Types of companies in Hong Kong
- Unlimitedcompany
- Responsibility
- Minimum capital
- Min. shareholders
- Generally recommended for
- Unlimitedcompany
- Unlimited
None
2
SMB
- Company limited by guarantee
- Limited
None
2
SMB
- Private limitedcompany
- Limited
None
1 (max. 20)
SMB
- Public limitedcompany
- Limited
None
1
Big companies
- Soleproprietorship
- Unlimited
None
1
Sole holder
- Generalpartnership
- Unlimited
None
2 (max. 50)
Associates
- Limitedpartnership
- Unlimited
None
2 (max. 50)
Associates
Corporate tax rate in Hong Kong
In Hong Kong, the corporate tax rate is at 16.5%.
However, the taxable profit is the net profit originally from Hong Kong. So if a company has no commercial activity in Hong Kong, that is to say no customers, suppliers, offices or employees there, 0 % is the applicable rate.
Questions
Why should I incorporate in Hong Kong ?
- Hong Kong is a major financial pole, it is the link between China and the rest of the world.
- The judiciary and institutional systems in Hong Kong are very stable.
- The banking system is stable thanks to the anchor of the Hong Kong dollar to the American dollar.
- The country’s infrastructures are qualitative and performant.
Which difficulties can be encountered in Hong Kong ?
- Honk Kong is impacted by the slowdown in the Chinese economy.
- The country is impacted by the gap between the China’s economic cycle and the USA’s one because it money is anchored on the American dollar.
- The industrial sector is completely outsourced to China.
- The housing costs are very high which weakens the real estate sector.
- The country suffers from a lack of innovation.
- Revenue inequality is growing.
Which are the cultural specificities of the working world in Hong Kong?
- Being late is considered to be disrespectful; it is important to be punctual. In the same way, deadlines are crucial.
- During a business meeting, it is important to shake hands first with the person at the head of the company.
- Hierarchy and seniority are fundamental in Hong Kong.
- It is not recommended for two persons of opposite sex to have physical contact in public. In the same way, touching the shoulder or the back of people is not appreciated.
- Exchanging business cards is mandatory, they have to be given and received with both hands.
- It is important to avoid embarrassing people in front of others. They don’t have to “loose face”.
