company-incoporation-hongkong

COMPANY INCORPORATION IN HONG KONG 2022

DEFINITION

Hong Kong is one of the most lucrative and dynamic economies in the world. Incorporating a company 2022 in Hong Kong is an easy, reasonable and straightforward process. An individual can apply for company registration easily in Hong Kong through a third party, without the owner or directors being present.

The most common type of business entity in Hong Kong is a Limited Liability Company [LLC]. A Limited Liability Company is considered a separate legal entity, hence the liability of its owners is very limited. After a company is incorporated in Hong Kong, the business owner can easily open a business bank account with any of the large international banks present in Hong Kong. Any adult who is above 18 years in age can incorporate a company in Hong Kong. The online company registration in Hong Kong usually takes about 5-7 working days.

BENEFITS OF REGISTERING A COMPANY IN HONG KONG IN 2022

  • The economic structure of Hong Kong is open and follows a free market system. There is very little government intervention in business.
  • The offshore business activities in Hong Kong are 100% tax-free. The only taxes a company has to pay are on the profits made by the company in Hong Kong.
  • The process to register a company in Hong Kong company is very easy. There is no mandatory requirement for a local person to be a shareholder or director of the said company.
  • No capital investment is required to incorporate a company in Hong Kong. A shareholder is only required to sign M&A to declare that he or she will contribute towards the capital of the company. There is no regulatory requirement to pay any money to the said company.
  • It is very simple to open an offshore bank account in Hong Kong for a foreigner. The foreign investor has to provide his or her passport/address proof/company incorporation documents post which a multi-currency account can be easily opened within a few days.

LIST REQUIRED TO OPEN A COMPANY IN HONG KONG

  • Directors: Any person who is above the age of 18 and has no criminal record is eligible to become a director of the company. A director does not have to necessarily be a naturalized Hong Kong citizen.
  • Company name: It is compulsory to receive the approval for the company name before incorporating the company.
  • Shareholders: A company in Hong Kong can have a maximum of 50 shareholders. They too don’t have to be local citizens. A shareholder and a director may be the same or different people. The meeting of shareholders and directors can be organized at any place of convenience.
  • Company Secretary: The appointment of a company secretary is mandatory for a company in Hong Kong. A person who is appointed as the company secretary cannot become a director or shareholder of the company. The CS is responsible for the maintenance of  the statutory records and books of the  said company.
  • Share Capital: There is no requirement of minimum share capital.
  • Mandatory Compliances: It is mandatory to have the company accounts audited on a yearly basis by a certified public accountant.
  • Annual returns: The annual returns of the company must be filed with the Hong Kong company registry.
  • Annual general meeting: The annual general meeting of the company must be held on a yearly basis, as per the calendar year. The first annual general meeting must be held within 18 months of the date of registration of the company.
  • Public Information: As per the laws in Hong Kong, all the information regarding the directors/shareholders of the said company is public knowledge and has to be filed  mandatorily with the Hong Kong registrar of companies.
  • Taxation: As per the laws in Hong Kong, there is no necessity to pay any taxes such as GST in Hong Kong. The only tax that must be paid is the one derived from the profits made in Hong Kong.

DOCUMENTS REQUIRED FOR COMPANY INCORPORATION IN HONG KONG

  • A copy of the Articles of Association for the company.
  • The fully completed incorporation form which includes the below mentioned details
  • 3 proposed company names either in English or Chinese
  • The address of the company
  • The description of business activities
  • The details and particulars of the shareholders/directors and company secretary
  • The liabilities of the members
  • The share capital registered on incorporation of the company
  • The number of shares taken up by the subscribers
  • Non-resident shareholders and directors need to submit a copy of their passport and  overseas residential address proof
  • Resident shareholders and director need to submit a copy of their Hong Kong identity card and a copy of their residential address proof
  • Corporate shareholders and directors have to submit a copy of their parent company registration documents such as Certificate of Incorporation and Articles of Association.

Any non-English documents must be translated to either English or Chinese.

Our team of tax and legal experts at ACE ALLIANCE will address all your queries about Company Incorporation in the Hong Kong. Our team will help you get the entire process of filing and registration completed and assist you with any post-registration formalities and compliances that may crop up.