Hong Kong
Hong Kong is arguably the only jurisdiction today that allows companies to operate within a “white” zone while enjoying all the benefits of offshore structures.
Hong Kong is a prestigious international financial and trading hub that enhances the business image of companies registered there. The region boasts a stable currency exchange rate, a highly developed banking system, and a clear business taxation framework. There are no restrictions on the type of entrepreneurial activity, and the requirements for company registration are minimal.
Offshore-type companies in Hong Kong are completely exempt from paying taxes, provided they do not have an operational office, conduct activities, or employ staff in the region. Additionally, under the new two-tier tax regime, profits up to HKD 2 million are taxed at a reduced rate of 8.25%, while profits exceeding this threshold are subject to the standard rate of 16.5%.
Hong Kong imposes no restrictions on foreign investments or capital movement, nor does it have currency control. Funds can be freely deposited, withdrawn, or transferred from Hong Kong accounts without taxation. Dividends of offshore companies are also tax-free.
The streamlined company registration process allows for quick setup. By choosing VKS SERVICE, you eliminate all legal hurdles. Our company is a licensed secretary in Hong Kong, with its own office and a team of local experts. We provide consultations on company registration, private banking, auditing, and tax planning.
Who benefits from registering a company in Hong Kong
Setting up a company in Hong Kong is beneficial in the following scenarios:
• You intend to conduct business in mainland China or Hong Kong.
• You aim to reduce costs by using a Hong Kong company as an intermediary.
• You seek to optimize your company’s tax burden.
• You plan to invest in companies or financial instruments within Hong Kong’s jurisdiction.
Hong Kong is especially attractive for exporters of goods from mainland China. Many use Hong Kong companies as intermediaries in trading operations, thereby reducing their taxable base. Moreover, under the double taxation avoidance agreement between Hong Kong and China, dividends paid by a Chinese subsidiary to Hong Kong are taxed at a source rate of just 5%. In comparison, the rate under the agreement between Russia and China is 10%. Dividends to Hong Kong company shareholders are tax-exempt.
Tax optimization is a key driver for establishing a company in Hong Kong, whether for investment projects, manufacturing and processing consumer goods in China, or e-commerce.
Hong Kong companies hold an edge over traditional offshore entities due to minimal restrictions on opening bank accounts globally. Additionally, Hong Kong banks are known for their reliability and extensive global branch networks.
Registering a company in Hong Kong provides the following advantages:
• Significant savings on income tax, corporate tax, and property tax when acquiring assets through a Hong Kong company.
• Tax exemption for income derived from intellectual property rights, patents, trademarks, and licenses by transferring ownership to Hong Kong companies.
• Optimization of transport and logistics schemes for international trade, particularly in maritime shipping, reducing profit tax on freight and other shipping activities when vessels are registered under Hong Kong companies.
Requirements for company registration in Hong Kong
Registering a company in Hong Kong does not require personal presence. The only exception is visiting for opening a bank account. Afterward, the account can be managed remotely from anywhere in the world, with no need for the account holder to be physically present in Hong Kong.
To simplify the registration process, VKS SERVICE offers ready-made Hong Kong companies with pre-opened bank accounts. In such cases, no visit is necessary: clients receive account management access and can start working immediately.
Registering a new Private Company Limited by Shares in Hong Kong takes just 4 business days once all required documents are submitted. Key registration requirements:
• Directors and shareholders: Can be individuals or legal entities, residents or non-residents of Hong Kong.
• Single entity: An individual or legal entity can simultaneously act as both a director and a shareholder.
• Authorized capital: Declared capital does not require actual payment. There is no minimum capital requirement.
• Registered address: Provided by the Company Secretary. Having an address in Hong Kong does not create tax obligations.
