Hong Kong Company Setup & Visa Guide
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Hong Kong Company Setup & Visa Guide
Hong Kong is a popular destination for entrepreneurs and businesses due to its business-friendly environment, low tax rates, and strategic location. Here's a guide to setting up a company and obtaining a visa in Hong Kong:
Hong Kong Company Setup Guide
The most common type of company for foreign investors is a Private Limited Company. The process is relatively straightforward and can often be completed quickly.
Key Requirements for Company Setup:
Company Name:
Must be unique and not already registered.
Can be in English, Traditional Chinese, or both (cannot mix within the same name).
English names must end with "Limited".
Check availability via the Hong Kong Companies Registry's Cyber Search Centre.
Directors:
At least one director is required.
Can be of any nationality and do not need to be Hong Kong residents.
Shareholders:
At least one shareholder is required.
Can be the same person as the director.
Company Secretary:
Mandatory requirement.
Must be a Hong Kong resident or a company incorporated in Hong Kong.
Cannot be the sole director.
Acts as the main point of contact with local authorities and ensures compliance.
Registered Office Address:
A physical address in Hong Kong is mandatory (P.O. Box is not allowed).
Official correspondence and legal notices will be sent to this address.
Share Capital:
There is no minimum share capital requirement, but it's advisable to have a reasonable amount for business operations.
Company Setup Process:
Choose Company Type and Name: Decide on a Private Limited Company and verify your proposed company name's availability.
Appoint Director(s), Shareholder(s), and Company Secretary: Secure the individuals/entities for these roles.
Secure a Registered Office Address: Obtain a valid physical address in Hong Kong.
Prepare Incorporation Documents:
Incorporation Form (NNC1): This form contains details like the proposed company name, business nature, and director information.
Articles of Association: Outlines the company's structure and operations.
Notice to Business Registration Office (IRBR1): Submitted concurrently with the incorporation form.
Identification Documents: Copies of IDs for directors, shareholders, and company secretary (passports for foreigners, certified by a CPA).
Consent to Act as Director: Each director must provide written consent.
Submit Application and Pay Fees:
Applications can be submitted online via the e-Registry or in hard copy to the Companies Registry. Online applications are generally faster (1 hour to 2 business days).
Fees include incorporation fees (e.g., HK1,545online)andBusinessRegistrationCertificatefees(e.g.,HK2,200 for 1 year or HK$6,020 for 3 years).
Under the "one-stop company and business registration service," you will receive your Certificate of Incorporation and Business Registration Certificate in one go upon successful application.
Receive Certificates: Upon approval, you will receive the Certificate of Incorporation and Business Registration Certificate.
Open a Business Bank Account:
This is a crucial step. Banks will require business registration documents, identification documents for directors and shareholders, and proof of business operations (e.g., contracts, invoices, website).
Some banks may require a face-to-face meeting and a business plan.
Post-Registration Compliance:
Issue share certificates to shareholders.
Comply with ongoing obligations under the Companies Ordinance, including timely disclosure of information about the company, its officers, and shareholders.
Hold Annual General Meetings (private companies may be exempt).
Meet employer obligations under the MPF (Mandatory Provident Fund) system if you hire employees.
Hong Kong Visa Guide for Entrepreneurs and Business Owners
For foreign nationals looking to establish or join a business in Hong Kong, the most relevant visa category is "Investment as Entrepreneurs" under the General Employment Policy (GEP). There is no "self-sponsorship" employment visa for entrepreneurs; the Immigration Department will assess your application based on its "Investment as Entrepreneurs" criteria.
Investment as Entrepreneurs Visa (GEP for Investment) Requirements:
This visa allows foreign nationals who establish a business in Hong Kong and can make a substantial contribution to the economy to reside in Hong Kong.
Good Education Background: Normally, a first degree in a relevant field, or proven professional abilities/relevant experience and achievements.
Detailed Business Plan:
A comprehensive two-year business plan is essential.
It should include details on the nature of the business, market analysis, market positioning, business direction, sales targets, product marketing strategy, and financial forecasts (estimated capital injection, expected turnover, gross/net profit in coming years).
Crucially, it must outline the proposed creation of local job posts. This is a significant factor in the Immigration Department's assessment.
If joining a start-up, favorable consideration may be given if the business is supported by a government-backed program with a rigorous vetting process.
Financial Standing: Proof of financial resources to support the business and your living expenses. This could include bank statements, audited financial reports, or proof of the company's financial standing.
Substantial Contribution to Hong Kong's Economy: The Immigration Department assesses this based on factors such as:
Business plan viability and potential.
Business turnover.
Financial resources.
Number of jobs created locally.
Introduction of new technology or skills (if applicable).
Proof of the company's business activities (e.g., contracts, invoices, business deals under negotiation).
Evidence of office setup (tenancy agreements, supporting documents).
Local Sponsor: You must nominate a local sponsor, which can be a company or an individual. If an individual, they must be 18 or above, a bona fide Hong Kong resident, and acquainted with the applicant.
No Criminal Record: The applicant must have a clean immigration record and no criminal convictions.
Application Process and Considerations:
Application Submission: Applications can be submitted online via the GovHK website. You will need to fill out an online application form and provide supporting documents.
Required Documents:
Applicant's valid travel document and recent photograph.
Hong Kong ID card (if any).
Proof of academic qualifications and relevant work experience.
Proof of financial standing (e.g., bank statements).
Company's employment contract/letter of appointment (if applicable, though for entrepreneurs, the focus is on the business plan).
Detailed 3-year investment plan.
Proof of company's business activities, financial standing, and background.
Tenancy agreements/documents on office setup.
Proof of posts created for local employees (e.g., MPF contributions).
Business Registration Certificate and incorporation documents.
Letter indicating valid support from a government-backed program (if applicable for startups).
Processing Time: The processing of an investment visa application can take a few months.
Duration of Stay: Successful applicants are typically granted an initial stay of 24 months, which is renewable. After 7 years of continuous ordinary residence, you may be eligible to apply for permanent residency.
Dependants: Family members (spouse and unmarried dependent children under 18) can usually be included in the application.
Important Notes for Entrepreneurs:
Employment Visa vs. Investment Visa: The Immigration Department is rigorous in distinguishing between an actual employment relationship and an entrepreneurial venture. If you are starting your own business, you should apply for an "Investment as Entrepreneurs" visa, not attempt to self-sponsor under an employment visa. The latter is typically for individuals employed by an independent third party.
Bona Fides of the Business: Especially for newly established companies (less than 12 months old or without a track record of sponsoring foreign nationals), the Immigration Department will thoroughly assess the legitimacy and viability of the business and its potential contribution to Hong Kong's economy.
It is highly recommended to seek professional advice from immigration consultants or legal professionals specializing in Hong Kong company setup and visa applications to ensure all requirements are met and to navigate the process effectively.
How Bestar can Help
Hong Kong Company Setup & Visa Guide
Here's a breakdown of how Bestar can help with Hong Kong company setup and visa applications:
Bestar specializes in immigration law and procedures. Our focus is on helping individuals and businesses navigate the visa application process. Bestar offers a broad range of services that can cover both company setup and visa aspects, often with a deep professional scrutiny.
Eligibility Assessment & Strategy:
Initial Consultation: We provide a crucial initial assessment of your eligibility for various Hong Kong visas, particularly the "Investment as Entrepreneurs" visa. We'll review your qualifications, business idea, financial resources, and any unique circumstances.
Tailored Strategy: Based on our assessment, we devise a strategic plan for your visa application, identifying potential challenges and how to mitigate them. They'll advise on the best visa category to pursue to maximize your chances of success.
Understanding Nuances: We have up-to-date knowledge of the Hong Kong Immigration Department's policies, unwritten rules, and what the officers look for (e.g., the emphasis on local job creation, genuine business contribution, and financial viability for entrepreneur visas).
Comprehensive Document Preparation:
Document Checklist: We provide a precise and exhaustive list of all required documents, ensuring you don't miss anything.
Business Plan Guidance: For the "Investment as Entrepreneurs" visa, the business plan is paramount. Bestar guides you in developing a robust, detailed, and persuasive business plan that meets the Immigration Department's specific requirements, focusing on financial projections, market analysis, and the crucial aspect of creating local employment opportunities.
Review and Refinement: We meticulously review all your documents for accuracy, completeness, and consistency, and help you refine them to present the strongest possible case. This includes ensuring correct translations and certifications.
Letter of Support/Sponsorship: They assist in preparing any necessary letters of support or sponsorship documents.
Application Submission & Liaison:
Professional Submission: We handle the submission of your visa application to the Hong Kong Immigration Department, ensuring all forms are correctly filled out and submitted in the prescribed manner.
Communication with Immigration: We act as your primary liaison with the Immigration Department, responding to queries, providing additional information, and addressing any concerns raised by immigration officers. This saves you time and ensures that communications are handled professionally and promptly.
Status Tracking: We monitor the progress of your application and keep you informed of any updates.
Problem Solving & Appeals:
Addressing Deficiencies: If the Immigration Department raises questions or indicates deficiencies in your application, Bestar is skilled at preparing comprehensive responses and providing additional evidence to overcome these issues.
Reconsideration/Appeal: In the event of a visa refusal, we can analyze the reasons for rejection and advise on the viability of a reconsideration or appeal, helping you prepare and submit the necessary documents for such a process.
Post-Visa Services:
Visa Renewals: We assist with the process of renewing your visa, which is essential for continued residency in Hong Kong.
Dependent Visas: If you wish to bring family members (spouse, children), we can manage their dependent visa applications.
Permanent Residency: After fulfilling the 7-year continuous ordinary residency requirement, they can guide you through the process of applying for Hong Kong permanent residency.
Company Setup (Corporate Law Focus):
Legal Structure Advice: Beyond just choosing a Private Limited Company, Bestar can advise on more complex legal structures, shareholder agreements, joint ventures, or specific contractual arrangements that might impact your company's long-term legal standing and liabilities.
Due Diligence: If you're acquiring an existing business or entering into significant partnerships, Bestar can conduct legal due diligence to identify any hidden risks or liabilities.
Drafting and Reviewing Legal Documents: We can draft or review all foundational legal documents beyond standard incorporation forms, such as:
Customized Articles of Association: Tailoring them to specific shareholder rights, director powers, and company governance.
Shareholder Agreements: Crucial for multiple founders to define ownership, voting rights, exit strategies, and dispute resolution.
Employment Contracts: Ensuring compliance with Hong Kong labor laws for your local hires.
Commercial Contracts: Reviewing and drafting agreements with suppliers, clients, or partners.
Intellectual Property (IP) Protection: If your business involves IP, Bestar can advise on trademarks, patents, and copyright registration and protection in Hong Kong.
Regulatory Compliance (Beyond Basic): We can advise on specific industry regulations, licensing requirements, data privacy laws (PDPO), and anti-money laundering (AML) compliance, which are crucial for certain sectors.
Visa Applications (Immigration Law Focus):
Complex Cases: While handling most straightforward visa applications, Bestar is often engaged for more complex or challenging cases. This could include:
Applicants with previous immigration issues or refusals.
Cases involving criminal records or security concerns.
Situations requiring detailed professional arguments or interpretations of immigration policies.
Bestar offers expertise that can significantly enhance your chances of success and provide peace of mind during your Hong Kong venture.
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