Why Hong Kong

Hong Kong is located in the South China Sea 100 miles south east of Guangzhou. As of 1 July 1997 under the Sino-British Agreement of December 1984, Hong Kong became a Special Administrative Region (HKSAR) of the People’s Republic of China. Hong Kong is not normally regarded as an offshore country as it is well known for being a major financial center in the world. The legal system of Hong Kong is British Common Law supplemented by locally enacted Ordinances. There is a bilingual legal system with Ordinances being translated into Chinese but English will continue to prevail. Under the “One country – Two systems” philosophy, Hong Kong has executive, legislative and independent judicial power. Hong Kong profits tax is only charged on Hong Kong sourced income at a rate of taxation of 17.5%. There is no tax in Hong Kong on capital gains, dividends and interest earned.

Why GCSL Hong Kong

GCSL offers company formation, nominee shareholders, directors, company secretarial, bank account opening and a wide range of administration and consultancy services. In addition, it provides consulting services on Greater China strategies, business development plans as well as structuring entities such as private mutual funds, re-insurace companies etc. GCSL is also involved with Captive Insurance, forming captive insurance companies that are fully compatible with the USA IRS and managing their operations including arranging third party accounting and actuarial services via our licensed insurance management company in Anguilla.

Several features of its legislation make Hong Kong an attractive jurisdiction. These include:

		There is NO minimum or maximum authorized capital. However, no subscriber of the Memorandum of Association may take less than one share. The authorized capital of our shelf company is HK$10,000. If a larger authorized capital is required, there will be additional capital fee of 0.1% on every or part of HK$1,000, subject to a cap of HK$30,000.
		Following the implementation of the Companies (Amendment) Ordinance 2003, the new law permits a private company to have only ONE director who need not be local resident. Corporate directors are allowed for companies that are not subsidiaries of public listed companies.
		The new law also permits a Hong Kong company to have only ONE shareholder. Corporate shareholders are allowed and anonymity can be achieved by the use of nominee shareholders.
		Every Hong Kong company must have a local resident secretary and a registered office in Hong Kong substantiated by a Business Registration Certificate. The business registration fee, currently HK$2,600, is payable within one month of the date of incorporation and then due annually on the anniversary date of incorporation. GCSL can provide these services and the role of secretary includes annual compliance work such as holding of annual general meeting and filing of annual return for the company.
		Every Hong Kong company, except for dormant cases, must produce annual audited accounts and appoint an auditor, who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate. The company must keep proper accounting records, which may be kept in Hong Kong or elsewhere at the discretion of the directors.
		Profits Tax Returns are normally issued to corporations in April. For newly registered company, the first Profits Tax Return will be issued 18 months after the date of incorporation or commencement of business. The basis period for the first Profits Tax Return should not be more than 18 months from the date of commencement of business to the accounting date selected by the company. Profits Tax Return must be filed upon receipt even if the company is inactive.
		Both local government and the regulatory authorities are keen on improving Hong Kong’s legislation and GCSL professionals work closely with these official and members of the private sector to enhance the jurisdiction’s profile while providing a client-focused service.
		As a member of The GCSL Group of Companies, GCSL Hong Kong is ideally positioned to provide clients with a truly global network of services in a cost-effective, efficient and professional manner.

Click for the Guide to Hong Kong Companies

For further information please contact our Hong Kong office at intray@gcsl.info

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