Advantages:

• Low Tax Rate
• Low Cost
• Simple Requirements
• No Exchange Control
• Speedy Incorporation  Procedures
• No Restriction for Having a  Physical Office

Disadvantages:

• Disclosure information (e.g. directors, shareholders )
• Annual filing requirements to Government (e.g. annual return, auditing)
• Annual maintenance fee higher than BVI Co.

BVI company

Advantages:

• Easy to set up
• Low cost
• No tax
• Protection for foreign investors
• Enjoy financial flexibility and privacy

Disadvantages:

• Not easy to open a bank account in Hong Kong

The common types of business entities in Hong Kong are company limited by shares, partnerships and sole proprietorship.

Q2. How do I form and register a local limited company in Hong Kong?

There are two methods to register a local limited company in Hong Kong. Ready-made company There are lists of companies that have already been incorporated and the Certificate of Incorporation and Business Registration Certificate are available. It normally takes 2-3 to complete the procedure of the changes. (Please contact us to collect the lists of companies, if any) Tailor-made company If there is preference to the company name, amount of authorized capital, clauses of Memorandum and Articles of association, a company according to your requirement can be incorporated. It will take about 2-3 weeks to have the Certificate of Incorporation.

Q3. Is there any basic requirement on incorporation of limited company?

Yes. The requirement is listed as below: Authorized Capital: No maximum but at least 1 share of any value. Ready-made company has a standard authorized capital of HK$10,000 divided into 10,000 shares of HK$1.00 each. No. of Shareholders: At least 1 shareholder above 18 years old but not more than 50 persons. No. of Directors: At least 1 director above 18 years old. Company Secretary: Company Secretary must be a Hong Kong resident or a Hong Kong limited company. Registered Office: It must be a Hong Kong address (commercial or residential), Post Office Box number is not accepted.

Key content:

• Value-added tax and the tax on turnover will be scrapped for small businesses whose revenues are less than 20,000 yuan ($3,200) a month.
• 6 million enterprises are expected to benefit and the amount of tax reduction is nearly 300 billion yuan per year.
• This policy takes effect from August1, 2013.

• Profits tax is capped at 16.5 percent.
• Salaries tax is a maximum of 15 percent.
• Property tax is 15 percent.
• No sales tax, no withholding tax, no capital gains tax, no tax on dividends, no estate tax.