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Company formation Hong Kong

Company formation Hong Kong has been widely used for startup businesses as well as established ones due to low tax rates, stable economy, access to large skilled labor force and strong Geo-location. The most established form of business in Hong Kong is Ltd – private limited company. In Hong Kong it is possible to start a Ltd in the shortest possible time. Choosing Hong Kong as the corporate headquarters is strategically very interesting as Hong Kong is one of the world’s leading centers of finance and trade.


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To avoid mistakes as you set up your new company, it is essential to seek advice. We would be happy to provide you with the best advice on how to set up your company abroad. We are offering you a short, intial, free and non-binding consultation via email. It will go a long to way to help you setup your company the right way.

International Taxes
Tatjana Lintner

Key account manager at W-V Law Firm LLP

+44 2080783389 069 2475630-68 [email protected] Mo - Fr 09.00 till 17.00 CET
International Taxes
International Taxes
Tatjana Lintner

Key account manager bei W-V Law Firm LLP

International Taxes
+44 2080783389 069 2475630-68 [email protected] Mo - Fr 09.00 till 17.00 CET

Hong Kong’s economic structure

“Extremely business-friendly location” with this reputation is titled Hong Kong. One of these is the Hong Kong legal order and the special governmental position, the Economic Analysis and Business Facilitation Unit (EABFU), which was introduced to drive economic growth.
Furthermore, Hong Kong is one of the preferred locations in Asia. Hong Kong as the “gateway to China and the world” has tremendous economic strength and is located directly on the South China Sea, making it a hub for global trade.


Taxation in Hong Kong

An attractive Tax System

The major attractions of Hong Kong’s tax system to foreign investors and businessmen – and in turn major reasons for their increasing presence and contribution here – are the following:

  • - The low rate of tax on profits.
  • - The fact that only income and profits derived from Hong Kong are subject to tax.
  • - That there is no tax on capital gain, dividends or interest.
  • - The generous capital allowance.
  • - The current profits tax rate is 17.5% for corporations and 15.5% for non-corporate taxpayers. Personal tax is therefore also among the lowest in the world.


Hong Kong has a simple scheduler system of tax, in which only specified types of income, namely profits, salaries and property rental income, are taxable. This is different from an income tax system, under which a person is subject to tax on his aggregate income from all sources.


What advantages does Hong Kong have to offer?

  • - Very favorable tax rate of 17.5% on the profits (only applicable for income derived in Hong Kong)
  • - Foreign income is tax-exempt
  • - Highly qualified workforce
  • - No restriction on the nationality of shareholders or directors
  • - Important central geographical location within Asia
  • - Important traffic junction
  • - Very good economic relations with China, thanks to the Closer Economic Partner Arrangement (CEPA), gives companies the opportunity to gain better access to the Chinese market.


The biggest mistakes when starting a company abroad

Not all topics related to founding a company abroad are always free of prejudices and false information that have prevailed over the years. We give you an overview of the most important questions about founding a company abroad.

International Taxes
Founding a company abroad as a citizen of another country is legal?
Founding a company abroad as a citizen of another country is legal?

Yes, in most countries foreigners can be sole shareholder of a local entity.

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Do you have to live in the country where you start a company?
Do you have to live in the country where you start a company?

No you can set up a company anywhere in the world, as long as the country in question allows you, as a foreigner, to acquire shares in local companies. If this is not the case, trustees can be used. Freedom of establishment applies within the European Union. However, it is important that the management takes place locally, in the country in which the company is registered. In addition, a permanent establishment must be set up. Without this, a German tax office will not recognize the company and, in the worst case, would demand back payment of corporate and trade taxes plus late payment penalties. We rent you a real office and set up a permanent establishment that meets all requirements without a doubt. In addition, we have real managing directors who run companies in the home country and are resident there.

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Problematic law firms: closure is made more difficult
Problematic law firms: closure is made more difficult

Some law firms tie clients with gag contracts and apply pressure when the client wants to close their business. If you are a client of a law firm that has set up a legally unsound company for you, you make yourself vulnerable to blackmail. Because in the event of a tax problem, law firms without a license are not bound by a duty of confidentiality.

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Changing offices is made more difficult
Changing offices is made more difficult

We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. Switching to us is then often made more difficult. So horrendous final bills are made, which have to be paid before a change is possible. Therefore we have developed a trust principle. If you are not satisfied with us and want to switch, you can do so at any time. You will receive the necessary documents (resignation letter) from us in a standardized form after the foundation. This protects you from unexpected costs and you are free to go to another law firm at any time. So far we have not lost a client to another law firm.

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Privacy Policy/Office Location
Privacy Policy/Office Location

Your accounting documents are safe with us. In addition, all electronic data is only stored in encrypted form and apart from us, who are bound by professional secrecy, no one has access. All accounting documents are also only stored locally. Neither authorities nor hackers can access this data.

International Taxes
No taxes?
No taxes?

There are certainly locations in the world that do not charge any taxes to companies and private individuals or only charge a very low flat-rate tax. However, this can rarely be used without a corresponding change of residence. If you are resident in Germany, the relevant double taxation agreement is decisive. Providers who promise otherwise will tempt you into tax evasion, which is usually severely punished if discovered. We advise you not to set up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in Germany can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous account or company no longer exists.

We comply with the following code:

  • - Legally secure foundations
  • - No unexpected(hidden) costs
  • - No false promises
  • - Finding the right solution by focusing on your requirements


With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.


Basic requirements of a Ltd.

Share Capital

There is no prescribed minimum capital.



Private Limited Company requires at least one shareholder. It does not matter which residence or nationality they belong to.


Managing Director

If a company is set up in Hong Kong, at least one person must d. H. either a natural person or a legal entity as a manager. The residence does not necessarily have to be in Hong Kong. Another possibility would be to choose a fiduciary manager to ensure anonymity.



The registered office of a Private Limited Company must be in Hong Kong. As address information, no PO box address is sufficient, but it must be a physical address.


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International Taxes

Double taxation agreement

Hong Kong has a double taxation agreement with Belgium and Luxembourg.


Value added tax

There is no VAT in Hong Kong


Annual duties of a Ltd.

  • - Annual renewal of the business registration
  • - Submission of reports on share capital, shareholders, managing directors and secretary
  • - Presentation of audited balance sheet and income statement


Tax burden: Deutsche GmbH and Hongkong Limited in comparison

Use these example figures to find out how high the difference in taxation is for a German GmbH Hongkong Limited.

  German GmbH Hong Kong Limited Offshore Company (profits are not earned in Hong Kong)
Profit 80.000 EUR 80.000 EUR 80.000 EUR
Corporation tax 12,660 EUR (15,825% incl. Solidarity surcharge) 13.200 EUR (16,5%) N/A
Business tax 12,180 EUR (average rate of assessment in Germany 435% in 2010) N/A N/A
Profit after taxes 55.160,- EUR 66.800,- EUR N/A
TAX BURDEN 24.840,- EUR 13.200,- EUR 0,- EUR


Company formation Hong Kong - That's how it works

Establishing a Hong Kong company is easy and the founder does not have to travel to Hong Kong. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank also a short CV or bank reference.


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