INCORPORATION OF HONG KONG AND CHINA COMPANY

INCORPORATION OF HONG KONG COMPANY

Hong Kong is one of the world's reliable and efficient financial centers. The advantages of no exchange control, sound legal system and efficient transport/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 as background which is well adopted
- English and Chinese as bilingual legal language
- No taxes are levied on income earned outside Hong Kong
- No estate duty is payable
- Very stable social and political environment
- Very active and freedom in financial activities
- No restriction in fund transfer to and from most part of the world
- Close to and with excellent relationship with Mainland China
- No restrictions on doing business outside of Hong Kong
- No exchange of tax information between Hong Kong and other countries
- International center of information exchange and transportation hub

Setup requirements

- Minimum 1 shareholder
- Minimum 1 director
- Director & shareholder can be the same person
- No nationality restriction for shareholders and directors
- Corporate shareholder and director is allowed
- Minimum subscribed share capital is HK$1
- Registered address in Hong Kong
- One Company Secretary and should either be Hong Kong resident or Hong Kong limited company
- Company name should not be same as those already in company register and can be: only English, only Chinese or English plus Chinese (but in daily use, quoting one of them is enough)

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
- 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

For more information about the incorporation of a Hong Kong company:
 or +852 2132 6732 (Hong Kong) / +86 21 6381 8549 (Shanghai)

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.

For more information about the incorporation of a Representative Office in China:
 or +852 2132 6732 (Hong Kong) / +86 21 6381 8549 (Shanghai)

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.