Formation of HK Company

Company Formation and Registration Services in HK

Hong Kong, also called Pearl of the Orient, comprises of four sectors – Hong Kong Island, New Territories, Kowloon and the Island. It is the most prosperity city, district and international finance centre in Asia, with natural advantage of deep lane.   It has 1104 Sq. m with more than 700 million populations. Its main businesses are retail, journalism, property, banking and financial services, commercial trading, social or individual servicing. As a free trade centre, it exerts an international finance, trading, shipping influence all over the world, while communicating and interacting with all countries or organizations. All legal and economic property or interests from various countries or districts are protected here. It composes both eastern and western cultures, and compounds the Chinese’ wisdom and the westernized system in one unit. It famous for its probity government, good public safety, free economic and complete jurisdiction system.In many ways, HK is the ideal location in Asia for company formation. Deep Blue Business Services Ltd offer company formation and registration services to assist those who want to establish a corporate presence in HK.

Advantages for registering a company in Hong Kong:-
(1) Not too much limitation on use of company name, provided that it is ended with the
      character “有限公司” or “LIMITED”
(2) No limitation on the scope of business, on condition that the business act is legal
(3) The tax system is simple and tax rate is low.  The company only has to report or 
      pay profit tax once a year. Currently the tax rate is 16.5%.  It also has to report
      employer tax annually.
(4) Free currency exchange, no limitation on the inflow and outflow of the company’s 
      monetary. The bank account of a Hong Kong company is freely settled.

Continuing obligation: after incorporation, the following two issues needed to be 
followed:-

1. Annual audit: Once a year upon incorporation. Generally speaking, a company
    has to prepare the following matters a month before the anniversary date of
    incorporation
    A. Prepare and submit the Annual Return
    B. Renewal Business Registration certificate
    C. Provision yearly registered office in Hong Kong
    D. Someone to Act as Corporate Secretary yearly

 2. Tax reporting
      A. Company Profit Tax reporting: A newly established company will, within 18 
          months upon its incorporation, receive a tax return from the Inland Revenue
          Department. The company has to fill in all required information and return
          the same within 3 months since the date of the letter. There are two ways
          to report:-
          1. Zero tax reporting (i.e. no business conducted );
          2. Tax reporting (i.e. business conducted). For this type, the company has 
              to keep proper accounting records, financial statements for auditing 
              (similar to those in China) and tax reporting at the end

     B. Employer Tax return reporting: Report annually. Need to return the filled 
          form within one month from the date of receiving the said letter
          1.  Zero employee reporting
          2. Employees reporting

To learn more about why HK is the ideal location to undertake company registration, or to learn more about our formation services, please don’t hesitate to get in touch.