Frequently Asked Questions

(1) What are the difference between HK Limited Company and Offshore Company?
  Limited company incorporated in Hong Kong has a higher creditability around the world. Hong Kong has the advantage in terms of legal, financial, reputation and relatively low tax rates and simple tax system.
On the other hand, offshore company incorporated in some tax exempted countries (commonly known as tax haven) has the benefit of relatively high degree of confidentiality and not require to file tax if there is no local business operation.
(2) Any difference between opening a bank account for a HK Limited Company and an Offshore Company?
  Except for a tighter review and a higher bank application fee, there is no difference between opening a bank account for a HK Limited Company and an Offshore Company.
(3) Why should avoid engaging in commercial activities by using Offshore limited companies?
  Adminstrative costs will be higher. The reason is because operating in HK require your companies to be registered under Companies Registry and apply for Business Registration.
In addition to annual renewal fee for the company, you are required to complete and submit Profits Tax Return together with a set of audited account to the Inland Revenue Department.
(4) What are the difference between incorporating a Brand new company and a Ready-made company?
  Incorporating a Ready-made company is faster, it only requires 1 to 3 working days. The reason is because Ready-made companies have already been incorporated, but never commence business. It shorten the time for clients who wish to use the company for purposes such as buying properties or contract signing.
(5) Any restrictions on the company name?
  For HK Limited Companies, an English company name must end with the word "Limited" and a Chinese company name must end with the characters "有限公司".
For certain words and expression will require the concent of the Chief Executive before their use will be allowed in a company name, such as "Trust", "Chamber of Commerce", etc.
Also, a company name will not be registered if it is the same as a name appearing in the index of company names maintained by the Registrar of Companies or that of a body corporate incorporated or established under an Ordinance.
Furthermore, certain words and expression of some large coporations might have registered under Trademark Registry. Similar name should be avoided.
  For more information, please refer to following website of Companies Registry:
(6) What are the difference between Business Registration and Trademark Registration?
  For more information, please refer to following website of Intellectual Property Department:
(7) What are the difference between Winding-up and Deregistration?
  There are two ways of winding up a company, voluntary winding up or compulsory winding up.
  Voluntary winding up can be initiated either by members (shareholders) or creditors. (given that company has no outstanding debts) Compulsory winding up is when a Hong Kong Court order a company to wind up.
  Degregistration process is much simplier and less costly, but the following conditions must be met:
(1) agreed by all members of the company;
(2) has no outstanding liabilities (such as Annual Return fee, Profits Tax and Business Registration Fee);
(3) never commenced business or operation, or has ceased business for at least 3 months.
(8) What is the tax rate in HK?
  Corporate tax rate is 16.5% on assessable profits.
  Salaries Tax is calculated at progressive reates on your net chargeable income or at standard rate on your net income, whichever is lower. For more detailed information, please refer to the following website of Inland Revenue Department: