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.
More and more foreign investors and entrepreneurs choose Hong Kong as their base for business operations and expansion due to the island’s business friendly policies that include 100% foreign ownership, low taxes, preferential access to Mainland China markets, etc. Among the various business structures available to foreign companies, setting up a wholly-owned subsidiary company is the most popular and preferred option.
This article provides detailed information on requirements and procedure of registering a Hong Kong subsidiary.
A Hong Kong subsidiary company is a private limited company incorporated in Hong Kong with the shareholder being another local or foreign corporate entity. It’s treated as a separate legal entity thus the parent company’s liability is limited to the amount of share capital it has contributed to the subsidiary. It enjoys all the tax benefits available to locally incorporated companies.
Foreign entities must engage the services of a professional services firm to register a subsidiary in Hong Kong. The following documents/information are usually required for the registration of a Hong Kong subsidiary:
Note: Officially certified translated versions for any non-English documents must be provided.
The incorporation procedure entails two steps:
The prevailing registration fee and the capital fee of HKD1 for every or part of HKD 1,000 of the nominal share capital (this capital fee is subject to a maximum of HKD 30,000 per case), is payable to the Companies Registry.
A successful application is usually processed within 4-7 working days and the Companies Registry will issue a Certificate of Incorporation.
It is mandatory for all Hong Kong companies to register with the Inland Revenue Department’s Business Registration Office and obtain a Business Registration Certificate. Business Registration with the Inland Revenue Department must be done within one month after incorporation with the Companies Registry, irrespective of whether the company is actually in business or not. Upon application, the Business Registration Certificate will be issued on the next working day and must be collected in person. The Business Registration Certificate must be conspicuously displayed on the office premises at all times.
Once you have registered your company with the Companies Registry and Inland Revenue Department, you can proceed to open a corporate bank account with any of the major banks in Hong Kong. Different banks have different account opening procedures and requirements. Some banks may require you to be personally come down, while others may not have such a requirement. The firm you have choosen to assist you with registration of the subsidiary should be able to advice you on the policies of various banks.
If the intended business activities of the subsidiary require a business licence from a relevant authority, you must do so before commencing those activities. For more on business licences, refer to Guide to Business Licences in Hong Kong.
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.
Hawksford provides professional company formation services ranging from the incorporation of Hong Kong companies, subsidiaries of foreign corporations, to the registration of branches of overseas companies.
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