Setting up an offshore company in Hong-Kong
Hong Kong is known as a Special Administrative Region of China and one of the most densely populated areas on Earth. Although a British Crown Colony until 1997, it has its own legal system, laws, rules and currency. Not least, it is Asia's most important trading centre.
Hong Kong is not very well known among offshore jurisdictions, perhaps because it does not really fit into this sphere. Indeed, offshore companies incorporated in Hong Kong are taxed on their income and profits. In Hong Kong, certain activities and foreign income are exempt from tax, and in some cases a company may pay less tax at a reduced rate.
In Hong Kong, there are more obligations for the offshore company owner. For example, a minimum of 2 directors and 2 shareholders are required to incorporate, although these persons may be the same, and there is no nationality requirement. Secrecy and discretion are not the same in Hong Kong, both the directors' and the shareholders' details are public, as they are included in the company register. Another interesting feature of the place is that the government not only does not support the exchange of information between government offices and tax offices in other countries, but is explicitly forbidden by the authorities! Although nominal services are allowed, offshore companies registered here are required to file annual accounts and bookkeeping.
Offshore companies incorporated in Hong Kong face similar costs as companies incorporated in other offshore jurisdictions. There are also set-up costs and annual maintenance fees. The first, so-called incorporation cost, of course, includes the first annual maintenance fee, which covers incorporation fees, registration, registered office, local secretarial services and a St.Vincent Islands bank account administration fee of €1,600. Thereafter, an annual fee of €900 is payable to the State and, if a nominal service is used, an additional fee of €350-350 for a nominal director/shareholder. The annual fee includes the completion of an annual tax return.
