Our Services - Offshore Company Formation, Nominee Director, Nominee Shareholder, Mail forwarding and Bank Accounts

Offshore Formations 247 specialize in Hong Kong company formations ranging from simple company registrations to complex structures including offshore Trusts and in providing a very comprehensive assortment of administrative services to Hong Kong companies, including the provision of Nominee Director, Nominee Shareholder, Mail Forwarding and Bank Account services. We are also able to offer a 'transfer in' service whereby we can take over the management of your existing Hong Kong Offshore Company, often for no cost at all. Our specialist Hong Kong company formation and company registration team:

• Retains well-established affiliations with local company agents in the Hong Kong
• Maintains an experienced staff with knowledge of legal requirements for company formation in Hong Kong
• Guarantees that all company filing fees and documents are up-to-date and notifies clients of all Hong Kong compliance changes
• We are NOT tax planners or advisers and as such cannot give advice to clients regarding the advantages / disadvantages of Hong Kong offshore structures

Call our specialist Hong Kong company formation team FREE on 0808 168 3676. If you are calling from outside the UK, please call us on 0044 (0) 208 492 6388

Hong Kong Offshore Companies and their Tax Liability

Taxes only apply to business profits, salaries and property rental income. This means there is no capital gains tax and no inheritance tax - the two biggest bugbears of expats. The beauty of the Hong Kong tax regime is that it is one of the few jurisdictions in the world that tax on a territorial basis. Many countries levy tax on a different basis and they tax the world-wide profits of a business, including profits derived from an offshore source. Hong Kong offshore companies profits tax is ONLY charged on profits derived from a trade, profession or business carried on in Hong Kong. Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. Hong Kong sourced profits is currently subject to a rate of taxation of 16.5 per cent. There is no tax in Hong Kong on capital gains, dividends and interest earned. The principle of Hong Kong profits tax is that it is a tax on profits that has its source in Hong Kong rather than a tax based on residence. Income sourced elsewhere, even remitted to Hong Kong, is not subject to Hong Kong profits tax at all. Consequently, if a Hong Kong offshore company's trading or business activities are based outside Hong Kong no taxation will be levied. A factor that determines the locality of profits from trading in goods and commodities is generally the place where the contracts for purchase or sale are effected. "Effected" does not only mean that the contracts are legally executed. It also covers the negotiation, conclusion and execution of the terms of the contracts. If a business earns commission by securing buyers for products or by securing suppliers of products required by customers, the activity which gives rise to the commission income is the arrangement of the business to be transacted between the principals. The source of the income is the place where the activities of the commission agent are performed. If such activities are performed through an office in Hong Kong, the income has a source in Hong Kong. Certain sums, like royalties, paid or payable to non-resident persons for use of or right to use certain intellectual property are subject to withholding tax. The payer who claims deduction for the use of the intellectual property against its assessable income is required to withhold a prescribed percentage from the payment while that recipient is not subject to Hong Kong profits tax. The prescribed percentage is 4.95% on the gross payment if the payer and the recipient are not related, but 16.5% if the payer and recipient are related. The recipients of the royalties who are tax residents of Belgium, Thailand, or Luxembourg enjoy the respective treaty rates.

Hong Kong Double Taxation Agreements

Hong Kong has arrangement with a number of jurisdictions for double taxation relief of shipping or airline income. It has also comprehensive double tax agreements with Belgium and Thailand respectively to relieve taxation on income, for instance, dividends, interest and royalties. The Hong Kong Inland Revenue Department allows a deduction for foreign tax paid on a turnover basis in respect of income which is also subject to tax in Hong Kong. Therefore, businesses operating in Hong Kong do not generally have problems with double taxation of income. The respective comprehensive double tax agreements with Brunei, Hungary, Indonesia, Kuwait and Netherlands will become effective from 1 April 2011 to relieve the applicable double taxation on various incomes.

Hong Kong Offshore Company Banking

At Offshore Formations 247 we work closely with HSBC bank and can therefore combine the formation of your Hong Kong offshore company with a top class bank account.

CORPORATE INFORMATION

Type of entity	Private LTD
Type of law	Common
Shelf company availability	Yes
Our time to establish a new company	7 days
Minimum government fees (excluding taxation)	US $320 / US $65
Corporate Taxation	Nil or foreign profits
Double taxation treaty access	China - Corporate and Personal Income Tax. Belgium, Thailand, Luxembourg - dividends, interest and royalties. Some other Countries - for shipping and aviation.

SHARE CAPITAL OR EQUIVALENT

Standard currency	HK$
Permitted currencies	Any
Minimum paid up	HK$1
Usual authorised	HK$1,000

DIRECTORS OR MANAGERS

Minimum number	1
Local required	No
Publicly accessible records	Yes
Location of meetings	Anywhere

MEMEBERS

Minimum number	1
Publicly accessible records	Yes
Location of meetings	Anywhere

COMPANY SECRETARY

Required	Yes
Local or qualified	Local

ACCOUNTS

Requirement to prepare	Yes
Audit requirements	Yes
Requirement to file accounts	Yes
Publicly accessible accounts	No

OTHER

Requirement to file annual return	Yes
Change in domicile permitted	No

• A minimum of one director and one shareholder must be appointed. They may be either of any nationality or residence
• A company secretary must be appointed. An individual secretary must be ordinarily resident in Hong Kong
• The names of company officers appear on public record. Anonymity can be preserved by the use of nominee directors and shareholders
• Preparation of accounts is required. Accounts are not publicly accessible
• A private company is required to file an annual return each year within forty-two days of the company’s anniver­sary date of incorporation
• A Hong Kong company is only taxed on its profits arising in or derived from a trade or business carried on in Hong Kong. There is no tax on dividends paid by a company otherwise chargeable to profits tax
• The actual incorporation takes five to seven days
• Stable jurisdiction with very good reputation of important financial centre

Why Form Hong Kong Companies?

If you are an entrepreneur who is looking to form an offshore company, Hong Kong is one of the best jurisdictions with a lot to offer. It does not matter whether you are a seasoned company director, or you are looking to form your first start-up., Offshore Formations 247 can help you in your endeavours. There are many advantages which come with setting up a business in Hong Kong. Hong Kong companies can benefit from a globalized economy and a very small rate of corporate taxes, making it somewhat of an ideal location for offshore companies.

Corporate Tax In Hong Kong

Hong Kong companies are at a distinct advantage for expats as they are not liable for capital gains tax or inheritance tax. Tax which is payable to the Hong Kong government is only tax on profits which have been made inside Hong Kong, so any profits which are made outside of the jurisdiction will not be subject to tax, making Hong Kong the perfect place for start-ups and seasoned companies alike. The rate of tax for Hong Kong companies is currently charged at 16.5 percent which is very competitive. However, if you were to maintain a base in Hong Kong but do al of your business outside of Hong Kong, you would have absolutely no taxes to pay whatsoever.

Directors

When forming Hong Kong companies, you will need to appoint a minimum of one shareholder and one directors. These can be of any nationality you wish.

Privacy

Although you must prepare accounts, there is no legislation which requires them to be public, so if you are looking for ultimate privacy, Hong Kong companies could be the answer for you.

Offshore Formations 247

Here at Offshore Formations 247, we pride ourselves on offering a speedy company formation service. We are fully able to incorporate Hong Kong companies. This means that we  an take care of all of the business associated with a new company formation in the area for our clients. It will usually take us no more than 7 days to complete a formation.

The Benefits Of Hong Kong Company Formation

If you are looking to form an offshore company, you may wish to consider the many benefits of doing so in Hong Kong, which is one of the most popular jurisdictions to do so. Here at Offshore Formations 247, we offer a range of great offshore formation structures which will see you complete your Hong Kong