We can assure you that Hong Kong is an excellent service and high-end trading center if you want to establish a business there. You receive an independent global trade policy that gives you a practical way to access the markets in Mainland China. Therefore, all multinational corporations and overseas entrepreneurs seek Hong Kong company registration.
In this article, we’ll explain how to set up a business in Hong Kong, how to establish a company in Hong Kong, how it works, and what advantages does a company in Hong Kong set up have. What paperwork is required, and how to set up a limited company in Hong Kong? To put it briefly, the crucial procedures entail deciding on the business entity and its name, adhering to the establishment process, and registering the business with the Hong Kong government’s official business agencies.
Let’s start the process of forming a Hong Kong corporation together.
Before forming a firm, investors should consider each organization type’s needs, size, financial capability, and characteristics.
Entity types in Hong Kong are often separated into:
The following instructions mainly explain how foreign or domestic business owners can form a Private Company Limited by Shares in Hong Kong.
The Hong Kong Companies Registry (C.R.) does not grant prior permission or reservation of the company name, in contrast to other offshore countries (BVI, Seychelles, Belize, etc.).
The Companies Ordinance mandates that the C.R. has the authority to change a company’s name under certain conditions. A company name can be written in traditional Chinese, English, or both (it must conclude with “Limited”). A name that combines Chinese and English characters is rejected. If any of the following apply, the suggested name can be rejected:
Company names that imply the Government of the Hong Kong Special Administrative Region by using words or expressions like “Council,” “Department,” “Bureau,” “Commission,” or “Government,” etc., must be submitted for approval, as a Sector or Regional Office must also have the same name as its parent organization. The requirements for registering a Hong Kong company set up name are covered in full in our prior post; you can read them here. To minimize incorporation delays, you should confirm the name’s availability with a business registration agency to save time.
All official correspondence and papers from the company must include this address.
The following factors should be taken into account while selecting a Registered Address:
Entrepreneurs in Hong Kong must adhere to the following business entity rules to establish company in Hong Kong:
Directors: There must be one or more directors who are
The maximum number of directors for the company is unlimited, and nominee directors are permitted.
Shareholders: There must be at least one owner who is either
Registered address: A required local address in Hong Kong for the registration of businesses.
The procedure of setting up a trust company in Hong Kong involves two key steps:
To form a company, you must submit the following paperwork:
For a corporation with a simple structure, you must send personal documents by email, and the digital corporate documents are ready in one day.
The C.R. referred to a corporation with corporate shareholders. Obtain the directors’ signatures on the NNC1 form, then physically deliver it to them. This procedure typically requires 5 working days.
In Hong Kong, the vast majority of business operations are permissible, whereas the specific categories must have a license or permit granted by the relevant Hong Kong government department. One month after forming the firm, the license or permit must register to conduct business. After the registration company in Hong Kong dates, it can be obtained in two to eight weeks. Check out the complete list of Useful Checking Tools For Your Hong Kong Company Registration to select the appropriate permits for your Hong Kong company establishment. Setting up offshore company in Hong Kong is not an offshore jurisdiction. In most countries, it is not listed on blocklists of jurisdictions with low or no taxes (including Russia since 2017).
Although the Hong Kong corporation can open a corporate bank account in any nation, banks in the same area are most advised if you utilize secure payment method providers (like PayPal and Stripe). Hong Kong banks might be challenging because directors must be present in the branch, although some overseas banks merely conduct phone interviews.
No matter the nation, the following documents are required for account opening a company in Hong Kong:
The bank may ask for additional documents as part of its compliance assessment. The supplied paper must be written in English (or Chinese for Hong Kong banks or French for other offshore banks).
If you want to create a bank account in Hong Kong and set up new company in Hong Kong but are concerned that your application might be turned down, read our case study on the top three reasons why Hong Kong banks might turn down your application.
It is advised that the applicant organize the needs as precisely as possible to prevent misunderstandings and potential issues. Since almost all banks are designed to operate transparently, your application’s approval rate will be higher the more specific information you supply.
A Hong Kong corporation must enforce regulatory compliance to keep its active status and avoid unannounced fines from the government.
Following is a summary of the continuing compliance for the Hong Kong company:
If you don’t meet the annual standards, your company could face fines or be forced to close its doors. By keeping an eye on the notices and calendars provided by the government, you may keep records of the compliance schedule.
There are, nevertheless, rare instances where Hong Kong-based businesses negligently or accidentally fail to comply.
With a third party to verify your business complies with Hong Kong Annual Compliance Requirements. Such as tax requirement filing, bookkeeping, and other potential administrative concerns; things are easier to access, as it is where the Hong Kong business setup Company Secretary comes in.
Numerous large corporations, like PepsiCo, Starbucks, Apple, Facebook, Google, and the like, have investments in Hong Kong. Are you curious as to why?
Here are a few causes:
If these factors appeal to you, you need to consider the following strong arguments for establishing a business in Hong Kong, and setting up a business in Hong Kong as a foreign. Since foreigner set up company in Hong Kong, foreign investors are a significant factor in the economy’s rapid expansion, and the Hong Kong government has started special initiatives for them.
An excellent idea for investing in Hong Kong is if you wish to grow your business there. However, you may give this concept more weight by taking advantage of our priceless consulting services, which can assist you in starting a new business in Hong Kong.
When launching a business, you must consider several things. This covers a variety of factors, such as your target market, chosen product or service, specialty, marketing tactics, and more. Without putting these fundamentals first, your business will likely struggle and fail to accomplish its objectives.
But if you believe that these elements are in their appropriate positions now, it may be time for you to don your captain’s hat and begin expanding your company.
Our team will choose the best corporate structure for you based on:
Usually, small and medium-sized businesses create this kind of organization. As you set up unlimited company in Hong Kong to form a limited corporation, you must appoint at least one shareholder and one director. This business can be launched with no upfront capital.
The parent company establishing a business in Hong Kong Branch Offices, whereas the corporate office decides all branch office activities. The parent business is responsible for the branch office’s debts and liabilities.
Like a branch office, a subsidiary office operates except that it is in charge of its debt and liabilities.
A representative office is an excellent method to learn more about the Hong Kong market before spreading your wings here. Here, an R.O. is prohibited from engaging in any profitable operations.
This company has one proprietor, making small businesses its ideal clientele. The business owner is in charge of and liable for any debts and is entitled to the earnings after paying taxes.
A partnership business is created when two people join forces as part of a business arrangement. Partnership firms can be of two different types:
Hong Kong is one of the best cities in the world to start a business. Starting a business is comparatively quick and straightforward. There are modest startup cost of setting up a company in Hong Kong, and the business climate generally supports success. Invest HK is always willing to help Hong Kong-based companies.
Investors who want to form a Hong Kong LLC formation should know that it must have a minimum of one shareholder, one company director, and one secretary. There are no residency restrictions for the stockholders, and the highest number of stockholders for this kind of corporation is fifty.
Hong Kong is the only MICE location in Asia that checks off every box, setting global trends in business and leisure thanks to its strong economy, top-notch infrastructure and facilities, global attitude, and dynamic culture.
People in Hong Kong work extremely hard, and the idea of an eight-hour workday is entirely foreign to them. They build a career here and work longer hours even if their contracts do not mandate that they do so.
The incorporation of the company typically takes one week. It will take longer when documents need to be couriered internationally.
Yes. A virtual or post office box address is insufficient. Be aware, however, that the actual Hong Kong address (which serves as the company’s registered address) may be a residence.
10 Successful Business Concepts to Launch in Hong Kong in 2022
It is not necessary. However, it can be challenging to establish a corporation in Hong Kong on your own if you are not physically present there (or if another director is not). For instance, your business secretary must reside in Hong Kong.
No. A local director or shareholder is not required.
Hong Kong is one of the most prominent business destinations for startups and companies because of its competitive tax system, top-notch financial market, and easy company formation process. Once a business is registered in Hong Kong, it should be aware of its ongoing tax and compliance obligations. This includes maintaining correct financial records audited yearly and filing compliance returns to the Companies Registry.