Overview

Hong Kong became a Special Administrative Region of the People's Republic of China since July 1, 1997. SAR Basic Law guarantees Hong Kong's capitalist economic system unchanged for 50 years after the handover. Hong Kong will continue to enjoy a high degree of autonomy except defense and foreign affairs. The official languages are English and Chinese.

Although the population of Hong Kong is just over six million, finance and banking services sector remained relatively strong in the international trade. Hong Kong is the world’s ninth-largest trading economy and the third largest financial center. More than 3,200 multinational corporations set up regional headquarters or offices in Hong Kong. Hong Kong is also a gateway into China.

Legal and Tax

Hong Kong company law is based on English common law. Hong Kong is a low tax jurisdiction. Profits, salaries and property tax rates are in the 16% -17.5%, and there also has the various types of stamp duty, equity tax. In addition, there is no capital gains tax, dividend tax or withholding tax.

Only the profits which generated in Hong Kong need to pay tax. The profits which generated outside Hong Kong are not subject to tax. The corporate income tax rate is 17.5%. In addition to the amount of tax exemption, individuals must pay income tax, the income tax rate is incremented by the amount, and the highest rate is 16%.

Rent from the land and buildings in Hong Kong have to pay property tax. In the stock transfer of the company in Hong Kong, the transferor and the transferee must pay stamp duty, the tax rate of 0.1% of the stock exchange price or fair market, subject to the higher of the two prices. The transfer of land and buildings in the territory must prevail in accordance with the higher price of the transaction price or the fair market value as the payment of stamp duty, a maximum rate of 3.75%.

Within the Group owns 90% of the ordinary shares of the parent company and its subsidiaries in the transfer transactions are not required to pay any stamp duty. Hong Kong company must pay 0.1% of the par value equity tax payable tax increase the registered share capital or issue new shares at a premium, a ceiling of 30,000 Hong Kong dollars for each case.

The Company Processing Time

New established company: about 15 working days;
Buying a shelf company: 7 working days.

For more details, please contact J & K.