People form company to achieve different purpose, such as tax planning, risk diversification, investment, market entry etc.
Generally, Hong Kong companies are being used because of following advantages:

1. With British legal system as background which is well adopted.
2. With English and Chinese as bilingual legal language.
3. With very low tax rate.
4. Tax exempt for income not incurred in Hong Kong (offshore income).
5. With very stable social and political environment.
6. With very active and freedom in financial activities. No restriction in fund transfer to and from most part of the world.
7. Close to and with excellent relationship with Mainland China.
8. With huge supply of high quality manpower.
9. Being international center of information exchange and transportation hub.
10. Save legal and government fee when transfer of asset is effected by transfer of shares of a company holding the asset, rather than transfer of the title of the asset directly.

The whole incorporation process and service ends here and clients should have following items with them:

• Green box
• Certificate of Incorporation
• Business Registration Certificate
• Copies of shareholders, directors etc registration documents (Original is kept in government for public search.)

Courier fee for delivery of completed company registration material is not included yet in the standard service fee. Client needs to specify address and contact phone no. before exact courier fee can be quoted.

• Client to choose preferred companies from ready made company list
• Client to pass following information to AsiaBS for document preparation:
  • Address and passport (ID) copy of at least 1shareholder and 1 director.
  • Detail of registered address and company secretary.
  • Company name chosen from ready made company list.
  • Full payment is required.
• AsiaBS send Certificate of Incorporation and company kit (green box) to client.

When Certificate of Incorporation is available to client, client can use the company to enter into business transaction, even though some registration process need to handle in following days.

• AsiaBS send documents to client for signature.

• Client to pass the signed document back to AsiaBS for processing.

• AsiaBS to pass processed documents to client plus Business Registration Certificate.

The whole incorporation process and service ends here and clients should have following items with them:

• Green box
• Certificate of Incorporation
• Business Registration Certificate
• Copies of shareholders, directors etc registration documents (Original is kept in government for public search.)

Courier fee for delivery of completed company registration material is not included yet in the standard service fee. Client needs to specify address and contact phone no. before exact courier fee can be quoted.

Some of the key maintenance requirement of a Hong Kong limited company are:

1. Duty to Business Registration Office (BRO)
   1. Renew business registration.
2. Duty to Company Registry (CR)
   1. File annual return once a year even though there is no change during the year in the shareholding, director or other information of the company.
   2. During the year, file to the CR of any changes in the shareholding, directors etc, that need to be filed according to the Companies Ordinance. The information need to be filed and ready for public search in order to protect the interest of the company and the public.
3. Duty to Inland Revenue Department (IRD)
   1. File tax return to the IRD:
      1. Profits Tax - once a year (Normally auditor's reported should be submitted together with tax returns);
      2. Salaries Tax (Employer Return) - once a year - to advise salary payment to employees;
   2. Maintain proper accounting books and records to produce financial statements for tax return filing for 7 years.
   3. Common misunderstanding
      1. Even a non-active company need to file tax return. It is the IRD to assess whether a company need to pay tax or no need to file tax return.
      2. Proper books and records need to be maintained in order to support any financial statements. IRD may ask how your accounting system works and how you keep your records. If it is not properly handled, IRD may be suspicious of the figures in financial statements. In certain situation, penalty or / and estimated assessment will be levied.