Is it possible for someone who is not a Hong Kong resident to register a company in Hong Hong and open a bank account? Hong Kong is the world's freest economy and an ideal choice for businessmen and entrepreneurs to set up a company. Hong Kong-based companies are free to do any business and enjoy a bundle of benefits, including the attractive low-cost tax system.
A business environment and a tax system that are attractive to business people may make them more interested in learning how to set up a company in Hong Kong.
Applicants are able to register for a Hong Kong corporation and obtain ready-to-use documents within 24 hours as a result of the simplified incorporation process and requirements. After choosing a suitable entity type, choosing a name, and choosing a structure for your company, you can file an application with the Hong Kong Companies Registrar (CR). You must obtain a license or permit if your types of business are required by the CR.
Besides advantages, the process of Hong Kong company formation is relatively easy and straightforward. The registration process can be carried out remotely through the services of Hong Kong incorporation firms.
Usually, it takes just one day or even just a few hours to get the E-registration of a company with the Hong Kong Companies Registry (CR).
At the same time, the incorporation documents are provided in hard copy within a week. So, if you are looking for knowing all the Hong Kong company basics and complete process and requirements behind company registration, then this guide addresses all of your queries.
[ Read here: How to start a business in hong kong? ]
There are multiple company types in Hong Kong. Mainly it depends on company size, nature, financial structure, etc. The company types in Hong Kong are as follow:
The process of incorporating a business in Hong Kong requires to go through a few stages, as follow:
Hong Kong Companies Registry (CR) does not approve the company name provisionally, as other offshore jurisdictions do (BVI, Seychelles, Belize, etc.). A company name can be changed under specified circumstances by the CR based on the Companies Ordinance.
It may be in English (must end with "Limited"), or it may be in traditional Chinese (must end with "有限公司 "), or it may be both a Chinese and an English name. Combinations of English and Chinese characters are not accepted.
It is possible that the proposed name will be rejected if:
By providing company names containing words or expressions such as ‘Council’, ‘Department’, ‘Bureau’, ‘Commission’, ‘Government’ etc., applicants will be asked for prior approval from the Registrar.
Branch/Representative Office names must also be the same as those of their parent companies.
In order to avoid any delays in the incorporation process, you should also check the availability of the company name first with a company registration agency.
Entrepreneurs in Hong Kong must comply with the following requirements for setting up a private company:
Company registration in Hong Kong requires a local address. A post office box is not acceptable.
In order to set up a company, the following documents must be submitted to the CR:
The process of forming a company in Hong Kong involves two steps:
Stephen M.S.Lai & Co. offers services of establishing a company in Hong Kong recently. Without visiting Hong Kong, foreigners can set up a company. With a simple company structure, all you need to do is email your personal documents and you will have digital corporate documents ready within one day. The CR asks the directors of a corporate shareholder company to sign form NNC1 and return it to them physically. The process typically takes five working days.
There are not many requirements to incorporate a Hong Kong corporation. The process is also easy because all you have to do is send electronically or in hard-form the incorporation application to Companies Registry.
The application should include a signed incorporation form, the company's Articles of Association, paid fee, shareholder(s) and director(s) identification documents copies, and a notice to Business Registration Office. After application approval, you will receive the Certificate of Incorporation, and you can start running the business.
A bank account is necessary for a company to manage its financial activities. To open a corporate bank account, you have to prepare (at minimum) the following standards documents that almost all banks ask:
Many countries have made the company registration process quite sophisticated with a lot of formalities to fulfill. But this is not the case with Hong Kong. The authorities welcome new companies and have ensured the process to be quick and hassle-free. To register a company in Hong Kong, the first thing is to finalize the name and type of the company. After that, you have to follow the following steps:
There is a long list of benefits that investors enjoy by opening a company in Hong Kong. Following are the eight key benefits in this perspective:
Hong Kong's primary requirements for company registration are straightforward and easy for investors to tackle. But suppose you are a newbie in the business world and looking for further details on how to set up a limited company in Hong Kong.
In that case, the following topics will clarify all the additional requirements you have to fulfil to operate a successful business in Hong Kong:
After the initial company registration, the next step is to get permits and licenses based on the nature of the business you want to contact. You can visit government websites to know exactly that permits and licenses you need for particular services or products.
Hong Kong has one of the world's friendliest and lowest tax system. There is no capital gains tax. The profit tax starts at a rate of 8.25% on the initial profit of HKD 2 million and 16.5% onwards. There is no profit tax for companies having business operations outside Hong Kong.
A Hong Kong-registered company is required to file timely legal returns with the CR. The main filings include audit accounts preparation, annual return filing, conduct the annual general meeting, and Business Registration Certificate renewal.
A company can employ only those employees that are aged between 18 to 65. Besides that, you are also required to enrol all of the employees in the Mandatory Provident Fund (MPF) scheme before running a company in Hong Kong.
It is mandatory for you to do the annual filing of your company. It includes filing every year's annual return, tax return to IRD along with audited accounts, and other filing requirements based on your company type and operation.
Hong Kong encourages new businesses and startups by providing different resources and funds to help them grow their businesses. You can search and visit HKTDC, Invest HK, and other programs that provide funds and other supports.
Hong Kong is a trading hub of millions of companies today owing to the supportive environment towards investors. Hong Kong provides an easy registration process, friendly tax laws, world-class infrastructure, liberal immigration policy, and many other benefits that investors can dream about.
Therefore, opening a company in Hong Kong is undoubtedly a beneficial step for investors belonging to any part of the world.
Q: How much does it cost to set up a company in Hong Kong?
A: The government fee while setting up a company in Hong Kong is around USD 530, while the cost of setting up the office and fulfilling other formalities further adds to the net cost.
Q: What is a Hong Kong limited company?
A: A Hong Kong limited company is a legal entity holding a distinct legal identity from its members.
Q: How do I set up a sole proprietorship in Hong Kong?
A: To set up a sole proprietorship in Hong Kong, the main requirement is to register the company with the Business Registration Office (Inland Revenue Department) and get the Business Registration Certificate.
Q: How many companies are there in Hong Kong?
A: Every year, thousands of new companies get registered in Hong Kong. So, the total count of companies in Hong Kong is exponentially growing with every passing year.
Q: How do I register a company in Hong Kong?
A: To register a company in Hong Kong, you have to choose a company name, company type, and then submit an incorporation application to the Hong Kong Companies Registry.
Q: How do I check if a company is registered in Hong Kong?
A: You can check about any company information by visiting the CR's Cyber Search Centre web-page (http://www.icris.cr.gov.hk/).
Q: How do I renew my company registration in Hong Kong?
A: The Business Registration Office sends a renewal demand note in the mid of the month before the actual month of Business Registration Certificate renewal. Once you pay the fee, the demand note will then act as your authentic Business Registration Certificate.