If you're considering establishing a new business in Hong Kong, you're bound to have questions. Vakilsearch will provide you with the answers you require while also assisting you in the development of your business.
Hong Kong company formation is one of the best ways to propel your business. Honk Kong is an Asian tiger whose economy has grown significantly in the competitive Asian market, which includes countries such as China and Japan. Hong Kong is a South China Sea port city with enormous trade and business potential. Due to an inflated export structure, this city offers lower tax rates and massive consumer markets, which is the USP of tiger nations.
In What Language Can a Business Name Be Registered in Hong Kong?
The company name must be authorised by the Companies Registry before you can proceed with the registration and incorporation of a company in Hong Kong (CR). The company name can be registered in either Chinese or English. Combining English words or letters with Chinese characters, however, is not permitted. An English company name must conclude with the term “Limited,” while a Chinese business entity name must end with the equivalent of the Chinese character for “limited. Furthermore, the firm name must not be offensive or against the public interest, and it must not infringe on trademarks or patents.
What Documents Are Required for the Formation of a Hong Kong Company?
In order to form a limited liability company in Hong Kong, all entrepreneurs must provide the following documents: A duly completed incorporation form that includes: The registered address of the company A business description of all the activities The number of shares taken up by subscribers Approved company name Shareholders, directors, and the secretary of the company liability and share capital of the members registered on incorporation A copy of the residential address proof and a Hong Kong identity card are required for resident directors and shareholders. A copy of parent registration documents such as articles of association and certificates of incorporation is required for corporate directors and shareholders For non-resident shareholders and directors, a copy of a passport and proof of overseas residential address is required.
What Are the Different Types of Business Ventures That Can Be Used to Form a Company in Hong Kong?
The first and most important step in company formation in hong kong is to choose an appropriate business structure. In Hong Kong, there are various forms of company entities. To choose the right structure, you must weigh all of the advantages and disadvantages of each business vehicle against your business goals. Below are the business structures that you need to know before launching a company: A subsidiary company (it’s a private limited company with a corporate shareholder) A sole proprietorship Representative office A private limited liability company branch office partnership.
Is It Necessary for You to Be Physically Present in Hong Kong During the Company Formation Process?
It is not necessary to be physically present in Hong Kong during the formation of the company. You may have to personally attend a meeting to open a bank account in Hong Kong, depending on the requirements of the bank you choose when registering your business entity.
Is It Necessary to Hire a Professional Business to You Help in Company Incorporation?
According to Hong Kong’s Companies Ordinance, anyone over the age of 18 who is a Hong Kong resident or a foreigner can start a business in Hong Kong. If you are residing in Hong Kong, there is no obligation to engage a professional services firm. To incorporate into Hong Kong’s financial hub, you can choose any type of company entity. However, because the procedure for continuing regulatory compliance and incorporation of your business is complicated, it is highly recommended that you hire the services of a professional services organization. On the other hand, if you are a non-resident of Hong Kong and want to register your business there, you must hire a professional firm to represent you.
What Are the Considerations for Foreigners During Company Formation?
If you are a non-resident of Hong Kong and want to start a business there, you must examine the following factors before proceeding: It is not necessary to be physically present while registering a business Foreigners who do not intend to move to Hong Kong are allowed to run their Hong Kong offshore company from anywhere in the world Foreigners can be the sole shareholders and directors of a Hong Kong company without having to be a local resident.
What Are the Minimum Statutory Requirements for Forming a Company in Hong Kong?
The minimum statutory requirements for company formation in Hong Kong are the first thing that all aspiring and successful entrepreneurs must be aware of. The following requirements must be met in order to form a limited liability company in Hong Kong: There must be at least one director who is over the age of 18, regardless of where the directors reside A local registered address is required for the company organisation A Hong Kong company can have a minimum of 1 shareholder and a maximum of 50 A company secretary is required for the business entity. The secretary can be an individual or a body corporate. If the secretary is an individual, they must ordinarily reside in Hong Kong; if the secretary is corporate, it must have a place of business or a registered office in Hong Kong. A company secretary cannot be a sole director or shareholder A Hong Kong company can be formed by any commercial entity or individual There is no requirement for a minimum share capital. The basic rule is that a company’s authorised share capital must be at least HKD 1,000.
Do I need a physical address in Hong Kong to form a company there?
Yes, a registered office address in Hong Kong is mandatory.
What are the different types of business classification in Hong Kong?
Hong Kong offers various classifications such as Sole Proprietorship, Partnership, and Private Limited Company.
Do directors need to be ordinary/natural persons?
Yes, directors must be natural persons; corporate directors are not allowed.
Can a company name be changed, post-formation?
Yes, you can change the company name post-formation by following the prescribed procedures.
What is a ‘member’ of a Hong Kong company?
A member is essentially a shareholder; someone who owns shares in the company.
Is shareholder and director information made publicly available?
Yes, the details of directors and shareholders are accessible through the Companies Registry.
What are the ongoing costs of opening a company in Hong Kong?
Ongoing costs include annual return filing fees, business registration fees, and audit fees.
How much does it cost to form a company in Hong Kong?
The cost varies based on the type of business and service providers but generally ranges between HKD 3,000 to HKD 7,000 for basic incorporation ( ₹30,000 to ₹70000)
Does a director need to be present in Hong Kong to form a company?
No, a director doesn’t need to be physically present.
How long does the Hong Kong company incorporation process take?
Typically, it takes about 5-7 business days. But the duration of any process may vary due to a variety of factors.
Do shareholders need to be ordinary/natural persons?
While natural persons are common, corporate shareholders are also permitted.
Can Hong Kong companies hire foreign employees?
Yes, but they might require employment visas.
Do I need to engage a third party to help me incorporate in Hong Kong?
It’s not mandatory but advisable for a smoother process, especially if unfamiliar with local procedures.
How old do directors and shareholders need to be?
They should be at least 18 years old.
Are bearer shares permitted in Hong Kong?
No, bearer shares are not allowed in Hong Kong.
Does a director need to be present in Hong Kong to form a company?
No, physical presence isn’t mandatory for directors during incorporation.
Which documents are required to incorporate in Hong Kong?
Required documents include a copy of passport, proof of residence, proposed company name, and details of directors/shareholders.
Do I need to partner with a Hong Kong business to incorporate there?
No, foreign entities can incorporate without a local partner.
How long does it take to open a bank account in Hong Kong for a new company?
It varies, but typically it can take between 1 to 4 weeks, depending on the bank and documentation provided.
Conclusion
You should now have a better understanding of the prerequisites for forming a business in Hong Kong and how to complete the registration process. If you are looking for an excellent business environment with no restrictions on business scope, world-class infrastructure, and a well-founded internet banking system, look no further.
Hong Kong is an excellent place to incorporate a business entity because of its strategic location in south-eastern China and in the heart of Asia. The city’s tax structure is straightforward, with no withholding tax, VAT, or capital gains tax. Are you ready to launch a business venture in Hong Kong?
If that’s the case, choose the type of business organization you want to form and employ professionals like Vakilsearch to help you with the rest.
