Hong Kong is providing business opportunities for the people who are not only residents of Hong Kong but also people around the world who are interested to get started in Hong Kong. This is the fact that Hong Kong has many business opportunities and a business-suited environment. . Following are some reasons why people are ready to start a business in Hong Kong.
- Simple process company registration in Hong Kong
- Hong Kong offers open oriented market
- A tax system that suits all types of business
- Hong Kong is the gateway to China and Asia
Due to the above-mentioned points; the Hong Kong market attracts people around the world to Hong Kong company setup.
First of all, consider about following points related to the business entity.
- What are of the company which you are going to get registered?
- What is the size of the company which you are going to get registered?
- What are the financial conditions of the company which you are going to get registered?
- What are the features of each part of business entity?
Hong Kong Entity types are divided into the following types.
- Limited liability company – the company can be Privately limited by share, public limited by share, or company limited by guarantee.
- Partnerships
- Branch office
- liaison office
- Sole proprietorship
Most of the people chose the private limited company. Information in this article is related to only private limited company set up.
Select a company name
Company name must end with Limited if the name is English, Use Chines word for the limited if the name is Chinese. A combination of both English and Chinese characters is not allowed. Your proposed name of the company can be rejected if someone already has registered with the same name. It is better to visit the Hong Kong company registry website if the name is available. Register your company as a trademark. For help visit Hong Kong Intellectual property management. You can also get support from Guidelines on the registration of the company name.
Incorporate business entity
You have to submit the following forms to the registry office along with the processing fee. Online registration is also available in Hong Kong.
- A copy of identification including the name(s) of the director(s) and shareholder(s)
- Proof of address
- Signed incorporation form by authorizing partners
Open an account
Access to financial services is very important for all types of businesses. This is necessary to start funding your venture. There is a slight difference between the personal account and the company’s account. The personal account is simple. However, more paperwork and documentation is required by the bank for business account.
Following are some requirements of the bank to open a business account for the company.
- Required information should be filled in specified bank form and certification by company secretory, public accountant, lawyer, or banker.
- The registered address of the company, contact information of the company, and business owner’s name.
- The incorporation documents of the company
- A certified true copy of the company’s identification documents
- A certified true copy of the company’s business registration certificate
- Audited financial statement and business plan
- Name of ultimate beneficial owner for nominee shareholder/stockholder of the company
- Permit and licenses
If your specific business entity requires any permit or licenses then get them. You may need many permits and certificates in Hong Kong to set up the business. You can also get help from the Government website. This website will guide you about which permits and licenses you may require.
Taxes in Hong Kong
Hong Kong has an Internal revenue department. The Hong Kong registry department will automatically report to the tax department. Hong Kong offers many tax benefits to companies. These benefits are given below.
- Hong Kong applies one of the lowest corporate tax rates in Asia and the world. Corporate tax rate of 8.25% on the first HKD 2 million and 16.50% on any amount after HKD 2million.
- No capital gain tax
- No VAT
- Territorial tax regime. No profit tax for the companies operating their business outside Hong Kong city.
After completing above mentioned steps, your company is ready to start the business. Now your challenges are not related to the registration of the company. Now you have to take more steps like the hiring of staff, account handling, finances, insurance and many more which can be required to start a business in any part of the world.
Pension and insurance
You have to enroll your employees Mandatory Provident Fund Scheme. This requirement is asked to fulfill the Ordinance of employ Compensation. This enrollment will guarantee that you are having a proper policy for the employees of your company. The age limit of the employees working in Hong Kong is 18-65 years.
Annual Filling
Follow the rules and regulations of the annual filing of your company. You are bound to meet the deadlines given by the company’s registration department. Annual filing requirements are given below.
- File annual return each year under the company Ordinance
- Must file tax return along with the audited account statement to Inland Revenue Department
- File annual reports depending upon the type of business whether you are a registered non-Hong Kong Company or a local limited company in Hong Kong.
Finances and funding
Hong Kong also gives financial support to small businesses. If you are looking for funds to support your business in Hong Kong, contact any one of the below resources for funding.
- HKTDC
- InvestHK is a government organization that helps foreign enterprises in Hong Kong.
Flexible space for to set office
If you are looking for office space in Hong Kong then there is an option for co-working or flexible shared creative space. In Hong Kong, there is no shortage of flexible space to set up the office. One of the advantages of co-working spaces is that you can get support from someone who is already there.
In this article, some important steps to register a company in Hong Kong are discussed. One registered the start your business in Hong Kong and strictly obey all rules and regulations applied by the Hong Kong government.
