To Petro International Group Offshore Company Formation Jurisdiction Hong Kong Hong Kong IBC Only US$399 It may surprise you to learn that the number one reason for people moving money offshore is not because of tax benefits but asset protection. Today's predaceous and litigious society unfortunately makes successful people vulnerable to lawsuits of every kind.

Unsurpassed Hong Kong

Petro International Group is the world's leading independent company formation specialists, operating from 125 offices and affiliates world-wide. We are pleased to provide a summary of the salient features of companies incorporated in Hong Kong. INCORPORATION OF AN IBC IN HONG KONG Hong Kong is on the south east coast of China and consists of a large number of islands and a part of the mainland totaling approximately 1,025 sq km. The principal areas are Hong Kong Island, Kowloon and the New Territories. These areas were ceded to Britain in perpetuity in 1842 under the treaty of Nanking, and in 1898, the New Territories were leased by Britain from China for a period of 99 years. On 1 July 1997 all of Hong Kong reverted back to China and became a Special Administration Region "SAR" within the People’s Republic of China (PRC).

Hong Kong Like Nowhere Else In The World

POPULATION
The population of Hong Kong is currently 6.3 million made up principally of people of Chinese origin and is one of the most densely populated areas in the world.

POLITICAL STRUCTURE
Until 1 July 1997, Hong Kong was a British Crown Colony. A governor appointed by the Queen presided over the Hong Kong government, which consisted of the executive and legislative councils.
On 1 July 1997 Hong Kong elected its own legislature and maintained its court structure. The head of the government of the Hong Kong Special Administrative Region will be the Chief Executive of the region. The Legislative Council is the legislature of the Region.

THE FUTURE OF HONG KONG.
Under the "one country – two systems" philosophy, the SAR has executive, legislative and independent judicial power. The capitalist system, legal structure and lifestyle remain unchanged. Hong Kong remains a free port with a free flow of capital and a freely convertible Hong Kong dollar.
With China pushing forward with the modernization of its own economy, the PRC has expressed the wish that Hong Kong should assist in this endeavor. It has stated that its future development will be based on market led reforms with socialist characteristics and this has led to the opening up of its economy to foreign investments. It is widely recognized that Hong Kong is and will continue to be a significant gateway to China.

INFRASTRUCTURE AND ECONOMY
Separating Hong Kong Island and the Kowloon peninsula is Victoria Harbor, which is recognized internationally as one of the world’s perfect natural harbors. It varies in width from two to ten kilometers. An additional 13,517 sq km of land has been reclaimed in the New Territories to provide additional dockyard and warehousing facilities. It is estimated that 100,000 containers per month pass through the port.
Hong Kong is the leading South East Asian center for both finance and commerce and ranks as the world’s third largest financial center after New York and London. There are more than 160 licensed banks with 128 foreign banks having representative offices in Hong Kong and a further 225 licensed deposit taking Finance Companies all of which play an active role in the financing of international trade and commerce.

LANGUAGE
The official languages are English and Chinese, with English being used in the commercial and political context and Cantonese Chinese used widely in industry and domestic trade.

CURRENCY
The Hong Kong Dollar which is officially pegged to the US Dollar.

EXCHANGE CONTROL
None.

TYPE OF LAW
Common Law based on English Common Law.

COMPANY INFORMATION

TYPE OF COMPANY FOR INTERNATIONAL TRADE AND INVESTMENT
Private Company limited by Shares.

PROCEDURE TO INCORPORATE
Submission of Memorandum and Articles of Association and a Declaration of Compliance. A Notice of Situation of Registered Office is also required to be filed. This can either be done at the time of filing the Memorandum and Articles of Association and Declaration of Compliance, or within fourteen days of the date of incorporation.

RESTRICTIONS ON TRADING
Cannot undertake banking or insurance activities or solicit funds from or sell its shares to the Public.

POWERS OF COMPANY
A Hong Kong Company has all the powers of a natural person.

LANGUAGE OF LEGISLATION AND CORPORATE DOCUMENTS
English, but Chinese Characters may be added if desired.

REGISTERED OFFICE REQUIRED
Yes, must be maintained in Hong Kong.

NAME APPROVAL REQUIRED
It is not possible to reserve a name. It is essential to check that there is no similar or identical name on the register, which would prevent the company being incorporated.

SHELF COMPANIES AVAILABLE
Yes.

TIME TO INCORPORATE
Approximately two weeks from the submission of documentation.

NAME RESTRICTIONS
A name that is similar to or identical to an existing company. A name that constitutes a criminal offense or is otherwise contrary to the public interest. A name that implies royal or government patronage.

NAMES REQUIRING CONSENT OR LICENSE
Building society, Chamber of Commerce, chartered, co-operative, imperial, kaifong, mass transit, municipal, royal, savings, tourist association, trust, trustee, underground railway, bank, insurance, assurance, re-insurance, fund management, asset management and investment fund.

SUFFIXES TO DENOTE LIMITED LIABILITY
Limited.

DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES
No.

COMPLIANCE

AUTHORIZED AND ISSUED SHARE CAPITAL
The standard authorized share capital is HK$ 1,000. The minimum issued capital is two shares of par value.

CLASSES OF SHARES PERMITTED
Ordinary shares, preference shares, redeemable shares and shares with or without voting rights.

BEARER SHARES PERMITTED
No.

OTHER SHARES PERMITTED
Deferred, founders’ and management shares.

TAXATION
The principle of Hong Kong income tax is that it is a tax on income that has its source in Hong Kong rather than a tax based on residence. Hong Kong does not therefore impose tax on non-Hong Kong source income even when remitted to Hong Kong.
Consequently, if a Hong Kong company’s trading or business activities are based outside Hong Kong no taxation will be levied.
Hong Kong companies with Hong Kong source income currently pay a rate of taxation on profits of 16%.

DOUBLE TAXATION AGREEMENTS
Hong Kong has no double tax agreement with any country, with the exception of a limited treaty with the United States of America relating to shipping matters only.

LICENSE FEES
The Business Registration Fee (BRF), currently HK$ 2,250, is due and payable within one month of the date of incorporation and then annually on the anniversary of the first payment.

FINANCIAL STATEMENT REQUIREMENTS
A Hong Kong company must keep accounting records, which may be kept at the registered office address or elsewhere at the discretion of the directors. Every company must appoint an auditor who must be a member of the Hong Kong Society of Accountants and hold a practicing certificate. Although there is no requirement to file accounts with the Registrar, there is a requirement to file accounts with the tax authorities.

DIRECTORS
The minimum number of directors is two, who may be natural persons or bodies corporate. They may be of any nationality, and need not be resident in Hong Kong.

COMPANY SECRETARY A Hong Kong company must appoint a company secretary, who may be a natural person or a body corporate, but the company secretary must be resident in Hong Kong.

SHAREHOLDERS
Minimum number of shareholders is two.

MAILING, FAX, TELEPHONE AND OFFICE FACILITIES

As part of the domiciliary service fee we provide clients with a registered office address in the country of incorporation but clients may find it convenient to arrange for mail forwarding, fax and telephone facilities through our Switzerland, The Bahamas Islands, London or other Petro International's offices. This service may be especially useful where, for example, the company is opening bank accounts. Normally the bank would address statements and other correspondence to the company at the address of the client but this results in a loss of confidentiality in that the connection between the company name and the client will be automatically made.

To safeguard against this mail can be directed to our offices and we can re-mail those letters in a plain envelope addressed to the client or otherwise as the client directs. An additional advantage of using our re-mailing services is that the provision of a re-mailing address through one of our prestigiously located offices in the onshore jurisdictions may allow the offshore company to appear to be domiciled on-shore and thereby give that company an added degree if respectability.

For example, your offshore company could quote Petro International London office address on its letterhead and thereby appear to be domiciled in the UK. This procedure is particularly attractive if the Hong Kong address is used as a Hong Kong company is not required to quote its registered office address on its letterhead. Thus if an offshore company were to quote a Hong Kong address it would be indistinguishable from the letterhead, from a normal Hong Kong trading company.The charge for this service is only $275 per annum.

TRUST SERVICES: Using a trust to own the shares of an offshore company can result in very substantial tax and non-tax related advantages which will accrue both on death and during the lifetime of the trust settler. These advantages may include: SAVING OF INHERITANCE TAX: On death, the Inheritance tax which would normally be assessed on the value of shares would generally be eradicated. ASSET PROTECTION: Assets placed into trust are generally beyond the reach of creditors who might arise as a result of financial difficulties, divorce proceedings, litigation, etc.

Hong Kong, Peace Of Mind

AVOIDANCE OF PROBATE:

A trust provides a means whereby assets can be smoothly passed on to the next generation without the disruption, delays substantial costs, loss of confidentiality associated with the probate procedure which necessarily follows when assets are bequeathed by will.

CONTINUITY:

Trusts provide a means whereby assets can continue to be administered in accordance with the wishes of the settlor after his death so the weak can be protected from others and the spend-thrift can be protected from himself.

LIFETIME TAX SAVINGS: During lifetime, substantial income and capital gains tax advantages may result from setting up the trust. Using the service of one of our licensed trust companies, we are pleased to act as trustee for a suitably drafted discretionary trust and the cost of this service would be from US$500 for setting up the trust deed and from US$500 per annum for the provision of trustee services. OTHER SERVICES: Petro International provides a wide range of administrative and documentary services including, but not limited to legalization and notarizing of documents, credit cards, yacht and ship registration, invoicing, documentary trade services, trade finance applications, accounting, consulting and immigration services. VIP PACKAGE: Available at slightly higher cost

Hong Kong, The Real Life

Confused? The average person is frequently confused by the complexity of international tax planning and discouraged by the substantial costs involved in an offshore company formation or registering of a bank or trust in a tax haven. The registration costs and ongoing yearly administration expenses frequently exceed what the average person could save in taxes. Petro International has a new program to answer those concerns. We provide the simple, secure, private and low cost answer for the person who is just starting out or the veteran who now understands that simplicity is the essence of genius. Our survey has shown that this solution answers all of the needs for 100% of the persons seeking to go offshore.

The program includes bearer shares so that complete anonymity is guaranteed, documentation and support services so that you can open a financial account under your complete control, where and when you wish, and flexibility so that you can change your financial affairs to reflect your future needs.

We trust that we have clarified the intriguing world of Hong Kong IBCs. We will be happy to answer any questions you may have, relating to this opportunity and provide you with additional details regarding any of our devoted services. If you would like to obtain further details of the legislation surrounding the formation of an International Business Company (IBC)In Hong Kong or wish to discuss any matter in complete confidence, please click here to contact: Mr. John Cooper Petro International Offshore Services

Hong Kong Like Nowhere Else In The World

Please click here to explain us the full particulars of your situation and what you wish to accomplish. We will review your situation very carefully and offer to you a custom fitted solution. 95% of the time the solution will be simple to understand and 100% of the time it will be the least expensive alternative.

Please feel free to contact Petro International Group if you believe the formation of a Hong Kong IBC at the present time may be appropriate in your particular situation. Any communication with us is considered PRIVILEGED and CONFIDENTIAL.

Other Jurisdictions?

Petro International is in a position to assist new and established clients in opening personal and corporate offshore bank or trust accounts, denominated in almost every currency, in over 125 of offshore jurisdictions world-wide, including:
New Zealand, Australia, Chile, The Dominican Republic, Ireland, Argentina, Belize, Brazil, Spain, Italy, Costa Rica, Venezuela, Uruguay, Prague, Bodrum, The Spanish-Moroccan Tax Havens, The Madeira Tax Haven of Portugal, The Jamaican Free Trade Zones, The Dominican Republic Free Trade Zones, Campione D'Italia, Andorra, Poland, The Eastern Turkish Border and Tbilisi, Mozambique, Guatemala, The Virgin Islands, The Philippine Islands, and Anguilla are just some of the countries and places featured.