Industrialization in Hong Kong

Hong Kong’s industrialization dates back when it was known for light consumer goods that any other region would as well do. With competitive spirit, rigorous research and zeal to stand out, Hong Kong is now the regional giant and the control centre for both local and international manufacturing firms. Just a reminder, it is an hour drive from the great Pearl River delta (GPRD).

In the last three decades, most manufacturing companies moved from Hong Kong to the low economy regions where labor and cost of raw material were low, for instance, southern China. Today, the reverses have been created and companies are proffering Hong Kong to those regions owing the Hong Kong’s higher up to date value functions. They include, but not limited to, proto type production, Research and Development, supply chain management, Marketing and business development, technology and software services among many others.

The city is ideally located for such businesses and professionals to supervise and monitor source trading and manufacturing at the Pearl River delta region which is immediate north of Hong Kong.

The town’s excellence is present in the areas of logistical services and high performance in production management due to which, the city has been listed as the sole major exporter of light consumer goods in the Asia pacific region. Such goods may include; jewellery, toys, electronics and accessories, textiles, and finished clothes among others.

Due to the city’s logistical ease of doing business, many industrial international giants have moved their international operational centers, regional offices and global head quarters to Hong Kong. Companies like BASF, GE, Nissan Infiniti and Liebherr are enjoying great benefits and more in the packages of simple tax systems, free economy, effective transport, intellectual property protection, proximity to China’s mainland and many more in Hong Kong.

The city has the population that need to drive the industries in, since the vast population has technical knowhow in various fields. The energy source is reliable, constant supply of power generated locally for both industries and other support services in the industrialization process.

The effective and reliable transportation network makes both transportation of the raw material to the factories and the transportation of finished products to the market both locally and internationally. The whole of South East Asia is easily accessible from Hong Kong and owing to the city, being the management area for the manufacturing industries in the Pearl Delta region where, you can easily get what you want.

Company Type and Name

First thing first! Decide company type first and then name of your company.

Company Types:

In order to provide you a roadmap here are types of companies:

Limited Company:

Among the most common types of companies, one is limited company.  Having a limited company in Hong Kong, means that the owner is able to get full advantage of tax benefits and special considerations. Concessions are available for fully incorporated businesses, not only this but (CEPA) Closer Economic Partnership Arrangement and a free trade with Mainland China as agreement.

Branch of a Parent Company:

A company located outside Hong Kong, but intend to have a place in Hong Kong’s business then the company should have to registered as a “Non- Hong Kong’s Company” within a month. Unlike limited companies, the branch office will not be considered a separate part (legal entity) from parent. It will have the authority to leverage funds of its owner.

Representative Offices:

Such type of offices can’t be engaged in profit-making actions, but can perform limited function for the company. These offices can play a vital role if any company is interested in exploring the Hong Kong’s market trends before stepping in with huge investments. If the company is willing to enter in business transactions, then there is a legal obligation; the company has to change the company type as limited or branch office.

Company Names

Don’t forget to search for limited companies indexed names before choosing your company’s name. This is because of the law that companies cannot choose the same name that is appearing in the index records maintained by Registrar of Companies. Search indexed names online via Companies Registry’s Cyber Search Centre.

Company Structure

There are many limited companies in Hong Kong that are private companies, actually limited by their shares.

There must be at least one director and one secretary of the company else only a director cannot be considered a secretary too. For secretary, there is a restriction that he/she should be a resident of Hong Kong. If secretary is any corporate entity, then it should be registered as well as located in Hong Kong. For director, there is a flexibility of being a non-Hong Kong’s inhabitant.

This is obligatory that the company’s registered office must be situated in Hong Kong.

Shareholders are not restricted to be local and a sole shareholder can play his part as a director.

 

Provision of Government Schemes for Achievement of Commerce

There are a variety of schemes premeditated to assist abroad and confined people to live in Hong Kong contentedly. These are declared as
• Incubator schemes
• Mortgage assurance
• Resources for advertising
Incubator programs
According to this scheme, people can gain office location and place in finance rates along with discussion and monetary support programs. Provision of HK$100, 000 funding for SMEs is also performed by the Design Smart Initiative for completion of designing projects. DIP programs are also provided proper support in the matter of office location and designing with professional capabilities. Hong Kong’s Cyber port is managing this program for the support of those people which have creative minds and ideas to perform in the business.
Financial aid for apparatus and advertising
The SGS is offering support for safety of HK$12 million loan that is imperative for adjustment of business. The EMF assists firms to contribute in abroad presentation and trade assignment and to place B2B promotion. It can subsidize up to 50 percent of accepted disbursement, up to HK$50, 000 per submission. The SME mortgage assurance scheme can present assurance reporting of 50–70 percent on mortgages up to HK$12 million. The Create Smart Initiative is presenting monetary maintain to SMEs in the resourceful productions, donating them to manufacture their product through contribution in abroad presentation and contest. Provision of financial aid is also an important and supprotive programs for success of all kinds of commerce. The government is offering proper knowledge and support in this matter; businessmen can gain this help and make their professional life winning and succeeded in the market place. Through these programs, people can promote their business and live in the society with accomplishment by attaining high communal and financial success in the market place.
Technology and Innovation funding
The ITF is providing assistance for business to promote their equipment and introduce inventive thoughts into their commerce. The SERAP presents subsidy for R&D of machineries that can be conveyed to promote contained by two years. With this technique, people can gain proper information about their business and relevant rules because this is helpful to make business promotion essential and certain. The use of technological innovations is a favorable option for all businessmen but this matter should be treated with proper awareness of these resources. This technique is helpful to make success certain in the business without any doubt and reservation in the social order.

The Advantages Of A Hong Kong Based Company

If you have a business and are looking for ways to expand into Asia, forming an offshore company is a viable possibility. Of course finding the perfect country to base your offshore company in can be tricky; unless you do all your research and know your facts beforehand. Fortunately there is a country in Asia that is the perfect partner when it comes to offshore company formation; this country is Hong Kong (HK) – also referred to as the territory.

When it became one of The People’s Republic of China’s two special administrative regions, it also increased its strategic value as an entry point into the various Asian Markets.

The territory is one of the world’s leading financial centers with an emphasis on a capitalist service economy that is characterized by some of the best conditions for global trade and finance. There are numerous benefits to a Hong Kong company formation but the most prominent amongst these is that this country is strategically located in Asia, and that it serves as a gateway for international companies wanting to enter the Asian markets and is also a gateway to the biggest Asian market of them all – China.

The Advantages of a Hong Kong Based Company

Besides its perfect geographical location in the heart of Asia, there are many advantages to forming a company based in Hong Kong; some of these advantages are:

  • It has a sound and reputable legal system
  • It has a world class infrastructure
  • It has a highly educated work force
  • It has well developed capital markets
  • It has a simplified tax system characterized by low taxes
  • It is a politically stable society
  • Its currency the HKD, is one of the most traded global currencies
  • It has a world class communications infrastructure
  • It has one of the highest per capita incomes in the world

What Makes Hong Kong A World Class Business Location

Strategic location not withstanding, HK in itself is a world class territory and has received numerous awards for its superior proficiency in world finance. Among these awards are:

  • The World Bank’s rankings for one of the world’s best places for doing business.
  • The Global Financial Centre Index ranking as one of the most competitive global financial centers.
  • One of the highest ranked “e-ready” cities in the world.
  • One of the most competitive economies in the world.

The Human Development Index ranks it amongst the highest in the world in four tiers of human development, and more importantly, if you are looking to form a company there, you will want to know that for the past 14 years it has ranked first, out of 157 countries, in the Index of Economic Freedom. The Index of Economic Freedom is an annual index that measures the degree of economic freedom in the world’s nations. This makes it an extremely attractive proposition for the location of a new company.

How Do You Qualify For A Hong Kong Based Company?

Obviously there are certain standard requirements that have to be met before you can qualify for a HK based company; however, these requirements are generally quite simple and easy to meet. The main requirements are:

  • There must be at least one shareholder and/or director who is over 18 years of age.
  • At least one permanent resident from the country should be a member, or there should be an authorized company based in the territory representing and acting as the legal secretary for the applicant.
  • There should be one registered address there.

If you are looking for ways to enter the Asian Market, then look no further than Hong Kong; not only is it the perfect gateway, it is also a tax haven and makes good business sense.

Get all the information you need about company formation and Hong Kong company formation, and make an informed decision.

The Basics of BVI Companies

The British Virgin Islands or BVI is situated in the Atlantic Ocean. The country has a population of less than 30,000 but it is one of the leading offshore jurisdictions in the world with more than half a million offshore companies incorporated since 1984.

The BVI Companies Act of 2004 is a statute of the British Virgin Islands and it relates to the formation of companies in the country, both local and offshore. It is the replacement of the extremely popular international Business Companies Act. The act is made up of specific features which are specially created to make the islands an attractive offshore financial centre.

Features

  • No restrictions in the declaration of dividends
  • Restricted requirements for corporate benefits
  • An increase in the types of companies which can be formed
  • Statutory minority shareholder protection
  • No requirements for companies to have a stated corporate object
  • Modernization of the registration of security interests

Setup Requirements for British Virgin Island Companies

In order to set up a British Virgin Island company, there should be a minimum of 1 shareholder and 1 resident director. The shareholder, director and corporate secretary can be the same individual or corporate entity. There is no need to appoint an operating officer. There are no restrictions on the nationality or residency of the directors and shareholders of the company and it is also not mandatory to appoint a secretary.

Lenient Rules for Share Capital

When it comes to share capitals, the rules are very lenient. There is no requirement for capital maximum or minimum. There is no need to disclose the share capital of the company and numerous classes of shares can be issued by the company.

Why BVI Offshore Companies are appealing

Many companies and investors are interested in creating BVI offshore companies because of the many advantages they have over local companies. There is no minimum capital amount required; income is exempted from local tax; there is no annual reporting or auditing; and there are no capital gains or withholding tax. British virgin island company register is not that difficult to do especially if you have the right kind of assistance.

Today more than 1 million companies have been incorporated and BVI is now the world’s leading provider of offshore entities. Secrecy is one of the most appealing things about BVI. Event the country’s government does not know the identity of the people who own the companies in the islands. The only information supplied to the registry is name of the company’s agent. The agent is the local firm which arranges incorporations and collects the annual fees.

 

Macau: One of the Best Places to Start an Offshore Company

Macau is a city located on the southern coast of China at the south of Guangdong province. It is situated just about 60 km west of Hong Kong and 145 km southwest of Guangzhou. It has a humid subtropical climate and relies on the freshwater supply of Xijang River. It has a stable company and a good infrastructure.

Macau’s SAR Offshore Law has been in effect since the first of November 1999. It is the Macau Monetary Authority which regulates the offshore business in the city. On the other hand, it is the Macao Trade and Investment Promotion Institution which regulates and supervises the offshore non-finance business.

Requirements for Operating Offshore Service Business

Any investor who wishes to put up an offshore company in Hong Kong must first obtain an approval from the IPIM. There are some rules which investors must abide by in order to be eligible for operation.

  1. To target only non-Macao residents as customers
  2. To use only non-Macao currency in all activities
  3. To focus on non-Macao markets

It is a must for investors to register an offshore company according to the commercial laws of the Macao SAR. The names of offshore institutions must include the phrases “Macao Offshore Commercial” or “Macao Offshore Auxiliary”.

Tax Incentive for Offshore Companies

In Macau, any offshore institution is exempted from the following taxes:

  • Income tax
  • Industrial tax
  • Stamp duties

Non-Macao residents who are employed by companies as managers and specialized technicians are exempted from salary tax for the first three years of their employment.

Setting Up an Offshore Institution

Offshore institutions can be formed as a branch or subsidiary in Macau. There are differences between the two. A subsidiary is a separate legal entity which has its own memorandum and articles of association. It has to bear its own legal liability. On the other hand, a branch is not a separate legal entity.  It bears its own liability.

The minimum capital required of an offshore institution in Macau is MOP25,000. It has to have at least one director and one shareholder which can be an individual or a corporation. However, if the director is a corporation there is a need to appoint an individual to carry out the duties of a director.

Offshore Services which Can Be Operated in Macau

There are two types of offshore institutions which can be established in Macau and they are offshore auxiliary services and offshore commercial services. Some of the following services which can be offered are:

  • Tests and technical analysis
  • Software consultant
  • Data processing
  • Hardware consultant
  • Research and development activities

 

Incorporation Options for Hong Kong Offshore Companies

Registering an offshore company in Hong Kong is quite easy and quick compared to other cities in the world. Hong Kong, a city located in the Asian region, is popular for its tax schemes, political stability and positive image in the financial community.

Investors who want to set up Hong Kong offshore companies have two options; they can register a new Hong Kong company or purchase a Hong Kong shelf company.

New Company Registration in Hong Kongy

For investors who want to incorporate a Hong Kong company with a particular name, there is an option for Hong Kong incorporation of a private company. The registration of a company in Hong Kong is easy and only takes about a week.

Getting a Shelf Company in Hong Kong

For some investors the name of the company is not of importance. There are also some investors who can no longer wait for a new company to be incorporated. For these situations, it is best to buy a ready-made Hong Kong shelf company.

What is shelf company? It is an incorporated company in the city to be sold on a later date.  It is a paper company which has been legally registered and does not have any liabilities and assets. If an investor purchases a shelf company, he or she will have the liberty to change the name, increase the capital, appoint personnel and change the business address of the company.

Most businesses which opt for a shelf company are those which need to do business immediately and require registration in the city. Shelf companies which are already years old are beneficial because it will convey to people longevity and reliability.

Incorporation Facts for Hong Kong Offshore Companies

Any name proposed for companies must be approved by the Hong Kong Companies Registry. The company must have at least a single director but can have any number of directors. Directors can be a resident of the city or not and can be of any nationality.

There must be at least one shareholder and only a maximum of 50 is allowed. Shareholders can be companies or natural persons and they can be Hong Kong residents or not and they can be of any nationality. 100% local or foreign shareholding is allowed and the sole director can also act as a shareholder.

Companies are required to appoint a secretary who can be an individual or a corporate resident.  The sole director or shareholder cannot be a secretary.

 

OFFSHORE COMPANY INCORPORATION IN HONG KONG

World economy has been conquering newer frontiers and in such a quest, it is only natural that every country would like to be part of this great success story. Emerging markets across the continents have thrown open new business opportunities and greater employment opportunities. As part of cashing in on this success, every country has liberalised its bureaucracy while dealing with new business set ups. Some great initiatives by different governments across the world to encourage offshore company incorporations include lenient tax structures, better and faster clearance systems for licenses and single window processing structures. A few advantages are listed below:

  • Tax exemption to offshore incorporated organizations.
  • These companies can act as holding companies for bigger global conglomerates.
  • Wonderful platform for international trade.
  • Great investment climate.

With so many countries looking to take advantage of this globalization and new business markets, one country which has been in the fore front has been Hong Kong. Located in the oriental part of the world, this country is a great mix of modernisation as well as the old world. While one part of the country hosts some big names in world of business, another part of this great country is also home to some ancient world. Some advantages that encourage offshore incorporation in Hong Kong can be listed below:

  • Lenient tax structure.
  • Single license fee to be paid annually.
  • Great legal system that is transparent as well as fast and efficient.
  • A free trade window that helps international business.
  • Financial hub and home to many great financial organizations like HSBC (www.hsbc.com)
  • A global platform to launch and integrate organizations.
  • Absence of stringent foreign exchange control, thereby enabling free currency trading.

Not to mention, even Hong Kong has benefited immensely by opening its markets to multi national companies. The real estate in this country is one of the most sought after and with so many organizations having opened shop, the employment opportunities have also risen considerably. Education and skill development programmes have found a new market to show case their portfolio. Though it is considered to be relatively easier to incorporate offshore companies in Hong Kong, there are a still a few regulations that are in place to ensure that all businesses that originate or pass through the country are legal, hassle free and completely clean. Some legal requirements that accompany formation of such companies in this country are the following:

  • One share holder to be legally an adult; i.e more than 18 years of age.
  • One board member/share holder to be a resident of Hong Kong.
  • Registered address to be in Hong Kong.

As an organization specializing in providing services that enable organizations to set up offshore platforms, we help in organizing requirements that help to set these up. These include registered address formulation as well as helping in acquiring of organizations in this country so that the new company has a readymade platform to start business. It is not without reason that this country has been voted as the best international location to start business for ten consecutive years by an international survey platform.

Company formation Hong Kong shouldn’t be much of a hassle. After all, you’ve got a business to attend to. Discuss with a Hong Kong company incorporation authorized agent today.

Some Tips About Macau Company Registry

Opportunities of doing business in Macau are widely available to foreign investors and businessmen, and many people are getting more interested about knowing the procedure of Macau company registry. Among several options, foreign business prefers doing business in Macau by selecting one among some particular options. Incorporating a company in Macau is the most common option, and many businessmen are doing business from Macau accordingly. Some other businesses prefer opening a branch of their existing business, as this is also allowed in Macau for foreign businessmen. Sole proprietorship and going for a representative office are two other common options for doing business in Macau.

Companies with different types and business are permitted to do business in Macau. As per the company incorporation act, businessmen from different industry with different company can start their own business in Macau. Unlimited liability company and individual entrepreneurs are two most common categories among some other options. Mixed liability companies by shares and quotas are also allowed to do business in Macau, as well. Limited liability company by shares, quotas and individual quotas are also permitted to do business in Macau, as well.

The first step of registering a company in Macau is to find a name for the company, which is not yet registered by some other company or business. A brief purpose and type of the business must also be declared while requesting for a company name.  Next, the company must complete the draft and notarize the articles of association within two months, once the certificate is issued. Name and address of the board members and shareholders also needed to be submitted in order to register a company in Macau. A proof of acceptance of the board members must also be submitted, as it comes as part of the Macau company registration act.

Anyone can be appointed as a director, either elected or selected by the board members and this is the common norms of appointing a director according to the company incorporation act in Macau. Obviously, the director must have at least 18 years of age or above. Every company should maintain a business registry and declare some basic information about the company in public. In the case of an unlimited company in Macau, there should be at least two or more directors in that company. In the other hand, limited liability company by quotas, shares and sole owners must have at least one or more directors in order to doing business in Macau.

The Great Things about Registering a BVI Company

Nowadays, BVI companies are increasing in number and it’s the newest business trend in the international arena. BVI basically stands for British Virgin Islands and there are a number of places operating offshore company incorporation. These places can include Samoa, Cayman Islands, Bermuda, Bahamas, Singapore, British, Mauritius, Delaware, Seychelles and many others.

BVI is under the administration of the British Commonwealth. It is ruled under a legal system based on the English Common Law. English Common Law is operating along with local acts.

But, the question is, why BVI Company has become popular trend? The answer is simply lies on its great benefits. And what these benefits? To clear your mind form such question, take time to read the entire article as they are pointed out below:

  1. Low operating costs and tax- BVI companies are enjoying this benefit as they are exempted from stamp duty and local taxes.
  2. Security on assets- a BVI company owner can enjoy security on their assets from being expropriated by the foreign governments. Also, along with this benefit is the ability to transfer, merge or consolidate assets with other BVI company.
  3. Maximum protection on privacy- BVI company directors and other major personality in a company are highly regarded as confidential. Thus, all their information is protected and can’t be disclosed to any others.
  4. Easy operational process- since there are no statutory requirements like holding an annual general meeting as well as auditing of accounts, operating a BVI company be really easy.
  5. Other than those major benefits mentioned above, establishing a BVI company also involves easy and fast incorporations that can only take a day or two, doesn’t need minimum capital requirements, highly competitive fees and great and versatile post-incorporation follow-up services.

Now, if you think of establishing an offshore company with BVI, then you need to know some details like incorporation requirements. And to help on that matter, the requirements involved the following:

  1. A company must have at least one person to stand as company director and shareholder.
  2. A company must have only one local agent and must be a registered resident. He/she would act as a business representative.
  3. A company must have a valid and registered address in BVI.
  4. The documents to be submitted to the Companies Registry include: Certificate of Incorporation, Articles and Memorandum of association.

Establishing a BVI company is definitely easy, fast and straightforward. Plus, with those benefits mentioned, surely you’ll find greater success with it.