How to Open a Company in Hong Kong
Are you planning to establish a company in Hong Kong?
This article provides detailed information about the registration of a private limited liability company in Hong Kong, including the basic registration requirements, procedure and timing, as well as post-registration procedures.
According to the Hong Kong Companies Act, anyone over the age of 18 can register a company in Hong Kong.
The most common legal entity registered in Hong Kong is a private limited liability company.
A limited liability company has its own legal personality, limited liability of its owners, and a stable structure. Easier to raise capital and transfer ownership compared to other forms of business such as sole proprietorships and partnerships. Foreign businessmen often refer to this type of corporation as a Hong Kong offshore company.
So how do you go about registering a company in Hong Kong? Whether you are a local entrepreneur or a foreign entrepreneur, we highly recommend using the services of a professional firm. These companies are familiar with the local laws governing business activities and have experience with current regulations and compliance.
The most common legal entity registered in Hong Kong is a private limited liability company.
A limited liability company has its own legal personality, limited liability of its owners, and a stable structure. Easier to raise capital and transfer ownership compared to other forms of business such as sole proprietorships and partnerships. Foreign businessmen often refer to this type of corporation as a Hong Kong offshore company.
So how do you go about registering a company in Hong Kong? Whether you are a local entrepreneur or a foreign entrepreneur, we highly recommend using the services of a professional firm. These companies are familiar with the local laws governing business activities and have experience with current regulations and compliance.
How do I register a company in Hong Kong? Basic requirements and facts about setting up a company in Hong Kong
- Company Name – Before proceeding with the registration of a Hong Kong company, its name must firstly be approved.
- Director – At least one director is necessary. Directors must be individuals at least 18 years old, who can be of any nationality and does not have to be permanently resident in Hong Kong.
- Shareholders – A Hong Kong limited company can have a minimum of 1 shareholder and a maximum of 50 shareholders. Shareholders can be individuals or companies. 100% ownership of company shares is permitted.
- Company Secretary – Appointing a company secretary is mandatory when setting up a company in Hong Kong. If the secretary is an individual, he/she should normally reside in Hong Kong. If it is a legal entity, it must have a registered office or place of business in Hong Kong. The same person cannot serve as director and shareholder. The company Secretary is responsible for maintaining the company's statutory books and records, and must ensure that the company complies with all legal requirements. A nominal secretary may be appointed. A nominal secretary may also be appointed.
- Authorized Capital – There are no minimum authorized capital requirements for Hong Kong companies.
- Legal address – To register a Hong Kong company, you must provide a local address as the company's legal address. A legal address must be a physical address.
- Taxation – Corporate tax (also known as income tax) is 16.5% of the taxable profits of Hong Kong resident companies. Hong Kong adheres to territorial tax standards. Only profits earned in Hong Kong are taxable. There is no capital gains tax, dividend income tax or GST/VAT in Hong Kong. In one of our articles, we analyzed Hong Kong taxation.
- Compliance with Requirements - Creating and maintaining reports is a basic requirement for companies. Accounts must be audited annually by a Hong Kong Chartered Accountant. Audited accounts must be submitted to the Department of Internal Revenue annually along with tax returns. All businesses must file an annual return with the Commercial Register and pay an annual registration fee.
How to start a business in Hong Kong: what documents are required to register a company?
The following documents are normally required to form a limited liability company in Hong Kong:
Registering a company in Hong Kong is more than just filing in the company register, it is the first investment in growing your international business. We provide comprehensive Hong Kong business services including company registration, accounting, taxation, annual returns, legal address, office secretary, bank account opening and more.
- A copy of the company's articles of incorporation. Standard documents are usually provided by professional services companies that help you register your business.
- Completed registration form
- Company Name
- Copy of passport
- Confirmation of overseas residence address
- Official address in Hong Kong
- Brief description of business activities
- Information about shareholders, directors and secretaries
- Share capital
Registering a company in Hong Kong is more than just filing in the company register, it is the first investment in growing your international business. We provide comprehensive Hong Kong business services including company registration, accounting, taxation, annual returns, legal address, office secretary, bank account opening and more.
Please get in touch with us at cn.shileconsulting@outlook.com and we will consult you on setting up a business in new regions