What is Company Registration in Hong Kong?
To register a Company in Hong Kong is a very quick and simple process. Once you have decided to incorporate a Company in Hong Kong you need to choose a name for your company and then file an application in a prescribed form to the Hong Kong Company Registry (CR). Application for registration of business is also filed simultaneously when filing the application for registration of a company. It simplifies the process of staring the business and company incorporation in Hong Kong.
What is Advantages of Company registration in Hong Kong?
- Hong Kong is the most liberal economy in the world. It provides numerous benefits to the companies being incorporate in Hong Kong. Opening a limited company is in Hong Kong is quite simple, fast and cheap (the government fee for the Company Registration is 1,730 HKD and for the Business Registration Certificate is 2,250 HKD). To register a company in you don't even need to physically present there, as you can hire a secretary and get a registered office address for a small annual fee for the incorporation of the company. You can run your business from any part of the world.
- The minimum registered capital requirement to register a company in Hong Kong is as low as 10,000 HKD, which is much lower than most of the countries in the world.
- Once you have incorporated your company in Hong Kong, you'll be entitled to open a multi-currency business bank account (with e-Banking) at a bank recognized worldwide, which has its own advantage as Hong Kong is a major banking center. If you plan to do business worldwide it is a key feature. If you prefer, you can also open the bank account of your company outside Hong Kong, for instance in Singapore or Switzerland.
- If you are looking for a gateway to mainland China, Hong Kong is the best option, Hong Kong has the Closer Economic Partnership Arrangement (CEPA) China, which provides the business with additional and exclusive mainland market access benefits. So, if you're planning to do business in China with a Chinese partner, having your company in Hong Kong may be your best bet, especially when it comes to receiving money from your Chinese business partner.
- Although, from a political point of view, Hong Kong is a province of the People's Republic of China, its legal system is completely different from that of mainland China's, as English common law prevails.
- Taxation system of Hong Kong is very simple and favorable: companies' needs to pay only 16.5% tax on all profit. There is also no tax on dividend distributed by a company.
Disadvantages of Company registration in Hong Kong
- Company registration in Hong Kong requires lots of paperwork. You need to be physically present there. However, this problem can be solved by hiring an agent or secretary.
- Your Hong Kong Company can’t provide a Chinese VISA for you if you’re planning to live in mainland China. To get a Chinese VISA, you need to open a company in China, with a registered capital of about 250,000 HKD.
Procedure for Company Registration in Hong Kong
Earlier, foreigners were allowed to open a Sole Trader Company in Hong Kong without having a Hong Kong resident permit. But now, this facility has been discontinued. You can't open any company other than a Limited Company in Hong Kong unless you're planning to stay in Hong Kong. As per the norms of China government, you are required have an office and a secretary for your company in Hong Kong.
Minimum requirements for company registration in Hong Kong
- 1 director (no restriction on nationality)
- 1 shareholder (no restriction on nationality)
- 1 company secretary
- No capital investment required
- Minimum one share to be issued ($1 HKD=1share)
- Taxes levied only on profits arising in HK. 0% Tax on profit Generated O/s Hong Kong
Checklist for company registration in Hong Kong
- 3 proposed company names (English, Chinese or both) in order of preference
- The address proof of at least one Director and one Shareholder (one address only, if the Director is the only Shareholder)
- A colored scan copy of your passport and all Directors and Shareholders
- Residency proof all the members and directors
- A brief description of the business scope of the company
What is Procedure for company registration in Hong Kong?
The first step to start the company registration process is to check the availability of name. You can apply for company registration with maximum 3 names. Once you have finalized the name, you need to file the application for incorporation of the company.
The applications for incorporation of a company needs to be filed online at the 24-hour portal e-Registry or via the “CR eFiling” mobile application, or you may deliver the documents in hard copy form to the CR with the prescribed fees.
The application will include:
- Incorporation Form (Form NNC1 for company limited by shares)
- A copy of the company’s Articles of Association
- A Notice to Business Registration Office (IRBR1)
Incorporation procedure for a company in Hong Kong is really fast. Online applications filed with Company Registry for company incorporation and business registration can normally be processed within one hour if the documents are complete and as per requirements. If the application for incorporation is filed in hard copy form, the Certificate of Incorporation and Business Registration Certificate will normally be issued within four working days.
What is Bank account opening process after company registration in Hong Kong?
After you receive the Certificate of Incorporation and Business Registration Certificate you are required to open a bank account in the name of the company. You can choose to open the bank account in another country by producing the documents of your company, these documents must be apostil led by the Court of Hong Kong (authenticated with the seal of the Court of Hong Kong).