Newly established Hong Kong company: In the 18th month after the company is established, it will receive the first tax return issued by the tax bureau. The company must complete the audit and tax reporting related work within three months after receiving the tax form.

Non newly established Hong Kong companies: Audit must be conducted annually on the company's year-end date (determined during the first audit), and audit and tax related work must be completed within one month after the year-end date. If the year-end is in March or December, you can apply to the tax bureau for a maximum extension of 8 months.

The Hong Kong government has launched a global talent entry program since 2006, aimed at attracting high-tech or talented individuals to settle in Hong Kong and enhance its competitiveness.

All applicants must first meet the basic eligibility requirements before they can obtain points based on one of the two scoring systems established by the plan and compete for quotas with other applicants.

Under the two-tier profit tax system, the profit tax rate for the first two million yuan of taxable profits of corporate and non corporate businesses (mainly partnerships and sole proprietorships) will be reduced to 8.25% (half of the tax rate specified in Schedule 8 of the Tax Regulations) and 7.5% (half of the standard tax rate), respectively. The taxable profits of corporations and illegal corporations exceeding 2 million yuan will continue to be taxed at 16.5% and 15% standard tax respectively.

In the context of the global economic downturn, many enterprises are facing financial challenges. In Hong Kong, the government has established the BUD Special Fund to assist small and medium-sized enterprises, including start-ups, in seizing economic opportunities and enhancing competitiveness, and provides funding to enterprises through the fund.

Scope of funding

BUD fund projects cover three major categories, including: (1) developing brands; (2) Upgrading and transformation; (3) Expand domestic sales.

Here are some examples that fall within the relevant categories:

BUD special fund funding amount

Funding is based on the principle of reciprocity: the government can provide up to 50% of the total approved expenses for individual projects (excluding audit fees required for approved projects), while enterprises must bear no less than 50% of the total approved expenses for the project in cash.

The government provides full funding for the audit fees required for approved projects, with a maximum audit fee of HKD 10000 per audit, which is included in the cumulative funding amount of the enterprise.

In the "Mainland Plan" and "Free Trade Agreement and Investment Agreement" plans, the maximum cumulative funding limit (combined review fee) for each enterprise is HKD 7 million, and the funding limit (combined review fee) for each project is HKD 1 million.

The Hong Kong Stock Exchange (HKEX) is mainly divided into the Growth Enterprise Market (GEM) and the Main Board, which have different listing conditions and requirements.

Main Board Market

The motherboard is suitable for companies that have already matured, have a large scale, and have a stable profit record. Detailed requirements and relevant regulations for listing on the main board:

1) Performance record and market value requirements:

① Business records for no less than three fiscal years

② Management remains unchanged for at least three years prior to listing, and ownership and control remain unchanged in the most recent audited fiscal year

③ Market value, revenue, and cash flow requirements (one of the three financial standards):

Standard 1: The cumulative profit over three years should be at least HKD 50 million, with a profit of at least HKD 20 million in the year before the company's listing and a market value of at least HKD 500 million.

Standard 2: The company's revenue in the most recent year must be at least HKD 500 million, and its market value must be at least HKD 4 billion.

Standard 3: The revenue in the most recent year must be at least HKD 500 million, the market value must be at least HKD 2 billion, and the operating business must have cash inflows. The total operating cash flow in the first three years must be at least HKD 100 million.

2) Public shareholding: At the time of listing, at least 25% of the shares must be held by the public. If the company's market value exceeds HKD 10 billion, the Hong Kong Stock Exchange may consider reducing the public shareholding requirement, which can be as low as 15%.

3) Number of shareholders: At least 300 public shareholders.

4) Board composition: The company needs to establish a board of directors, which must include at least three independent non-executive directors (INEDs), and independent non-executive directors must account for at least one-third of the board members.

5) Corporate Governance: The company is required to comply with the Corporate Governance Code in Appendix 14 of the Hong Kong Listing Rules, including but not limited to board structure, internal controls, and risk management.

Other requirements

Sponsors: The applicant company needs to have one or more qualified sponsors who conduct due diligence and guarantee the company's listing application.

Financial report: The company must provide audited financial statements for the past three years. After going public, financial reports need to be submitted quarterly, mid-term, and annually.

Continuous disclosure responsibility: The company shall comply with the continuous disclosure requirements of Chapter 13 of the Listing Rules and timely disclose major transactions, related party transactions, and other important matters.

Working capital: The company should have sufficient working capital to meet at least 12 months of operational needs.

The lock up period for controlling shareholders: controlling shareholders are not allowed to sell their shares within the first six months after listing; Within the next six months, the controlling shareholder shall not sell more than 50% of their holdings.

Growth Enterprise Market (GEM)

1) Financial requirements: Existing performance records: The applying company must have at least two years of operating history and a total net cash flow from operating activities (i.e. operating cash flow) of at least HKD 30 million in the last two financial years.

Market value requirement: The market value at the time of listing should be at least HKD 150 million

2) Shareholder distribution: Public shareholding: At least 25% of the shares are held by the public. Number of shareholders: At least 100 public shareholders.

Shareholding concentration: The proportion of shares beneficially owned by the top three public shareholders with the highest shareholding shall not exceed 50% of the securities held by the public at the time of listing.

3) Company management: Management stability: There should be no significant changes in the management within the past two years. Board composition: There must be at least 3 independent non-executive directors, who must account for at least one-third of the board members. Corporate governance: The company needs to comply with the corporate governance requirements of the Hong Kong Stock Exchange, including the establishment of independent non-executive directors and audit committees.

4) Other requirements: 4) Other requirements:

a) The minimum public shareholding is generally 25% (which can be reduced to 15% if the market value is greater than HKD 10 billion at the time of listing)

b) At least 100 shareholders

c) The management has remained unchanged in the past two years

d) Ownership and control remain unchanged in the past year

e) At least three independent directors must be appointed and evaluated

f) At least one-third of the board members

g) Require quarterly submission of financial reports

1) Enjoy low tax rates: Hong Kong has low tax rates and fewer types of taxes; Enterprises do not make profits and do not pay taxes. The profit tax rate is 16.5% (the tax rate for the first 2 million Hong Kong dollars of taxable profits is only 8.25%).

2) Registered capital does not require verification: In Hong Kong, regardless of the registered capital, there is no need to transfer funds to Hong Kong banks.

3) A sound legal system and a world-class economic system: Hong Kong can serve as a window for expanding the international market and a springboard for entering the mainland Chinese market. Due to its special historical conditions and geographical location, Hong Kong has created favorable conditions for mainland enterprises to develop outward. Overseas investors like to set up their regional headquarters in Hong Kong as a springboard for investing in China.

4) A high-quality window for mainland enterprises to explore overseas markets: Hong Kong is the economic and financial center of Asia, and can utilize the credit of Hong Kong banks. Credit is the foundation for developing international business. After obtaining credit, we can use Hong Kong as a financial center for financing, or directly open letters of credit overseas to expand our business with smaller funds.

5) Freedom of capital inflow and outflow: Hong Kong is the freest and most prosperous commercial port in the world, with free flow of people, free logistics, and free capital inflow and outflow. Goods entering and leaving are not subject to tariffs, and the processing speed of sea, land, and air logistics is extremely fast; The freedom of capital inflow and outflow is reflected in the absence of foreign exchange controls in Hong Kong, where various foreign currencies can be exchanged and mobilized at any time, and there are no restrictions on capital inflow and outflow.

01Developing cross-border business can enhance corporate image

The world economy is becoming increasingly integrated, and the trend of cross-border business development is becoming more apparent.

Enterprises often collaborate across borders and use cross-border operations to enhance their strength.

Registering an overseas company is a shortcut for enterprises to go global, conduct cross-border business, and enhance their international image.

02 No restrictions on business scope

Except for a few restricted industries such as banking, insurance, military, etc., there are almost no restrictions on the business scope of overseas offshore companies.

03 Convenient registration process and low setup cost

The registration process for offshore companies is very simple and can be completed by professional registration agencies without the need for the registrant to physically visit the registration location.

04 Reasonable arrangement of corporate taxation (less tax payment)

All offshore tax exemptions stipulate to varying degrees that the operating income and profits of offshore companies are exempt from local taxes or paid at extremely low tax rates (such as 1%), and some are even exempt from inheritance tax.

05 Reverse investment, establishing foreign or joint ventures

Overseas companies can also invest in mainland China, establish foreign-funded enterprises or joint ventures, and enjoy the benefits of foreign investment and business advantages such as production and sales.