Facts about Setting up a company:

Setting up a foreign branch of your company in Hong Kong, is easily accomplished. You have the possibility to register a sole proprietor, partnership or limited company.

  • You can also register a foreign overseas company under Section 333 with the relevant documentation required translated into English or Chinese.

  • All businesses require a Business registration Certificate to conduct any business transactions in Hong Kong.

  • It should be noted that registration of a company in Hong Kong is separate from registration of a company in Mainland China.

  • A HK Company does not require a local HK resident partner. You only need to have one director and a shareholder who may be a resident or non-resident. You would need to hire a local resident company secretary and to have a local registered office address.

Facts about Taxes in Hong Kong:

 Hong Kong tax is extremely low. There is no sales tax, no capital gains tax, no VAT and they are slowly trying to rid the state of stamp duties. There are personal exemptions (currently HKD100,000) and exemptions for children, other dependent relatives you're caring for, etc. The majority of people in Hong Kong pay no income tax at all.

  • Import Tax: - Hong Kong is a "duty free special Administrative Region" which means that no customs duties are levied on all imports. Cars are subject to their first registration tax whereas excise taxes are eliminated for wines and beer of low alcoholic strength. Excise tax for cigarettes are raised substantially in 2009/

  • Corporate tax (Profits tax): - current tax rates in financial year of 2007/8 are 17.5% for corporations and 16% for unincorporated businesses.

  • Income tax (Salary tax) This is set at 2% for those earning less than HK$35,000 a year, 8% for HK$35,000-HK$70,000, 14% for HK$70,000-HK$105,000 and 20% for anything exceeding that.

  • Capital Gains Tax: There's no tax on capital gains, e.g. sales of stocks/bonds/property (although there is a tax called the 'stamp duty' imposed on property sales).





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