A partnership is a form of business organization in which 2 or more persons carry on a business with a common view to making a profit. A partnership is not a separate legal person but a grouping of persons in an unincorporated form.
Hong Kong is frequently chosen as a place to register a company because it is a global business and financial centre and acts both as a gateway to Greater China as well as an offshore tax haven jurisdiction. For more information on this topic, refer to our guide on the advantages of setting up a company in Hong Kong.
In the 3 year period from 2017 to 2019, over 436,000 new companies were registered in Hong Kong (source: Hong Kong Companies Registry). In contrast, during the same period, the Cayman Islands only saw the registration of 42,000 new companies (source: Cayman Islands General Registry) and the BVI only saw the registration of 96,000 new companies (source: BVI Financial Services Commission). In other words, new Hong Kong company registrations outpaced the Cayman Islands by a factor of more than 10 times and the BVI by a factor of more than 4 times. Hong Kong is clearly preferred over popular Caribbean offshore tax haven jurisdictions.
In the 3 year period from 2017 to 2019, over 436,000 new companies were registered in Hong Kong (source: Hong Kong Companies Registry). In contrast, during the same period, Ireland only saw the registration of 68,000 companies (source: Companies Registration Office of Ireland) and the Isle of Man only saw the registration of 5,600 new companies (source: Companies Registry of the Isle of Man). As is evident, Hong Kong is more than 6 times more popular than Ireland and more than 80 times more popular than the Isle of Man.
Hong Kong is frequently compared to Singapore. However, the data suggest that when it comes to company registration, Hong Kong is preferred by a wide margin over Singapore. In the 3 year period from 2017 to 2019, Singapore saw just over 185,000 new company registrations (source: Department of Statistics, Singapore) whereas Hong Kong saw just over 436,000 new company registrations (source: Hong Kong Companies Registry). As is evident, Singapore saw only one-third of the number of company registrations as Hong Kong did during the 3 year period.
There are 4 basic types of company which you can be registered in Hong Kong. You can register a Hong Kong incorporated company, a sole proprietorship, a partnership or limited partnership, a branch of a foreign company or a representative office of a foreign company.
There are 3 basic types of Hong Kong incorporated companies, namely companies limited by shares, companies limited by guarantee and unlimited liability companies. The most commonly used type of a incorporated company for businesses is a company limited by shares but a company limited by guarantee is frequently used for non-profit activities.
Hong Kong operates a schedular tax system, meaning that instead of a comprehensive income tax, it taxes types of income. Profits tax will be apply to Hong Kong companies which carry on a business in Hong Kong and which have profits arising in or derived from that business. Hong Kong is regarded as a tax haven offshore jurisdiction because it has a low rate of tax and a territorial based tax system which does not tax income earned outside of Hong Kong.
It is possible to incorporate a Hong Kong company within 1-2 days from the time the application for registration is submitted. We can help you to prepare all the documents necessary to ensure that the application for company registration proceeds on schedule.
No, you can incorporate a Hong Kong company from outside of Hong Kong. We can handle the incorporation formalities for you, acting as your company registration agent in Hong Kong. However, we must be able to verify the identity of the proposed shareholders and the directors of the proposed new company. As a result, we will need identification and proof of address documents to be certified in the place where you are located.
No. There is no requirement for any Hong Kong resident shareholders or directors.
Yes. Every Hong Kong incorporated company must have a Hong Kong registered office address to receive legal process and other communications. We can provide this address for you.
Yes. Every Hong Kong company must have a Hong Kong company secretary. We can act as your company secretary.
Every Hong Kong incorporated company must file an annual return with the Companies Registry, renew its business registration and complete an annual audit. The results of the audit are private and there is no requirement to file them with the Companies Registry. As your Hong Kong company secretary, we can help your new company to prepare and file the annual return and to renew its business registration.
Hong Kong taxes profits at a rate of 16.5% subject to a concessionary rate of 8.25% for the first HK$2 million of profit. However, profits are taxed only if a Hong Kong registered company carries on a business in Hong Kong and has profits which arise in or derive from Hong Kong. More information is available in our brief guide to Hong Kong taxes. As your Hong Kong company secretary, we can help you to file your annual tax returns.
No, there is no requirement for a Hong Kong incorporated company to have a Hong Kong bank account to do business. Because Hong Kong operates a territorially limited tax regime, it is not uncommon to use a Hong Kong incorporated company to conduct business outside of Hong Kong and maintain no presence for the company other than its registered office address and company secretary.
If you are interested in appointing us as a new trustee or helping you to setup a trust or if you are interested in learning more about whether a family trust may be right for you or how a family trust may be used for tax planning,estate planning or wealth preservation, please contact us.
We help high net worth individuals and their families to understand whether a family trust is right for them.
We work hand in hand with clients throughout the process of setting up a family trust, advising on options to minimize taxes, to plan for the orderly distribution of wealth to future generations and to protect family wealth from creditors as well as matrimonial disputes and other conflicts within the family.
We provide advice on techniques for family leaders to maintain control and influence over the assets placed into trust, including the identity of the trustee.
We can act as the trustee, help family members or friends who are selected to act as trustees to meet their obligations under the law or help clients to set up a Hong Kong private trust company as a captive trustee for the family trust.
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enquiries@timothyloh.com
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