What are the common problems in setting up Hong Kong limited company?

Hong Kong is the world's third largest financial centre, one of the world's freest economies and most competitive cities. Hong Kong has a perfect legal system, simple tax system, low tax rate, high-quality professionals and other advantages, attracting investors from all over the world to set up companies.

What are the common problems in setting up Hong Kong limited company?

1. How much does Hong Kong limited company formation cost?

Under the Hong Kong companies ordinance, there is no special limit on the amount of a company's registered capital, but sponsors are required to subscribe for at least one share at the time of incorporation. The standard registered capital of a Hong Kong limited company is hk $10,000.

2. What does equity represent?

The meaning of capital stock is shareholder's biggest limited liability. If the company is wound up, the liability of shareholders is limited to the issued capital stock.

3. Does the capital stock of the company need capital verification?

No capital verification is required, no matter how much the capital stock.

4. What government fees should be paid when increasing and issuing new shares?

Companies do not have to pay government fees to add or issue new shares.

5. Will the business scope on the business registration certificate restrict the company from carrying out other businesses?

Business scope generally refers to the main business of the company. The business registration certificate does not limit the business scope of the company, so it will not limit the company to carry out other businesses. However, it is recommended that to change the scope of business of the company, the change will take about 2 working days.

6. How to know whether the company has been legally registered?

You may choose corporate service provider HK or conduct search at the Hong Kong companies registry and the business registry.

7. When can a newly established limited company find its registration record in the companies registry?

You can check it from the registration date.

8. Do I need to pay fees to the Hong Kong government after the establishment of the Hong Kong company?

The Hong Kong company is required to pay the business registration fee and annual return fee to the Hong Kong government every year after its establishment.

9. After the establishment of the Hong Kong company, how to handle the annual accounting and auditing?

It may be entrusted to a professional accounting firm in Hong Kong, and it can assist in arranging a full range of accounting and auditing services. The company only needs to provide invoices, bank statements, expense statements, payroll records and other information to assist the accounting and auditing work.

10. How about the taxation of Hong Kong enterprises?

Hong Kong is a low-tax jurisdiction. Only profits made in Hong Kong are taxable. Profits made on exchanges outside Hong Kong are not subject to Hong Kong corporate tax. In addition, profits generated in Hong Kong are subject to only profits tax.

For more information about ‘Why should I register my company in Hong Kong?’ please visit JV Consultants Limited (http://www.jvchk.com).