Your partner. in Hong Kong

Transcription

1 Your partner in Hong Kong

2 About our firm Midland Consult (Hong Kong) Limited, was set up in 2009 and it s a subsidiary which forms a part of Midland Group of companies a highly skilled professional corporate and trust services provider with professional offices in Hong Kong, British Virgin Islands (BVI), Panama, and Cyprus. New level of service In Hong Kong office Midland Consult (Hong Kong) Limited specializes in the incorporation and management of Hong Kong companies, including the provision of secretarial services, trustee and nominee services such as nominee shareholders, company secretary and directors, legal address, banks introduction in Hong Kong, accounting, tax compliance & planning, assisting in liaison with the auditors to complete audit work. The office of Midland Consult (Hong Kong) Limited provides also the consultancy services in applying for a different types of financial licenses in Hong Kong, as well as in assisting bank to set up representative office in Hong Kong. Midland Consult (Hong Kong) Limited staff has a vast experience in Hong Kong companies incorporation and management, working in different leading professional firms before joining our Hong Kong office. The Hong Kong office of Midland Consult (Hong Kong) Limited is conveniently located in the very heart of Central District of Hong Kong island on the historic Duddell street known for its gas lamps build on 1875 that are still working today. Through the Hong Kong office Midland Group of Companies plan to expand its activity in the Asian region, to bring the European business closer to Asian countries and to promote Asian professional services in the countries Midland Group has its presence.

3 About Hong Kong Since mid of 19 th century Hong Kong was a British colony. Pursuant to an agreement signed by China and the UK on 19 December 1984, Hong Kong became the Hong Kong Special Administrative Region (SAR) of the People s Republic of China on 1 July In this agreement, China promised that, under its one country, two systems formula, China s communist economic system would not be imposed on Hong Kong and that Hong Kong would enjoy a high degree of autonomy in all matters except foreign and defense affairs during 50 years until Law system As an ex- British colony, Hong Kong boasts English as one of its official languages, along with Chinese (Cantonese). Its legal system is based on British common law, supplemented by local statutes enacted by the Legislative Council, and this system is guaranteed under the Basic Law to remain distinct from the Chinese legal system until the year Economy Hong Kong has a free market economy highly dependent on international trade and finance. The territory has become increasingly integrated with mainland China over the past few years through trade, tourism, and financial links. The mainland has long been Hong Kong s largest trading partner, taking a 3d place after USA and Japan and accounting for nearly 49% of Hong Kong s exports trade by value in Hong Kong continues to link its currency closely to the US dollar, maintaining an arrangement established in Finance, banking and monetary system Hong Kong is the world s third most important financial center, after New York, London and followed by Singapore. It is also the 15th largest banking center in terms of the volume of external transactions, and the second largest in Asia after Japan. The currency in circulation in Hong Kong is the Hong Kong Dollar (HK$), which is pegged to the US Dollar by a currency board at the rate of HK$7.75 to US$1 (est. end of 2010). Hong Kong has no foreign exchange controls. Advantages of Hong Kong Hong Kong today is an International free trade and financial centre with favorable geographical location, business friendly environment, sound legal system and political stability and low tax rate. Here are the reasons that businessmen should consider when choosing Hong Kong as a place to do their business: Benefit from CEPA CEPA is a free trade agreement under WTO rules between Hong Kong and China that gives preferential access to mainland China market for Hong Kong companies. Currently, nearly all types of Hong Kong-made products are exempt from tariffs under CEPA when they are exported to China. A regional headquarters in Asia A international logistic centre in Asia An international financial centre Readily available trading bank facilities in Hong Kong Listing in Hong Kong to raise capital Excellent infrastructure and banking system Readily assessable trade finance and capital market without any exchange control Stepping stone to China who offers never ending market opportunities Corporate Tax of 16,5% Individual income tax between 2% 15% No Tax on Dividends No Worldwide income tax on companies No Worldwide tax on individuals No accumulated earnings tax No capital gain tax No VAT, Sale or Consumption taxes

4 Hong Kong company features: Audit and accountancy Client can suggest a name for a Hong Kong company registration subject to its availability for incorporation with the Registrar of Companies. As incorporation of a Hong Kong company takes approximately 10 business days, when there is a need for immediate business operations, as an alternative we can suggest to acquire a shelf company from our stock of ready-made companies which never traded. Such company can be ready for use within 3 business days. Registration: Midland Consult (Hong Kong) Limited, can assist its clients to incorporate Hong Kong companies and will help to fulfill other specific requirements imposed by Law related to the administration, maintenance and all necessary filings. Company Name. A Hong Kong company name must be ended with the word: «Limited», and cannot be the same or too similar to an existing company. Certain names can be registered only with the consent of the Registrar Chief Executive, such as Savings, Trust, Trustee, etc. Company Law. Is Based on Common Law. All Hong Kong companies are governed by the Companies Ordinance (Chapter 32 of the Laws of Hong Kong). Capital Requirement. No minimum capital, but shall maintain a nominal share capital if a limited company having shares. Director. Minimum 1. An individual of any nationality or a corporate entity. Shareholder. Minimum 1. An individual of any nationality or a corporate entity (Director and Shareholder can be the same person or the same corporate entity. Company Secretary. Minimum 1. Must be a Hong Kong resident or a Hong Kong corporate entity. Registered Office. Must be a physical address in Hong Kong, not a PO Box address. Maintenance: Annual Fees to Government Authority. Business Registration Fee is due annually to the Hong Kong Inland Revenue Department. A Filing Fee of Annual Return to the Hong Kong Companies Registry. Annual Meeting. Hold an Annual General Meeting within 18 months of incorporation, and at least once every calendar year thereafter, with not more than 15 months elapsing between the date of one Annual General Meeting and the next. Annual Audit. A Hong Kong Licensed independent Auditor to perform annual audit within 18 months of incorporation and annually thereafter. Filing to Government Authority. Annual Return must be filed within 42 days of each anniversary of the date of the Company s incorporation. Profit Tax Return with Financial Statements must be filed with the Hong Kong Inland Revenue Department. Employer s Return must be filed with the Hong Kong Inland Revenue Department. A Hong Kong company is required under the Companies Ordinance, to keep proper books of account which give a true and fair view of the company s financial position. An audited accounts must be presented to the members of the company at an Annual General Meeting. A Hong Kong Licensed independent Auditors must perform annual audit of the Financial Statements within 18 months of incorporation and annually thereafter, for presentation to the members at the Annual General Meeting. The audited accounts are not filed publicly. In the event that a company does not trade, there is no requirement for accounts to be produced or audited. Accounts need to be produced within six months of the company s year end. Accounting and other records of the company can be kept outside of Hong Kong, subject to directors approval. Although there is no requirement to file audited accounts with the Companies Registry, there is a requirement to file accounts with the Inland Revenue Department. Profit Tax Return with the Financial Statements must be filed with the Hong Kong Inland Revenue Department annually.

5 Taxation Hong Kong is a permanently low-tax jurisdiction. Taxation in Hong Kong is based on the territorial principal. By the 2011, Hong Kong has concluded 35 comprehensive double taxation treaties with Mainland China, Belgium, Luxembourg, Vietnam and Thailand, and limited treaties with Canada, Germany, Israel, Mauritius, Netherlands, New Zealand, the Russian Federation, South Korea, the UK, the US and others. Details are as follows: Personal Tax Hong Kong imposes a Salaries Tax, which is the lower of either 15% of assessable income before Concessionary deductions, or a progressive rate levied on assessable income after Concessionary deductions. Only income earned in Hong Kong is taxed in Hong Kong. Corporate Tax Hong Kong imposes a tax of 16.5% on assessable corporate profits. Only those profits originating in Hong Kong are taxable. Interest income earned in Hong Kong by corporations and financial institutions is not subject to Corporate Tax. Tax is assessed on a preceding year basis. Although a Hong Kong company may chose its own year-end, the calendar year ending 31 March is the basis period for assessment. Capital Gains Tax Hong Kong does not impose capital gains tax. Estate Tax Hong Kong does not impose estate tax. Estate duty has been abolished in Hong Kong since Transfer Tax at Death and on Gifts Hong Kong imposes a progressive stamp duty on inter-vivos gifts, ranging from no tax on gifts of less than US$256,000 to a maximum of 3.75% on gifts of more than US$862,000. Gifts to charitable organizations are not subject to this stamp duty. Bank introductions Hong Kong is one of the leading World and Asian financial center in the World after New York and London, followed by Singapore. There are over 135 licensed banks with over 120 foreign banks having representative offices in Hong Kong. There are no exchange controls and tax-free markets for gold, stocks and futures, the funds can be flown freely in and out of the territory. Its relatively easy and convenient to open a bank accounts in Hong Kong. Midland Consult (Hong Kong) Limited can introduce its clients to leading Hong Kong banks for a bank account opening. In case you wish to open an account for your Hong Kong or offshore company, please, contact our office for more details. Withholding Tax Hong Kong does not impose withholding tax on interest or dividends. If a non-resident company receives income from Hong Kong in respect to the use of trademarks, patents or royalties, the company is taxed at 30% or the corporate tax rate of 16.5%.

6 Other Jurisdictions: British Virgin Islands Midland Trust Limited Midland Consult (Hong Kong) Limited has in BVI an associated company of the Midland Group called Midland Trust Limited (MTL) is a Fiduciary company and Corporate Agent in British Virgin Islands - the leading offshore jurisdiction in the World. It has a Class 1 Trust License to carry out Trust Business and Registered Office/Agent Services under the BVI The Banks and Trust Companies Act,1990 and is regulated and supervised by the BVI Financial Services Commission. It has permanently a substantial capital adequacy as per BVI Law requirements and a professional indemnity insurance from a major World insurer. Orders for BVI services can be placed both to Midland Consult (Hong Kong) Limited office in Hong Kong or directly with Midland Trust Limited (MTL) office in Road Town, Tortola, BVI. For more information please, refer to: Cyprus Midland Consult (Cyprus) Limited Midland Consult (Hong Kong) Limited has in Cyprus an associated company of the Midland Group, called Midland Consult (Cyprus) Limited that provides all range of legal and accounting services, including Cyprus company and trust formation and administration, bank introductions, professional director services, fiduciary, trust, audit and accounting services. Orders for Cyprus services can be placed both to Midland Consult (Hong Kong) Limited office in Hong Kong or directly with Midland Consult (Cyprus) Limited office in Nicosia, Cyprus. For more information please, refer to: Panama Midland Counselors at Law Midland Consult (Hong Kong) Limited has in Panama an associated company of the Midland Group, called Midland Counselors at Law that provides all range of legal services, including Panama company and private foundation formation and administration, professional directors services, application for a legal second passport and residency. Orders for Panama services can be placed both to Midland Consult (Hong Kong) Limited office in Hong Kong or directly with Midland Counselors at Law office in Panama. For more information please, refer to:

7 Our contact address: The Hong Kong office of Midland Consult (Hong Kong) Limited is conveniently located in the very heart of Central District of Hong Kong island on the historic Duddell street, known for its gas lamps built on 1875 that are still working today. We are 5 minutes walk from the Central Government Offices building, Bank of China (Hong Kong), HSBC bank and Standard Chartered bank main offices. Below is our office address and a map of the area: Midland Consult (Hong Kong) Limited: Room 2201, 22nd Floor, 1 Duddell Street, Central, Hong Kong, SAR Tel: / Fax: office@midlandconsult.hk Website: