Sole proprietorships business registration;

Registering for a sole proprietorship business entity in Hong Kong is no big deal, regulated by business registration ordinance; you only need to follow certain steps with real documents and requirements. If you are a foreigner or local, we will help you register yourself in the Hong Kong market in both ways. Below is the process;

• For registration in the Hong Kong business market, you need to fill out a prescribed application form for a non-Hong Kong company if you are a foreigner and a Hong Kong company if you are a resident.
• Go to the new application counter at the business registration office in Hong Kong; you will be issued the properly completed application within half an hour.
• Pay the business registration fee after you fill out that form.
• If the owner or all partners are not present in Hong Kong, you must hire an agent for registration purposes, so you must go for that to ease if you are a foreigner. Also, submit an appointment letter stating the full profile of the agent, including their name, address, etc.
• The next step is to locate a unique name for the business in Hong Kong. Below you will find the tips for naming and rules in the Hong Kong market for naming.
• Then, the business owner needs to register their company at the business registration office at the Inland Revenue department. Then the owner will receive a business registration certificate. If you make any changes, you must consider informing the Inland Revenue department within a month. In a sole proprietorship business, no taxes must be filled with the Inland Revenue department.
• Your sole proprietorship business will be required to have a unique name. If you do more than one business in Hong Kong, you would have to select a separate name for each business. Moreover, you will also have to get a separate business registration certificate for every business.
• You can register for another branch registration or a new branch office in Hong Kong assisted from the parent company for a sole proprietorship business; you can fill out the application form and pay the business registration fee to get registered.
• If the business license is expired, you need to renew the business registration certificate for a sole proprietorship business in Hong Kong. We would recommend you to renew it before one month of its expiry.

The next step is tax filling; file your tax by using the number from the business registration certificate.

List of the documents required in Hong Kong for sole proprietorship registration:

If you are a non-Hong Kong resident and want to set up a company as a sole proprietorship in Hong Kong, here are the important documents you would require.

• One of the first steps is to apply for a business visa to get started in Hong Kong.
• You would need a business visa as proof of residential address for sole proprietorship business registration.
• The relevant government authority issued a copy of the passport. You also need to require a copy of your passport.
• An approved and unique company or business name.
• For the residents of Hong Kong, a certified copy of the original Hong Kong identity card is required.

After you successfully register your company for a sole proprietorship, the next step is to apply for a business license.

Tips for the business name;

Each business has its business name. Suppose you are feeling difficulty choosing the right name for your company according to the requirements of the Hong Kong market. Here are some tips to help you out in this matter.

• The business’s name can be English or Chinese, or both a Chinese name and an English name.
• The name should be logical and effective, but it should not be related to the Hong Kong government.
• Don’t use abbreviations of limited liability partnership business in name.
• If the name you select for your business is Chinese, you will be permitted to use English lettering, but not English words in Hong Kong. 

Partnership registration process;

• The partnership agreement regulates this type of business. Shareholders can be non-profit organizations and a single person. It requires a company secretary if it is a body corporate, its representative office must be in the Hong Kong. It may be a limited partnership with a limited liability Hong Kong company. The partnership holds a valid business registration certificate. If not all the partners can apply for the form, you will be issued within one month of business commencement. This type is classified into further two types of partners;
• General partners; Hong Kong companies are regulated by guarantee that Hong Kong is best for humanity.
• Limited company, in case of limited liability Company, the contributing rate of members is low, has a minimum share capital. Pubic limited companies are ranked on the stock exchange in Hong Kong.
• Hong Kong has various other business entity types. People who want to do partnership business in Hong Kong may prefer unlimited personal liability companies registry.
• Firstly, you must apply for business registration at the business registration office. If you are a foreigner, follow the above procedure to register your company and register branches of overseas companies.

Frequently Asked Questions

Is it necessary to register a sole proprietorship in Hong Kong?

Hong Kong requires every business to register. Sole proprietorships or partnership businesses, which are not corporations, must apply within a month of commencing business.

In Hong Kong, how do I register a sole proprietorship?

To operate as a sole proprietorship in Hong Kong, sole proprietors must register with the Business Registration Office of the Inland Revenue Department and obtain a Business Registration Certificate. In order to register a business, it must be done within one month of the date of commencement.

In Hong Kong, how do I register a partnership?

A person can form a partnership very easily through legal procedures. A partner must submit an application form for a business registration certificate and fee to the Business Registration Office of the Inland Revenue Department.

What is the difference between a sole proprietorship and a partnership?

With a sole proprietorship, only one person takes the bulk of the company’s debts, whereas, in a partnership, all of the partners are liable.

Is it necessary for sole proprietors to have a bank account?

Sole proprietors are not legally required to have a business bank account unless they operate as a corporation for several reasons: Establishing a business bank account takes time.

Are sole proprietorships legal entities?

There are three types of sole proprietorships: individuals, companies, and limited liability partnerships. The business does not have any partners. Defining the legal status of a sole proprietorship is as follows: It is not a separate legal entity from its owner.

Conclusion                 

The company registration process is easy, no matter the business entity type. Suppose you were looking to get guidance about registering your company in companies’ registry. Hopefully, the process mentioned above will help you out! So, before you take a step, give a read to this article and make the best possible decision!