Company Formation- FAQ

The below-stated FAQ will provide complete information regarding the Incorporation of Company in Hong Kong.

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Company Formation- FAQ

If you're looking to incorporate a Hong Kong company, register a Hong Kong branch of a foreign company, or Hong Kong subsidiary of a far off corporation, then you might have some questions in mind.

A Private limited liability company is one of the foremost common sorts of business entities registered in Hong Kong due to the benefits related to it.

To be precise, limited liability companies have a separate legal classification, strong public perception, an everlasting structure, and transfer of ownership are more manageable compared to other business structures, like sole proprietorship and partnership.

Opening a Hong Kong bank account remotely has become The very very first thing that each one is aspiring and successful entrepreneurs are required to understand is the minimum statutory requirements for company formation in Hong Kong. Registration of a business may be a straightforward process. to line up a Hong Kong limited liability company, the subsequent requirements are going to be required:

  • You need to possess a minimum of one director who must be above 18 years aged regardless of the residency of the directors.
  • The business entity must have an area registered address (P.O Box not allowed).
  • A Hong Kong company can have a minimum of 1 and a maximum of fifty shareholders. The director and shareholder are often an equivalent person.
  • The business entity must have a company secretary. The secretary is often an individual, or a body corporate. If the secretary is an individual, then they need to ordinarily reside in Hong Kong; or if a body corporate, then it must have a business place in Hong Kong or its registered office. The sole director and shareholder cannot also act as company secretary.
  • Any business entity or individual may incorporate a Hong Kong company.
  • There is no minimum share capital requirement. However, the overall norm is to possess a licensed share capital of HKD 1,000.

You can also enjoy the free PayPal business account consultation and set up. It is an excellent package that many customers enjoy, which includes:Before you'll proceed with the registration and incorporation of a corporation in Hong Kong, the company’s name must be approved with the Companies Registry (CR). The name of the company is often registered with a Chinese or English name. But the mixture of English words/letters and Chinese characters isn't allowed.

A Chinese business entity name must end with the equivalent of the Chinese character of the word “limited,” and an English name must end with the word “Limited.” Moreover, the corporate name can't be offensive or contrary to the general public interest, and can’t infringe on trademarks and patents.

There is no need to be physically present in Hong Kong during the corporate formation. Although depending upon the needs of your bank you select while registering your business entity, you'll need to personally attend a gathering to open a checking account in Hong Kong.

In order to launch a limited liability company in Hong Kong, usually, the subsequent documents are required from all the entrepreneurs.

A duly completed incorporation form that includes:

  • The registered address of the company.
  • A business description of all the activities.
  • Number of shares haunted by subscribers
  • Approved name
  • Shareholders, directors and company secretary
  • Liability, and share capital of the members registered on incorporation
  • For resident directors and shareholders- Copy of residential address proof and Hong Kong identity card.
  • A copy of parent registration documents like Articles of Association and Certificate of Incorporation is required for corporate directors and shareholders.
  • For non-resident shareholders and directors- a replica of a passport and overseas residential address proof is required

The first and most pertinent step in fixing a corporation is to make a decision on an appropriate business structure in Hong Kong. There are different types of business entities in Hong Kong. it's essential to think about all the pros and cons of every business vehicle against your business goals, so as to settle on the proper structure.

Below are the business structures that you simply got to know before launching a corporation.

  • Subsidiary company (it’s a personal Ltd. with corporate shareholder)
  • A sole proprietorship
  • Representative office
  • Private limited liability company
  • Branch office
  • Partnership

According to the businesses Ordinance of Hong Kong, any person(local or foreigner) above the age of 18 can set up a business venture in Hong Kong . If you're residing in Hong Kong, there's no obligation to interact with knowledgeable services firms. you'll select any sort of business entity to include within the financial hub of Hong Kong.

However, there are some complexities for the procedure of ongoing statutory compliances and incorporation of your business, so it's highly advisable to use the services of a knowledgeable services firm. On the opposite hand, if you're non-resident of Hong Kong and willing to register your business in Hong Kong, then it's mandatory for you to interact with knowledgeable firms to act on your behalf.

To be precise, whether you're a local or foreign entrepreneur, you're strongly advised to rent the services of a knowledgeable firm who must be experienced with the local legislation governing companies and in handling ongoing regulatory and compliance requirements.

Once you understand the importance of hiring a knowledgeable firm for the incorporation of your business entity, the subsequent thing to understand is the significance of obtaining a license for conducting business in Hong Kong. The Hong Kong’s Companies Registry governs the incorporation and registration of companies.

The government authorities of Hong Kong are subjected to control and regulate the character of the particular business activity . Before you'll begin business activities, you'll require a business license or permit depending upon the character of your business venture.

For example, a number of the companies that are required to get a permit to work include restaurants, fund managers, travel agencies, insurance brokers, lawyers, employment agencies, liquor distributors, banks, childcare centers, and moneylenders.

The answer to the present question is yes. the corporate is required to possess the knowledge public about company officers, shareholders, company secretary, and directors as per Hong Kong company incorporation laws.

When you are incorporating your business entity in Hong Kong, it's pertinent to file the small print of the corporate officers with the Companies Registry so as to avoid any legal problems. If you're willing to take care of confidentiality for your business, you'll hire a nominee director and a nominee shareholder from your corporate service provider.

If you're a non-resident of Hong Kong and need to line up a business venture in Hong Kong, then you want to take into consideration the subsequent points before conducting business.

  • There is no need to be physically present at the time of company registration.
  • Foreigners who don't decide to relocate to Hong Kong are liberal to
  • There are not any local resident requirements for foreigners to be the shareholders and sole directors of a Hong Kong company.

The next requirement for the registration and incorporation of your business entity is to file the annual filing with the Companies Registry. Whether you're forming the subsidiaries of a far off company or fixing the private Ltd. company, you're required to apply for yearly filing.

The annual returns are submitted to the Companies Registry. Under the Companies Registry, a private limited liability company is required to file an Annual Return signed by a manager, company secretary, director or authorized representative. On the other hand, for Hong Kong company formation, entrepreneurs have to submit the tax return which is additionally referred to as Profits tax return in Hong Kong alongside its audited accounts on an annual basis with the Inland Revenue Department of Hong Kong.

Some may ponder whether you'll change the name of your company after registering with the corporate Registry and Inland Revenue Department. it's possible to vary the name of your business entity after its incorporation after passing a special resolution.

All you would like is to file a “Notification of Change of Company Name” within 15 days after the passing of the Special Resolution with the Companies Registry. Once the new name is approved, a Certificate of Change of Name is going to be issued to you.

By now, you want to have a far better idea about the wants of company formation in Hong Kong, and the way you'll complete your registration process. If you're trying to find a superb business environment with no restrictions of business scope, world-class infrastructure, and a well-founded internet banking industry, look no further.

Being strategically located in south-eastern China and within the heart of Asia, Hong Kong is a superb place to include the business entity. The town features a simple legal system with no withholding, no VAT, and no financial gain tax. Are you able to launch a business venture in Hong Kong?

If so, select the sort of business entity that you simply want to include, and hire the professionals like us to finish all the procedures and set a dream business within the financial hub of Hong Kong.