The procedures for Establishment a Hong Kong Company :  1, Free register examination: If you have decided your company name, 　　You can tell us and we'll examine & reply to you within 10 Minutes. 2, Finish the letter of attorney and sign the agreement.　 3, Shareholder/Director Sign the whole set of documents. 4, Pay in advance payment 50% of the charges. 5, We will begin the registration procedures (need about 8-10 working days) 6, Notify client to take the "green box" (means all the legal documents of the new company) and pay the balance payment. Demands of Establishing Hong Kong Company 1, One or more shareholder/director. 2, All shareholders should be older than 18 years old. 3, All shareholders should hold valid ID card or photocopy of the passport. 4, Register capital fund is not less than HKD 10,000 (no limit on arrived capital). 5, Offer register address in Hong Kong (offered by us generally). 6, Assign Hong Kong resident or Hong Kong company as legal Secretary. 7, Must deal proper business by law. 8, Must pay all expenses. Annual Return: Every company is required to file & submit the “Annual Return” to HK Company Registry Department within 42 days after the anniversary of the date of incorporation. Substantially higher registration fee is payable for filing late. The company and its officers are liable to prosecution and ,if convicted, default fines. The company’s Business Registration Certificate will be expiry after one year from its incorporation, it needs update on time. Tax Return: A new company need first Profit tax return (report) to HK tax Department after 18 months from its incorporation. » Taxation Hong Kong is one of the few countries/Region in the world that tax on a territorial basis. Many countries levy tax on a different basis and they tax the world-wide profits of a business, including profits derived from an offshore source. Hong Kong profits tax is Only charged on profits derived from a trade, profession or business carried on in Hong Kong. Consequently, this means that a company which carries on a business in Hong Kong, but derives profits from another place, is not required to pay tax in Hong Kong on those profits. Hong Kong sourced income is currently subject to a rate of taxation of 16.5 per cent. There is no tax in Hong Kong on capital gains, dividends and interest earned. The Inland Revenue ordinance requires each person carrying on a trade, profession or business in Hong Kong to keep sufficient records of his income and expenditure and assets and liabilities in relation to that trade, profession or business to enable his assessable profits to be readily ascertained. Such records should be retained for at least 7 years after the date of the transactions to which they relate, or until the corporation is dissolved, if this is sooner. Failure to keep sufficient records may result in a fine of up to HKD100,000. The company should book keeping transaction if has business for the basis period, you need to keep and retain the company’s Banking statements, invoice (sold & bought), receipts, bill of documents show on Banking statements, operating expenses, etc. If you require further information about taxation, please visit the department’s web site www.ird.gov.hk . If you need the services of book keeping & audit, please contact us.