INCORPORATION OF HONG KONG AND CHINA COMPANY

INCORPORATION OF HONG KONG COMPANY

Hong Kong is one of the world's reliable financial centers. The advantages of no exchange control, British legal system and efficient transportation and communication networks make the incorporation in Hong Kong attractive for international traders. Hong Kong is ranked the freest economy in the world.

Advantages of incorporation in Hong Kong

- British legal system
- English and Chinese as official languages
- No tax on income earned outside Hong Kong
- Very stable social/political environment
- Excellent relationship with China
- No restrictions on doing business outside of Hong Kong
- No exchange of information between Hong Kong and other countries
- International financial and transportation hub

Setup requirements

- Minimum one shareholder
- Minimum one director
- Director and shareholder can be the same person
- No restriction on nationality or residency of either shareholders or directors
- Minimum share capital is HK$1
- Registered address in Hong Kong
- One Company Secretary (Hong Kong resident or Hong Kong limited company)
- Company name should be only English, only Chinese or English plus Chinese

The Hong Kong Company package includes

- Government filing fees
- Certificate of Incorporation (C.I)
- Business Registration Certificate (B.R.C)
- Memorandum and Articles of Association (M&A)
- Minutes of the first meeting of the founders
- Local Company Secretary
- Registered office in Hong Kong
- Company bank account opening (HSBC Hong Kong)
- International express delivery of Green Box and official documents by Fedex

ASCON Group can assist with the structuring of China Representative Office (R.O), which are the most common form of international investment into China today.

Representative Offices based in China are relatively inexpensive to establish, and do not require capitalization. Typically, they are used for China market research activities, to assess the scope and depth of the domestic market when considering a future investment, or for liaison activities between China-based buyers of the services or products sold by your international business. China Representative offices cannot invoice directly however, meaning the payment terms must be arranged directly between the international businesses parent company overseas, and the China-based purchaser.

A Wholly Foreign Owned Enterprise (WFOE) is a Company with Limited Liability that is completely owned by the foreign investor. WFOEs were originally designed by the Chinese government for encouraged manufacturing activities that were either export orientated or introduced advanced technology. However with China's entry into the WTO these conditions are gradually being abolished. Now WFOEs are increasingly being used by service providers such as a variety of consulting and management services, software developers and trading companies as well.