Company Registration in Hong Kong
No limit for registered capital
No requirement for local partnership
Complete foreign ownership allowed
Joint venture registration is allowed
Hong Kong market entry strategy
Hong Kong is one of the most flexible economies in the world. It provides various unmatch benefits to the company and its members, which is being incorporated in Hong Kong. Starting a company in Hong Kong is quite easy, simple and cheap as well. One can easily hire an agent and get Company Registration in Hong Kong, without the physical presence of the owner.
Limited Liability Company is the most common type of business configuration in Hong Kong. The Limited Liability Company will have a separate legal entity and it also limits the liability of the owners. After the company incorporation, one can easily open a multi-currency business bank account at a recognized worldwide bank, which has its own benefits as Hong Kong is a major banking centre.
Any person who is over 18 years of age can set up the company in Hong Kong. Company Registration in Hong Kong usually takes 5-7 working days.
Basic requirements for Company Registration in Hong Kong
Company name – Must receive the approval for company name before incorporation of the company.
Directors – Any person who is above 18 years of age and must not indulge in any malpractices is eligible to become a director of the company. The minimum number of director required is one but there is no maximum limit. Director can be of any nationality and need not be resident in Hong Kong. Board of Directors meeting can be held at any location according to the convenience.
Shareholders – The company can have a minimum of 1 and maximum of 50 shareholders, which could be completely localities or foreigners. The shareholder must be above 18 years of age and can belong to any nationality. A shareholder and director can be the same or different person. Both company or any person can become a shareholder in the company. Shareholders meetings can be held at any location according to their convenience.
Company Secretary – In Private Limited Company appointment of a company secretary is mandatory. In Hong Kong if the secretary, is an individual then it must be its resident; or if a body corporate then it should have its registered office or a place of business in Hong Kong. In the case of sole director/shareholder, the same person cannot act as the company secretary. Maintaining the statutory books and records of the company is the work of company secretary and to check the company’s compliance with all statutory requirements.
Share Capital – There is no requirement of minimum share capital, moreover it is a general rule to have at least one shareholder for the company.
Public Information – As per Hong Kong laws, all the information related to the directors, shareholders and company secretary are public information. All the information related to the company officers must be mandatorily filed with Hong Kong Registrar of Companies.
Taxation – In Hong Kong, there is no requirement of paying capital gains tax, withholding tax on dividends or GST/ VAT. One has to pay the taxes which is derived from the profits in Hong Kong, in other words, they follow territorial basis of taxation.
Ongoing Compliance – It is mandatory requirement for the company to prepare and maintain accounts. Accounts must be annually audited by Certified Public Accounts. Filing of annual returns with the Company Registry is mandatory. As per the calendar year Annual General Meeting, should be held on an yearly basis. The first AGM should be held within 18 months of the date of incorporation of the company.
Few points of consideration for foreigners
Foreigners who want to register limited liability company in Hong Kong must take into consideration the following points:
- Person of any resident can become the sole director and shareholder. In Hong Kong, there are no such local resident conditions.
- Moreover, there is no mandatory requirement to be physically present at the time of company incorporation but for the purpose of opening a bank account, physical presence may be required depending on the bank policy.
- Foreigners are free to operate their company from any part of the world, they do not require to shift themselves to Hong Kong.
Documents Need for Company Registration in Hong Kong
Mentioned below documents will be required before setting up a company:
- A copy of the Articles of Association for the company.
- A duly completed incorporation form that includes the following:
- Company name( 3 proposed company name either in English or Chinese)
- Address of the company
- Description of business activities
- Particulars of shareholders, directors and company secretary
- Liability of members
- Share capital registered on incorporation
- Number of shares taken up by subscribers
- For non-resident shareholders and directors:
- Copy of passport, overseas residential address proof
- For resident shareholders and directors:
- Copy of Hong Kong identity card
- Copy of residential address proof
- For corporate shareholders and directors:
- Copy of parent company registration documents such as Certificate of Incorporation and Articles of Association
Note: For any non-English documents that must be translated to either in English or Chinese.