There are some 800,000 companies registered in Hong Kong and, although public records reveal little to that effect, it is fair to guess that at least tens of thousands thereof do not belong to our 7 million local residents but to people who hardly ever set foot here. So what makes Hong Kong so attractive as a corporate domicile?

Hong Kong is one of the world\'s leading centres for finance and trade. To be an attractive corporate haven, our laws must strive to keep red tape to the minimum and to warrant some degree of transparency; thus protecting the business partners of locally registered firms and ultimately Hong Kong\'s own reputation.

Governing regulations may be summarized as follows:

At least one shareholder (an individual or legal entity from anywhere in the world) may form a private limited company with a registered address in Hong Kong and a legal minimum capital of HK$ 1.- (US$ 0.13).

The corporation must have at least one Director (individual or legal entity, not necessarily a Hong Kong resident) and one Company Secretary (a person or company residing in Hong Kong); the latter taking care of the company\'s administrative requirements. The Company is governed by its Memorandum & Articles of Association (Our standard M & A).

Annually, the company has to i.) renew its business registration (HK$ 2,600.- = US$ 334.-), ii.) submit a report detailing its share capital, shareholders, directors and secretary and iii.) compile a balance sheet and profit & loss account, audited by a duly licensed accounting firm.

Corporate profit, where generated in Hong Kong, is taxed at 17.5 per cent; offshore profits (i.e. those generated abroad or in the PRC) are tax exempt. VAT is unknown, and Hong Kong is a duty-free port (cars, petrol, diesel, alcohol and cigarettes being the main exceptions) with no restrictions on the import and export of our local or any other currency.

Unless the Hong Kong company's business volume and profit justify the employment of staff and office rent, the aforementioned tax benefits can also be achieved by engaging us as nominees/trustees. Where the beneficial owner does not want to be on record as a shareholder or director, we form and run the corporation on his behalf (and under an official -but confidential- trust deed). Typically, our duties include purchases and sales at prices determined by our principal, re-invoicing and distribution of profits as instructed.

Our charges for these services depend on the workload involved. Typically they are at approx. US$ 1,000.- (one-off) for the formation of the company, and in the area of US$ 3,000.- annually for its administration (not including book keeping and audit expenses, which again depend on the workload).