HONG KONG OVERVIEW

Hong Kong Special Administrative Region, shortly - Hong Kong, is a special administrative region of PRC, one of the key financial centers of Asia and the world. In connection with that Hong Kong acts the part of the main trade center and gate to China (and to Asia in whole), the basic mass of companies that are incorporated in Hong Kong are founded for the purposes of carrying on business.

Exemption from taxes is possible if the business is not carried on within Hong Kong, there are no Hong Kong resident sellers or resident buyers, if there are no real estate property in Hong Kong, there are no Hong Kong resident employees, the owner does not stay in Hong Kong more than 60 days per annum, does not sign contracts in the territory of Hong Kong, but the obligation to file the accounts remains. Hong Kong has not Double Tax Treaties with any country of the world for except for the USA on shippings.

Annually companies should file the Annual Return, the penalty is charged for its late submission. All Hong Kong companies should keep accounting reports at the registered office of the company or at the other place in accordance with the resolution of the directors. Each company should appoint an auditor who should be the member of Hong Kong Association of Accountants and hold the corresponding certificate. In Hong Kong there are no requirements for filing the accounting reports to the Companies Register. Exemption from taxes in Hong Kong is not automatic. Ii is necessary to file the dormant accounts to the Inland Revenue Department. In some cases the Department may ask for the appropriate documents confirming that the company had no income from the source inland Hong Kong and was not managed from the territory of Hong Kong.