Company registration in Hong Kong

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Company registration in Hong Kong

Hong Kong is one of the most formative markets in the world. The companies working or incorporating in Hong Kong are performing well. If you are planning a business set up in Hong Kong, you must go for it. Because is quite easy, simple and cheap as well. One can easily hire an agent and apply for Company Registration in Hong Kong, without even presence of the owner.

The most common type of business configuration in Hong Kong is Limited Liability Company. The Limited Liability Company has the 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 center.

An adult whose age is above 18 years can start up a business in Hong Kong. Company Registration in Hong Kong is a procedure which usually takes 5-7 working days.

Basic requirements for Company Registration in Hong Kong

Company name :

approval for the company name is necessary before incorporation of the company.

Directors :

an individual having age more than 18 years and not having any criminal or bad history can become a director of the company. At least one director is necessary but there is no maximum limit. Director need not be a citizen of Hong Kong or a resident of Hong Kong. Board of Directors can conduct a meeting at any place according to the convenience.

Shareholders :

The company can have a maximum of 50 shareholders. They also need not be a local citizen. The shareholder must be an adult. 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 :

Appointment of a company secretary is compulsory in Private Limited Company. In HongKong, if the secretary is an individual then he must be a local resident or if a body corporate then it should have its registered office or a place of business in Hong Kong. Company secretary cannot be a sole director/shareholder, the same person. Company Secretary checks the company’s compliance with all statutory requirements. He maintains the statutory books and records of the company.

Share Capital :

There is a general rule that company must contain at least one shareholder. There is no requirement of minimum share capital.

Public Information :

All the information provided regarding the directors, shareholders and company secretary should be public information as per Hong Kong laws. All the information related to the company officers must be compulsorily 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 :

Preparing and maintaining accurate accounts is mandatory in Hongkong. Accounts must be annually audited by Certified Public Accounts. Filing of annual returns with the Company Registry is compulsory. Annual General Meeting, of the company, should be held on a yearly basis, as per the calendar year. The first Annual General Meeting should be held within 18 months of the date of registration of the company.

Few points of consideration for foreigners

Documents Need for Company Registration in Hong Kong

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.

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