Hong Kong Company Setup Guide
Open Hong Kong Company
Here's a guide on how to open a company in Hong Kong:
1. Choose the Type of Company:
The most common type is a Private Limited Company, a separate legal entity with limited liability and popular among foreign investors.
Other options include Sole Proprietorship (owned by one individual with unlimited liability) and Partnership (owned by two or more individuals with shared liability).
2. Select a Company Name:
Ensure the name is unique and not already registered. You can check availability on the Hong Kong Companies Registry's Cyber Search Centre.
The name can be in English, Chinese, or both.
Avoid prohibited words or expressions that require special approval.
3. Prepare Required Documents:
Articles of Association: Outlining the company's structure and operations.
Incorporation Form (Form NNC1): Includes details like company name, registered address, share capital, and directors.
Consent to Act as Director: Each director must provide written consent.
4. Appoint Directors and a Company Secretary:
Directors: At least one director is required. They can be of any nationality and need not be residents of Hong Kong.
Company Secretary: Must be a Hong Kong resident or a company incorporated in Hong Kong. The secretary cannot be the sole director.
5. Register the Company:
File the incorporation documents online via the e-Registry or in person at the Companies Registry.
Pay the registration fee and a business registration fee, which may vary depending on the company's share capital.
6. Obtain a Business Registration Certificate:
Upon incorporation, your company will automatically be registered with the Inland Revenue Department.
You will receive a Business Registration Certificate, which must be displayed at your business premises.
7. Set Up a Registered Office:
Your company must have a registered office in Hong Kong. This cannot be a P.O. Box.
8. Open a Corporate Bank Account:
Select a bank in Hong Kong that suits your business needs.
Prepare necessary documents like incorporation papers, Business Registration Certificate, and proof of business activities.
Banks may require a face-to-face meeting and have their own compliance procedures.
9. Comply with Ongoing Requirements:
File annual returns with the Companies Registry.
Maintain proper accounting records and have them audited annually by a certified public accountant in Hong Kong.
Submit Profits Tax Returns to the Inland Revenue Department.
Certain businesses may require additional licenses or permits.
Key Considerations and Requirements:
Foreign Ownership: 100% foreign ownership is allowed for private limited companies.
Share Capital: There's no minimum requirement for share capital, allowing incorporation with just HK$1.
Registered Address: A physical address in Hong Kong is required for official correspondence.
Company Secretary: Every company must appoint a Company Secretary who resides in Hong Kong.
Directors and Shareholders: Can be based outside of Hong Kong.
Additional Tips:
Check the availability of your company name on the Hong Kong Companies Registry's website.
Consider using a professional company incorporation service to handle the paperwork and compliance requirements. Services like Bestar Hong Kong can assist with the process.
You can apply for incorporation online through Hong Kong's 24-hour Companies E-registry.
More Information
It's great you're looking into opening a company in Hong Kong. It's a very business-friendly location. Here's a deeper dive into some key aspects, with some added details:
Key Considerations:
Company Secretary:
This is a mandatory role. The company secretary ensures your company complies with all legal and regulatory requirements.
They handle tasks like filing annual returns, maintaining company records, and ensuring adherence to the Companies Ordinance.
Many companies opt to use professional secretarial services for this.
Registered Office Address:
This address is where official government and legal correspondence will be sent.
It must be a physical address in Hong Kong, not a P.O. Box.
Many company service providers offer registered office address services.
Banking:
Opening a corporate bank account in Hong Kong can sometimes be challenging. Banks have strict Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements.
Be prepared to provide detailed information about your business activities, ownership structure, and financial background.
Consider exploring both traditional banks and newer fintech options.
Taxation:
Hong Kong has a territorial tax system, meaning that only profits sourced within Hong Kong are taxed.
Understanding the two-tiered profits tax system is vital.
It is wise to seek professional accounting advice.
Ongoing Compliance:
Beyond initial registration, you'll have ongoing compliance obligations, including:
Filing annual returns.
Maintaining accurate accounting records.
Conducting annual audits.
Filing profits tax returns.
Business Licenses and Permits:
Depending on your business activities, you may need specific licenses or permits.
For example, businesses in sectors like finance, food and beverage, and import/export have specific licensing requirements.
The Hong Kong government provides information regarding this.
Using Professional Services:
Many companies find it beneficial to use professional company incorporation services.
These services can:
Streamline the registration process.
Ensure compliance with all requirements.
Provide registered office address and company secretarial services.
Help with bank account opening.
Services like those provided by Bestar are very common.
Fees
Government incorporation fees are approximately HK$4,049. Some services offer packages starting from around HK$5,299. Business registration fees vary.
How Bestar can Help
Bestar offers a range of benefits that can significantly streamline the process of setting up a business. Here's a breakdown of how we can help:
Key Advantages:
Expertise and Experience:
Bestar possesses in-depth knowledge of local regulations, legal requirements, and administrative procedures.
We can guide you through the complexities of company formation, ensuring compliance and minimizing errors.
Time Efficiency:
By handling the paperwork and administrative tasks, we save you valuable time and effort.
This allows you to focus on core business activities.
Compliance Assurance:
we ensure that your company meets all legal and regulatory obligations, reducing the risk of penalties or legal issues.
We stay updated on changes in regulations, keeping your company compliant.
Reduced Administrative Burden:
We handle the tedious tasks of document preparation, filing, and registration.
This frees you from the stress and complexity of administrative work.
Customized Advice:
We provide tailored solutions based on your specific business needs and goals.
We can advise you on the most suitable company structure, tax implications, and other relevant matters.
Privacy and Confidentiality:
We handle sensitive information with discretion, protecting your privacy.
Ongoing Support:
Bestar offers post-incorporation services, such as:
Company secretarial services.
Annual filing assistance.
Compliance monitoring.
Risk Mitigation:
We help you avoid common pitfalls and errors that can lead to legal or financial problems.
In essence, Bestar can:
Simplify the process of setting up a company.
Ensure compliance with all relevant regulations.
Save you time and money.
Provide valuable expertise and support.
By leveraging our expertise, you can confidently navigate the complexities of company formation and establish a solid foundation for your business.
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