Registering a company in Hong Kong is a straightforward process, thanks to its pro-business environment, efficient administrative systems, and low tax regime. This guide will walk you through the essentials of setting up a company in Hong Kong, from the types of businesses you can establish to the steps involved in registration. Whether you're a local entrepreneur or a foreign investor, this guide will help you navigate the process effectively.
Why Choose Hong Kong for Business?
Hong Kong is renowned as a global financial hub. Its advantages include:
Low taxes: A corporate tax rate capped at 16.5%.
Ease of doing business: Ranked among the top globally.
Strategic location: Access to the Asian markets, especially Mainland China.
Robust legal system: Based on English common law.
Business-friendly policies: Simple procedures and minimal restrictions for foreign investors.
Types of Business Entities in Hong Kong
Before you register, decide on the structure of your business. The common types of entities include:
Private Limited Company (Ltd):
Most popular type for SMEs.
Limited liability for shareholders.
Separate legal identity.
Sole Proprietorship:
Owned and operated by one individual.
Easy to set up but unlimited liability.
Partnership:
Owned by two or more partners.
Can be general or limited partnership.
Branch Office:
An extension of a foreign company.
Liable for the parent company's obligations.
Representative Office:
For non-revenue-generating activities like market research.
Not allowed to engage in profit-making activities.
Step-by-Step Process to Register a Company in Hong Kong
Step 1: Choose a Company Name
The name must be unique and not already in use.
Can be in English, Chinese, or both.
Avoid names that may infringe trademarks or require additional permissions (e.g., using words like "Government" or "Bank").
Step 2: Appoint a Company Secretary
A mandatory role in a Hong Kong company.
The secretary must be a Hong Kong resident or a company that provides secretarial services.
Ensures compliance with legal obligations.
Step 3: Define the Business Structure
Decide on the type of business entity.
Prepare the necessary documents like the company’s Articles of Association.
Step 4: Register with the Companies Registry
Submit the following documents to the Companies Registry:
Incorporation Form (Form NNC1 for a new company or NNC1G for a non-Hong Kong company).
Articles of Association.
Identification details of directors, shareholders, and the company secretary.
You can submit these documents online via the e-Registry or in person. The application fee is HKD 1,720 for electronic submissions.
Step 5: Obtain a Business Registration Certificate
Apply to the Inland Revenue Department (IRD) for a Business Registration Certificate (BRC).
The BRC must be renewed annually or every three years, depending on the option chosen.
Step 6: Open a Corporate Bank Account
Choose a local or international bank operating in Hong Kong.
Submit company documents, identification of directors, and proof of business activities.
Step 7: Comply with Ongoing Obligations
Maintain proper accounting records.
File annual returns with the Companies Registry.
Submit tax returns to the Inland Revenue Department.
Costs of Registering a Company in Hong Kong
Incorporation Fee:
HKD 1,720 for online registration.
HKD 1,995 for paper submission.
Business Registration Certificate:
HKD 250 per year (valid as of 2024).
Check the latest fee on the Inland Revenue Department website.
Additional Costs:
Company secretary services: HKD 1,000–3,000 annually.
Registered office address: HKD 2,000–5,000 annually.
FAQs on Registering a Company in Hong Kong
1. Can a foreigner register a company in Hong Kong? Yes, foreigners can fully own a Hong Kong company without local partners or directors.
2. How long does it take to register a company? The process usually takes 1–2 working days for online submissions and 5–7 working days for paper applications.
3. Do I need a physical office? Yes, a registered office address in Hong Kong is mandatory, but it can be a virtual office.
4. Is there a minimum capital requirement? No, but the standard practice is to issue 10,000 shares at HKD 1 each.
Tips for a Successful Registration
Engage professional services for smoother registration.
Double-check your documents for accuracy.
Keep track of renewal dates for the Business Registration Certificate and annual returns.
Hong Kong offers unparalleled opportunities for businesses looking to establish a presence in Asia. Its streamlined company registration process, combined with a pro-business environment, makes it a top choice for entrepreneurs worldwide. By following the steps outlined above, you can efficiently set up and operate your business in this thriving market.
For further assistance, you can book a call or fill in our contact form.
Woodburn Accountants & Advisors is one of China’s most trusted business setup advisory firms.
Woodburn Accountants & Advisors is specialized in inbound investment to China and Hong Kong. We focus on eliminating the complexities of corporate services and compliance administration. We help clients with services ranging from trademark registration and company incorporation to the full outsourcing solution for accounting, tax, and human resource services. Our advisory services can be tailor-made based on the companies’ objectives, goals and needs which vary depending on the stage they are at on their journey.