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Hong Kong

Benefits of Company Registration in Hong Kong

  • Prime location with a highly productive workforce.
  • Economic and political stability.
  • Favorable tax policies, including low corporate tax rates.
  • A business-friendly climate and efficient legal system.
  • Advantages from bilateral trade agreements with over 30 nations.
  • Strong intellectual property protections.
  • Streamlined tax structure attracts foreign investors.
  • Ease of obtaining work visas for foreign entrepreneurs.
  • Unrestricted investment flow in and out of the country.
  • Supportive government services and schemes for business expansion.
  • Liberal immigration policies with visa-free entry for citizens of approximately 170 countries.
  • Proximity to China enhances access to the Chinese market.
  • English common law governs Hong Kong’s legal system, distinct from mainland China.

Required Documents
  1. Passport of all shareholders/directors.
  2. Address proof for all shareholders/directors (identity card, bank statement, utility bill, etc.).
  3. A 10-second selfie video of each member holding their passport and stating their name and service required.
  4. Three proposed company names in English or Chinese.
  5. Completed application form detailing:
    • Company address
    • Description of business activities
    • Details of shareholders, directors, and company secretary
    • Liability of members
    • Share capital upon incorporation
    • Number of shares subscribed by members

Note: Translation into English or Chinese is required for all non-English documents.

Services

Company Incorporation in Hong Kong

Description

Hong Kong is recognized as South Asia’s export powerhouse, boasting a global trading network that connects it to markets worldwide. Whether you’re a new investor or a seasoned entrepreneur, registering a company in Hong Kong can offer significant advantages.

Foreign investors can own up to 100% of a corporation and act as the sole director or shareholder, making Hong Kong a prime location for business growth in Asia and beyond. Governed by a business-friendly administration, the region ensures the success of companies operating within its jurisdiction.

According to the World Bank Index, Hong Kong ranks third for ease of starting and running a business. Various types of company registration options are available, enabling businesses to expand their reach globally.

Types of Company Registration in Hong Kong

  1. Sole Proprietorship Company Registration
    • A single owner must register this type of company.
    • The owner is liable for all profits and losses.
    • The owner and the business entity are treated as the same.
    • Taxed at a rate of 15% on assessable profits and must register with the Inland Revenue Department’s Business Registration Office.
  2. Partnership Business Registration
    • Two or more individuals can jointly own a single company.
    • Partnerships allow for shared responsibilities and increased financial resources.
    • Each partner is liable for the actions of the other partners.
    • Limited Partnerships provide restricted liability for limited partners, making them a popular choice.
  3. Private Limited Company Registration
    • This is the most frequently registered business structure in Hong Kong.
    • Any individual above the age of 18 can register a private limited company.
    • A private limited company by shares is a separate legal entity with a maximum of 50 shareholders, allowing foreign ownership without the need for local residency.
  4. Public Company Formation
    • Public companies allow the general public to purchase shares.
    • Must have more than 50 shareholders.
    • Publicly traded corporations typically list on a Hong Kong stock market and must adhere to strict regulations.
  5. Company Formation Limited by Guarantee
    • This structure is beneficial for non-profit or charitable organizations.
    • Members guarantee payment of a certain amount in case of the company’s dissolution.
  6. Branch Office
    • International firms looking to establish a presence in Hong Kong can register a branch office.
    • The parent company bears full responsibility for the branch’s obligations and liabilities.

Tax on Company Registration in Hong Kong

  • Profit Tax Rate ranges from 8.25% to 16.5%.
  • Profits from outside Hong Kong may be exempt from taxation.
  • No sales tax, import tax, capital gains tax, or tax on dividends and interest.
  • No withholding tax on dividend distributions or interest payments to residents or non-residents.

How to Register a Company in Hong Kong

  1. Select Type of Company
    Choose the company type based on your business goals, as this will influence taxation and registration processes.
  2. Select Company Name
    Ensure compliance with statutory laws when choosing a name. Private limited companies must include “Limited” in their name. Consulting experts can help ensure uniqueness and relevance.
  3. Collect Documents for Directors/Shareholders
    Proper documentation simplifies the registration process. Each firm requires a specific set of documents.
  4. File Hong Kong Company Registration Application
    Submit the chosen name and relevant details about the company’s directors and shareholders.
  5. Apply for Business License
    Some operations require additional licensing. This document details your company’s name, type of business, and address, and it must be renewed annually.
  6. Open Bank Account
    Necessary for handling finances and operations, a bank account can be opened with traditional banks or Neobanks.
  7. Start Business Operations
    Begin operations once you have the required licenses and registrations. If no specific licensing is needed, you can start immediately.

Important Facts for Company Registration in Hong Kong

  • Unique Company Name: Ensure the name is not already in use to avoid complications.
  • Directors and Shareholders: A minimum of one director is required. Anyone over 18, regardless of citizenship, can serve as a director. A private limited company may have up to 49 shareholders.
  • Mandatory Company Secretary: If no registered office exists in Hong Kong, appoint a resident company secretary. Directors and shareholders cannot serve as the secretary.
  • Minimum Share Capital: While there is no minimum share capital, at least one ordinary share must be issued upon establishment.

Taxation and Compliance of Company Formation in Hong Kong

Companies are taxed at 16.5% on assessable profits, with taxes applied only to earnings generated within Hong Kong. The region does not impose GST/VAT or capital gains taxes. Compliance includes maintaining accounts and filing audited accounts and tax returns annually.

Annual General Meeting (AGM)

AGMs must be held annually, within 18 months of company registration.

Stepwise Timeline for Company Registration in Hong Kong

  1. Preparation of documents.
  2. Application and fulfillment of official government requirements.
  3. Appointment of company secretary and registration of address.
  4. Open a current bank account.
  5. Set up online bookkeeping and accounting.

How TAX SOLUTION Can Assist You in Company Registration in Hong Kong

TAX SOLUTION is dedicated to streamlining the business formation process in Hong Kong. We handle all necessary paperwork, ensuring it is e-signed and submitted to the Corporate Registry efficiently.

Our expert team includes corporate secretaries and registered address providers to help you navigate regulatory requirements swiftly. With experience since 2014, we understand the nuances of company registration and can assist you in realizing your business ambitions with minimal hassle.

Our staff consists of chartered accountants, lawyers, and company secretaries with extensive knowledge in financial services, corporate governance, taxation, and accounting. Our competitive pricing ensures that you receive top-notch service without overspending.

Seize the opportunity to legally establish your business on a global scale. TAX SOLUTION is here to support you at every step of your journey to starting a business in Hong Kong.