Hong Kong Company's Law

Hong Kong Companies Law makes provision for the incorporation of limited companies, limited partnerships and sole proprietorships. The companies incorporated in the low tax haven of Hong Kong are allowed by Hong Kong Companies law to trade in and out of Hong Kong. All persons desirous of setting up a Hong Kong company must send an application to the Registrar of Companies or the companies’ registry. The incorporation of Hong Kong Companies law takes as little as one working week to conclude.

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Hong Kong Companies law states that for the incorporation of a Hong Kong Company to be complete a Memorandum of Association must be filed with the Registrar of companies in the low tax haven. The memorandum of Association can be signed by one or more persons and must state whether the Hong Kong Company is limited by shares, a company limited by guarantee or a Hong Kong company which has unlimited liability. Hong Kong companies’ law dictates that the Memorandum of Association must include the following:

  • The name of the Hog Kong company and the word limited must be added
  • The purpose for forming the company
  • The registered address of the company
  • The types of business operations the company intends to carry out
  • The authorized share capital for companies which are limited by share and guarantee must be stated
  • The types of shares and the number of each share
  • The rights, voting rights, limitations and privileges attached to each class of share issued
  • The name and addresses of directors
  • For corporate directors the registered address and name must be supplied
  • The name and addresses of the Company Secretary
  • For corporate secretaries the company name and registered address
  • Companies limited by guarantee should file a statement saying that each member of the company is prepared to contribute towards repaying the debts incurred by the company in case the company dissolves
  • The by- laws of the company

The documents necessary for the incorporation of Hong Kong companies can be written in Chinese and English. The name of the company can be written in either of the mentioned languages. Hong Kong company law prohibits the use of words such as Chamber of Commerce, Bank, Insurance, Cooperative, Savings, and Assurance without the right consent being sought. Hong Kong Companies law does not allow for these words to be included as part of companies names, Royal or any name which indicates or implies connection with the government of Hong Kong or China.

The company laws of Hong Kong states that a minimum of one shareholder and two directors are needed for Hong Kong company incorporation. The company directors of Hong Kong companies can be corporations or individuals. A company secretary must be appointed who must be a resident of the low tax haven of Hong Kong. The Company secretary can be a resident corporation of Hong Kong.

According to the stipulations of Hong Kong companies law the corporate tax rate which is paid by Hong Kong companies doing business in the jurisdiction is set at 17.5% Hong Kong companies will pay no local taxes on incomes gained from doing business operations outside of Hong Kong. There is no capital gains tax, withholding tax and Stamp Duty to be paid by Hon Kong companies which do no business in Hong Kong. All companies incorporated in Hong Kong must pay an annual license fee to the Registrar of Companies in the jurisdiction.

All Hong Kong companies must file with the tax authorities at the end of each business year their annual financial statements. Hong Kong companies are obligated to keep accounting records. This can be kept anywhere the company directors desire. Hong Kong company laws are very modern and provide clients with an excellent trading company which is set up in a stable economy.


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