Establishing a Company
There are three basic types of companies in the Hong Kong:
- Branch Office or representative office of a foreign company incorporated outside of Hong Kong
- Sole proprietorship and partnership
- Limited company (Limited by guarantee or Limited by shares)
Interested parties must register their business with the Companies Registry. The Companies Registry is responsible for the incorporation of your company.
All companies formed and registered under the Companies Ordinance, regardless of size, must have their financial statements audited annually by a practising Certified Public Accountant registered with the Hong Kong Institute of Certified Public Accountants (HKICPA).
Source: Registration & Licences
Taxation
Hong Kong’s simple, low tax system is one of the most business-friendly in the world. Taxes are levied on only three types of income – salaries, property and profits. There is no value-added tax, sales tax, capital gains tax or inheritance tax. A tax year covers a period of 12 months commencing on 1st April and concluding on 31st March of the following year.
Source: Inland Revenue Department
Trade Policy
Hong Kong maintains a free trade policy with respect to merchandise trade as well as trade in services. Only four groups of commodities are subject to excise duties, hydrocarbon oil, liquor with alcoholic strength more than 30 percent by volume, methyl alcohol (other than denatured methyl alcohol) and tobacco.
Although no tariff is charged on import or export of goods, a licensing is required for the import and export of some goods, in order for Hong Kong to fulfil obligations to its trading partners, or to meet public health, safety, and internal security needs.
Source: Trade and Industry Department