Hong Kong Incorporation

General Introduction
If you live and work overseas, but want to invest or set up a company in Hongkong, you can simply rely on HKRC in doing so. HKRC can take care of everything for you, since HKRC is familiar  with fomation formalities and is able to give you a tangible solution-do your business on HKRC's international -up system.

OVERVIEW ABOUT HONG KONG
Hong Kong is situated at the south-eastern tip of the mainland of China. A total area of just under 1,100 square kilometers covers Hong Kong Island, Kowloon and the New Territories and Islands. Its population is around 8 million. Varied people come to Hongkong to set up varied companies for varied purposes, since Hongkong companies have their own varied advantages.
ADVANTAGES OF HONGKONG COMPANIES
Hong Kong is an ideal place to invest - a free and liberal investment regime, absence of trade barriers;? Hong Kong is fully committed to the protection of human rights non-discrimination against overseas investors;? Complete freedom of capital movement; Most people honour Hongkong as a gatwway to mainland China for foreign investors and a springboard to the outside world for mainland China's investors; a deep water harbour; an international corporate base; a small but efficient government ; a perfect legal system; a free trade & free market; a corruption-free & stable society; low & predictable taxes; a sound & free banking system, an independent judiciary; a comprehensive system of legal aid; and a free and active press; and an independent Ombudsman.  

FLEXIBLE COMPANIES' NAMES
In Hongkong we are free to make a choice of companies' names, if not registered before. But you are advised to choose the name of your company carefully. It is very important that you portray the image you want for your new company. You are also required to avoid using any company name which may be too similar to any existing company or trademark. A company name can be in English, in Chinese, or both. In cases where the liability of members is limited, whether limited by shares or guarantee, the name must end with "Limited". A proposed company name cannot be the same as any of the existing name registered at the Companies Registry.
FREEST BUSINESS SCOPE
One of the most exciting events covered in the formation of a Hongkong company is free business scope. Business scope is not really defined by the government for the businesses you conduct in Hongkong. ?If we finish business registration, we can involve in any sectors we want. Generally speaking, business scope is not really limited in Hongkong.

REGISTERED/ PAID-UP CAPITAL AND SHARES
For a Hongkong limited company, the minimum registered capital is HKD10,000(about USD1,200),  The government levies 0.1% tax on registered capital.  The board of a company has a final say about paid-up capital. You don't have to pay up your capital share at the time the company is formatted.  
MEMORANDUM & ARTICLES OF ASSOCIATION
The memorandum and articles are the primary legal document of a company. Memorandum contains the name of the company, authorized share capital, initial members and object clause (if any). Articles are a set of internal regulations that governs the day to day operations of the company. Both memorandum and articles have to be filed to Companies Registry at the time of incorporation or if there are any changes thereafter. At least two subscribers are required in the memorandum and each of the subscribers must subscribe to at least one share in the company.  
GENERAL TAX INFORMATION
There are several distinctive features of the Hong Kong tax system. The tax for registered capital is 0.1% . You can increase the volume of the capital freely if you pay the tax. Income taxes (salaries tax, profits tax and property tax) are charged on income? which has a Hong Kong source (territorial source concept). Estate duty is charged on the principal value of property located in Hong Kong passing on the death of the deceased. Stamp duty is charged on instruments? which relate to Hong Kong assets. There is no capital gains tax and dividend income tax. The standard tax rate of 15% and corporation profits tax rate of 16% are relatively low compared with other developed countries. In Hongkong, any enterprises are required to report annually to the Inland Department.

EMPLOYMENT
The labour in Hongkong is not cheap, but in order to lower your operating cost, we provide commercial secretarial service at a tailor-made basis. For details please refer to our Secretarial Service Formats.    
TERM AND TERMINATION
In Hongkong, we can keep a company as long as we pay government fees annually. A Hongkong company may be terminated if the board of the company summit an application. HKRC  also provide liquidation or striking off services.  

REQUIREMENTS FOR HONGKONG CORPORATE FORMATION
If we want to incorporate a limited company in Hongkong,  we are required to offer:
※ Passports of one or more shareholders at age of 18 or above;
※ Registered capital: HKD10000;. Paid-up capital not required.
※ A registered address, which is usually provided by HKRC.
※ A company secretary, which is usually acted by HKRC, who can deal with the government documents on behalf of you..
HKRC SERVICE AND PRICE
At HKRC, we are able to prepare all the application forms and relevant documents and deal with all the procedures for you, and you get the following service at a fixed price of HKD7800.
※ Certificate of incorporation;
※ Business registration certificate;
※ 16 copies of memorandum and articles of association of the company;
※ Share certificates ;
※ Statutory book,
※ Three pieces of chops;
※ A book of receipt;
※ Professional service
HOW TO BEGIN YOUR APPLICATION
You can begin your application by simply downloading and filling in the application form, and send it to us by fax at(00852)-30658488 or by email at john@richin.hk.  When we receive your request, we'll send you a confirmation letter for your final decision. At this time you may pay 50% deposit, so as that we can begin processing of your application.

BANK FACILITIES
Most major international banks have a presence in Hong Kong. If we like, we can open any accounts with any banks on a private or corporate basis. A saving account, a current account,? a foreign currency account,? and even L/C account are accepted by any banks.? ATM machines are widely accessible and link to major networks such as Plus, Cirrus, JNL and others.?? Hong Kong dollars are used in Hong Kong . The HK dollar has been linked to the US dollar at a fixed rate of HK$7.8 to US$1. Currency exchange is available in several places at the airport and in many locations in the city.?? Major credit cards such as MasterCard, Visa, American Express, AEON, etc. are widely accepted in Hong Kong. Diner's Club is also accepted though less widely. The Discover card is not accepted .  
ANNUAL RETURNS AND TAX RETURNS
Any limited companies in Hongkong should summit annual return to the department of the Company Registry and the Inland Revenue. The annual cost for doing so is about USD600 including HKRC's service's fee.

ANNUAL GENERAL MEETING
An annual general meeting (AGM) must be held once in every calendar year and not more than 15 months after the last preceding AGM. However, a company need not hold its first AGM until 18 months of its incorporation. A company can dispense with the holding of AGM if everything that is required or intended to be done at the meeting is done by resolutions.

ACTING AS COMPANY SECRETARY
Our services include: Information and HKRC processing, order taking , bank documents processing, telephone answering, travel arrangements, meeting planning, mailing service, alpha dispatch, research work, telephone survey. A secretarial service could be done virtually through the Internet via e-mail, snail mail, fax, telephone and the Internet to small, medium-sized, and home based businesses. whatever gets the job done--non-traditional, but it works!
A Virtual Assistant saves you time and money. With HKRC you have no employee-related taxes, insurance, or benefits; there are no extra office or equipment costs; and no training costs. You spend only USD50 (minimum charge) monthly in running a Hongkong company.

BASIC COMPANY SECRETARIAL SERVICES
We provide certified true copy of corporate documents by a certified public accountant for opening bank account. We prepare Annual General Meeting documentation, elective, special, extraordinary and ordinary resolutions, annual returns, stock transfer forms, board meeting minutes, share certificates and any other documentation normally required in the field of company law.

ARRANGEMENT OF NOTARIZATION OF DOCUMENTS
We can help you to easily and quickly arrange for notarization of documents by notary public and/or authentication various Embassies
BOOKKEEPING AND AUDITING
Every company is required to appoint an auditor each year . An auditor must be qualified by virtue of the Hong Kong Professional Accountants Ordinance and completely independent of the company.

Secretarial Services
HKRC Secretarial Services provide all kinds of tailor-made administrative and secretarial services in Hong Kong virtually to help you run a Hongkong company smoothly and economically on the way to your business success.
HKRC Secretarial Services could be your Virtual Assistant providing economical, professional administrative, secretarial and transcriptional services, which are accurate, reliable and efficient, whether you are an individual, an entrepreneur or a small business owner.


Our services include: working as legal secretariat, Information and HKRC processing, order taking, banking assistance, commercial documents processing, telephone answering, travel arrangements, meeting planning, mailing service, research work, telephone survey, exhibition arrangement, Investing guide in Pricket.
A secretarial service could be done virtually through the Internet via e-mail, snail mail, fax, telephone and the Internet to small, medium-sized, and home based businesses. Whatever gets the job done--non-traditional, but itworks! A Virtual Assistant saves you time and money.


With HKRC you have no employee-related taxes, insurance, or benefits; there are no extra office or equipment costs; and no training costs. You spend only USD60 (minimum charge) monthly in running a Hongkong company.
We know that a good first impression goes a long way - our goal is to exceed our customer's expectations every time. Our service center is the best in the industry. With our low prices for setup, and cheap rates for phone time, you can't go wrong. Call now for a free customized quote. Just as global conditions are changing, our center is your starting center

Note ：
1 、 The government and bank charges are not included in the above quote.
2 、 The above quote is for your reference only, It is subject to our final confirmation..
Accounting & Tax Returns
Taxation

Hong Kong's tax system is simple and predictable.
Corporate profits tax rate is 17.5% for limited company
Corporate profits tax rate is 16% for unlimited company.
§   Personal tax is also among the lowest in the world at the maximum of 15%. And there are no hidden "extras."
§   Only income and profits derived directly from Hong Kong are subject to tax;
§   There is no tax on capital gains, dividends or interest;
§   Generous capital allowance and depreciation regulations;
§   Hong Kong has no sales tax or Value Added Tax.

The corporate tax of 16% is among the lowest in the region.
There is no import tariff for machines and raw materials. There is no tax on dividends. There is no capital gains tax. No VAT or sales tax. There is a concessionary corporate tax of 8% for offshore business of professional reinsurance companies authorized in Hong Kong.
Hong Kong has instituted a generous tax deduction for research and development. Deductible items include expenditure on market research, feasibility studies and other research activities related to business and management sciences.
Generous depreciation allowances. An immediate 100% write-off for new expenditure on plant and machinery specifically related to manufacturing, computer hardware and software. Initial allowance of 20% on capital expenditure incurred in the construction of industrial buildings and certain structures; an additional 4% per annum thereafter until the total expenditure is written off. A commercial building can qualify for a rebuilding allowance of 4% per annum.
Funding support to encourage technology ventures and applied R&D activities that have commercial potential. There is also funding support of up to 75% of the cost for training staff in new technologies.
Basically, company profits, salaries and property rental income, are taxable. This makes Hong Kong's effective overall tax bite much lower than virtually all other developed countries. Most other countries will tax away 40-50% of all income and profits, while in Hong Kong, that rate stands at about 16% and less in many situations. Only profits arising in Hong Kong from a trade, profession or business carried on in the territory is taxable. A company pays no tax in the territory on income derived from outside Hong Kong. Salaries tax is also only charged on Hong Kong sourced salaries. No tax is paid on foreign sourced income of any kind.  

Deductions
Generally all expenses to the extent to which they have been incurred by a taxpayer in the production of chargeable profits are allowed as deductions. Examples include interest on borrowed funds and repairs for plant and machinery used in producing profits. Losses can be carried forward and set off against future profits of that business. A corporation carrying on more than one commercial activity may have losses in one trade offset against profits of the other. Generous capital allowances are given in respect of capital expenditure incurred on the construction of industrial and commercial buildings and structures and capital expenditure incurred for the purposes of producing chargeable profits as well as depreciation allowances are also provided.
In summary, deductions are permitted for (1) outgoings and expenses, other than expenses of a domestic or private nature and capital expenditure, wholly, exclusively and necessarily incurred in the production of the assessable income; (2) depreciation and other capital allowances in respect of plant and machinery the use of which is essential to the production of the assessable income; (3) loss brought forward from previous years of assessment; (4) from year 1996/97 onwards, Expenses of Self-education paid ; (5)from year 1998/99 onwards, Elderly Residential Care Expenses paid ; (6)from year 1998/99 onwards, Home Loan Interest paid.   

The Basis of Assessment
Liability to Salaries Tax is based on the actual income of the year of assessment, but an initial charge is made for a Provisional Salaries Tax first. That is, the taxpayer will pay an estimated tax first (based on expected income for that tax year) and then at the end of the tax year will receive a follow-up bill for any additional tax owed. Income tax is not deducted from regular employee paychecks; hence employees should remember to set aside money to pay the end-of-the-year income tax.
Salaries Tax Computation
The Department has developed a simple Salaries Tax Computation Program to help you calculate your own Salaries Tax liability. All you have to do is to select the assessment year, marital status, input your income and the number of your dependants and then press the "Compute" button at the bottom of the input page. Another page will appear which shows you your exact Salaries Tax liability.      

There are no customs tariffs in Hong Kong and goods imported or exported require minimal customs formalities. Excise duties are levied only on tobacco, liquor, methyl alcohol and hydrocarbon oil, whether imported or locally manufactured. Import/ Export declaration is required within 14 days after the importation/ exportation of any articles, other than exempted articles.
Import and export licenses, and certificates of origin are only required to enable Hong Kong to fulfill its obligations under international agreements or requirements of importing countries and for public health, safety or security reasons. Textiles and clothing products for export to certain markets are currently subject to quota restraint. Further information on the Trade and Industry Department's licensing services can be obtained at its office at Trade and Industry Department Tower, 700 Nathan Road, Mong Kok, Kowloon
Banking Assist

How to open an account in a bank
Open company account in Hong Kong or outside Hong Kong. Generally there are kinds of situations as stated briefly below ：

1 、 All directors open account in HongKong directly
HongKong bank generally demands all directors of the limited company to process opening procedure in the bank in person. If signer of the account or director of the company is people of China hinterland, he must hold the visa of China of pass to HongKong and Macao. This is one qualification to open an account. Materials necessary to the owner of account please refer to Item 4.
2 、 Treatment if director of the company cannot go to HongKong in person to open the account
Because some directors may have inconvenience to go to HongKong to open the account directly, they can sign opening document in China Mainland Office of HongKong Bank （ signature certification by conventional name ） . When the office submits the document to the head office in HongKong, we'll transact all procedures in the head office for them. Due to complexity of this procedure, clients can consult us in advance.
3 、 All directors going to bank of foreign investment of hinterland to open stand-off account
If you have no visa, you can open a stand-off account in Chinese office of HongKong Bank. Account signer and non-account signer only need to own ID card of China hinterland. Materials necessary to the owner of the bank please refer to Item 4.
4 、 Materials necessary when opening a company account in the bank
ID certification document of directors （ ID card or visa ） in original/commercial register in original /register certificate in original/company rules in original/company rules/minutes in original /opening document signed by the accountant /cash deposited in the new account/credit certification issued by the bank union in original （ credit certificate should include ： Name of the owner of the account, visa, ID No., opening date, deposit amount and words such as” Sound Record of Banking Credit” ）

Service content ： recommend opening bank/arrange opening bank to send letter of indication of signature testimony to office of the hinterland /prepare documents signed by accountant, minutes and opening application/arrange introducer/to the opening bank to help the transaction/speed return fee/car fare
The financial industry
From early in its history, the excellent harbor and geographical location of Hong Kong made it a focal point for international trade. Today it has a developed financial and trade infrastructure with a sophisticated banking and financial services industry. This infrastructure, a low tax rate, no exchange control and a continued commitment to minimum government regulation are the ingredients which have made Hong Kong the financial center of the Pacific and Far East.

Registered and paid-up capital
For a Hong Kong limited company, the minimum registered capital is HKD10, 000(aboutUSD1, 200) the government levies 0.1% tax on registered capital. The board of a company has a final say about paid-up capital. You don't have to pay up your capital share at the time the company is formatted.

Share capital and directors
There is no minimum share capital requirement. Share capital can be denominated in currencies other than Hong Kong dollars and multiple currency share capital is permitted. Separate classes of shares with different rights to dividends and in different currencies are permitted. A minimum of two shareholders is permitted.
Companies may have only one director. It is not necessary that any of the directors be resident in Hong Kong. The directors may be corporate. Particulars of the directors and secretary must be filed with the Registrar.

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If you want to get more detailed information about enterprise registration , welcome send a email to us or give us a call directly.
TEL 86 21 61450641 Email: JOHN@RICHIN.HK