Register a Hong Kong company with only 1 HKD! Is that true?
With lower taxes, no foreign exchange control, and free trade, Hong Kong is simply a sweet spot for foreign traders. Therefore, there are many of these kinds of advertisements. So, how much registered capital do we need to open a Hong Kong company?
The more the registered capital, the stronger the company is?
Absolutely not! Capital verification and real capital are not required, so the registered capital cannot reflect the real strength of the company. However, it represents the responsibilities and risks that shareholders have to bear, which is to say, more registered capital means more responsibilities and risks borne by shareholders.
Besides, if the company needs to transfer shares later, the Hong Kong Inland Revenue Department will impose a stamp tax which is similar to the stamp tax in the mainland, of 2.6% on the transferred part. The more the registered capital, the more the stamp tax to be paid.
Since the registered capital is not the more the better, some may think, why not pick a minimum required amount, like 1 HKD? Actually, a registered capital of 1 HKD is not enough for equity distribution among multiple shareholders, and if the company needs to open a bank account or invest after registration, the other party might consider that the amount of capital is too low to build creditability, and refuse to develop mutual cooperation.
HACOS always strive to provide our clients with more high-quality, efficient and considerate services, covering China visas, tax-planning, incorporation, financial consulting, global shipping, intellectual property, foreign trade services, legal consultation, etc.
Scan the QR code below to get one-on-one consultation. Professional and helpful. Please feel free to contact us~
