New Company Registration in Hong Kong

Hong Kong is not only the place to live but also an amazingly attractive business hub for everyone as it provides equal opportunities for large enterprises but also small business investors. Being in the center of business of Asia and gateway to China, the Hong Kong government helps all the residents and non-residents to get started in Hong Kong.

The government of Hong Kong has taken many steps to ease out the investors either small or large. The government of Hong Kong has imposed not only low corporate taxes but also some tax breaks. Hong Kong also has a good reputation for SMEs. To support business, Hong Kong Government has taken the initiatives given below.

• Small business resources on the Hong Kong Trade and development website
• SME trade and industry schemes
• Tech incubators
  
  

Hong Kong is situated at the center of the region’s most important economies and emerging markets. Hong Kong is also the door for brand entrance into china to start manufacturing there. You can turn any business idea into a real-life proposition. So, get into Hong Kong to register a company. The first process towards a wealthy future is to decide on the type of your company and the name of the company. You can also get support from get started HK in this regard. Following are steps to be taken to start a business in Hong Kong. This article deals with the registration process of a private limited company because most of the businesses are set as private limited companies in Hong Kong,

✔Types of Company

You can have a limited company in Hong Kong. Other options are the branch office and representative office.

✔Limited company

The most common type of business that you can start in Hong Kong is a Limited company. You will enjoy all the same business benefits provided by the Hong Kong Government to the residents of Hong Kong. You will also be offered free trade agreement with China.

✔Branch Office

You can open a branch office in Hong Kong if your company already exists. This branch office will not be independent of the parent company but you can open an office with a distinct set of limitations.

✔Representative office

You can open a representative office, not for profit-making sales but this office will be for non-sale activities like support or marketing staff.

✔Sole proprietorships

✔Company name

Choose the name of your company and before finalizing the name, check if this name is legally available. This is necessary because your proposed company name may be rejected if someone else has already registered this name. You can get support from Hong Kong-registered company's names. Your company name should be either in English or Chines alphabet. A combination of these is not allowed. You can also get support from the Hong Kong Companies Registry.

✔Company infrastructure

Decide about the infrastructure of the company like directors, shareholders, company secretary, share capital, and registered address.

1. Directors:

Although there are no requirements of directors in Hong Kong but following are some points to keep in mind.

• The minimum directors 1 and maximum unlimited
• There’s no rule for the residency of the director
• Director must not be bankrupt or involved in any illegal activity.
• The minimum age limit required is 18 or above.
• Directors and shareholder can be the same person

2. Shareholders:

• 1-50 shareholders at a time.
• The shareholder can be resident of any country
• The age limit for the shareholder is 18 years or above.
• Not only a person but a company can also be the shareholder of any private limited company

3. Company secretary:

The private limited company must hire a company secretary to set up a company in Hong Kong. The role of a company secretary is to maintain a proper record and statutory books of the company and also take care of the statutory requirements of the company.

4. Capital share:

There’s no minimum share capital required in Hong Kong. Minimum capital share HKD 1 and maximum unlimited and bearer shares not allowed.

5. Registered address

For the company registration, it is mandatory to have a local address.

✔Application for a Company Registration in Hong Kong

Following documents are needed to submit in CR Office.

1. Hong Kong application form for registering the company
2. Copies of companies documents for corporate shareholders
3. Copy of article of association
4. A copy of each Hong Kong ID card for Hong Kong Residents
5. A copy of each passport and residential address for foreigners

In the CR office, 2 types of applications are submitted. These are given below.

• An Application for the approval of company name
• Submission of all required documents in CR office

✔Application for business license and certificates

Some of the types of business activities require such licenses or permit issued by the Corresponding department of the Hong Kong Government. After setting up the company, this license/permit should be registered within one month after setting the company.

✔Open a bank account

Following documents are required by the bank to open an account in Hong Kong.

1. Account application form
2. Corporate registration documents
3. Copies of Passports
4. Proof of business like agreements/contracts/invoices of the current company.
5. Bank statement of each member and or any other corporate
6. A bank reference letter of each major member
7. Personal resume

✔Annual maintenance filing

Following is the requirement of filing.

1. Renewal of business registration certificate. The application should be submitted one month before the expiry date.
2. Holding of the annual general meeting
3. Annual return with the CR, filing in CR 42 days before the completion of one year of incorporation
4. Annual tax return with the IRD a profit tax return with the audited account should be submitted.
5. Employ return with ERD

The above article provides some basic information about registering a company in Hong Kong. These may not be complete information but a simple guideline.