Are you trying to set up a company in Hong Kong but do not know enough to go through with it? Well, through this article, you will know everything regarding establishing a business in Hong Kong, including Hong Kong company setup cost, choosing a name for the company and applying for the establishment, etc.
Decide On A Company Type And Name
Various business kinds are accessible for numerous enterprise specifications.
A Limited Company:
- This is the most basic business kind
- It is an organization which is established in Hong Kong
- Executives can get the benefit of all the tax privileges and compensations open to any wholly chartered company
- They can also appreciate bonuses like the Closer Economic Partnership Arrangement, an open contract for trade with Mainland China.
A Branch Office of a Parent Company:
- This is for businesses which are established in a foreign land and set a station of business in HK
- They are required to file with the Companies Registry as a ‘Registered Non-Hong Kong Company’ in a month of establishing
- Nothing like a limited subsidiary company, a branch office is not a separate authorized entity from the parent and can leverage funds off the credit rating of its owner.
- They cannot involve in revenue-creating exercises and can only fulfill restricted purposes
- They are beneficial for businesses seeing to traverse the Hong Kong market before making a bigger venture
- If a choice is compelled to join a company that generates a constitutional obligation, it should change the industry to a restricted corporation or branch office.
Confined businesses founded in Hong Kong can’t have the identical company title as those in the list of firm titles held by the Registrar of Companies. You might carry out a company title research free-of-charge via the Companies Registry’s CyberSearch Centre or Company Search Mobile Service.
Most confined corporations chartered in Hong Kong are privately-owned businesses restricted by shares.
A privately-owned firm in Hong Kong needs at the very least one executive who is a real person and one organization superintendent. If the business has just one executive, that executive could not also be the company superintendent then. If the firm superintendent is a real individual, he must stay in Hong Kong. If the enterprise superintendent is a body corporate, its listed office, or the site of the company must be in Hong Kong. A foreign tenant can be selected as an executive.
The enrolled office of the business has to be located in Hong Kong.
There is no obligation for stockholders to be Hong Kong inhabitants. The individual stockholder can be an executive of the firm.
Significant Controllers Register
To improve the transparency of beneficial corporate control to fulfill Hong Kong’s global duties, the Companies Ordinance necessitates a corporation chartered in Hong Kong to get and keep up-to-date ownership knowledge through holding a Significant Controllers Register. The Register needs to be free for review by law implementation deputies upon request.
Incorporate an Organization
Any petition for the organization establishment will cover synchronous requests for this as well as the company listing.
The expenses for chartering an organization confined by shares are:
Business listing charge – HK$1,720
Company Registration and Levy
- Company listing fee – Following 1 April 2019, the cost was reduced to HK$250 for the one-year license; HK$3,950 for the three-year certification
- Tax to Protection of Wages at Insolvency Fund – HK$250 for the one-year license; HK$750 for a three-year license
Please go to https://www.ird.gov.hk/eng/pdf/brfee_table.pdf for the most advanced expense details.
Other applicable fees: https://www.cr.gov.hk/en/services/fees.htm
Online requests for business establishment and company listing are usually replied to in an hour. Hard copy requests will be examined via the Certificate of Incorporation as well as Business Registration Certificate, which is given in four days.
Register the Business
Requests for business establishments constitute a concurrent request for company listings. Aside from the establishment certificates, you also have to give the below to the Company Registry at the time when you deliver your appeal for business establishment:
- A Notification to the Business Registration Office
- Company filing charge: HK$2,000 for the one-year license; HK$5,200 for the three-year license
- Tax to the Protection of Wages on the Insolvency Fund: HK$250 for the one-year license; HK$750 for the three-year license
Kindly remember that there may be a few grants at different times. Kindly go to the business registration fee and levy table for the latest costs.
Applying for company listings executed in writing structure will have their company-listing documents given in half an hour across the counter or two days via PO.
Company registration documents delivered within the one-stop business establishment assistance will be provided along with Certificate of Incorporation by the CR, generally in an hour for soft forms or nearly four days for hard copy petitions.