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Global Finances transformed with Expert Precision
Your International Financial Partner for Growth Unleashing Global Potential through Numbers
Global Finances transformed with Expert Precision
Your International Financial Partner for Growth Unleashing Global Potential through Numbers
About Us and Our Team
Located at the heart of Asia, Hong Kong serves as a dynamic gateway between East and West, symbolizing a figurative and literal crossroads of international trade routes. Its strategic geographic position enables access to some of the world's most advanced markets, including Africa, India and China.
As a result of its favorable tax policies and business-friendly environment, Hong Kong has established itself as a premier destination for investors and businesses seeking to expand both locally and internationally. With its vibrant economy and strong connectivity to global markets, Hong Kong offers unparalleled opportunities for growth and prosperity.
As a result of its favorable tax policies and business-friendly environment, Hong Kong has established itself as a premier destination for investors and businesses seeking to expand both locally and internationally. With its vibrant economy and strong connectivity to global markets, Hong Kong offers unparalleled opportunities for growth and prosperity.
REGULATORY REQUIREMENTS
The most common type of company is a limited liability company registered in Hong Kong. These companies are legal entities with limited liability for its founders, with a strong global perception of the business community.
COMPANY NAME
The title is acceptable in both English and Chinese.
The English company name must end with the word "Limited" and the Chinese company name must end with the characters 有限公司
The English company name must end with the word "Limited" and the Chinese company name must end with the characters 有限公司
DIRECTORS
From the 3d of March 2014 all Hong Kong companies must have at least one director who is an individual of any nationality.
SHAREHOLDERS
A Hong Kong Limited company must have at least 1 shareholder who can be a legal entity or an individual in from country.
The director and shareholder may be the same or a different person. Shareholders' meetings can be held anywhere in the world.
Information about the director, shareholder and secretary of the company is publicly available information.
The director and shareholder may be the same or a different person. Shareholders' meetings can be held anywhere in the world.
Information about the director, shareholder and secretary of the company is publicly available information.
LEGAL ADDRESS
AND SECRETARY
Every Hong Kong company must have a local resident secretary and a registered office in Hong Kong supported by a Business Registration Certificate.
The company's registered address must be a local address in Hong Kong to receive government letters and correspondence (it can not be a PO Box).
We can provide related secretarial services and positions including annual filings such as:
LIQUIDATION
The following options are available for winding up a Hong Kong company.
Deregistration.
The Hong Kong Companies Ordinance provides that a private company may apply for deregistration as non-existent under the following circumstances:
All shareholders of the company agree to deregistration
1The company did not carry on or ceased to carry out activities for 3 months immediately before deregistration
2The company has no outstanding obligations
3Written notice of no objection has been received from the Commissioner of Inland Revenue Department
4
The process usually takes approximately 5 months. An application is submitted to the Company Registry for processing after which a Notice of No Objection is issued by the Inland Revenue Department and then the company deregistered.
Voluntary liquidation.
If the business is solvent, the company's shareholders can apply for a "voluntary liquidation", which is more expensive and takes 12 months to complete the relevant formalities. For this procedure it is also necessary to appoint a local liquidator.
TAXATION
The legal system of Hong Kong is British Common Law supplemented by local regulations.
< HK$2 million
Hong Kong source profits are subject to income tax at a rate of 8.25% on the first HK$2 million of taxable profits.
> HK$2 million
Profits in excess of HK$2 million from a source in Hong Kong are taxed at a rate of 16.5%.
Hong Kong follows the territorial principle of taxation, therefore, only profits that arise within Hong Kong are subject to Hong Kong income tax.
If there are no activities in Hong Kong, the company is not classified as a resident company depending on the following criteria:
If there are no activities in Hong Kong, the company is not classified as a resident company depending on the following criteria:
The management and day-to-day decisions of the company are made outside Hong Kong.
1The company does not have an operating office in Hong Kong.
2The company has no employees in Hong Kong.
3
There is no capital gains tax, dividends or GST/VAT in Hong Kong.
There is no withholding tax on the distribution of dividends from a Hong Kong company to a resident or non-resident.
Interest payments from a Hong Kong entity to a resident or non-resident are not subject to withholding tax.
There is no VAT.
No withholding tax on technical service fees paid by a Hong Kong company to a resident or non-resident.
There is no withholding tax on the distribution of dividends from a Hong Kong company to a resident or non-resident.
Interest payments from a Hong Kong entity to a resident or non-resident are not subject to withholding tax.
There is no VAT.
No withholding tax on technical service fees paid by a Hong Kong company to a resident or non-resident.
TAXATION OF INDIVIDUALS
A tax resident is an individual who has been in Hong Kong for more than 180 days in one calendar year or a total of 300 days in two consecutive years, in which case he or she will be liable to pay income tax or payroll tax.
An individual may also be liable to pay income tax in Hong Kong if they comply with the 60-day rule.
An individual may also be liable to pay income tax in Hong Kong if they comply with the 60-day rule.
The 60-day rule applies to individuals who have been in Hong Kong for at least 60 days in the current tax period. In the interval from 60 to 180 days, the tax will be calculated based on the number of days spent in the territory of the Hong Kong administrative region. If periods of stay in Hong Kong do not exceed 60 days, then no taxes need to be paid.
Resident individuals pay taxes on all income including:
- income from labor;
- income from business activities;
- real estate rent and fees;
- pension.
Non-resident individuals in Hong Kong pay tax only on income received in Hong Kong, including:
- income from labor which also applies to services provided in Hong Kong;
- income from business activities carried out through a permanent establishment in Hong Kong;
- rent of immovable property located in Hong Kong
INCOME TAX
Hong Kong has a territorial tax system which means that both Hong Kong and foreign companies must pay Hong Kong income tax on profits that are deemed to arise in or be sourced in Hong Kong.
The income tax rate in Hong Kong is 16.5%. For income up to HKD 2,000,000 (~USD 250,000) the tax rate is 8.25%. Rates for individual entrepreneurs are 15% and 7.5% respectively.
CAPITAL GAINS TAX
Capital gains are not subject to tax. However, profits realised from the disposal of assets may be subject to income tax if the transactions are not of a capital nature but are part of the ordinary course of business/trading.
VAT
There is no VAT charged in Hong Kong.
WITHHOLDING TAX
There is no withholding tax on dividends and interest paid by a Hong Kong company.
Royalties paid or accrued to a non-resident for the use or right to use intellectual property rights in Hong Kong or outside Hong Kong, if such payments are deductible for Hong Kong income tax purposes from the paying party, are taxable in Hong Kong. If the payment is made in favor of an unrelated person then the tax base is 30% of the royalty, otherwise - 100%. Regular income tax rates apply.
Royalties paid or accrued to a non-resident for the use or right to use intellectual property rights in Hong Kong or outside Hong Kong, if such payments are deductible for Hong Kong income tax purposes from the paying party, are taxable in Hong Kong. If the payment is made in favor of an unrelated person then the tax base is 30% of the royalty, otherwise - 100%. Regular income tax rates apply.
PROPERTY TAX
Property tax is payable annually by the owner of the land or buildings in Hong Kong at a standard rate of 15% on the net taxable value of those properties.
The net taxable value of a property is defined as the consideration paid to the owner for the right to use the land or building less 20% of the cost and certain fees.
Lease payments are subject to income tax.
Property taxes can be credited against income taxes or a property tax exemption can be applied for on rental properties.
The net taxable value of a property is defined as the consideration paid to the owner for the right to use the land or building less 20% of the cost and certain fees.
Lease payments are subject to income tax.
Property taxes can be credited against income taxes or a property tax exemption can be applied for on rental properties.
INTERNATIONAL
TAX TREATIES
Hong Kong has concluded 45 Double Tax Treaty (DTC) agreements as well as 7 Tax Information Exchange Agreement (TIEA) with the following jurisdictions:
45 DTCs:
Austria, Belarus, Belgium, Brunei, UK, Hungary, Vietnam, Guernsey, Georgia, Jersey, India, Indonesia, Ireland, Spain, Italy, Cambodia, Canada, Qatar, China, Kuwait, Latvia, Liechtenstein, Luxembourg, Macau , Malaysia, Malta, Mexico, the Netherlands, New Zealand, UAE, Pakistan, Portugal, Russia, Romania, Saudi Arabia, Serbia, Thailand, Czech Republic, Finland, France, Switzerland, Estonia, South Africa, South Korea, Japan.
7 TIEAs:
Greenland, Denmark, Iceland, USA, Norway, Faroe Islands, Sweden.
In addition, Hong Kong has signed and ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI). The multilateral convention entered into force for Hong Kong on 1 September 2022.
ANNUAL FEE
There is no annual government fee as such but instead there is a business registration fee which is paid annually by all registered business enterprises in Hong Kong to the Business Registration Office of the Inland Revenue Department. The fees are constantly being adjusted.
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