Company Registration in Hong Kong- Brief Overview

Hong Kong is one of those countries which has developed its economy radically within the competitive Asian market. Hong Kong is a city in the South Chinese Sea with an immense capacity for trade and business. Hong Kong is one of the most preferred locations due to its lucrative markets that has so much to offer. Companies based out of Hong Kong or registered there are doing exceptionally well. Now, register your company through Enterslice and stand a chance to make the most of the opportunity in Hong Kong.

Benefits of registering your Company in Hong Kong

By considering the following factors, you will have all the more reason to incorporate your company in Hong Kong:

• Hong Kong is renowned for being the one of the most liberal jurisdiction in the world as registering a company there is simple, quick and cheap.
• With Hong Kong Company Registration, your company will get preferential treatment from over 30 countries that have signed the bilateral trade agreements with Hong Kong.
• The company law in Hong Kong is pro-start-ups, flexible and commercial minded therefore companies registering in that part of the country will benefit from the law.
• Hong Kong is also strategically placed as it is located near China. This plays a massive role in tapping into Chinese market.
• Before a company is registered in any country, the business owner always goes through the taxation policy of the country where he desires to incorporate. In case of Hong Kong, it has one of the lowest tax jurisdictions in the world.
• Hong Kong boasts of a highly skilled and trained workforce. The workforce is a talented pool of individuals who are well versed with the growing business culture.
• Hong Kong has world class infrastructure facilities and transportation system. It has been consistently recognised for its performance and efficiency.
• Hong Kong is one of the top global financial centre besides London and New York. Its banking system supports international business and trade.

Prerequisites to consider before Incorporating a Company

1. Demographics: It is crucial to understand the demographical data of the area where you are planning to do your business. It is essential to know about the social, economic, and cultural trends to ascertain whether the product/ service created would cater to the local population accurately or not.
2. Shareholders-: There may be a minimum and maximum shareholders requirement for company registration. In case of Hong Kong private limited liability company at least one shareholder to a maximum of 50 shareholders may be required. No residency requirement is imposed on shareholders.
3. Directors: In Hong Kong, the minimum number of directors needed is one. However, there is no upper limit. The company should have at least one individual director (no restrictions/requirements on nationality or residency).
4. Company Secretary: The Company in Hong Kong must have a company secretary who resides in Hong Kong. The secretary will be responsible for maintaining the company’s statutory books and accounts. He/she is also responsible for ensuring that the company is compliant with Hong Kong laws.
5. Supply Chain Management: An essential aspect before starting your business is to ascertain the supply chain requirement of your business. Supply chain requirements differ according to every business. Hence it's vital for the officeholders to realize the supply chain of the local area and plan accordingly before setting up a company.
6. Local competition: Another important consideration is the regional competition of the area. The market is regulated by its competitiveness, and monopoly is very far-fetched for newly established businesses. So there is a need to analyze local competitions that the company might face during its operations in that area.
7. Overhead costs:Calculating the average overhead costs is necessary before starting a business; overhead costs differ according to different areas in a country. This factor is essential, and the officeholders should try to keep this to the minimum possible value before starting a business.
8. Local laws, regulations, and Tariffs: Every new business looking to start its operations in an area must comply with all the norms, rules, or regulations set by the competent authority in that area. The company should pay the taxes and tariffs on time as prescribed by the relevant authority. It is also vital for the officeholders to pre-analyze these factors before starting operations.
9. Quality considerations: Maintaining quality is very important for any business. Quality is not only limited to the product or service created by the business but also implies the quality of work, life, and other essential aspects for employees for healthy operations of the business.

Different types of business entities available in Hong Kong

The following are the business entities to choose from:

• Sole Proprietorship

In the case of Sole Proprietorship there is only one business owner who is accountable for all profits and loss.

• Partnership Business

In Partnership Business, minimum 2 or maximum 20 partners come together to share profits. In case of general partnership, participants shall be personally liable for obligations however in case of limited partnership, limited partners are solely liable for their initial investment.

• Private Limited Company and Public Limited Company

Private Limited Company is one of the most common forms of business entities in Hong Kong because it allows them to take advantage of the tax incentives. On the other hand, large companies seeking capital go for public limited company.

• Branch Office

Branch Office is a branch of a foreign entity through which it conducts all its business in Hong Kong.

• Representative Office

Representative Office is an extension of the foreign company that cannot engage in commercial activities but can only carry out research related activities.

Documents required for Company Registration in Hong Kong

In order to register your Company in Hong Kong, you will have to prepare an assortment of documents as mentioned below:

• Articles of Association specifying the operation of the proposed company;
• Incorporation form comprising of the following details-

1. Company name;
2. Company’s address;
3. Description of business activities;
4. Information about shareholders, directors and company secretary;
5. Liability of members;
6. Share capital registered on incorporation;
7. Number of shares taken up by subscribers.

• In case of non-resident shareholders and directors- Copy of passport, residential proof;
• In case of resident shareholders and directors- Copy of Hong Kong ID card, Copy of residential proof.

Procedure for Company Registration in Hong Kong

The process for Company Registration has been discussed below:

• Finalise the name of the company

Choose the name of the proposed company however, the name should not be identical to the name already in use. Further, the name of the company should not infringe IP rights of a third party. The name provided must be unique so that it doesn't cause any confusion amongst the general public and authorities.

• Determine the legal entity

Choose the type of the business entity that suits your company’s purpose among the available entities in Hong Kong.

• Filing of the application and documents

The application for company registration is filed along with the supporting documents to the concerned authority in Hong Kong. The authority shall scrutinize the application submitted to check if it meets all the minimum requirements as required.

• Get Certificate of Incorporation

If the application is approved, Certificate of Incorporation and Business Registration Certificate shall be issued.      

Other Important Instruments/Service Inclusions

1. Articles of Association: These are the model bye-laws adopted by every company to start operations in Hong Kong. AOA consists of the bye-laws governing the internal regulations of the company, thee determining the factors like working hours, leave policy, and establishment related regulations of the company
2. Physical/ Virtual Address: For incorporating your company in Hong Kong, you must obtain a registered address in the company's name. All the essential communication related to the business operations should be sent to this address.
3. Bank account: It is advised to open a bank account of the company after receiving the company's certificate of incorporation.  
4. Building a Website and Logo: For marketing the company digitally, it is advised that a business create a website and logo in the company's name. A logo adds distinctive ownership to the business's product and markets the product to the global audience. A website is appropriate for making the company available to prospective customers over the web.
5. Registered Phone number: It is essential for every company to have a phone number registered with the competent authority to receive critical information and communications. This phone should be open for receiving calls at least during the company's business hours.

From drafting to filing of all the necessary documents, we are a team of specialised Chartered Accountants, Company Secretaries and Advocates that will assist you in every step in the Company Incorporation Process in Hong Kong.