Company Formation in Hong Kong

How long does it take to form a company in Hong Kong?

It would not be fair to set your expectations high and assume that the incorporation can be finished within a day. In some jurisdictions, it is extraordinarily fast (for example, in Estonia), in others, slower. It all boils down to one thing: ‘When are the necessary (basic) documents ready?’ The process is counted from the moment we have all the needed documents. Please get in touch with our consultants to understand what documents you need to kick-start the process.

• 3-5 days for remote registration, including name search, if all required documents are made available;
• Shelf company/ies immediately available for use in place;
• Note: Opening of a corporate bank account (online) may be included in the package, in which case an additional 2-3 days is allotted for processing.

What are the milestones in the process of registering a company in Hong Kong?

The process of company formation Hong Kong with LegalBison is very simple. The two main steps are as follows:

• Initial consultation and agreement;
• Payment of the full company registration invoice.

Good news for everyone wishing to kick-start their business in Hong Kong: the local government has reduced the fee for e-incorporation by 10%.

The process of remote incorporation of a company in Hong Kong

Remote incorporation is possible in Hong Kong, but due to the technicality and intricacy of the process, it is prudent to get the services of a consultant or service provider to save you time and from the hassle. If you opt for this, you will then be required to execute a Power of Attorney, or a better option for Hong Kong is an Enduring Power of Attorney.

The same may be drafted by us to comply with the Hong Kong rules on format and will be sent to you for signature, and shall have to be legalized or apostilled. Afterward, it will be registered with the Hong Kong High Court, and we will take everything from there.

You must appoint your designated representative, who must be a Hong Kong resident, to maintain and update your Significant Controllers Register.

Necessary information before starting the company registration process in Hong Kong

The main pieces of information you need to gather before submitting an application include:

• 3 options for your desired name for the company and a company contact email address;
• Names, addresses, and emails of all shareholders and board members;
• Short description of your company’s activity.

Hong Kong company without a VAT number

• VAT is limited in Hong Kong;
• Not required for company registration, nor can a company get one thereafter;
• VAT number nor the Business Registration Number (BRN) is required to be reflected in invoices;
• The latter will then serve as the Tax Identification Number of the business.

Hong Kong company with a VAT number

• Not applicable for this jurisdiction.

Documents required to form a company in Hong Kong

• Passport copies (scans) of all shareholders, board members, and a beneficiary owner, if applicable;
• A Power of Attorney (POA) from (all) partners/shareholders is needed (in case of a remote company registration);
• Certified company documents (in case at least one of the shareholders is going to be a foreign company).

Taxation of Hong Kong companies

Hong Kong has a two-tiered tax model for corporate income:

• 8.25% on the first HKD 2 million;
• 16.5% on the remainder.

In the cases where two-tiered rates do not apply, the profit tax is capped at 16.5%.

• Hong Kong’s only tax profits are the ones sourced within Hong Kong;
• No taxes are levied on sales of goods and services and on capital gains.

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Double Tax Treaties in Hong Kong

Primarily to avoid double taxation and fiscal evasion, Hong Kong has concluded Double Taxation Agreements or tax treaties with over 40 jurisdictions so far, namely: Austria, Belarus, Belgium, Brunei, Cambodia, Canada, Czech, Estonia, Finland, France, Georgia, Guernsey, Hungary, India, Indonesia, Ireland, Italy, Japan, Jersey, korea, Kuwait, Latvia, Liechtenstein, Luxembourg, Macao SAR, Mainland China, Malaysia, Malta, Mexico, Netherlands, New Zealand, Pakistan, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, South Africa, Spain, Switzerland, Thailand, United Arab Emirates, United Kingdon, and Vietnam.

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Audit and accounting obligations of a company registered in Hong Kong

• Whether there was business activity or not, every company registered in Hong Kong, unless expressly exempt, must file with the Inland Revenue Department (IRD) their annual audited accounts and annual tax return;
• It is required that the auditor must be a member of the Hong Kong Society of Accountants and must hold a practicing certificate;
• Regardless of the place of operations, a business license is an additional requirement if the business you seek to conduct is an insurance agency or a financial service provider;
• If you are based in Hong Kong and/or your company will operate dealing with recruitment and employment, travel and event-related activities, restaurant, retail, and education, you will need to seek an additional license.

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Local requirements for registering a company in Hong Kong

There is no residency requirement for you to become a director, but a Hong Kong office address is needed.

Being local in the country, LegalBison offers help with finding an office address and registering the company. Contact us right now for a free consultation and start building your business.

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