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INTERSHORES I Legalization in Hong Kong
Documents that said to be legalized usually meant to be legalized by a Notary Public in Hong Kong which are usually accepted internationally. There are, however, certain situation that documents need to be legalized by different authorities other than a Notary Public ie. documents apostilled by High Court in Hong Kong or documents attested by a China Appointed Attesting Officer.
Apostille Service
When the statutory documents of a Hong Kong company are used for overseas government registration, they are usually required to be apostilled by High Court in Hong Kong. The apostille service is available at Apostille Service Office, High Court Registry. It will take around 3-4...
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INTERSHORES I How to Structure Your Business in Hong Kong
If you want to set up a business in Hong Kong, you should first of all think of how to structure your business.
The common form of entities include private limited company, branch office (for overseas company), representative office, sole proprietor and partnership. The overview below assists you to decide which suits you most:
Private Limited Company
A private limited company is the most common form of entity in Hong Kong. Though more expensive and with basic statutory compliance at set up, on annual (please refer to condensed fact sheet on the website) and at close down that one has to fulfill, the benefits outweigh the disadvantages:
1. A separate legal entity (can own...
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INTERSHORES I Directors' Duties for a Hong Kong Company
Under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), there must be at least one (1) individual director who can be a Hong Kong resident or a non-HK resident with age over 18 at the time when a Hong Kong private limited company is registered. A director can be an individual director or a body corporate.
As a director of the company, the general principles of its duties are outlined in the Guide on Directors’ Duties per Companies Registry in Hong Kong:
1. To act in good faith for the benefit of the company as a whole.
2. To use powers for a proper purpose for the benefit of members as a whole.
3. Not to delegate powers except with proper...
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INTERSHORES I Shareholders' Duties for a Hong Kong Company
Under the Companies Ordinance (Chapter 622 of the Laws of Hong Kong), there must be at least one (1) individual or body corporate shareholder. For individual shareholder, he/she can be a Hong Kong resident or a non-Hong Kong resident aged over 18.
A shareholder is the person/entity owns the company but does not necessarily run the company’s business like the director. The shareholder has a financial stake in the company, the amount of share capital he/she contributes and his/her liability is also limited to the amount of share capital invested. Usually, the shareholder receives dividend in return for his/her investment. As the owner of the company, a shareholder can:
1....
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INTERSHORES i TCSP Licensing, CDD & Record Keeping Requirements for DNFBPs
A licensing regime for trust or company service providers (“TCSPs”) in Hong Kong has been commenced with effect from 1 March 2018. Under the licensing regime, TCSPs are required to apply for a licence from the Registrar of Companies and satisfy a “fit-and-proper” test before they can provide trust or company services as a business in Hong Kong.
In addition, Designated Non-Financial Businesses and Professions (DNFBPs), including solicitors, accountants, real estate agents, and trust or company service providers ("TCSPs"), are required to observe statutory customer due diligence ("CDD") and record-keeping requirements as set out in Schedule 2 to the Anti-Money...
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INTERSHORES I Top Reasons to Setup a Company in Hong Kong
1. Located at the heart of Asia. Hong Kong enjoys an enviable location. One can reach half of the world's population in just five (5) hours' flight time. It is strategically located at the heart of Asia, next to China and other Belt & Road countries easily.
2. Setting up a business in Hong Kong is quick & easy. Incorporation can be completed within a day.
3. 100% foreign ownership.There are no restrictions as to the nationality of the owner.
4. No Foreign Exchange Control.
5. Free flow of capital as an international financial centre.
6. Can do and operate business anywhere in the world.
7. Can open bank accounts anywhere in the world.
8. No...
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INTERSHORES I Explore Asia's Protected Cell Companies Structure
The protected cell company (PCC) was borne as alternative risk management tool in 1997, designed primarily to cater for the needs of self-insuring organizations, especially the captive insurance industry. Apart from the captive insurance industry, PCCs are also now a popular structure in the fund management industry, as part of a larger diverse asset allocation investment strategy.
The core concept underpinning the PCC structure is that it acts as a single and separate entity which in turn has the ability to create multiple cells and provides these segregated cells the ability to take on differentiated assets and liabilities per cell, while allowing each cell to operate independently...
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INTERSHORES I A New Era of Smart Banking in HK - Virtual Bank License
A “virtual bank” in Hong Kong is defined as a company which delivers banking services primarily, if not entirely, through the internet or other electronic delivery channels. It does not refer to a licensed bank which makes use of the internet or other electronic means as an alternative channel to deliver its products or services to customers.
In a keynote speech delivered during the Annual Banking Conference of the Hong Kong Institute of Bankers, Mr Norman Chan, Chief Executive of the Monetary Authority in Hong Kong (HKMA) September 2017 outlined how the HKMA will take lead and help the banking sector to rise to a higher level by the convergence of banking and technology. ...
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INTERSHORES I Labuan to Navigate Your Business
With globalization and frequent cross-border activities, entrepreneurs have to readjust the way of doing businesses under Automatic Exchange of Information (AEOI) which allows tax authorities freely exchange information commencing from 2018. Along the line, more than 200 countries agreed to report their expatriates (non-residents) accounts through Common Reporting System (CRS).
In this context, it is essential for entrepreneurs to set up their businesses with real commercial substance than having a vehicle operating “virtually”. Labuan could be an alternative in provision of a midshore commercial operation in substance cost effectively to navigate your business dealings...
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INTERSHORES I What is Labuan Foundation ?
Labuan Foundations, which is a statutory creature under the Labuan Foundations Act 2010 (LFA), are generally no different from foundations found in other jurisdictions where it is a separate legal entity that holds assets with the objective of managing the assets for the benefit of a class of persons on a contractual basis. Labuan Foundations are also typically used for private wealth management and charitable purposes. Labuan Foundations are in some aspects different from other jurisdictions such as Bahamas, Jersey and Seychelles. The following paragraphs discuss some similarities and certain distinctions.
Registered Office. Similar to the Bahamas and Seychelles, Labuan Founda...
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INTERSHORES I Tax & Incentives for Holding Companies in Singapore
A number of Singapore’s DTAs include “tax sparing” provisions, which ensure that benefits granted to foreign investors under the source state’s tax incentive schemes will not be offset by the residence state’s taxes.
Under those provisions, the residence state treats the entity as if it had paid the usual corporate tax rate on that income in the Singapore and a number of other ASEAN countries offer favorable tax incentive schemes and concessions, aimed at attracting foreign investment. e source state, even when it has enjoyed a tax holiday or other concession. Essentially, the income is “spared” under the treaty in order to advance economic...
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INTERSHORES I Guide to Form an Offshores Company in Hong Kong
Although Hong Kong does not have any specific law that governs offshore company formation, it is one of the most popular jurisdictions for setting up an offshore company owing to its low tax regime, absence of foreign exchange controls, political and economic stability, ease of offshore company setup, etc. Setting up an offshore company in Hong Kong is the perfect vehicle for conducting offshore banking activities, international trade, investment activities, and for asset protection.
This guide sets out the advantages of Hong Kong incorporation, the options for registering an offshore company in Hong Kong, Hong Kong Offshore Company formation requirements and Hong Kong incorporation...
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