Do you want to start a business in Hong Kong? This is the perfect time to launch as it requires minimal expense, and the environment is suitable for company growth.
So, the time has come for you to a company formation in Hong Kong, so let’s explore the facts.
You’ve done your homework and talked to some people, and Hong Kong is an ideal place to establish your business.
What should you do now?
- Learn about the local groups and governmental organizations
- Select a name for your company.
- Choose an appropriate business structure for your company.
- Hire a Secretary for the Company.
- Choose Your Company’s Legal Address Here.
- Draft Articles of Incorporation.
- Submit a request for company registration.
- Make the appropriate payments to the relevant government agencies.
- Get All Necessary Permits and Licenses.
- Don’t Fall Behind on Your Taxes!
Given Hong Kong’s favorable economic landscape and tax rates, foreign investors and entrepreneurs would be wise to consider company formation in Hong Kong.
8 Steps for company formation in Hong Kong:
Let us lead you through the steps of forming a business in Hong Kong.
1. Select the kind of business you want to launch.
Before deciding on a business structure, investors must weigh the pros and cons of each organization type in light of their company’s specific circumstances, size, and monetary resources.
- Public and private limited company.
- Partnership
- Sole Proprietorship
- Other: agency, unit, or representatitive office
Due to its popularity among foreign and local entrepreneurs in Hong Kong, the Private Company Limited by Shares structure will be the primary focus of these incorporation guidelines.
You may learn more about the specifics of each company structure in Hong Kong by reading up on the multiple business organization types.
2. Choose a company name.
The Hong Kong Companies Registry (CR) does not provide for the preliminary approval or registration of company names like many other offshore jurisdictions (British Virgin Islands, Seychelles, Belize, etc.).
Company name changes are under the CR’s purview under the Companies Ordinance’s terms.
A business can have an English name or a Chinese name. Names that use both English and Chinese characters are rejected.
Possible reasons for rejecting the suggested name include the following:
- Similar to a name in the company’s registry “Index of Company Names.”
- Trademarks violated.
- Inappropriate or against the public interest, per Registrar.
- Company names that include ‘Council,’ ‘Department,’ ‘Bureau,’ ‘Commission,’ ‘Government,’ etc., must be approved.
Branch or Representative Office names must match their parent company.
If the chosen name is already used, go to the company formation agency.
3. Select the best Address for Registration
This address will appear on all official company documents and correspondence.
Everything from the company formation, from invoices to letters of resignation, will be sent to this address.
- The address must be a physical address in Hong Kong; no P.O. Box or virtual offices are authorized.
- When deciding on a Registered Address, it’s essential to keep in mind the following:
- A post office box or an online business are not acceptable alternatives to a physical Hong Kong location for the Registered Address.
- Please choose a valid Registered Address, which must be open to the public during regular business hours.
- There must not be a residential address listed as the Registered Address.
- The Registered Address must be a business or industrial location, not a residence.
4. Establish your company’s structure.
Private companies in Hong Kong must meet the following legal standards to be formed:
- Directors.
- Shareholders.
- Company secretaries.
- Funding from stockholders.
5. Start a Hong Kong business now.
There are two primary phases involved in forming a company in Hong Kong:
- Submitting paperwork to the CR requesting the use of the proposed company name.
- Providing the CR with everything they need to process the application.
To register a business, you must provide the following paperwork:
- Form for Hong Kong applications.
- Copy of company articles.
- Copies of all passports and proof of residency if you’re not a citizen.
- A photocopy of every resident’s ID card in Hong Kong.
- Shareholders in the corporation are entitled to receive copies of all company records.
Provide a few personal documents by email for a simple business structure, and online corporate paperwork will be available in a day.
The CR requires a signed NNC1 form from the firm’s directors if the company has any corporate shareholders. Commonly, you’re looking at a minimum of 5 working days for this.
6. Apply for company permits and licenses
Hong Kong is an ideal location for doing a wide variety of commercial endeavors.
Specific categories, however, require a license or authorization from the appropriate Hong Kong government agency.
Register the license or permit within the first month of establishing the company. After registering, you’ll have it in 2-8 weeks.
7. Create a business bank account.
You can open a corporate bank account for your Hong Kong company wherever you please, but if you plan to work with renowned payment gateway providers, it is best to stick with local banks (like Paypal and Stripe).
Banks in Hong Kong might be tough to work with since they require directors to be physically present at the branch for the interview process, whereas some overseas banks merely conduct interviews by skype.
If you’re considering applying for a Hong Kong bank account but are concerned that your application might be denied, check out our website and consult the expert team.
8. Complete the required paperwork for annual filings.
A Hong Kong company must follow regulatory compliance to keep operating and avoid receiving a fine from the government.
If you fail to meet the annual standards, your company will be fined or forced to close. Following the government’s announcements and calendar, you can monitor the compliance timeline.
Or, you might check out easycorp to get a summarized overview of all the legal requirements for running a business.
Conclusion.
Hong Kong is a central hub for startups and businesses of all kinds due to its favorable tax environment, world-class financial market, and ease of company establishment.
Good luck with your company formation in Hong Kong!
Authorship:
This blog article is created by easyCorp business team and audited by chartered experts before publish. We’re dedicated to sharing useful information about setting up business and taxation in Hong Kong.
Founded in 2007, we were awarded as the “Best Business Partner” by HANG SENG Bank; our customers spread throughout Europe, the United States, the Middle East, Asia, Africa and etc.
easyCorp differentiate ourself as a strong incumbent in this market, our problem solving experience and numbers of scenario cases handled are not matchable by other market players. We provide high-quality taxation, accounting, company secretary & business consulting services.
