Company Formation, Registration and Management
Formation of Hong Kong companies
We can provide ready formed Hong Kong companies for a client’s immediate use. Alternatively and preferably (if our client can wait approximately ten days, being the period of time that it takes the Companies Registry of Hong Kong to form a company) we can form a tailor-made company for our client with chosen name and appropriate memorandum and articles of association.
Shareholders of a Hong Kong company
The shareholders of a Hong Kong company can be individuals or corporations and can reside/be incorporated in any part of the world. There is no requirement for local shareholders. A Hong Kong company must have a minimum of one shareholder.
Directors of a Hong Kong company
Every Hong Kong company must have at least one director. The directors can be individuals or corporations and can reside/be incorporated in any part of the world. There is no requirement for a local director.
Company secretary and registered office of a Hong Kong company
Hong Kong law requires that a Hong Kong company has a local registered office and a local secretary. Tanner De Witt provides these services for its clients.
Business registration certificate
Every Hong Kong company is required to maintain a business registration certificate. This is, in effect, a tax payable to the Hong Kong government.
Maintenance of accounts and auditing of a Hong Kong company
Every Hong Kong company must maintain proper accounts and be audited each year. Tanner De Witt has relationships with many firms of accountants ranging from the world’s biggest through to small effective local firms. We are happy to make introductions on behalf of our clients. Indeed, we encourage our clients to ensure that they have local accounting and auditing advice at the earliest possible opportunity and we work in cooperation with local accountants to ensure that the legal and auditing services to our clients are properly coordinated.
Hong Kong taxation
Hong Kong is a source-based tax jurisdiction. Basically, this means that profits which are sourced in Hong Kong are chargeable to Hong Kong profits tax but profits which are sourced elsewhere are free of Hong Kong profits tax. Not surprisingly, the law governing which profits are taxable in Hong Kong and which are not is complex. However, many Hong Kong companies with overseas operations legitimately make significant profits which are not subject to Hong Kong taxation. Tanner De Witt works hand in hand with its clients to ensure that the most effective operating structure is established.
Bank accounts for a Hong Kong company
Hong Kong banks are becoming ever more prudent when opening accounts for new companies, even in circumstances where Tanner De Witt’s client already has a relationship with that bank in another jurisdiction. Whilst our clients understand the need for the banks to exercise caution and to carry out their own due diligence, nevertheless this can prove to be a time consuming and frustrating aspect of establishing a new company or business presence in Hong Kong. Tanner De Witt is familiar with the requirements of local banks and can help clients through this process.
Incorporation and establishment of offshore companies
Tanner De Witt advises its clients on the establishment and maintenance of overseas companies from a variety of jurisdictions. We provide secretarial services in order to ensure that these companies are kept in good standing.
Registration of overseas companies with a place of business in Hong Kong
Some overseas clients prefer to conduct their Hong Kong business through existing or new overseas companies rather than by establishing a new Hong Kong company for that purpose. In these circumstances, it is usually necessary to register the company as an overseas company with a place of business here in Hong Kong. Tanner De Witt advises upon any appropriate business structures and assists with the registration requirements.
An overseas company with a place of business in Hong Kong is required to have a local Authorised Representative. Tanner De Witt can provide the Authorised Representative in appropriate cases.