Hong Kong (Chinese: 香港) whose name means “Fragrant Harbour” is one of the two special administrative regions of the People’s Republic of China, the other being Macao.
Hong Kong is located on the eastern side of the Pearl River, on the south coast of China and has about 7.5 million inhabitants
Hong Kong is the eighth-largest trading power in the world (in the trio New York, London, Hong Kong).
Its economy has been extremely liberal since 1995
Currency: Hong Kong Dollar (ISO Code: HKD)
The objective of HK monetary policy is to maintain monetary stability. In practice the authorities maintain the exchange rate around 7.80 Hong Kong dollars for US $1.
Since 2005 i.e. more than fourteen consecutive years the exchange is between 7.75 HKD and 7.85 HKD which allows to conduct international operations safely in this currency, without having any exchange risks inherent in its use.
The local companies are Limited companies (LTD) as in English law of which they are a copy.
The applicable law is obviously the Common Law.
However, it must be known that a LTD of this Jurisdiction is always deemed to be Tax-Resident in Hong Kong, unless it can prove that it has no transactions and do not invoice any other local companies and prove its Management Place is located abroad.
This implies keeping accounts, appointing a Chartered Accountant to certify same and doing an annual audit of the accounts. The management of Hong Kong-based companies is therefore quite costly.
It is also necessary to apply for an exemption from Taxes (offshore status) which remains subject to the decision of the Inland Revenue and this decision may be made only after several annual accounting periods, which represents a risk of being requalified as ” “resident” and to have to pay taxes accumulated for several years!
We can offer you a bank Introduction in Hong Kong but the initial deposits required are quite high and a personal visit to Hong Kong to meet the Bank will be mandatory (our Local partner will introdude you personally to the Bankers and will obviously prepare beforehand all required legal documents).
If you want to form your new company in Hong Kong we are of course able to do so and have our offices on site in KOWLOON, in this case please inform us via contact form and we will give you a detailed offer with a quote However for the reasons stated above we do not recommend to incorporate directly in Hong Kong but rather to create a legal structure in the Seychelles + Hong Kong address + bank account Hong Kong. Consult alll details about such an alternative on our Page dedicated to Seychelles.