Advantages of LTD in Hong Kong
Registration of an LTD in Hong Kong is relevant, as the economy of the territory is based on a free market and low taxation, as well as non-interference of the state in the economy. This area is considered offshore, there is no levy on VAT, and excise taxes are charged only on a few types of products. The territory is considered an important financial center.
Peculiarities of registration of the company LTD in Hong Kong
One of the most common types of companies that are registered in Hong Kong is an LTD. These are private firms with liability that is limited to shares. Before opening an LTD in Hong Kong in 2021, you need to familiarize yourself with the requirements of the jurisdiction.
The firm must have a local secretary, who is a resident in the territory and can have the status of an individual or a legal entity. It is necessary to have a registered office in Hong Kong with a real address.
LTD requires at least one director - a natural person. If this condition is met, it is possible to have several directors with the status of a legal entity, as well as residents of any state.
There must be at least one shareholder, which can be an individual or corporate person. There is also no residency requirement. Shares can only be registered, the issue to bearer is prohibited.
Information about the directors and shareholders, the address of the company is available in a public register. Once a year firms are required to prepare a report; if not provided in time, penalties can be applied. LTD firms are required to keep accounting records, to conduct audits. The name can be written in English or Chinese.
What documents are needed
Before opening a company in Hong Kong in 2021, it is required to collect all the necessary documents. These include an application for registration or purchase of a ready-made company with signatures of beneficiaries and owners. Information on the directors and beneficiaries will be required. Please contact our specialists at IT-OFFSHORE for a complete list of documentation.
What data should be prepared for individuals:
- Passport information, notarized;
- Address information;
- Contact information;
- Evidence of previous business experience;
- Proof of legality of the origin of finances.
Corporations must provide incorporation information, articles of incorporation, proof of directors and shareholders, addresses. Details of the beneficiaries are required. All documents shall be notarized and translated into English or Chinese if required.
Advantages of incorporation in Hong Kong
One of the main advantages of company registration in Hong Kong is the possibility to choose the preferential tax treatment and legal optimization of payments. Losses from taxation are reduced to a minimum. If the firm does not conduct activities in the territory and has no income associated with the area, there is an opportunity to get a full exemption from payment of taxes.
A firm that has entirely foreign capital has no restrictions on the application of instruments such as loans and dividends, royalties, etc. There are no currency controls. The area is respectable - it offers a developed infrastructure for the development of international business, and there is an opportunity to enter the Asian market.