Company Incorporation in Hong Kong – An Overview
Hong Kong is one of the most lucrative markets in the world. The companies working or incorporating in Hong Kong are performing extremely well. Incorporating a business in Hong Kong is very easy and cheap. One can easily apply for Company Registration in Hong Kong through a third party without even the presence of the owner or directors.
The most common type of business in Hong Kong is a Limited Liability Company [LLC]. The Limited Liability Company has a separate legal entity and the liability of its owners is also limited. After the company incorporation, one can easily business bank account at a recognized worldwide bank, which has its own benefits as Hong Kong is a leading banking center.
An adult whose age is above 18 years can start up a company in Hong Kong. Online Company Registration in Hong Kong takes about 5-7 working days.
Why register a company in Hong Kong – Benefits
• Hong Kong economy system is open and market-oriented with very little government intervention.
• Offshore business activities are 100% tax-free. Taxes only have to be paid on the profits made by the company in Hong Kong.
• The process of Hong Kong company registration is very simple. There is no requirement of a local person to be a shareholder or director of the company.
• No capital investment is required for incorporation of a company. The shareholder is only required to sign M & A and to declare that he will contribute towards the capital of the company, There is no mandatory requirement to pay any money to the company.
• It is very easy to open an offshore bank account in Hong Kong for a foreign national. The investor has to provide his passport, address proof, and company incorporation documents post which a multi-currency account is easily opened within a few days.
Checklist for registering a company in Hong Kong
Any person who is above the age of 18 and has a clean police record can become a director of the company. Director does not have to necessarily be a citizen of Hong Kong.
It is mandatory to receive the approval of the company name before incorporating the company.
A company in Hong Kong can have a maximum of 50 shareholders. They don’t have to be local citizens. Also, a shareholder and a director can be the same or different persons. Meetings of shareholders and directors can be arranged at any place of convenience.
Appointment of a company secretary is mandatory for a company in Hong Kong. The person who is appointed as the company secretary cannot be a director or shareholder of the company. The CS will be responsible for maintaining the statutory records and books of the company.
In Hong Kong, there is no requirement of minimum share capital. What is important is that a company should have at least one shareholder.
Audit of accounts – It is compulsory to have the company accounts audited annually by a certified public accountant.
Annual returns – Annual returns of the company have to be filed with the Hong Kong company registry.
Annual general meeting – Annual General Meeting, of the company, should be held on a yearly basis, as per the calendar year. The first Annual General Meeting should be held within 18 months of the date of registration of the company.
As per the laws in Hong Kong, all the information regarding the directors, shareholders of the company is public and shall me mandatorily filed with the Hong Kong registrar of companies.
As per the laws, there is no requirement of paying any taxes such as GST in Hong Kong. The only tax that has to be paid is the one derived from the
profits made in Hong Kong.
Documents required for company incorporation in Hong Kong
For forming a company in Hong Kong, you will require the following documents.
A copy of the Articles of Association for the company.
A fully completed incorporation form that includes the following:
• Company name( 3 proposed company names either in English or Chinese)
• Address of the company
• Description of business activities
• Particulars of shareholders, directors and company secretary
• Liability of members
• Share capital registered on incorporation
• Number of shares taken up by subscribers
For non-resident shareholders and directors:
• Copy of passport, overseas residential address proof
For resident shareholders and directors:
• Copy of Hong Kong identity card
• Copy of residential address proof
For corporate shareholders and directors:
• Copy of parent company registration documents such as Certificate of Incorporation and Articles of Association.
Note: For any non-English documents that must be translated to either in English or Chinese.
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