[ESTABLISHING A BUSINESS ENTITY IN HONG KONG]
246
facilitate investment, trade, movement of technology, and movement of personnel by reducing rates of foreign withholding tax. Stamp Duty on Transfer of Hong Kong Stock A transfer in Hong Kong stock is chargeable with ad valorem stamp duty, subject to certain exemptions or stamp duty relief. The current stamp duty rate is 0.26% of (i) the consideration or (ii) the market value of the shares transferred (whichever is higher). 5. Visa A visitor is prohibited from taking any employment (whether paid or unpaid) or establishing or joining in any business during his stay in Hong Kong, but he may generally engage in the following business-related activities: (a) concluding contracts or submitting tenders; (b) examining or supervising the installation/packaging of goods or equipment; (c) participating in exhibitions or trade fairs (except selling goods or supplying services direct to the general public, or constructing exhibition booths); (d) settling compensation or other civil proceedings; (e) participating in product orientation; and (f) attending short-term seminars or other business meetings. Persons who wish to enter or stay in Hong Kong to establish or join in business in Hong Kong will need to apply to the Immigration Department for a visa / permit entry to enter Hong Kong for investment as entrepreneur. Generally, they are required to be in a position to make substantial contribution to the economy of Hong Kong with reference to a range of consideration factors, or the start-up business concerned is supported by certain government-
backed programmes and the applicant is the proprietor or partner of the start-up company or a key researcher of the relevant project. If the business will engage or employ anyone without the right of abode in Hong Kong, such persons will need to apply for visa / entry permit to take up employment in Hong Kong. The applicants should normally possess special skills, knowledge or experience of value to and
not readily available in Hong Kong. 6. Foreign Investment Restrictions No General Restrictions
There is no general restriction on foreign investment in Hong Kong save for certain regulated sectors. One notable exception is the restrictions on voting control by non-residents over licensed broadcasters. A sale or transfer of residential property in Hong Kong is subject to buyer’s stamp duty where the purchaser or transferee is not a Hong Kong permanent resident. Exchange Control or Currency Regulations There is no foreign exchange control in Hong Kong. There is generally no restriction on the repatriation or remittance of funds outside Hong Kong, subject to the compliance of the anti-money laundering laws and regulations.
SIT, FUNG, KWONG & SHUM
Sit, Fung, Kwong & Shum is one of the major local law firms in Hong Kong. We have a wide spectrum of practice areas including corporate and commercial, dispute resolution, conveyancing and probate, trusts, and technologies. We provide professional services to local and overseas clients including leading multinational corporations, public and private companies and professional firms. Our Corporate & Commercial Department advises on a wide spectrum of corporate and commercial matters in Hong Kong, the Mainland China and other jurisdictions. With a team of experienced and dedicated lawyers, we are able to steer through complex issues and provide high quality advices which are practical and solution-oriented.
ILN Corporate Group – Establishing a Business Entity Series
Made with FlippingBook Ebook Creator