Company structure in Hong Kong
Legal basis - Common law
Legal framework - Ordinance on companies
Company form - Private company limited by shares (Ltd.).
Responsibility - The shareholders' liability for the company is limited to the amount of their respective shareholdings.
Capital Share capital - There is no established minimum share capital, but the authorized share capital is generally HKD 10,000, represented by 10,000 ordinary shares of HKD 1.00 each. The minimum issued share capital is HKD 1.00. It can be denominated in any currency. Bearer shares are not permitted.
Shareholders - A minimum shareholder and a maximum of 50, who can be individuals or companies, residents or non-residents, without limitation. Shareholder details are made public.
Administrators - At least one director, who can be a natural or legal person, resident or non-resident. A director must not be bankrupt or have been convicted of professional misconduct. A single shareholder can also be the director. Contact details of directors are disclosed to the public registrar.
Secretary - A local secretary must be appointed, whether it is a company or an individual. The secretary must also keep the statutory books and company records up to date to ensure company compliance.
Registered address - Limited liability companies must have a local registered physical address, PO box is not allowed.
General assembly - A general meeting of shareholders must be held annually, without restriction as to its location. The first general assembly after the constitution must be held within 18 months. Instead of a general meeting, a written resolution is allowed.
Electronic signature - authorized.
Re-domiciliation - Not allowed.
Conformity - Limited liability companies are required to prepare and maintain accounts, which must be audited annually by a certified public accountant in Hong Kong, file them in the annual declaration in the company register and pay the fees. annual registration. The business registration certificate can be renewed annually or every three years. Resident entities must file their income tax return with the Taxation Department annually.
Key figures of companies in Hong Kong
|Official name||Hong Kong Special Administrative Region of the People's Republic of China|
|Proper noun||Hong Kong Special Administrative Region (en);香港特別行政區 (zh)|
|Population||7,448,885 inhabitants (2018)|
|Population growth||0.77 % / year|
|Density||6,710.71 inhabitants / km²|
|GDP||362.993 billion $USD (2018)|
|GDP / capita||48,717 $USD (2018)|
|GDP growth||3.00 % / year (2018)|
|Life expectancy||84.70 years (2018)|
|Birth-rate||‰ 8.30 (2016)|
|Fertility rate||1.21 children / woman (2016)|
|Mortality rate||6.40 ‰ (2016)|
|Child mortality rate||1.50 ‰ (2015)|
|Literacy rate||98,00 % (2015)|
|Official languages||Chinese (Cantonese), English|
|Change||Hong Kong Dollar ($ HKD)|
|HDI||0,939 / 1 (2018)|
|Nature of State||Special Administrative Region of the People's Republic of China|
|Head of state||President Xi Jinping|
|Codes ISO||HK, HKG|
|Nice||Hong Kong, Hong Kong, Chinese, Chinese|
|Tourists||27,885,000 people (2017)|
Hong Kong is a Special Administrative Region (SAR) of the People's Republic of China located in the south of the country. It is a major industrial and financial center in the Asia-Pacific region.
Hong Kong covers a small area of 1,110 km2, border of the Chinese province of Guangdong. It is located at the end of the Pearl River delta, with which it forms the largest urban region in the world. This region also includes Canton, Shenzhen and Macao, and is one of the richest in the country. It is also one of the world's leading ports.
A former British colony, it was surrendered by the United Kingdom to China in 1997. Indeed, the 99-year emphyteutic lease concluded with China expired on that date. The People's Republic of China is committed to maintaining the economic and legislative systems, and the Hong Kong way of life for 50 years (until 2047). This is the so-called “one country, two systems” policy.
In fact, the political and legal organization of the territory differs from that of mainland China. Individual freedoms and human rights are generally respected despite some clashes, and elections are organized every five years in order to establish an executive power at the head of the government.
Hong Kong is one of the longest-living places in the world. It is also, with the lengthening of the lifespan, a place where the population is aging very quickly. From 2006 to 2016, the population aged over 65 increased from 12 % to 16 % of the total. And the birth rate is also one of the lowest in the world, creating a “snowball” effect. A phenomenon which will greatly increase in the coming decades, and which concerns the whole of China.
Corporate Taxation in Hong Kong
Corporate tax rate (IS)
|Global CIT rate (%)||Foreign source income is exempt from corporation tax. This exemption does not require prior approval. Foreign source income simply needs to be reported as such in the annual tax return. Upon receipt of this declaration, the tax administration will ask the company to provide it with supporting documents attesting to the nature of this income. This is why it is important to keep all the written documents likely to justify this exemption.
First HKD 2,000,000 in earnings valued at 8.25%;
Remaining evaluable profits at 16.5%
Corporate tax (IS) due dates
|CIT return deadline||Income tax returns are issued on the first working day of April of each year. The filing deadline is generally one month from the date of issue of the return. An extension is possible for certain companies (for example for companies whose financial year end date is December 31, the filing deadline is normally extended until August 15 of the year in which the declaration is issued).|
|CIT final payment due date||For companies with a fiscal year-end date of December 31, the final tax payment for a given fiscal year is usually due in November of the year in which the return is issued.|
|Estimated due dates for CIT payments||For companies with a fiscal year-end date of December 31, interim tax payments for a given fiscal year must be paid in two installments, which are usually due in November of the current year and in January. of the following year.|
Personal income tax rate (PPI)
|Global PIT rate (%)||Progressive rates: ranging from 2% to 17%;
Standard rate: 15%
Personal income tax (PIT) due dates
|PIT return due date||Individual tax returns are issued on the first working day of May of each year. The deadline for filing is usually one month from the date of issue. The extension is available for taxpayers with tax representatives and under certain circumstances (eg electronic filing).|
|IRP final payment due date||Usually due in January of the year following the year in which the return is issued.|
|Estimated PIT Payment Due Dates||Interim tax payments for a given tax year must be paid in two installments, usually due between January and April of the year following the year in which the tax return is issued.|
Value added tax (VAT) rate
|Standard VAT rate (%)||N / A|
Withholding tax rate (WHT)
|WHT rate (%) (Div / Int / Roy)||Resident: 0/0/0;
Non-resident: 0/0 / 2.475 to 4.95
Capital gains tax rate (CGT)
|Corporate capital gains tax rate (%)||N / A|
|Tax rate for individual capital gains (%)||N / A|
Wealth / Equity Tax Rate
|Global wealth / equity tax rate (%)||N / A|
Rate of inheritance and gift tax
|Rate of inheritance tax (%)||N / A|
|Gift tax rate (%)||N / A|