Hong Kong company formation with premium experience

As Capital gains, Dividends, Interest incomes, VAT and Withholdings are tax-exempted in Hong Kong, a Hong Kong company needs to pay only corporate profits tax to the government.

The Corporate profits tax rate in Hong Kong is 8.25% for the first 2 million HKD of assessable incomes and 16.5% for the remainder.

This simple, territorial-based structure is one of the key features of the Hong Kong tax system that continues to attract international businesses and investors.

An offshore claim is a process in which you prove your profits derived from sources outside of Hong Kong territory and is non-taxable in Hong Kong.

To be eligible for an offshore claim in Hong Kong, you need to meet the requirements from Inland Revenue Department. Generally, the requirements include, but are not limited to:

• Having no clients in Hong Kong
• Having no physical office and staff in Hong Kong
• Having no web hosting in Hong Kong
• Having no services, sales, and business performed in Hong Kong
• Having no warehousing and fulfilment in Hong Kong

Our Hong Kong Offshore Claim Tool can assist you to determine the tax status of your income types to ascertain your eligibility for making an offshore claim.

You can apply for Offshore status with Hong Kong Inland Revenue Department (IRD) as soon as you file an annual tax return for the first time. The process might take several months as IRD will raise questions for directors during the investigation. The Offshore Claim can be effective in 3 or 5 years; however, annual auditing is always compulsory.

In Hong Kong, licenses or permits are required for an employment agency, event-related activities, travel agency, education, restaurant, and retail shop, if the business is operated in Hong Kong.

A license is mandatory for a Hong Kong-based company with an insurance agency and financial services, regardless of where you run the business.

• Maintaining one director, and one shareholder;
• Maintaining local registered address and local company secretary;
• Renewal business registration certificate;
• Annual return filing;
• Tax return filing with audited financial statements.

If you are still worried about having to keep up with all the compliance and deadlines, our ComplyMate guide can help draw out the possible due date so you can plan out your whole business plan at ease.

Hong Kong is deemed among the most reputed financial centers in the world. There might be a long list of premium banks in Hong Kong that make you quite confused, some of the best banks in Hong Kong you should put into consideration list include HSBC, Citibank, Hang Seng bank, etc.

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