How to open a Limited Company in Hong Kong

If you wish to set up a limited company in Hong Kong, you should go to a Certified Public Accountant or a solicitor in practice. In Hong Kong, you can have only one shareholder and director which means the minimum capital can be as low as HK$1.00. Tax is based on the estimated assessable profits at 17.5% at present. Please note that there are tax incentive such as this year, they allow a 75% reduction with a ceiling of HK$25,000.00. For US tax, since you are an American citizen, you will only be liable to US tax if you draw salary or dividend from the HK company because the US adopts a global tax approach. You will also be liable to capital gains tax in the US because you own the HK company. Owing to limited information and the projected profitability of your company, I can only say the ceiling in the US is 35% and HK Corporate tax rate is currently at 17.% lowering to 16.5% in 2008/09.

If you want to incorporate a Hong Kong company, you should firstly to submit the form and the certified printed copy of Memorandum and Articles of the Company together with the registration fee to Company Registry. You can download the statutory forms form the web site and find the details of the prescribed fee there. After 7 working days, you can receive a letter from Company Registry for collection of the Certificate of Incorporation.

You can visit the web site of Inland Revenue Department, you can find more detials about the taxation on businesses. Here is the link www.ird.gov.hk

You should also apply for the Business Registration Certificate within 1 month from the date of commencement of business. You should collect the original application form from the IRD office.

About the taxation, in USA is worldwide.