Company Incorporation
PFR is a reputed professional service company, with its offices in China and Hong Kong. Upholding the philosophy of "Integrity, Honesty and Trustworthiness", we provide company formation in Hong Kong, mainland China and offshore company registry for Chinese and foreign investors, leveraging on our unique advantages to facilitate the ever-changing requirements of the markets. Our company secretary services further assist our clients in their subsequent operations.
From open a company in Hong Kong, China or overseas, business registration to maintenance, our company formation advisors are familiar with the company laws and tax systems in every location of the globe, and can provide full support for investors to develop their businesses in line with the laws and regulations of different regions.
Hong Kong is a metropolitan integrating opportunities, creativity and entrepreneurial spirit, and it has been rated "the world's freest economy" for 24 consecutive years by the Heritage Foundation. As an international financial centre, Hong Kong is favored by worldwide investors due to its established legal system, simplified taxation system, low taxation rate, well-equipped infrastructure and communication facilities, and high quality professionals. Hong Kong offers unlimited business opportunities, and serves as a platform to global economy and commerce, whose advantages are well known, so tens of thousands of international businesses benefit from setting up a company in Hong Kong. PFR is able to offer expert services to help your business with Hong Kong company registry.
Advantages of Setting up a Company in Hong Kong
- Sound legal system
- Gaining international credit by making use of Hong Kong's reputation
- As an international financial centre, Hong Kong has multiple financing channels
- With the absence of foreign exchange controls, funds can be circulated freely; foreign currencies can be exchanged and transferred as needed, and credit operations can be handled conveniently and quickly
- No limitation on business scope and simple follow-up service
- Simplified taxation system, low taxation rate (Profits tax only with tax rate at 16.5% of the profits)
- Tax needs to be declared just once per year
General Requirements
- There shall be at least one shareholder and director over 18 years old
- One legal secretary (position taken by a Hong Kong permanent resident or Hong Kong company)
- There shall be one registered address in Hong Kong
Registration Form and Time to Take
- E-filing incorporation (requires 1 day)
- Registration of a new limited liability business with company register (requires 10 days or so)
- Purchasing a Shelf Company (requires 2 days or so)
Required Information
- Chinese and English names, or single Chinese or English name of the company
- Copies of ID cards or passports of shareholders and directors
- Registered address of the company (if unavailable, we can provide one for you.)
Macau, also Macao is a commercial city with a very open economy, advantageous geographic location and complete infrastructure. Macau is also a free port without exchange controls, and funds can flow in and out freely; thus many investors have been attracted to invest in Macau.
There is no special restriction on Macau company incorporation, and Macau practices a low taxation rate system, with limited items of taxation. In recent years, favorable factors have been increasing in Macau, and economic environment has met sustained development, in particular, hospitality and tourism, which drove the rise of Macau's economy, and the international community showed increasing confidence concerning investment in Macau. At the same time, Macau is also one of the freest and most open regions for global trade and investment.
Advantages of Set Up Macau Company
- Stable financial system
- Satisfactory trading environment
- Low tax rate: offshore companies can be exempt from profit tax, business tax, inheritance and gift taxes, property transfer tax, stamp tax and salaries tax for the first three years of employment (non-Macau residents)
- Potential offshore service centre
- Platform for economic and trading cooperation between mainland China and Portuguese-speaking countries
Two Categories of Macau Companies
- Macau local company
- Macau offshore company
Types of Macau Local Company
- Personal commercial enterprise
- Corporate commercial enterprise
- Economic interest group
| Differences between Different Business Types of Companies | ||
|---|---|---|
| Business types | Number of shareholders | Capital |
| Unlimited Company | Two or more | Not required |
| Mixed Liability Company by quotas | At least one shareholder with unlimited liability and one shareholder with limited liability | Not required |
| Mixed Liability Company by shares | At least one shareholder with unlimited liability and 3 shareholders with limited liability | MOP1 million (min) |
| Limited Liability Company by quotas | 2-30 | MOP25,000 (min) |
| Limited Liability Company by sole owner | 1 | MOP25,000 (min) |
| Limited liability company by shares | At least 3 | MOP1 million (min) |
| Offshore company | At least 1 | MOP25,000 (min) |
| General Procedures of Company Incorporation | |
|---|---|
| Procedures | Remarks/Conditions |
| Name of applying company | Intended company name and business operations |
| Investment prospectus | Including invested funds, working process, business nature, and profits in future 3 years, etc. |
| Signing Memorandum and Articles of Association/agreement | Having contract or private agreement signed as per company type and as provided by law, and certified by notaries. |
| Business registration |
Attached: 1. Letter of application 2. Notarial deed for shareholders of company 3. Copies of personal ID document and shareholders register 4. Register of Board members and acceptance of appointment statement 5. Certificate of admissibility of company name |
| Starting business declaration |
1. Starting business declaration form 2. Copy of shareholder's ID document 3. Copy of business registration certificate 4. Copy of Memorandum and Articles of Association/agreement 5. Business tax payment voucher |
Taxation on Macau Local Company
-
Basic Period
From January to December of each year -
Business Tax
Corporate enterprises or individual persons that operate any industrial and commercial activities shall be subject to business tax at the taxation rate determined according to business operation, generally at a sum of MOP300 (or USD37.5) -
Profits Complementary Tax (Income Tax)
Profits from industrial and commercial business operations is subject to income complementary tax, at a taxation rate of 12%
| Profits Complementary Tax Schedule | |
|---|---|
| Taxable annual revenue | Percentage |
| Revenue to $600,000 | Exemption |
| More than $600,000 | 12% |
Taxation Period
Taxation of not more than MOP3,000 shall be fully paid in September. Taxation more than MOP3,000 shall be paid in two installments between September and November. In case of taxation paid by installment, a default in payment of the first installment of taxation within September as provided will cause overdue interest and 3% of unpaid taxation levied additionally, and will cause the second installment of taxation to become due immediately.
Social Security Fund
Employers shall contribute MOP30 per month for native employees who shall contribute MOP15 per month. Employers shall contribute MOP45 per month for non-native employees who shall contribute nothing.
Macau Offshore Company Incorporation
Macau offshore company means a Macau company operating outside of the Macau region. Benefits for this kind of company include exemption from profits tax, business tax, stamp duty, and offshore company management and technical professionals who are approved to reside in Macau can be exempt from salary tax for the first 3 years of employment in an offshore company, etc.
Offshore companies can be engaged in offshore services, such as information equipment consulting, information consulting and programming, information handling, database business, administrative and archive supporting business, research and development business, technical test and analysis business, ship and aerial equipment & material operation and management services.
Requirements to Operate Offshore Business
- Application for transaction and settlement currency other than MOP
- Sales targeted to non-Macau residents
- Market oriented to non-Macau regions
Government Fee
Offshore organisations approved to operate in Macau need to pay establishment fee of MOP 5,000 and semiannual operating fee to relevant governmental authority. Offshore organisation operating fees levied according to the following criteria.
| Currency: MOP | |
|---|---|
| Offshore Business Service Organisations | Operating Fee |
| Capital amount: 25,000-100,000 | 5,000 |
| Capital amount: 100,001-1,000,000 | 10,000 |
| Capital amount: over 1,000,000 | 15,000 |
| Offshore Auxiliary Service Organisations | Operating Fee |
| Capital amount: 25,000-100,000 | 3,000 |
| Capital amount: 100,001-1,000,000 | 6,500 |
| Capital amount: over 1,000,000 | 10,000 |
Required Information and Time
- Chinese and English names of company
- Copies of ID cards or passports of shareholders and directors
- Copies of ID cards or passports of relevant staff
- Registered address of company
- Registration of Macau local or offshore company (requires about 3 to 4 weeks)
Some countries and regions (such as BVI, Macau, Samoa and Cayman etc.) have formulated some especially loose tax systems to attract worldwide investors coming to those countries for company incorporation. This kind of company is generally not subject to any tax, except an annual license fee, and it can be listed in other countries or regions. Therefore, it is usually the best choice for most of the multinational enterprises to carry out structural arrangement.
An offshore company is different from a general limited company mainly with regard to tax revenue; that is, revenue from an offshore company is not subject to any tax payment, nor to any tax declaration, and the shareholders' information, shareholding percentage and revenue status are entitled to high confidentiality.
Advantages of Offshore Company
- Provide privacy protection, without disclosing the identity of shareholders and directors
- No tax declaration or collection
- Free from foreign exchange controls
- No registered capital required
- Chinese characters in company name allowed
- No submission of annual return, audit report and financial statement required
- Increase enterprise image and easier for financing
Use of Offshore Company
- Tax planning
- Acting as a holding company
- International trade
- Investment
- Offshore listing
In order to meet different demands from clients, we are providing the following Offshore company incorporation service
- BVI Company
- Cayman Islands Company
- Samoa Company
- Seychelles Company
- Anguilla Company
- Bahamas Company
- Bermuda Company
- Marshall Islands Company
- Mauritius Company
- Nevis Company
Thanks to global economic integration, many investors incorporate overseas company with the aim of expanding international market. With unparalleled experience in overseas company incorporation, PFR is savvy the laws and registration procedures of popular countries, providing investors with professional advice on utilizing local advantages to explore business opportunities and optimizing operation management.
We are providing the following overseas company incorporation service:
- Singapore Company
- United Kingdom Company
- United States Company
Having a vast territory and well-developed manufacturing industry, in recent years China has continuously opened finance, service and trade industries, and significantly reduced the investment entry requirements of foreign enterprises in order to attract more foreign investments. At present, while no need to make paid-in registration capitals and provide bank credit certificates, foreign enterprises only have to set up filing in the regulatory authorities for easy registration.
Industries with Investment Incentives
Foreign investments are encouraged in industries ranging from manufacturing, wholesale and retail, leasing and commercial service, scientific research and technical service, agriculture, forestry, animal husbandry and fisheries, hydro-environment and public utility management, service organisations for the handicapped, elders and children, certain culture and sports, to entertainment.
Industrial and Commercial Annual Report
Foreign invested enterprise shall undergo an industrial and commercial annual report from 1 January to 30 June every year from the following year after the incorporation.
Joint Annual Report
Foreign invested enterprises shall undergo a joint annual report generally from 1 January to 30 June every year from the following year after the incorporation (the specific time is subject to the announcement by Ministry of Commerce).
Direct Investment-related Registration of Stock Rights and Interests
Foreign invested enterprises shall undergo a direct investment-related registration of stock rights and interests generally from 1 January to 30 September every year from the following year after the incorporation.
Employment Contract
An employment labour contract must be signed for recruitment in China, and the rights and obligations of both parties shall be stipulated therein. The enterprise shall sign an employment contract with the employee within one month from the start of his/her employment. Labour contracts are classified into employment contracts with a fixed period, labour contracts without a fixed period and employment contracts with a period to complete the prescribed work.
Social Security Insurance and Housing Provident Fund
In order to secure social welfare, enterprises set up in China have to pay certain amount of social insurances and housing provident funds for their employees each month, which are usually calculated in percentage of employees’ monthly salaries and together borne by the enterprises and the employees. In view of different living standards among cities, the accrual proportions in calculation vary from one city to another. The accrual proportions for social insurances and housing provident funds are shown below:
| An Enterprise Employee’s Proportion of Contribution to the Social Insurance Funds | |||
|---|---|---|---|
| City | Item | Proportion Contributed by the Enterprise | Proportion Contributed by the Employee |
| Beijing | Social Security | 30.8%-32.5% | 10.2%+3 yuan |
| Housing Fund | 5%-12% | 5%-12% | |
| Shanghai | Social Security | 31.2%-32.9% | 10.5% |
| Housing Fund | 7% | 7% | |
| Guangzhou | Social Security | 23.29%-24.81% | 10.2% |
| Housing Fund | 5%-12% | 5%-12% | |
| Shenzhen | Social Security | 15.09%-22.84% | 8.6%-10.5% |
| Housing Fund | 5%-12% | 5%-12% | |
| Dongguan | Social Security | 15.96%-17.66% | 8.7% |
| Housing Fund | 5%-12% | 5%-12% | |
| Hangzhou | Social Security | 27.5%-28.2% | 10%+4 Yuan-10.5%+4 Yuan |
| Housing Fund | 12% | 12% | |
| NanJing | Social Security | 29.5%-31.2% | 10.5%+10 Yuan |
| Housing Fund | 8%-12% | 8%-12% | |
| Qingdao | Social Security | 28.9%-30.32% | 10% -10.3% |
| Housing Fund | 5%-12% | 5%-12% | |
| Suzhou | Social Security | 29.2%-30.9% | 10.5%+5 Yuan |
| Housing Fund | 8%-12% | 8%-12% | |
| Note: The base of payment of the Social Insurance Funds of the above cities is their average monthly salary, with its minimum and maximum at 60% and 300% respectively of the average salary. | |||
Our Services Include:
- Foreign Investment Manufacturing Enterprise
- Foreign Investment Trading Enterprise
- Foreign Representative Office
- Foreign Investment Consulting Enterprise<
- Registering Foreign-invested Enterprises in Pilot Free Trade Zones
- To Establish Foreign Invested Enterprise by CEPA
- Sino-Foreign Equity Joint Venture
- Sino-Foreign Co-operative Joint Venture
- Khorgos Company Incorporation