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Documents Required To Register A Hong-Kong Company

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Form a company in Hong Kong and bank account in 2023

Table of Contents

Documents Required To Register A Hong-Kong Company

You must submit the following items with your Hong Kong offshore company formation registration application.

  • An original copy of the company’s Articles of Association. This is a common form often provided by the company formation services in Hong Kong, aiding with the Hong Kong company establishment.
  • Submission of a properly completed Articles of Incorporation, which contains the following:
    1. The total amount of shares that investors have purchased.
    2. Shareholder equity was documented upon incorporation.
    3. Members’ liability
    4. The company’s shareholders, board of directors, and secretary are included.
    5. A brief summary of company operations
    6. Official residence
    7. Corporation Name

To complete the Hong Kong company incorporation process, you will also need the following documents:

For Directors And Shareholders Of Corporations:

  • A confirmation of the residence address, in the form of a copy.

For Local Directors And Shareholders:

  • A confirmation of the residence address, in the form of a copy.
  • ID card photocopy from Hong Kong.

For Non-Resident Directors And Shareholders:

  • A photocopy of your international passport and verification of your current abroad residence.

Note that you are required to supply the legally approved translated copies of any document for a Hong Kong company that is not written in English.

 

Hong Kong Company Formation Fees

You should be aware of the primary startup Hong Kong company formation cost before deciding to register there. The following are the articles of incorporation as presented by the company formation agents in Hong Kong:

  • Company formation fee: Investors who use the services will be required to pay a company formation cost of around 660 euros.
  • Virtual office costs: Prices for virtual offices vary, but the business formation specialists provide a virtual office package for around 51 Euros per month.
  • Accounting costs: To give you an idea of the accounting fees, let’s say that you’d be looking at around 100 EUR each month in Hong Kong.
  • Registration fee: The anticipated cost of filing paperwork with the Companies Registry is 1,720 Hong Kong dollars (around 195 euros).
  • Minimum share capital: There is no legal need in Hong Kong for a company’s minimum offered or paid-up capital to amount to more than one share valued at one Hong Kong dollar (HKD) (approximately 0.11 euros).

Additional Hong Kong Company Formation Fee For New Enterprises

Other than the expenses associated with the required minimum share capital and the formation fees, a new business looking to start operations in Hong Kong must be prepared for other charges.

A physical location in Hong Kong for the company’s registered office is a legal requirement; hence many entrepreneurs choose to buy or lease an office there. Properties in Hong Kong may be rather expensive, depending on the area, the size of the unit, and whether or not it is a shared or co-owned facility.

It’s possible that the expenses connected with a virtual office solution may be more reasonable for certain investors. Depending on their precise requirements, they will need to invest in a suitable virtual Hong Kong company formation package.

Other noteworthy yearly expenditures for firms in Hong Kong include those related to accounting services, which should be considered when the formation of the company in Hong Kong. Any business looking to set up shop in Hong Kong must be ready to handle the high expense of recruiting locals.

Hong Kong Company Formation With Bank Account

Opening A Hong Kong Company Formation With Bank Account That Supports Several Currencies

Hong Kong is a member of the Financial Action Task Force. Therefore, all banks based in Hong Kong are bound by rules that are consistent with global risk management norms. Therefore, to comply with anti-money laundering legislation, all banks must acquire specific documentation from prospective customers before officially accepting them as customers.
 
If you are starting a business in Hong Kong for the first time and need to create a business bank account, you will need to present the following papers (in English) as evidence of business.
  • Reference letter from a personal bank.
  • Previous or current employment agreement.
  • A business card from the former or current firm.
  • Previous employer’s statement of employment status.
  • Professional qualification in the relevant field.
  • Individual CV.

However, if you already have a firm up and running, you’ll need to produce the following papers (in English) as evidence of your enterprise’s legitimacy

  • Incorporation Papers.
  • License to Conduct Business.
  • A business card.
  • The most current year tax return.
  • Purchase orders, confirmations of transactions, records of agreements (between buyers and sellers), and so on are all examples of trading history.

In addition, you will need to draft a business strategy (your agency can assist you in doing so if you lack the requisite expertise). A business plan doesn’t need to be very thorough, but it needs to outline where you want to take your company(what services you want to provide, where you hope to expand, etc.).

If you want to establish an account with this bank, you’ll need to visit their Hong Kong location. Simply said, there is no way to get around this. However, your agency will offer you advice, a pre-screening service, and an appointment with the bank of your choice for a small price (1,000 HKD, which is already included in the incorporation package fee).
 
A company formation agent in Hong Kong will go with you to the bank to establish an account and check on its progress if the bank agrees to do so. It is recommended that the in-person interview not exceed 60 minutes.
 
Do not forget your passport and ten thousand Hong Kong dollars (This amount will serve as the company’s first paid-in capital and must be placed into the new business bank account on the same day the account is opened).
 
Remember that it is not necessary for you to go all the way to Hong Kong in order to open a bank account if you are already in an authorized Chinese coastal city such as Guangzhou, Beijing, Shenzhen, Shanghai, or others. If you want additional banking alternatives and a quicker approval process, though, you could visit Hong Kong.
 
One additional option is to use one of the newer companies in Hong Kong that facilitate opening alternative bank accounts.
 

Instructions for Foreigners For Company Formation In Hong-Kong

When deciding whether or not to register Hong Kong limited company formation, foreigners should keep in mind the following information, which is essential for any company formation Hong-Kong:
 
If a foreigner does not choose to move to Hong Kong permanently, he or she need not physically be present to run a Hong Kong firm.
The incorporator need not be present at the business registration, but, depending on the institution selected, physical presence may be required when establishing a bank account.
 
In Hong Kong, a foreigner may be the only shareholder and director of a business without requiring local approval. You don’t have to be a Hong Kong resident to apply.
 

Taxation In Hong Kong

When it comes to worldwide tax payment services, Hong Kong has the most comprehensive, easy-to-use, and low-cost options. SAR; (Special Administrative Region) is ideal for companies and workers since it has no value-added tax, estate tax, sales tax, withholding tax, income tax, capital gains tax, interest tax, or inheritance tax.
 
To protect Hong Kong’s restricted tax structure and guarantee the SAR’s continued independence from China’s tax administration, two articles were inserted into the Basic Law at the time of its establishment in 1990.

This suggests that Hong Kong is not obligated to pay taxes to Beijing’s central government in its capacity as a self-governing region.
 
The Various IRO Taxes:
Three primary taxes are administered by the Inland Revenue Ordinance (IRO):
  • Profits Tax
  • Salaries Tax
  • Property Tax
 
Profits Tax:
Profits from any trade, profession, or business carried out in Hong Kong by a natural or legal person (including a company, partnership, trust, or body of individuals) are subject to Profits Tax if they arise in or are resultant of Hong Kong.
 
Assessable profits are used to calculate the Profits Tax liability after subtracting allowable deductions and exempt income.

The two-tiered profits tax rates system became effective for the fiscal year beginning 1 April 2018. It reduced the rate of taxation for the first $2 million in assessable earnings for companies and unincorporated companies.
 
Salaries Tax:
Salaries Tax is a tax levied on earned incomes such as salaries, wages, and pensions in Hong Kong. The standard tax rate and the progressive tax rate are used to determine taxable wages for salary tax purposes, with the standard rate being used if it is lower than the progressive rate.
 
Property Tax:
For those who own land or buildings in Hong Kong, the government collects a tax known as the Property Tax. When determining property taxes, the net assessed value of a property is considered. The assessable value of a property is its actual income, less any deductions or allowances.
 

Details About Tax Identification Numbers

To avoid confusion, taxpayer identification numbers (TINs) are not issued in Hong Kong, China. As an alternative to a TIN, you may use any of the following:
 
Individuals:
Identification number from a Hong Kong Identity Card (HKID). All inhabitants of Hong Kong, China, aged 11 and above, are required to get an HKID from the Immigration Department (other than those who are exempted). The HKID number may be found in the kid’s lower right corner.
 
A typical Hong Kong company tax identification number format is @ 123456(#).

The symbol @ may stand in for either one or two uppercase letters.
The check digit # may be any 11 different digits between 0 and 9, plus the letter A.
As the identification that is equal to a TIN for persons, the whole HKID number, including the check digit but excluding the brackets, is used. This includes both the letters and the numbers.
 
Entities:
(BR) the number for business registration. Entities operating in Hong Kong, China must register with the Business Registration Office. A business’s BR number is a special identifier. Certificate of Registration (BR) numbers is located in the document’s center, next to the words “Certificate No.”

The Business Registration (BR) number consists of the first 8 digits of the Business Registration Certificate Number (e.g., 00000000-&&&-&&-&&-&).

All the digits in a company’s BR number serve as its unique identity, just as a TIN would do for individuals.

Why You’ll Need a Business Registration Number For the Hong Kong Company Formation?

Hong Kong requires all firms to have a business registration number (BRN) to do business and legally pay taxes in the territory. This is because the BRN serves as the Tax Identification Number (TIN) for Hong Kong businesses. According to the BRO, all businesses operating in Hong Kong are required to be registered with the IRD’s Business Registration Office. The process of opening a branch in Hong Kong includes registering the branch with the local authorities.
 

Ways Of Offshore Company Formation Hong-Kong

There are two methods of Hong-Kong holding company formation:
 
By incorporating a new business
Buying a shelf firm registered in Hong Kong.
Both kinds of structures, regardless of which one the business owner chooses, have their distinct benefits.
 
The new company formation in Hong Kong will start by being formally organized in accordance with the investor’s requirements. The founders will draft articles of Association and Memorandum to reflect their vision for the company’s management structure.
 
As a counterpoint, the shelf corporation will already have these fundamental papers in place, which may be revised as necessary. Some investors may discover that the time required to create a new business in Hong Kong is comparable to the time required to purchase a shelf company and make the necessary modifications to make it functional for their needs.

These changes may include revising the Articles of Incorporation or the company’s name. The time and effort needed to start a new business might be much more than the time and effort required to acquire a shelf company and get it ready for trade. Anyone putting money into either choice has to think about this.
 

Hong Kong Company Formation Procedures

The following are the necessary actions to register a corporation in Hong Kong:
  • First, choose a company name that will attract customers, and then register it with the appropriate government agency.
  • Provide Know Your Customer (KYC) Information for All Directors and Shareholders
  • Ensure that all of the essential documentation has been completed, and hand in all the required documentation.
  • Complete and send in the application using the online system.
  • Obtain a Certificate of Registration for the Business.
  • Create a dedicated company banking account.
  • Complete any outstanding tax registrations that need to be completed.

The Pros Of Registering Your Company In Hong Kong

The registration of a business in Hong Kong is required. When it is not registered, a corporation is considered to be intangible; it may have been founded by or under the law; it may have a separate legal identity; it may have perpetual succession, and it may have a common seal.

The following is a list of some of the most important benefits that come with Hong Kong holding company formation:
  • Legal Entity
  • Limited Liability
  • Perpetual Succession
  • Shares Can Be Transferred Effortlessly and Free of Charge
  • Ownership of property
  • Having a dual relationship,
  • borrowing capacity,
  • Equity Raising

Why Do You Need The Assistance Of A Hong-Kong Company Formation Services?

In most cases, the Hong Kong company formation service you choose to help you set up a business will see all the details, from the first paperwork to the final registration on your behalf. Since this is a long-term, continuous partnership, choosing a company that can provide excellent service is crucial.

The hired firm will do the following for you:
  • You will be asked to provide the information and identity documents needed to form a company.
  • The first step in forming a corporation is reserving the name and preparing the incorporation paperwork (including the Articles of Association) that must be submitted to the Company Registrar. If you want to proceed, you’ll need to sign these papers.
  • Submit the Articles of Incorporation to the Company Registrar and get a Certificate of Incorporation.
  • Obtain a Certificate of Registration from the Inland Revenue Authority.
  • Open a bank account for the customer and help them get started.
  • Get these things ready for the new business:
    1. Usage of a standardized stamp and seal
    2. Certificates and registries of Ownership
    3. Statutory books
  • Help submit paperwork for a new visa, a business license, continued statutory compliance, and any necessary yearly filings.

Frequently Asked Questions

Is it possible to set up a Hong Kong company formation for foreigners?
Yes. It is possible for a foreigner can become the sole director of a company in Hong Kong and take up a 100% ownership stake in the business.

In Hong Kong company formation online, how long would it take time?
When all necessary paperwork is in order, the whole process of offshore company formation in Hong Kong takes just three to five business days.

What makes Hong Kong the best place to register a business?
When it comes to Hong Kong’s new company formation, Hong Kong is routinely rated high.
 
Here are a few of them:
  • The location is along the major east-west axis and near the Asia-Pacific area.
  • A welcoming environment for new ideas, people, and capital
  • Requirements for starting a Hong-Kong offshore company formation that is reasonable, as well as tax and regulatory frameworks
  • Known across the world as a major financial hub.
  • Remarkable construction work
If I want offshore company formation in Hong Kong, do I need to move to Hong Kong?
To put it simply, that’s not required to move for offshore company formation in Hong Kong.
 

Conclusion

If you are starting a business in a foreign country, or even if you are from that country, it is highly recommended that you use Hong Kong company formation services that are familiar with the local laws regulating corporations. They are also well-versed in maintaining compliance with all applicable Hong Kong company formation laws and regulations.
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