Hong Kong Offshore Company

Hong Kong is an extremely well known major international center which is located on the South east coast of China. It was an independent entity, but became a part of China in the year 1997. It is a Special Administration Region within the People’s Republic of China with its own legislature and courts. The official languages are both Chinese and English. It is easy to form a Hong Kong Offshore Company as there are almost no restrictions.

There is no ‘offshore’ legislation in Hong Kong as all companies are incorporated under the same legislation, whether they do business locally or ‘offshore’. Hong Kong companies enjoy a tax-free status under certain special circumstances. What is unique is the fact that a Hong Kong company can set up an office at Hong Kong with staff and still pay no taxes. If your company does not do any business in Hong Kong, you are not required to file financial statements and no audit is required.

It is advantageous to open a Hong Kong Offshore Company as they are thought of as tax havens. The legal system is based on the British law; it has an excellent finance and banking system, and there are no exchange controls. A Hong Kong Offshore Company can do business anywhere in the world, and what is more the Directors and Shareholders are not required to be residents of Hong Kong.

Hong Kong is one of the world’s most reliable financial centers. As will be seen later, Hong Kong offers a number of advantages in opening a Hong Kong Offshore Company. There are two methods of incorporating a Hong Kong Offshore Company – by registering a brand new company or registering an existing company in Hong Kong.

These are the advantages of incorporating an offshore company in Hong Kong:
• Hong Kong follows the British legal system.
• Chinese and English are the official languages.
• There is no tax on income earned outside Hong Kong.
• There are no restrictions on doing business outside Hong Kong.
• No information is exchanged between Hong Kong and other countries.

The following requirements should be fulfilled if you would like to open a Hong Kong Offshore Company:
• There should be at least one shareholder.
• There should be at least one director.
• The director and the shareholder can be one and the same person.
• There is no restriction on the nationality or residency of the shareholders or directors.
• The minimum share capital is HK$1.
• The registered address of the offshore company should be in Hong Kong.
• There should be a Company Secretary who should be a resident of Hong Kong.
• The name of the company should be in English or Chinese, or in both the languages.
• Hong Kong charges tax on profits derived from income on a business or profession carried on in Hong Kong.

An offshore company is incorporated in Hong Kong by means of an application made to the Registrar of Companies. The Memorandum and Articles of Association must be lodged with the Registrar. A minimum of one shareholder is required. Details of the shareholders must be filed, though anonymity can be maintained. Shares must be expressed in a fixed amount. ‘No par value’ or ‘Bearer’ shares cannot be issued. There is no specific capital requirement though the standard authorized share capital is HK$ 10,000. Every Hong Kong Offshore Company is required to have a registered office and address in Hong Kong. The company must maintain accounting records and the accounts must be filed with the tax authorities.

Hong Kong looks like a wonderful place to start your Hong Kong Offshore Company – Well, what are you waiting for; go ahead.