[ESTABLISHING A BUSINESS ENTITY IN HONG KONG]
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Incorporation Under a “one - stop” approach, the application documents for incorporation and business registration shall be delivered to the SFC. The Companies Registry will issue the Certificate of Incorporation and Business Registration Certificate in one go after approval is given by the SFC. Registration OFCs, whether publicly or privately offered, are required to be registered with the SFC. Same as other publicly offered funds, publicly offered OFCs are also required to obtain prior authorization from the SFC, unless an exemption applies. An OFC is required to, among other things, (i) have a board of directors, an investment manager, and a custodian; (ii) fulfil certain disclosure requirements for documents; (iii) comply with applicable investment restrictions; and (iv) comply with certain ongoing disclosure requirements. 3.6 Choice of Business Entities When choosing the type of business entity that is suitable for a particular business, regard should be given to all the relevant factors including but not limited to: (1) Nature of the business (2) Size of the business (3) Number of owners (4) Legal status of the entity (E.g., Is the vehicle a separate legal entity? Can it own property in its own name? Does it have perpetual succession?)
(5)
Management of the business
(6)
Liability of owners
(7)
Formation requirements and procedures
(8)
Formalities
(9) Registration procedures (if required) (10) Ongoing maintenance and other compliance requirements (e.g. filing of statutory returns and forms, audit, maintenance of registers and keeping of books and records) and the fees and costs involved (11) Tax implications in Hong Kong and overseas (12) Any implications for employment matters (e.g., visa applications) (13) Transfer of ownership (14) Business exit
4. Taxation Tax
Hong Kong adopts a territorial source principle of taxation. There are three principal heads of tax in Hong Kong, namely profits tax, salaries tax and property tax. There is no sales tax or value-added tax, withholding tax, capital gains tax or estate tax in Hong Kong. As to profits tax, as a general principle, any persons (including corporations, partnerships, trustees, whether incorporate or unincorporated, or bodies of persons) carrying on any trade, profession or business in Hong Kong are chargeable to tax on all profits (excluding profits arising from
ILN Corporate Group – Establishing a Business Entity Series
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