In this post, Our Guide: Company Setup In Hong Kong, we give a step by step process of registering a company. Hong Kong has emerged as one of the most liberal economies in the world and is in the same league with Singapore. Accordingly, setting up a company is rather easy, efficient, and cheap.
This is not all. Hong Kong tax system is very straightforward with only 16.5% of tax levied on profits made in the country. Well, if the profits are made outside, you can even qualify for 0% tax. Besides, the required investment capital is very low, the banking system is very efficient, and it is the main gateway to China. These are great benefits that a business requires to launch, grow and become a mammoth multinational. But before you can enjoy all of these, you are required to set up a company in Hong Kong.
There are several ways of setting up a company in Hong Kong;
Setting a company on your own
A dozen of years back, Hong Kong allowed foreigners to incorporate a Sole Trader Company without even seeking a resident permit.
This has changed. Today, unless you want to relocate to Hong Kong, the administration only allows you to set up a limited liability company. If you opt to open the company on your own, this will require travelling all the way to Hong Kong and presenting the required documents to the registry.
To have the company incorporated in Hong-Kong, you will also be required to employ a resident secretary and open a physical office in Hong Kong. This has always proven to be an uphill task especially to people who have never been to Hong Kong before. However, the process has been made easier because you can now set up a company without even travelling to Hong Kong.
Setting a company using an agency
Today, agencies have been established in Hong Kong to assist foreign nationals set up companies in Hong Kong. They will get a resident secretary and office to help you keep the cost as low as possible. If the office will not be very busy, the secretary and office can be shared to keep the costs as low as possible.
For the agency to help you set up the company without going to Hong Kong, you can use e-registration. Using this method, you will discuss every detail by email or telephone and then send the required documents. Once you make the required fee, all the documents will be sent to you for original signatures before presentation to the registry. The entire process requires about 5 working days.
Requirements for registration
- The first thing you must conduct is name search using preferred business ideas. The Hong Kong Administration insists that the name has to be unique in order to avoid conflict of interest.
- In addition to name suggestions, you must include copies of personal passport, proof of residence, and a filled questionnaire that includes other information such as passport, names and signatures of directors, and address.
- A business structure will also be required before you can be allowed to operate. However, a simple structure is enough to get your company registered unless you want a more complicated type of company. Once all incorporation documents are verified, the agency will send you articles of association and incorporation forms that you have to fill correctly and send back.