One of the benefits of company formation in Hong Kong is the option to open a bank account. The main requirement is that you are a permanent resident of the Island. Companies are generally governed by the laws of the company formation in Hong Kong. After approval by the relevant authority, your company can open a bank account and begin trading.
If you have Hong Kong incorporation headquarters in the UK, there are additional requirements for you to open a bank account in Hong Kong. Your company must be registered with the Companies House. The company director and members of the board of directors need to be residents of Hong Kong. The Companies House also requires that most of the directors of the company are residents of the UK.
There are some other requirements of companies in Hong Kong which are not applicable in every case. For example, companies must submit annual accounts and reports to the shareholders, including their assets and liabilities and their tax rate. The company must also submit audited financial statements. In addition, you will need to ensure that the company satisfies the ongoing compliance obligations and meets the minimum standards on the taxation of profits. You will also need to ensure that the company fulfils the continuing compliance obligations on its corporate tax rate.
The Company Formation Agreement is the document that governs the transfer of the shares of the underlying company. This agreement is also referred to as the Memorandum and Articles of Association. This agreement is also used to set up the subsidiary companies and the method of double taxation. Any non-UK citizen must register his designation as an individual.
The Hong Kong company formation law allows transfer options, including direct share ownership, lease options, and common share older ships. It means that the transfer of shares is done without paying the additional income tax and the regular income tax. In addition, double taxation is avoided through the dual taxation relief schemes provided by the law. These include corporation tax, property rent tax, and income tax.
If you are a non-UK citizen, you will need to provide the necessary documents such as your birth certificate, your proof of identity, and your passport and a registration fee. There is another option of having a nominee company. It will be beneficial if you are going to start a business in Hong Kong. In this case, the nominee company is created as the company of record, and all the payments made to it will be the business income. You can incorporate limited liability companies, and this will also save you from paying the income tax. You can only include a limited liability company in the country where you are registered.
The critical document for the Hong Kong incorporation is the ‘letter of appointment’ along with the signed agreement between the applicant and the company secretary. It forms the first year of trading, and any issues or proceedings must be completed in the first year. The following document is thestatement of accounts, and this is important to report the income and expenses of the company during the first year. For example, if there are any dividends declared,they must be written in the statement of accounts. Likewise, if there are any company debts to other entities, they have to be announced in the view of accounts.
You have to appoint one director for the company, and they have to be a natural person. There are different types of company structure, including the single shareholder, partnership, limited liability company (LLC), and nominee company, etc. In addition, there is a ‘baker trust’, which has become a popular way of doing Hong Kong incorporation. It allows the people to eliminate double taxation, the paid-up agent, and the paid-up shares.