Investment Holding Company
Hong Kong is a popular location for establishing investment holding companies. Here are some reasons why:
Simple and efficient incorporation process: Setting up a holding company in Hong Kong is relatively straightforward and can be completed in approximately two weeks.
Low tax regime: Hong Kong boasts a territorial tax system, meaning companies are only taxed on profits derived from Hong Kong. The corporate tax rate is a flat 16.5%, which is one of the lowest in the world. Additionally, there are no capital gains taxes or inheritance taxes.
Extensive network of double taxation agreements: Hong Kong has a comprehensive network of over 40 double taxation agreements (DTAs) with other countries. These DTAs help to reduce or eliminate double taxation on income earned overseas.
Strategic location: Hong Kong is strategically located in the heart of Asia, offering easy access to mainland China and other regional markets.
Political and economic stability: Hong Kong enjoys a stable political and economic environment, making it an attractive destination for foreign investors.
If you are considering setting up an investment holding company, Hong Kong is definitely a location worth considering.Â
Setting Up an Investment Holding Company
Setting up an investment holding company in Hong Kong involves several steps and requires adhering to specific regulations. Here's a breakdown of the process:
1. Requirements:
Company officers: Minimum of one director, one shareholder, and one company secretary (cannot be the same person). If the company secretary is an individual, they must be a Hong Kong resident.
Registered capital: No minimum requirement, but at least HKD 1.00 is recommended.
Registered address: Must be located in Hong Kong.
2. Process:
Choose a company name: Ensure it's unique and available for registration.
Prepare incorporation documents:
Articles of association outlining the company's rules and regulations.
Incorporation form with details like company name, address, business activities, officers, and share capital.
Proof of identity and residence for directors and shareholders.
Submit documents to the Companies Registry: Pay the registration fee and wait for approval.
Open a corporate bank account: Once approved, open an account to manage company finances.
Comply with ongoing obligations: File annual returns and tax returns with the Hong Kong Inland Revenue Department.
Additional considerations:
Tax implications: Understand the tax implications of setting up and operating an investment holding company in Hong Kong. Seek professional advice to optimize your tax position.
Business activities: While holding companies primarily manage investments, ensure your chosen activities comply with regulations.
Resources:
How Bestar can Help
Bestar can assist you in various aspects of setting up and managing your investment holding company in Hong Kong. Here's how we can be of value:
1. Incorporation process:
Guide you through the entire incorporation process, ensuring all legal requirements are met.
Assist in preparing necessary documents like Articles of Association and incorporation forms.
Liaise with the Companies Registry for smooth registration and approval.
2. Ongoing compliance:
Help you understand and comply with ongoing obligations like filing annual returns and tax returns.
Advise on relevant regulations and ensure your company operates within the legal framework.
3. Tax planning and optimization:
Advise on tax implications of setting up and operating an investment holding company in Hong Kong.
Develop tax-efficient strategies to minimize your tax burden.
Assist in preparing and filing tax returns accurately and timely.
4. Additional services:
Open a corporate bank account for your company.
Provide bookkeeping and accounting services to manage your company's finances.
Offer assistance with company secretarial services, if required.
Benefits of using Bestar:
Expertise and experience: We possess the knowledge and experience specific to Hong Kong investment holding companies.
Efficiency and time-saving: We can handle the complexities of the process, allowing you to focus on other aspects of your business.
Cost-effectiveness: Our services can help you avoid potential penalties and ensure compliance, saving you money in the long run.
Peace of mind: We can provide guidance and support throughout the process, ensuring a smooth and stress-free experience.
It's important to note that this is not an exhaustive list, and Bestar offers additional services tailored to your specific needs. Contact us directly to discuss your requirements and inquire about our comprehensive service offerings.