Company Formation Services
Why Hong Kong
Hong Kong has a simple, predictable and low tax system. The city only imposes three direct taxes, and filing taxes is straightforward.
According to the 2014 Paying Taxes* study of 189 economies, Hong Kong has one of the most tax-friendly economies in the world. Why? The city only imposes three direct taxes and has generous allowances and deductions which reduce your taxable amount.
Profits tax is capped at 16.5 percent
Salaries tax is a maximum of 15 percent
Property tax is 15 percent
More important are the taxes exemptions in Hong Kong:
No sales tax or VAT
No withholding tax
No capital gains tax
No tax on dividends
No estate tax
The ease of submitting tax returns is another attractive part of Hong Kong’s business environment. Many people complete their tax returns themselves – a simple process – and can submit them online. Others rely on Hong Kong’s many accountancy firms, large and small, for cost-effective tax services and advice.
Advantages of incorporation in Hong Kong
Hong Kong is a major trading entity and therefore the incorporation of a Hong Kong company is likely to be perceived as ‘legitimate’ and therefore less likely to be seen as a tax avoidance/minimisation vehicle.
English is an official language and is the main business language. All reporting information and documentation can be produced in English.
The Hong Kong tax system is simple and straight-forward.
There are no restrictions on the use of foreigners as Shareholders or Directors at a Hong Kong company.
Corporate Director and Secretary are allowed.
The incorporation of a Hong Kong company is simple and quick.
Low cost of incorporation and maintenance.
No minimum requirements for share capital.
Only one Director and Shareholder is required to form a limited liability company.
Due to the system of territorial taxation foreign source trade profit is not subject to Hong Kong income tax.
There is no capital gains tax in Hong Kong.
There is no withholding tax on interest, dividends and royalty.
Foreign dividends are not subject to Hong Kong income tax.
Tax credits for foreign tax paid are available in Hong Kong; however it is subject to some conditions.
There is no net worth tax in Hong Kong.
Hong Kong has an excellent banking system and communications infrastructure.
Moreover, Hong Kong is also known for its free port status and easy customs procedures. Duty is paid on very few products, for example, tobacco. One major recent change has been to make the import of wine and beer duty free. This has encouraged a thriving wine import, export and storage business serving retail and individual buyers.
A former British Colony but now part of the Republic of China, Hong Kong is considered a major international centre for business. Located on the south east coast of China it became part of China on the 1st of July 1997. Hong Kong is classified as a Special Administrative Region (SAR) within the Republic of China and has retained its own legal system. The legal system in Hong Kong is, unsurprisingly, based on the British system with the official languages being English and Chinese.
There is no ‘offshore’ legislation in Hong Kong, all companies are incorporated under the same legislation regardless of whether they do business on or offshore. However companies that do not derive any income from sources in Hong Kong are not subject to tax thereby effectively making it an offshore company in all but name. An excellent infrastructure and strong regulatory frame work are contributors to the success of Hong Kong as a major destination for business.
Hong Kong is one of the world most established and reliable financial centres. The economy in Hong Kong is considered to be one of the freest in the world (as measured by the Index of Economic Freedom) therefore it is an excellent jurisdiction in which to incorporate a company.
What separates us from our competitors is that our services don’t end with the registration of your company. We offer a wide range of additional services others can’t or just won’t offer, such as lifetime free support.
Whilst most providers either specialise on personalized consultation at relatively high rates or run bulk registration factories without any support, we want to offer the positive aspects of both types.
Therefore TBA combines professional advice, worldwide registration services, reasonable fees, customized order processing, lifetime support and fast processing. Where others see company formation services as a bulk registration with no support and no individual assistance, we do care about your business needs.
Should you have any question or matter
You would like to discuss or clarify with us
Should you like to receive further Information
About our services and fees, …
Our multi-lingual team of business advisors is happy to assist you with all upcoming questions and issues in relation to your company.
You may call or email us, and we will be happy to assist you in a fast and efficient manner.
You can also come and visit us at our Limassol offices to discuss issues face to face if you prefer. Just arrange an appointment and we will be happy to meet with you.