Timeframe
It takes around four to six working days to do the incorporation by paper filing.
Simple and Efficient Tax System
Hong Kong features an uncomplicated yet effective tax structure consisting of only three primary forms.
01
Salaries Tax
Progressive rates from 2% – 17%
Set at progressive rates ranging between 2% – 17%; individuals submit yearly “Tax Return – Individuals” reporting total earnings paying due obligations accordingly.
02
Profits Tax
8.25% on first HK$2M, 16.5% above
Corporations are subject to a two-tiered profits tax rate in Hong Kong: first HK$2 million in profits taxed at just 8.25%, while profits above that would be taxed at 16.5%.
Unincorporated businesses (partnerships/sole proprietorships) enjoy a corresponding two-tiered rate of 7.5% and 15%
03
Property Tax
15% on assessed rental value
Property owners incur 15% tax based upon assessed rental values applicable whether commercial/residential excluding properties self-used.
No extra tax when you buy, sell, or own property
What You Don’t Pay in Hong Kong
In Hong Kong you benefit from favorable conditions including:
- × Absence of sales tax/VAT
- × No withholding taxes applied on dividends/interest
- × No capital gains tax imposed
- × No estate taxes
- × No tax on dividends
Setting up a company in Hong Kong
<p>To set up a company in Hong Kong is a very simple process. The most common set up of a company in Hong Kong is setting up a Private Limited company.</p>
Company Name
Name of the HK company should end with Limited in full. There are certain words which are restricted in Hong Kong; also, names should not be similar or identical to an existing company name.
Shareholders
A Hong Kong company should have one shareholder who could be either an individual or a legal entity; there is no restriction on the nationality of the shareholder.
Directors
Company must have at least one individual director who could be of any nationality. Corporate directors are possible provided that the company has one individual director Soe director of the company cannot act as the company secretary of the company.
Company Secretary
Every company must have one resident company secretary. Individual or corporate Company secretary is allowed. Company secretary should have a TCSP license obtained; if there is no license, the registry will need a valid reason as to why the company secretary does not have a TCSP license. We hold TCSP license and would be happy to provide Company secretary services to our clients.
Registered office
The registered office of the company should be based in Hong Kong. We normally provide registered office services to our clients.
Significant controller
Hong Kong companies must maintain a register of significant controller by naming who all will be significantly in control of the company. It could be either the shareholders or ultimate owners (who hold shares through nominee or another entity). A Trustee is also considered a Significant Controller.
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