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We have been asked a few times about whether a Hong Kong company needs to pay profit tax if its income is not derived in Hong Kong.

Legally, a Hong Kong company does not have to pay tax for the profit derived outside of Hong Kong. However, it can only claim the “offshore status” after its book being audited. In addition, the director of the company will need to answer pages of questions presented by the Inland Revenue Department. Therefore, we do not advise anyone to count on the “offshore status”. One should consider to form a BVI company instead of a Hong Kong company if he wants to avoid tax. However, BVI companies are less reputable and acceptable than Hong Kong companies are. In fact, we have heard that someone who already had a BVI company eventually formed a Hong Kong company because the United Nations does not do business with BVI companies.

However, if a Hong Kong company does not conduct business, that is, if it does not sign contract or issue invoice, and if it only receives and makes payments, it may not need to do accounting, auditing and pay tax. Some of our mainland Chinese clients who already own other Chinese companies. They form Hong Kong companies simply because they want to use the companies as holding companies, ie, to make and receive payments only. They usually claim the companies as “not in commerce” on the tax forms and skip the accounting and auditing. While many people are doing that, however, such practice falls in the gray area of the law.

References:

1. http://www.ird.gov.hk/eng/paf/bus_pft_tsp.htm
2. Section 14, the Inland Revenue Ordinance: http://www.legislation.gov.hk/eng/home.htm
3. http://www.ird.gov.hk/eng/ppr/advance34.htm
4. http://www.ird.gov.hk/eng/ppr/advance35.htm
5. http://www.ird.gov.hk/eng/tax/stc.htm

From now on until 2016/12/31, our incorporation Package A also comes with a set of company chops (including a signature chop, an invoice chop, and a metal common seal). Instruction:

1. Select our Package A to incorporate a company;
2. Follow our incorporation workflow to submit information to us;
3. Make your payment before application submission to the government or 2016/12/31. Payment Methods
4. Postage cost:
   1. Pick up at our office: $0;
   2. to Hong Kong and Mainland China: $100;
   3. to other international address: $300

A subsidiary company is a company that is owned by other companies. The materials for opening a bank account in Hong Kong for a subsidiary is as follow:

1. A board minute of the parent company authorizing the incorporation of the subsidiary, and authorizing its directors / a director to sign for and on behalf of the subsidiary;
2. An organizational chart showing the relationship between the subsidiary, the parent company, and the shareholders of the parent company;
3. A copy of the Memorandum and Articles of Association of the parent company, certified by the directors;
4. An Apostile / the original of the Certificate of Incorporation of the parent company;
5. The certificate of Incumbency of the parent company;
6. A bank reference letter for the parent company;
7. The director’s declarations for the subsidiary and the parent company, accompanied by Hong Kong CPA letters;
8. Identity proofs and residential addresses proofs:
   1. If the parent company is a private company, identity proofs and residential addresses proofs of the majority shareholders of the parent company;
   2. If the parent company is a public company, its web site and stock symbol.
9. If the document is not in English, it must be translated and certified by the translator;
10. If the original documents can not be provided, the notarized photocopies of the documents are acceptable.
11. Bank account opening documents for the subsidiary

財政司司長宣布鞏固香港銀行體系信心的新措施
*******************************************

財政司司長曾俊華今日（星期二）宣布推出兩項新的預防措施，以進一步鞏固香港銀行體系的信心。

• 第一，參照現行的存款保障計劃的原則，運用外匯基金為存放於香港所有認可機構的客戶存款提供擔保，但除持牌銀行外，還包括有限制牌照銀行及接受存款公司。¹ 這項擔保適用於存放於香港認可機構的港元及外幣存款，包括存放於外資銀行香港分行的存款。這項擔保將涵蓋超出在存款保障計劃下的受保存款上限的存款。

• 第二，成立備用銀行資本安排，目的是在有需時向本地註冊持牌銀行提供額外資本。

這兩項措施即時生效，直至2010年底，屆時會因應國際金融狀況再決定是否需要延續有關措施。

曾司長強調香港銀行體系基本因素穩健，他並不預期有需要啟動這些新安排。

香港金融管理局總裁任志剛評論這些新措施時表示，這些措施屬預防性質，旨在進一步鞏固本港銀行體系信心。他說：「香港的銀行體系保持穩健，資本充足水平遠 高於國際要求，市民對銀行體系的信心仍然堅穩，但鑑於最近幾個星期全球各地發生的事件，讓我們認為為審慎起見，需要推出這些安排以進一步加強信心及保持銀 行體系穩定。這些措施亦與全球各地為保障金融穩定而採取的行動一致。」

如有查詢，請聯絡：
新聞組高級經理陳民傑　２８７８　１４８０　　或
新聞組經理羅存慧　　　２８７８　１６８７

香港金融管理局
2008年10月14日

來源: http://www.info.gov.hk/hkma/chi/press/2008/20081014c6_index.htm

Financial Secretary announces new measures to support confidence in the Hong Kong banking system

The Financial Secretary, Mr John Tsang, announced today (Tuesday) two new precautionary measures to further strengthen confidence in Hong Kong’s banking system:

• First, the use of the Exchange Fund to guarantee the repayment of all customer deposits held with all Authorized Institutions in Hong Kong following the principles of the existing Deposit Protection Scheme, but including Restricted-Licence Banks and Deposit-Taking Companies as well as Licensed Banks.¹ The guarantee applies to both Hong Kong-dollar and foreign-currency deposits with Authorized Institutions in Hong Kong, including those held with Hong Kong branches of overseas institutions. It will cover the amount of deposits in excess of that protected under the Deposit Protection Scheme.
  

• Secondly, the establishment of a Contingent Bank Capital Facility (CBCF) for the purpose of making available additional capital to locally incorporated licensed banks, should this become necessary.

Both measures take immediate effect and will remain in force until the end of 2010, when a decision will be taken in the light of international financial conditions on whether they should be extended.

Mr Tsang stressed that he did not expect that the new arrangements would need to be triggered, since the Hong Kong banking sector was fundamentally sound.

Commenting on the measures, the Chief Executive of the Hong Kong Monetary Authority, Mr Joseph Yam, said that these were precautionary and pre-emptive measures designed to further strengthen confidence in the local banking system.  “The banking sector in Hong Kong continues to be healthy and robust, with capitalisation well above international requirements. Public confidence in the banking system remains strong. However, events around the world in recent weeks make it prudent for us to introduce these arrangements to bolster confidence and safeguard banking stability.  The measures are also consistent with global efforts to support financial stability,” Mr Yam said.

Annex

For further enquiries, please contact:
Thomas Chan, Senior Manager (Press), at 2878 1480 or
Peggy Lo, Manager (Press), at 2878 1687

Hong Kong Monetary Authority
14 October 2008

¹ The guarantee covers all protected deposits as defined in the Deposit Protection Scheme Ordinance, Cap. 581, were the Ordinance to apply to all authorized institutions.

Source: http://www.info.gov.hk/hkma/eng/press/2008/20081014e6_index.htm

由現在至2012年12月31日, 在本公司以套裝A成立香港公司, 將免費獲得一套該公司的印章 (包括一個簽名印, 一個小圓印, 及一個鋼印). 方法:

1. 以套裝A成立香港公司
2. 依照本公司的公司成立流程提交資料
3. 在我們提交文件到政府前或在2012年12月31日或之前付款. 付款方法
4. 郵費:
   1. 到我們辦公室提取: $0;
   2. 香港及中國內地: $100;
   3. 其他地方: $300

本公司的最經濟香港有限公司配搭:

1. 選擇套裝A. 套裝A包括公司註冊證書,商業登記證及一份會計師核証銀行開戶文件. 要五至六個工作天完成. (HKD $5,380) 更多資料
2. 香港居民用住圵作為公司註冊地圵 (HKD $0). 租客必須要業主同意才可以用住址作為公司註冊地圵.
3. 在滙豐銀行開設”理財易“商務戶口”($0 月費) 更多資料
4. 只購買公司印章. (HKD $200. 亦可以到其他地方購買) 更多資料
5. HKD $5,380 + HKD $200 = HKD $5,580

如有任何問題請到我們的首頁http://www.jinetic.com 或電郵我們查詢.

注意: 香港銀行是可以直接把郵件寄到國內或海外地址. 所以基本上不需要把銀行信件寄來本辦公室.

註冊辦公室服務詳情如下:

每年港幣 $1,200, 我們會在每一個月的其中一日用普通郵寄方式轉寄該公司重量三十克或以下的郵件一次, 每月最多十封信.

新滙丰银行”理财易”商务户口无月费

滙丰银行本星期一(2008年10月27日)推出了新的商务户口”理财易“. “理财易“户口和原有的商业理财户口之不同如下:

• 没有月费;
• 没有馀额要求;
• 有柜台收费. 如果一个月用柜台服务少於六次, 没有收费. 如果用柜台的次数介乎七至十二次, 月费是HKD $75, 如果多於十二次, 每多一次有 HKD $10 服务费.

另外, 滙丰亦更新了原有的商业理财户口收费如下:

• 如果三个月的平均馀额:
  o 少於十万港元, 月费是 HKD $150;
  o 介乎十万至一百万港元, 月费是 HKD $75;
  o 高过一百万港元, 没有月费

详情请到滙丰银行网址查询: http://www.commercial.hc.com.hk/1/2/commercial_zh/accounts/businessdirect?pws_default=

滙豐銀行本星期一(2008å¹´10月27æ—¥)推出了新的商務戶口”理財易“. “理財易“戶口和原有的商業理財戶口之不同如下:

• 没有月費;
• 没有餘額要求;
• 有櫃台收費. 如果一個月用櫃台服務少於六次, 没有收費. 如果用櫃台的次數介乎七至十二次, 月費是HKD $75, 如果多於十二次, 每多一次有 HKD $10 服務費.

另外, 滙豐亦更新了原有的商業理財戶口收費如下:

• 如果三個月的平均餘額
  • 少於十萬港元, 月費是 HKD $150;
  • 介乎十萬至一百萬港元, 月費是 HKD $75;
  • 高過一百萬港元, 没有月費

詳情請到滙豐銀行網址查詢: http://www.commercial.hsbc.com.hk/1/2/commercial_zh/accounts/businessdirect?pws_default=