Hong Kong is a booming economy and a good place for global entrepreneurs to set up shop. It offers a tax-friendly environment and is a gateway into the broader Asian markets. This article will show you the process of company registration in the region.
The process to register a company in the region is governed by the Companies Registry department. Some crucial requirements to know about include:
Every business must have at least one shareholder, which can be a foreign or local resident.
Every firm must have at least one director, and there is no maximum number. Directors are responsible for managing corporate affairs, including setting strategy, filing financial and tax reports, day-to-day management, etc. The director can be local or foreign-based.
You can also appoint a corporate secretary whose job is to ensure compliance with the law. This is compulsory for limited liability companies.
Your business must pay taxes imposed by the government. Since 2017, there has been a two-tiered tax system; 8.5% on the first HK$2 million in declared profits and 16.5% for any figure above that.
Every registered corporation must file annual financial reports with the Inland Revenue Department, and the reports must be prepared by a certified accountant.
A name is the first thing that differentiates your business. Pick a unique one that hasn’t been already taken by another firm or isn’t similar to an established trademark.
There are various structures to set up a corporation in the region (more on that in the next section). You can pick the one that you prefer.
You have to fill out an incorporation application and submit it to the Companies Registry. The form requests information, including:
If your application is approved, you will receive a Certificate of Incorporation confirming your corporation is now recognized by the government.
The most common structures to choose from include:
Yes, foreigners are allowed to start and own companies in the region. They are even encouraged to do so by the government.
This guide explains company registration in Hong Kong, including the requirements and steps to follow. If you want to save yourself the stress, Osome can handle the registration for you. Contact us today to see how we can help.
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