ON 1 JULY 1997 ALL OF HONG KONG REVERTED BACK TO CHINA AND BECAME A SPECIAL ADMINISTRATION REGION WITHIN THE PEOPLE’S REPUBLIC OF CHINA.
A minimum number of one director is required and full details of these must be filed with the Companies Registry. The director(s) can be of any nationality and be resident anywhere. There is no requirement for board meetings to be held within Hong Kong. Corporate nominee directors are permitted.
Every private Hong Kong limited company must appoint a company secretary, who may be a natural person or a body corporate, but the company secretary must ordinarily reside in Hong Kong or in case a corporate company secretary, it must have a place of establishment in Hong Kong.
A minimum number of one shareholder is required whose details are filed on the Companies Registry. Corporate shareholders are permitted, and anonymity can be achieved by the use of nominee shareholders or offshore IBC holding company. The shareholder(s) can be of any nationality and be resident anywhere in the world and meetings can take place anywhere.
Restrictions on Trading
Cannot undertake banking or insurance or financial activities unless relevant licences are obtained.
Registered Office Required
A company must maintain a registered in Hong Kong where the correspondence from Hong Kong Government can be served.
Tax exemptions and concessions
The principle of Hong Kong income tax is that it is a tax on income that has its source in Hong Kong rather than a tax based on residence. Hong Kong does not therefore impose tax on non-Hong Kong source income even when remitted to Hong Kong. Consequently, if a Hong Kong company’s trading or business activities are based outside Hong Kong, no taxation will be levied in Hong Kong. Hong Kong companies with Hong Kong source income currently pay a rate of taxation on profits of 16.5%.
There is no tax on capital gains. Interest income and dividend income is also tax free. There are no withholding taxes. The local currency is the Hong Kong Dollar which is freely interchangeable but has a pegged exchange rate against the US Dollar. There are no exchange controls in Hong Kong.
Double Taxation Agreements
Hong Kong has no double tax agreement with any other country, with the exception of the Mainland China.