For running business in Hong Kong, it is a right choice to incorporate a Hong Kong company to carry on the business. Many foreign companies engage in trading business with China and many companies in China doing business with foreign companies also incorporate a Hong Kong company for foreign exchange control and tax planning reasons. Typically, a company incorporated in Hong Kong or offshore is often used as the contracting party. Contract proceeds may be received and paid out in Hong Kong freely as there is no exchange control and no tax on income derived offshore.
Basic Requirement for Hong Kong Company Formation
- At least one shareholder (aged 18 or over/company)
- At least one director (aged 18 or over/company; can same as shareholder)
- One company secretary (Hong Kong resident/company)
- Hong Kong Business Address as registered office
BVI or Seychelles Limited Company
A limited company incorporated in the British Virgin Islands (“BVI”) or Seychelles may be used if it does not conduct any business activities in Hong Kong. For example, the business involves the trading of goods directly shipped from Europe to China and all your staff are outside Hong Kong.
Basic Requirements for a BVI or Seychelles Limited Company formation
- At least one shareholder (aged 18 or over)
- At least one director (aged 18 or over; can same as shareholder)
2 Ways of Incorporating a Hong Kong Limited Company, BVI or Seychelles Limited Company
- Set up a New Limited Company
- Purchase a ready-made Limited Company