Benefits of Setting Up Companies in Hong Kong
◆ Hong Kong is one of the world‘s most significant financial center, having the highest Financial Development Index score and ranked as the world‘s most competitive economy, Its service sector dominated economy is characterized by free trade and low taxation, and has consistently been listed as the freest market economy in the world. Hong Kong holds an advantageous position in investing because there are no trading barriers in Hong Kong with free flowing of capital, transparency regulations and provisions, healthy legal system, low and predictable taxation and stable and sound financial system.
◆ Free choice of company names with little restrictions: The Government of Hong Kong allows the company name to contain such words as "international", "group", "holdings", "investment", "industry", "enterprise", "association", "chamber of commerce", "federation", "foundation", "association for promotion", "center", "headquarters", "university", "college", " research institute", "publisher", "travel agency" and "committee", etc.
◆ Diversified choice of business scope: The sectors such as appliance, electronics, chemical industry, machinery, instruments, meters, garment, textiles, jewelry, finance, medicine, shipping, import and export transportation, trading, real estate, construction, decoration, information, network, tourism, college, cultural publication, association, institute, foundation and other high-tech industries may be adopted as business scope.
◆ Low tax rate and a few tax categories: Many international institutions make use of Hong Kong‘s superiority in tax to achieve reasonable tax avoidance. When setting up a company in Hong Kong, we only need to pay a profits tax, the rate of which is 16.5%. Companies having no profits may not pay taxes. Except alcohol, tobacco and other special goods, no imports and exports are taxed in Hong Kong. As Hong Kong is a free trading port, no duty shall be paid for other goods, but if customs declaration is needed, -‰ shall be paid as service charge.
◆ Regardless of the size of registered capital, the minimum registered capital of a Hong Kong incorporated company is HK$10,000; no capital verification is needed. The capital can be increased based on actual conditions. The company may increase its capital at any time upon its establishment without paying stamp duty. Only when the shareholdings is changed will the stamp duty be levied at 2‰.
◆ Hong Kong is the freest and most prosperous trading port in the world with sound infrastructure and free flowing of logistics, capital and people. The free flowing of people is manifested by visa-free agreements made and entered into by and between Hong Kong and more than 100 countries. The free flowing of logistics is manifested by no taxes levied on imports and exports and rapid handling of land, sea and air logistics. The free flowing of capital is manifested by no foreign exchange control provided by Hong Kong and easy exchange and mobilization of various foreign currencies at any time. As the flow of capital is not limited, businessmen are fond of using Hong Kong banks to send or receive L/C conveniently.
◆Under the guidance of One Nation, Two Financial Systems, Hong Kong creates a large number of opportunities for financial cooperation. Relying on such an advantage, Hong Kong strengthens its position as an international financial center and uses the cooperation and connection between the financial systems of mainland China and Hong Kong to enlarge, deepen and broaden the development and improve the capital liquidity of both mainland China and Hong Kong.
◆ As an international financial center, Hong Kong plays an important role in domestic financing and introduces overseas funds into China. With the development and opening-up of economy and finance, China has become the world‘s third largest economic system and the third largest trading country in terms of its GDP. It also holds the most foreign reserves and is ranked as one of the countries with the highest economic growth.
◆Hong Kong is bound to keep up with the development of China‘s economy and finance at the same pace and over the same period to meet domestic financial Intermediaries‘ demands. Hong Kong‘s financial system plays three roles, including the financing channel to connect China and other regions of the world, the helper to assist mainland China in financing, and the pilot place to implement projects invested by RMB capital and increase the use of RMB in international market.
◆Hong Kong is the world‘s most significant financial center, providing domestic and foreign people with the most efficient financing platform and helps with the sustainable development of a large economic system as well as the avoidance of payment and settlement risks derived from international financial activities in different time zones. If market participants have a big difference in risk attributes and risk tolerance, such measures as risk transfer and risk management shall be taken.
◆The financial systems of mainland China and Hong Kong are established based on complementation, mutual aid and interaction. Complementation represents maximization of both financial systems‘ strong points and reinforcement of the other‘s weak points. Mutual aid indicates that these two financial systems are benefited through closer cooperation on financial supervision, financial infrastructure and risk management, and technical transfer, information exchange, qualification reorganization and standards integration are used for further cooperation.
◆Hong Kong financial institutions‘ development in mainland China has become the activator that urges domestic financial institutions to make progress. Hong Kong improves the outward flowability of domestic investors, fund raisers, financial institutions and financial instruments, allows Hong Kong‘s financial instruments to be purchased and sold in mainland China, enhances its function of dealing with financial transactions in RMB, and strengthens the connection between mainland China and Hong Kong in financial infrastructure. The complementation, mutual aid and interaction between the financial systems of mainland China and Hong Kong shall be further enhanced while the significant status and role of Hong Kong as an international financial center shall be consolidated and maintained.
◆RICHUANG is different from common corporate registration service providers. It helps with registration and management of companies for more than ten years, possesses rich knowledge of and experience in company incorporation in different countries, company management, company listing, account preparation, tax returns, tax planning, trademark registration and bank account opening, etc., and deals with notarization by mandate and legalization by embassy through our professional accountants and lawyers; Relying on our experience in international registration and management, we are eligible to provide clients with complete business and financial consultation services.
