Company Formation

Using Hong Kong Limited Corporate Structures in International Tax Planning holding Companies Introduction Choosing the location of holding company or regional holding company can be a daunting decision for many international structures. The minimization of tax, cost and risk are the main concerns. Hong Kong Limited with the robust economy of China, coupled with the accession of China and Taiwan into WTO, much interest has been seen in investing in the Greater China or even the Asia Markets.

Some Hong Kong Limited investors may prefer to set up appropriate holding structures within Asia. Criteria for Choosing a Suitable Jurisdiction for Holding Companies Low Cost and Risk Considering cost and risk, a favorable jurisdiction for setting up holding companies should have the following characteristics: There is no minimum capital requirements. Except in case of public companies, there is no requirement to file accounts with the company house, thus avoiding financial information being available to the public

Ease of setting up, relocation and dissolution when the company is no longer needed; when forming Hong Kong Limited to possess some forms of investor protection agreements with major trading nations. Favorable Tax Rates Considering tax, there should be. No tax on the income earned by its foreign subsidiaries, or the income of the holding company is exempted from any form of taxes.

Furthermore, withholding tax on distribution and non-resident shareholders can receive dividends without tax No or low Capital Gains tax on disposal of interest in the subsidiaries. Possess a wide network of Double Taxation Treaties to reduce the tax on dividends, interest and royalty received from treaty countries. Hong Kong Limited Other Factors Other factors include: Stable government and definite government policies. Free flow of capital and a stable currency. Image of an international financial centre. Ease of listing and raising of capital. Not all jurisdictions provide all of the above features. Those which come close to the list are, in Europe: United Kingdom, Portugal, Netherlands, Demarks, Luxembourg, Belgium, Cyprus; in Asia: Singapore and most notably Hong Kong Limited.

Coming to HK

Welcome to Hong Kong Limited!  Below are some of the basic facts about the dynamic and vibrant Hong Kong Limited Special Administrative Region that is your new home. The HKSAR came into being in mid-997 when sovereignty of the territory was returned to the People’s Republic of China, and comprises three main areas, Hong Kong Island, urban Kowloon and the New Territories with its many modern New Towns.

Apart for detecting smuggling, the Customs officers may also conduct a personal search on you.  A personal search is the search of persons or personal belongings, the extent of which varies from emptying pockets without taking off any clothing to viewing of external part of body cavity. Hong Kong limited says When a Customs officer selects you for a personal search, it doesn’t mean that you are accused of committing a crime.  Be patient and follow the instruction of the Customs officers who have the knowledge and experience in detecting drug smugglers in action.  Hong Kong limited during the search, you have the right to request an interpreter and consular assistance Hong Kong limited.  You may also request a third party to witness the search.  If you are not satisfied with the services of the Customs officers, you may complain to their supervisors.

You must get a Hong Kong limited Identity (ID) card within 30 days of your arrival in Hong Kong.  Your first ID card is free. To get your ID card, apply at the Registration of Persons Office of the Immigration Department as listed below.  Remember to take along your passport or other travel documents Hong Kong limited.

Ideas About Hong Kong Limited

The mainland and Hong Kong limited agreed to further liberalise the mainland market for Hong Kong companies under the third phase of the Mainland and Hong Kong Closer Economic Partnership Arrangement (CEPA III). Along with other products of Hong Kong origin, the mainland agreed to give all products of Hong Kong limited company origin, including clothing items, tariff-free treatment starting from 1 January 2006.

Previously according to the stipulated procedures, products which have no existing CEPA rules of origin, will enjoy tariff-free treatment upon applications by local manufacturers and upon the CEPA rule of origins being agreed and met. But non-Hong Kong limited company made clothing products will remain subject to tariff rates of 10-25% when entering the mainland. The promulgated rules of origin for clothing items to benefit from CEPA’s tariff preference are basically similar to the existing rules governing Hong Kong limted exports of these products. Generally speaking, the principal manufacturing process of cut-and-sewn garment is sewing of parts into garments.

Hong Kong limited company and Hong Kong services if linking and/or stitching is/are required, such process/processes must also be done in Hong Kong. For piece-knitted garment, if it is manufactured from yarn, the principal process is knitting of yarn into knit-to-shape panel. If the piece-knitted garment is manufactured from knit-to-shape-panels, the principal process is linking of knit-to-shape panels into garment. If stitching is required, it must also be done in Hong Kong limited.

Company Registration and Insolvency Administration

The The Hong Kong Limited Companies Registry is responsible for administering and enforcing the provisions of the Companies Ordinance and related legislation. Its primary functions include the registration of local and non-Hong Kong Limted companies (i.e. companies incorporated outside Hong Kong which have established a place of business in Hong Kong); the registration of statutory returns and documents required by the various ordinances administered by the Registry; the provision of services and facilities for members of the public to inspect and obtain company information held on the various statutory registers; the deregistration of defunct, solvent private companies; and advising the Government on policy, regulatory and legislative issues regarding company law and related legislation, corporate governance and other matters affecting the commercial sector. As at December 31, 2009, there were 772 253 local companies on the register comprising 9 991 public and 762 262 private companies.

The time required for the registration of a new local company is four working days. As at December 31, 2009, 7 912 non-Hong Kong limited companies from 81 countries were registered. The time required for the registration of a non-Hong Kong company is 14 working days. In 2009, 1 695 167 documents were received for filing, of which the most common were annual returns and forms notifying changes of the address of registered office, directors and secretary of a company. On average, it takes six working days to register a document. capital, particulars of current director(s) and reserve director (if any), particulars of secretary, particulars of receiver and manager and liquidators (if any), and a charges indicator.

Trading Fund Status: The Registry is a government department which operates on a trading fund basis; meaning that it is required to fund all its expenditure out of the revenue received. The Registrar of Companies is the General Manager of the Hong Kong limited Companies Registry Trading Fund. She is accountable to the Permanent Secretary for Financial Services and the Treasury (Financial Services) for managing and operating the Registry’s business and achieving its performance targets and financial objectives. The trading fund’s annual report and the Director of Audit’s report on the accounts are tabled in the Legislative Council each year.

Enhancement of Services and Future Development: Presently the Registry is implementing an Integrated Companies Registry Information System (ICRIS) in two phases to fully computerise its core business activities and enable electronic delivery of services. Electronic search services developed under Phase I were launched on February 28, 2005. Phase II, which includes the provision of electronic services for company incorporation and document registration and one-stop service for Hong Kong limited companys.