wide basis also provide their companies operating in Hong Kong with unilateral tax credit relief for Hong Kong tax paid on income derived in Hong Kong. The Hong Kong Inland Revenue 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. Withholding taxes, currently being 5,25%, are only  imposed on royalties paid to non-resident recipients not related to the payers. If they are related parties then a tax rate of 17.5% will be applicable.

LICENCE FEES

The Business Fee (BRF) is due and payable within one month from the date of incorporation and then annually on the anniversary of the first payment.

FINANCIAL STATEMENT REQUIREMENTS 

An Hong Kong company must keep accounting records, which have to be kept at the registered office address or elsewhere at the discretion of the directors. Every company must appoint &an auditor who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate.Although there is no requirement to file accounts with the Registrar, there is a requirement to file accounts with the tax authorities.