Even if it is one of the most expensive cities in the world, Hong Kong provides the perfect environment for foreign investors wanting to set up a holding company. Located in the heart of the continent and very close to China and opening good opportunities for enterprisers wanting to expand in China, Hong Kong has a pro-business legislation and it is regarded as one of the greatest financial centers in the world. Hong Kong has brought changes and updated the Companies Law and today it offers one of the most modern set of laws in the world.
Our agents invite you to watch a short video about Hong Kong holding companies:
Registering a holding company in Hong Kong is quite simple and it takes about five days to complete the incorporation procedure. Shelf companies are also available for registration in Hong Kong. Foreign investors will usually open subsidiaries or private limited companies that will operate as holding companies in Hong Kong. The requirements for a Hong Kong holding company are minimum one shareholder, a director and a secretary that must be a resident. There are no requirements for the share capital of a holding company in Hong Kong. Holding companies are employed by small to medium-size companies in Hong Kong.
The first great advantage when incorporating a holding company in Hong Kong is the taxation system. Hong Kong does not apply the value added tax, sales tax or capital gains tax. Holding companies are required to pay a 16.5% corporate tax rate. Also, there are no withholding taxes on dividends and interests. Hong Kong has enforced double taxation treaties with 30 countries at the moment but negotiations with other countries also continue. Hong Kong also provides great capital raising opportunities for holding companies as it provides a stable financial market. Hong Kong has concluded investor protection agreements with some of the most powerful trading nations. Together with the ease of the incorporation process, the dissolution or redomiciliation procedures for holding companies will go as easy.
Our specialists in company formation in Hong Kong will help clients wanting to open a business. You can also contact us for any information regarding the types of companies that can be registered in Hong Kong.