How to incorporate a company in Hong Kong? When it comes to business entities in Hong Kong, the most common type is a private limited liability company. These companies have a distinct legal personality, an enduring structure, limited owner liability, and a strong public perception. Hong Kong is one of the most liberal economies in the world. If you’re considering starting a company in Hong Kong, you’re doing the right thing! Starting a company in Hong Kong is simple, economical, and fast. The registration process only takes about 8 to 10 working days.
Basic Requirements for Registering a Hong Kong Company
The following are the basic requirements that must be met for registering a company in Hong Kong:
1. Company Name
Before you can go forth with the company incorporation, you’ll need an approved company name.
2. Shareholders and Directors
Although a minimum of one director is required, the maximum number of directors is unlimited. The director, however, can be of any nationality and doesn’t need to be a native or resident in Hong Kong. Furthermore, directors need to be at least 18 years of age and not be facing bankruptcy or conviction charges.
A private limited company in Hong Kong needs to have at least 1 shareholder while the maximum shareholders allowed are 50. Shareholders can be of any nationality provided they are 18 years of age or more.
Moreover, shareholders can be a person or a company while even 100% foreign shareholding is also permissible.
3. Company Secretary
The appointment of a Company secretary is a necessity as the secretary is responsible for maintaining statutory records and books.
4. Registered Address
A local Hong Kong address is required as the registered company address. The address must be a physical one and not a PO Box.
5. Taxation
Hong Kong has a very simple taxation system: Starting as of April 1, 2018, your company will pay 8.25% on assessable profits up to 2,000,000 HKD, and 16.5% on any portion of assessable profits over 2,000,000 HKD.
Only the profits that are derived from or arise in Hong Kong are subject to tax. Furthermore, there is no such thing as capital gains tax, GST/VAT, or withholding tax in Hong Kong.
6. Compliance Operation
Accounts must be audited annually by Certified Public Accountants in Hong Kong. Every company is required to file annual returns with the Companies Registry and pay the annual registration fee. The Business Registration Certificate should be renewed, one month before expiry on an annual basis. An Annual General Meeting (AGM) should be held annually very calendar year. The AGM should be held within 18 months of the date of incorporation.
Considerations for Foreigners
Foreigners who wish to register an offshore limited liability company in Hong Kong, must take into consideration the following points:
1. Foreigners are free to be the sole directors and shareholders of a Hong Kong company. There are no local resident requirements.
2. Although their is no requirement to be physically present at the time of company registration, physical presence may be required for the purpose of opening a bank account, depending on the bank chosen.
3. Foreigners who do not plan to relocate to Hong Kong are free to operate their Hong Kong offshore company from overseas.
A professional services firm can help take care of all the necessary formalities from the beginning to the end. With a Hong Kong office, Tannet is willing to provide all the necessary services you need when doing business in Hong Kong.
Contact Us
If you have any questions about living, working or doing business in China, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143512, or emailing to tannet-solution@hotmail.com. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
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