The following article presents comprehensive information on registering a privately owned liability organization in Hong Kong, involves basic establishment requirements, post-incorporation methods, and method, timeline, etc.
Directed via the Companies Ordinance of Hong Kong, any person above the age of 18 can carry out company formation in Hong Kong. The most basic kind of business entity filed in HK is a private limited liability company.
Limited liability businesses have a separate constitutional personality, confined liability for its partners, dominant public opinion, and a permanent structure; increasing capital and shift of ownership is more straightforward as compared to other company structures like a partnership and sole proprietorship. Foreign business experts usually relate to this sort of firm as an offshore business in HK.
No matter if you are a regional or a foreign entrepreneur, you would be firmly recommended to hire the assistance of a professional firm because these firms are well versed with the local law administering corporations and are also endured in managing ongoing administrative and compliance obligations.
Hong Kong Incorporation Advantages
- Strategic Location
Hong Kong is geographically positioned at the core of the Asian continent. A flight of five-eight hours will link you to the largest markets in the Asia-Pacific region. If you want to tap into the Mainland Chinese market, you will observe that Hong Kong is ideally located on the southeast coast of Mainland China. This helps travel to and from HK to Shanghai, Beijing, and other critical Chinese cities in a single day.
The HK International Airport is the world’s eighth most active international passenger airport with around 100 airlines servicing over 180 destinations, which includes major cities in North America, Europe, Middle East, and the Asia Pacific and nearly 40 stops in mainland China. Cross-boundary ferries give quick sea transportation to and from 6 mainland harbors, and the coach service includes more than 90 PRD towns and cities. The HKIA is usually classified as the ‘Best Airport in the World’ and consistently receives awards and accolades. Hong Kong is also a center point of all the maritime exercises in southern China. It is one of the principal ports of the world in terms of tonnage of shipping using its facilities, the number of passengers carried, and cargo handled.
- Attractive Tax Regime
Taxes are the foremost interest for any entrepreneur who aims to establish a company in a provided field. For this purpose, Hong Kong claims to be one of the most moderate tax jurisdictions in the whole world. Personal income tax, or a salary tax, begins at 2% and goes up to 17% for income over HKD 200,000. Corporate tax is fixed at 16.5% of assessable earnings for companies and 15% for unincorporated firms. There is neither any capital gains tax nor any withholding tax on profits and dividends or collection of social security benefits. Besides, there is no sales tax or VAT in Hong Kong.
What papers are needed for your firm’s registration?
To establish an HK limited liability business, commonly, the below documents will be needed:
- A photocopy of the Articles of Association for the firm. An authentic recording is ordinarily given by the expert assistance firm that is helping in establishing the company.
- An adequately finished establishment form that involves the below.
- Business title
- Verified address
- A short explanation of corporation exercises
- Particulars of stockholders, executives, and firm superintendent
- Liability of partners
- Share capital recorded on incorporation
- For non-resident stockholders and executives:
- Photocopy of passport, foreign private address confirmation
- For citizen stockholders and executives:
- Copy of Hong Kong identification card
- Photograph of individual address verification
- For corporate stockholders and executives:
- Copy of parent firm enrollment papers like the Certificate of Incorporation as well as the Articles of Association
Note: Authoritatively verified transcribed versions for any non-English records must be given.
Why do you have to get a licensed firm to help you incorporate your company?
The expert assistance company you have hired for your business establishment will generally look after all the essential things from the start to end. Selecting a qualified and help-oriented firm is crucial as the connection is a long-term and a continuous one. The firm you enlist will:
- Get the required establishment specifications and classification papers from you.
- Choose the business title of your preference and get the essential establishment papers that you will require to be registered with the Company Registrar. You will also have to sign these papers.
- Register the establishment papers with the Company Registrar and get a Certificate of Incorporation.
- Get Business Registration Certificate from the Inland Revenue Authority.
- Help the customer with the setting up of a bank account.