Services in Hong Kong English

Deutsche Consult (Asia) Ltd.

Hong Kong - Hamburg

Trustees, Administrators, Corporate Services since 1994

Incorporation of Companies in Hong Kong
"In Hong Kong it takes less time to form a company than to tailor a suit."

There are some 980,000 companies registered in Hong Kong and, although public records reveal little to that effect, it is fair to guess that at least tens of thousands thereof do not belong to our 7 million local residents but to people who hardly ever set foot here. So what makes Hong Kong so attractive as a corporate domicile?

Hong Kong is one of the world's leading centres for finance and trade. To be an attractive corporate haven, our laws must strive to keep red tape to the minimum and to warrant some degree of transparency; thus protecting the business partners of locally registered firms and ultimately Hong Kong's own reputation.

At least one shareholder (an individual or legal entity from anywhere in the world) may form a private limited company with a registered address in Hong Kong and a legal minimum capital of HK$ 1.- (US$ 0.13).

The corporation must have at least one Director (individual or legal entity, not necessarily a Hong Kong resident) and one Company Secretary (a person or company residing in Hong Kong); the latter taking care of the company's administrative requirements. The Company is governed by its Memorandum & Articles of Association (Our standard M & A WITH Object Clause and WITHOUT Object Clause).

Annually, the company has to i.) renew its business registration (HK$ 2,600.- = US$ 334.-), ii.) submit a report detailing its share capital, shareholders, directors and secretary and iii.) compile a balance sheet and profit & loss account, audited by a duly licensed accounting firm.

Corporate profit, where generated in Hong Kong, is taxed at 17.5 per cent; offshore profits (i.e. those generated abroad or in the PRC) are tax exempt. VAT is unknown, and Hong Kong is a duty-free port (cars, petrol, diesel, alcohol and cigarettes being the main exceptions) with no restrictions on the import and export of our local or any other currency.

Unless the Hong Kong company's business volume and profit justify the employment of staff and office rent, the aforementioned tax benefits can also be achieved by engaging us as nominees/trustees. Where the beneficial owner does not want to be on record as a shareholder or director, we form and run the corporation on his behalf (and under an official -but confidential- trust deed). Typically, our duties include purchases and sales at prices determined by our principal, re-invoicing and distribution of profits as instructed.

Fees and Charges for the Incorporation and Maintenance of a Hong Kong Limited

For the incorporation of a Hong Kong Limited we charge USD 1,000.- one-off plus USD 334,- in government fees for the Company's first (annually renewable) Business Registration Certificate.

Our annual charges for providing the Company's statutory Secretary and local Business Address are USD US$ 2,000.-

Apart from the said 17.5 per cent profit tax (if any) and the local CPA's charges for certifying the Company's annual financial report (from USD 400.- up), there are no other costs!

Where we are to provide Hong Kong telephone and/or fax numbers, these can be forwarded to any destination and are available at US$ 200.- per line and year (plus actual communication charges, of course)

Information, Documents etc. Required from Client for the Incorporation or Purchase of a Hong Kong Limited

o Whether Client prefers M&A with or without object clause (a matter of personal taste, unless the jurisdiction in which the company is to operate, has special requirements);

o Passport copies and proof of residential address for Shareholder(s) and Director(s);

o Directors' written declaration (as prepared by us) that they accept their Directorship.