Fast and easy incorporation
If you are interested in setting up a Hong Kong company, Hawksford can help. Request a quote now to take the next step in your business.
Hong Kong is the investors’ paradise: a powerhouse tested and proven to act as firing canon for businesses that want to snowball in Asia and globally. It is a global financial hub run by a pro-business administration that is willing to do anything to see every business succeed. In the last World Bank’s ease of doing business Index, Hong Kong shot to the third position.
Now, you can also use Hong Kong as a launching pad. To use this potent hub for your enterprise, you need to first incorporate your business in Hong Kong. This article is your comprehensive guide to business registration in Hong Kong.
Before we can tell you the steps needed for business registration in Hong Kong, it is vital to start by understanding the core benefits. Here are some of them:
We can go on and on; these are only a few pros that you will enjoy after business registration in Hong Kong. Now, we will tell you how to incorporate a private limited liability company.
In Hong Kong, company incorporation is guided by the Companies Ordinance of Hong Kong. This article provides full details about registering a company in the Special Administration Region (SAR) of China. These details include the requirements for business registration in Hong Kong, post-incorporation requirements, and other details. With that said, here are some crucial facts that you need to know about company incorporation in Hong Kong.
Any Hong Kong private limited liability company is required to have at least one shareholder to a maximum of 50. No residency requirement is imposed on shareholders.
When registering a company in Hong Kong, the minimum number of directors needed is one. However, you can have as many as you want. The company needs to have at least one individual director (no restrictions/requirements on nationality or residency).
Every limited liability company must have a company secretary who resides in Hong Kong. The secretary is required to maintain the company’s statutory books and records. He is also charged with the responsibility of ensuring the company is compliant with Hong Kong laws.
When you incorporate a company in Hong Kong, it has to meet its tax obligation. So what are these obligations? In 2017, Hong Kong introduced a two-tiered profit tax regime meant to make taxation simple and spur economic development. Under the two-tiered tax system, the profits tax rate for the first $2 million of the assessable profits is pushed down to 8.5%. Then, the profits tax for the assessable revenue above $2 million remains 16.5%. Note that Hong Kong uses the territorial basis of taxation, which implies that you will only pay the corporate tax on business done in Hong Kong.
Once you register a company in Hong Kong, you must prepare and maintain accounts properly. The company’s accounts have to be audited on an annual basis by a Certified Public Accountant in Hong Kong. Then, the audited accounts must be submitted to the Inland Revenue Department.
When registering a business in Hong Kong, you need to prepare an assortment of documents and submit them to the registry. These documents are:
If the documents are provided in a different language other than English, you need to provide a translated document in English.
Now that you know the different documents that are required for business registration in Hong Kong, it is time to get the job done. The best method for company incorporation in Hong Kong is using an agency. Here is a demonstration of how it works.
While Hong Kong has greatly simplified the business registration process, the list of documents to be prepared is rather long. And that is not all; some of the documents such as the articles of association can be complex. For those who are overseas, the idea of having to fly all the way to Hong Kong can make the process expensive and complex. The best alternative is using an agency for business registration in Hong Kong. It will make it possible for you to register a company without traveling to Hong Kong.
The company registration law allows people and businesses, especially those located overseas, to use registered agencies for incorporation. So what are the benefits of using an agency for company incorporation?
Company registration agencies in Hong Kong are run by professionals with a lot of experience in business incorporation. Therefore, you are sure that all the documents will be properly done and registration completed faster.
The agency will help you to prepare even the documents that you would otherwise find complicated. For example, how do you go about preparing the Articles of Association? What about the memorandum of understanding, and description of the company's activities? With an agency, you can focus on other tasks, such as growing the capital to run the company, as the experts take care of the documents.
An agency can serve as your company secretary. This is perhaps the main advantage of working with an agency when incorporating a company in Hong Kong. Instead of running expensive ads in the local daily and later conducting interviews searching for a Company Secretary, the agency can act as your secretary. Well, why incur more costs on ads when an agency run by professionals can serve as your secretary?
Your company can use the agency’s office as its address. Again, this implies that you do not need to move from one sky scrapper to another downtown Hong Kong searching for an office. By using an agency, it implies that you can use its physical office, infrastructure, and expertise to run your business in Hong Kong. This is a great idea, especially for businesses that do not have a lot of operations, or do not want to run their own offices in the city. It is also a great option when you want to enter the Hong Kong market gradually before intensifying operations in the coming months or years.
You can use the expertise of the agency to understand the new market. Because agencies are run by experts who have been in the market for years and also assisted other companies enter the market, you can use their knowledge to make entry into the Hong Kong market smoother.
Most companies registered in Hong Kong take the form of private limited companies. So, here are the main requirements for registering a limited liability company in Hong Kong.
A company can be registered using a Chinese name, English name, or both. But the name cannot have a combination of English and Chinese letters. Further, a company with an English name must have the name "Limited" at the end. If the name is in Chinese, the last name should have an equivalent of the word “Limited.”
In most instances, it will only take five to seven working days to get the company incorporated. But if you are abroad, the process may take a little longer because of logistics related to signing and sending documents.
No, you don’t. If you hire an agency to register the company for you, there is no need to book a flight to Hong Kong. All you need is sending the required documents to your selected agency. However, you might need to be physically present when opening a bank account.
Yes, you can. But you need to follow the right procedure. This involves filing an employment visa for the employee. That visa has to be approved by the Hong Kong authorities.
As a foreign entrepreneur wishing to relocate to Hong Kong, you should apply for an Investment Visa. This visa is like an Employment Visa because it follows the General Employability Policy. Note that you are only allowed to apply for an Investment Visa after the company formation.
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