何德生會計師事務所 香港執業會計師

 

HO TAK SANG & CO., Certified Public Accountants, Hong Kong

 

 

 

---

 

 

中文繁體

 

中文简体

 

About Us

Our Services

Useful Information

Contact Us

 

 

 

Useful Information

w            The first step in setting up a business in Hong Kong

w            Establishing a limited company in Hong Kong

w            Alternatives to limited companies

w            An overview of the Hong Kong Tax System

w            Current tax rates

w            Minimizing tax burden

 

 

 

The first step in setting up a business in Hong Kong

 

A person of any nationality, of the age of 18 or above, can set up a business in Hong Kong.

 

The first step in setting up a business in Hong Kong entails the choice and the registration of the suitable form of business entity, including a limited company, a proprietorship or a partnership. In addition, a corporation registered outside of Hong Kong may conduct business in Hong Kong by setting up a branch in accordance with the relevant regulations.

 

We make recommendations for the most suitable form of business entity, and take care of the registration process.

 

 

Back to top

Establishing a limited company in Hong Kong

 

A limited company has to be registered in accordance with the Companies Ordinance and Business Registration Ordinance.

 

The followings are information required for the setting up of a private limited company in Hong Kong:-

 

1.        Name of the Company (in either English or Chinese or in both) to be incorporated, which must NOT be the same with an existing company incorporated in Hong Kong.

 

2.        Structure of Share capital

w            Authorized Capital – Number of shares and nominal amount of each share

(normally 10,000 shares of HK$1 each are registered); and

w            Allocation of shares among shareholder(s)

 

3.        Name, Address/Registered office of the followings are required:

 

a.       1 or more shareholders

b.      1 or more directors

c.       1 or more company secretaries

 

4.        The intended Registered address in Hong Kong of the company to be incorporated.

 

5.        The intended main business activity.

 

A shareholder or a director can either be a natural person over 18 years of age and of any nationality or an incorporated body

 

A company secretary must be a Hong Kong resident over 18 years old or a body corporate having its registered office or place of business in Hong Kong. 

 

A shareholder can serve as a director.

 

A shareholder or director can serve as the company secretary. However, in case the company has only 1director, the sole director cannot serve as the company secretary.

 

Fees and charges related to the setting up and maintaining a private limited company in Hong Kong are as follows:-

 

1.        Incorporation fee of HK$8,000, including all related registration fees and charges;

(Additional capital fee will be required at HK$1 per HK$1,000 if authorized capital exceeds $10,000)

2.        Annual Business Registration Fee of HK$2,450

3.        We can act as Company secretary at the annual retainer fee of HK$3,500

4.        We can provide a registered office at an annual fee of HK$3,500

5.        Annual Statutory Audit Fee – charged on a time basis from HK$300 per hour

6.        Accounting Work – charged on a time basis of HK$300 per hour

 

It takes about 10 days to complete the incorporation and registration procedures. Alternatively, clients can choose a ready-made company from our list.  It will then take 3 days to complete the necessary setting up procedures.

 

The firm can make special arrangements to enable non Hong Kong residents setting up a limited company in Hong Kong without the need of coming to Hong Kong.

 

 

Back to top

Alternatives to limited companies

 

A person of any nationality, of the age 18 or above can establish a business in Hong Kong in the form of a sole proprietorship or partnership. Such a business entity is registered in accordance with the Business Registration Ordinance.

 

A non Hong Kong resident has to appoint a Hong Kong resident as his/her agent in Hong Kong for the purpose of the Business Registration Ordinance.

 

The partners of the firm are pleased to serve as the agent in this connection.

 

 

Back to top

An overview of the Hong Kong Tax System

 

The Hong Kong tax year runs from 1st day of April of each year to the 31st day of the following March.

 

A company doing business in Hong Kong would normally encounter the following different kinds of tax:

 

1.          Profits Tax – profits derived from Hong Kong are subject to Profits Tax

2.          Salaries Tax – employment income derived from Hong Kong are subject to Salaries Tax

3.          Property Tax – Rental income derived from landed properties in Hong Kong are subject to Property Tax

 

In addition, stamp duties are payable on acquisition of landed properties and purchase and sale of Hong Kong shares/stocks

 

The firm advises its clients on ways of maximizing tax efficiency.

 

 

Back to top

Current tax rates

 

2005/2006

2006/2007

 

Profits Tax

 

 

 

Limited Companies

17.5%

17.5%

 

Proprietorships and Partnerships

16%

16%

 

Salaries Tax

 

 

 

Progressive Rates

 

 

 

30,000 or below

2%

2%

 

30,001 – 60,000

8%

7%

 

60,001 – 90,000

14%

13%

 

Above 90,000

20%

19%

 

Standard Rate

16%

16%

 

Property Tax

16%

16%

 

 

 

 

Back to top

Minimizing tax burden

 

The firm advises clients on ways of minimizing profits tax, salaries tax, property tax as well as stamp duty payable on share/stock transfer.

 

Back to top

 

 

 

Last updated on 1 January 2008