THE HISTORY: Hong Kong can be found at the southeast coast of China, near the Pearl River Delta and South China sea and therefore rightfully holding the title of one of the world’s most pluralistic and flourishing cities.

 

The origins of today’s Hong Kong are mainly attributed to the fact that China’s Qing dynasty government lost the First Opium War in 1842 to Britain, and thereby Hong Kong Island ceded to Britain. Territories such as Kowloon and more than 230 outlying islands were also governed by Britain. Scholars however support that long before the Frist Opium War, Hong Kong Island was visited by many civilizations, pirates and also European traders.

 

Hong Kong was mainly used as a center of conducting international trade. Chinese refugees migrated during the early 20th century and made Hong Kong their home, an act which essentially assisted in the growth of Hong Kong’s economic and industrialization which in turn contributed to the increase of Hong Kong’s market and made it to what it is today; a coliseum international market way.  In 1997, Hong Kong was rendered a Special Administrative Region of the People’s Republic of China, which essentially entitles the city to act autonomously and in addition maintain is capitalist system, judicial independence and its rule of law, whilst also grated human and market freedoms as free trade and freedom of speech.   

 

CLIMATE & TOURISM: Hong Kong’s climate has been characterized as sub-tropical, whereas there also typhoon occurrences beginning in May and ending in November. Visitors need only time at their disposal in order to see all the attractions that can be found when travelling to Hong Kong, including but not limited to the Avenue of Stars, Hong Kong’s Disneyland, Noah’s Arc in Hong Kong, Madame Tussaunds world famous was museum, Convention and Exhibition center, and the Ocean Park.

 

DOING BUSINESS IN HONG KONG: The mostly used corporate vehicles in Hong Kong are (i) a limited company, (ii) a branch office of a parent company, and (iii) representative offices.

 

• LIMITED COMPANY: is the corporate vehicle that is mostly used by clients. It is incorporated in Hong Kong and it is subject to Hong Kong taxation and concessions, including to the free trade agreement entered into with Mainland China, called the ‘Closer Economic Partnership Arrangement’ or ‘CEPA’ for short.

 

• BRANCH OFFICE OF PARENT COMPANY: is essentially used by corporations that where incorporated outside Hong Kong. Such a legal entity must be registered within the Companies Registry as a ‘Registered Non-Hong Kong Company’ within one month starting from the date that it was established. What this option differentiates the most from point (i) above, I that the branch office of parent company is not a separate legal entity from its parent, thereby allowing it to leverage funds off the credit rating of its owner.

 

• REPRESENTATIVE OFFICES: Does not allow its holder to act in a way as to generate profits and can only thereby entitle its holder to enter into limited actions. This option is usually used when there is a desire to explore the Hong Kong market prior investing at a higher degree. In the event there is a desire to enter into a transaction, its holder needs to switch the company into a branch office or a limited company.

 

 

TAXATION: Hong Kong companies are subject only to income tax on the income and dividends that are directly drawn from Hong Kong at 16.5% of the net profits made by the corporation.

 

 

The main features of a Limited Company are:

 

At least one director (natural person) and a company secretary, and in the event the company is to be a single director company, then the director cannot act as the company secretary as well. In the event the company secretary is a natural entity they must hold Hong Kong residency, in the event however the company secretary is a legal entity then its registered office, or business address must be located within Hong Kong. The director and shareholders do not have to have Hong Kong residency, and a sole shareholder can also be director in the company.

 

The company must have a Hong Kong registered address.