Hong Kong is the perfect launching pad for companies that are keen to expand their market. Strategically located in the heart of Asia, Hong Kong is renowned for being a unique global business city and a financial hub for business entities thanks to its business-friendly environment and quick and easy start-up process.
This article by JNT is intended to provide general information about setting up a company in Hong Kong.
1. Overview
2. Key requirements
3. Process and procedure
4. Our service package
1. Overview
1.1. Here are some outstanding benefits when establishing a business in Hong Kong:
- Hong Kong is one of the freest regions in the world which makes business registration extremely simple, fast and convenient.
- Clients can operate a Hong Kong company from anywhere in the world.
- The Hong Kong Government welcomes foreign investment to this potential market by simplifying the tax system and implementing business incubation programs. These are aimed at building an environment that helps the Client’s business succeed after business registration in Hong Kong.
1.2. Key features of Limited Liability Company (LLC) – the most common type of company in Hong Kong
Your choice should enable you to manage the risk, liability, scaling of business, & brand image optimally. Most entrepreneurs wanting to register new companies in Hong Kong prefer Limited Liability Company due to the following reasons:
- Separate Legal Entity: A private limited company has a legal identity of its own, distinct from its members. This enables the company to acquire assets, go into debt, enter into contracts, sue or be sued in its own name.
- Limited Liability: The liability of the shareholders is limited to the amount of their respective shareholdings/investment.
- Ease of Raising Capital: Business expansion is facilitated by the ease of raising finances, by bringing in new shareholders or issuing more shares to existing shareholders. It is easier for limited companies to secure bank loans when compared to other business entity types.
- Easier Transfer of Ownership: Complete or partial transfer of ownership of companies can be done by selling all or part of their total shares, or through the issue of new shares to additional investors. Business operations can continue unaffected and legal documentation is not complicated.
- Tax Benefits and Incentives: There are several tax benefits that private limited companies enjoy in Hong Kong. The corporate tax, (or profits tax as it is called), is set at 16.5% of assessable profits for corporations. Hong Kong follows a territorial basis of taxation. Hence, only profits which arise in or are derived from Hong Kong are subject to tax in Hong Kong. There is no capital gains tax, withholding tax on dividends and interest and no sales tax or VAT in Hong Kong.
You can open a company in Hong Kong as a private limited company to manage your risk and benefit from the tax exemptions. Once you have chosen the business structure, you will need to meet the requirements in the next section.
2. Key requirements
To form a Limited Liability Company (LLC), the main requirements include:
- Minimum 01 director (an individual). This director does not need to be residing in Hong Kong;
- Minimum 01 shareholder and maximum 50 shareholders for LLC. Directors and shareholders can be the same individual or entity;
- 01 company secretary. Both directors or shareholders can act as the company secretary;
- Minimum capital of 01 HKD;
- Registered address at Hong Kong;
- Certified copies of passports and proof of residential addresses of shareholders and directors.
* What do entities need to prepare?
The company needs to provide a copy of the certificate of incorporation and proof of registered address. For each legal representative of the entity, each person needs to provide a copy of their passport and proof of residential address, just like the Shareholder or Director.
*Proof of residential address can be a bank statement, utility bill or identity card/citizen identity card, as long as it is bilingual or English.
3. Process and procedure
Step 1: Check and reserve your company’s name
Please note that company names can be denied for a variety of reasons, the most common being the same name as previously registered companies or the company name containing sensitive or banned words in Hong Kong,…
Step 2: Prepare necessary documents
JNT will help the Client prepare the necessary documents and papers for submission to the competent agency.
We are the leader in applying Pandadocs electronic signature system to help customers complete documents quickly and conveniently. This innovation speeds up the business establishment process by more than 25%, saving time and effort for hundreds of businesses.
Step 3: Submit the application for establishment
Clients will need to sign documents via Pandadocs which are sent directly to their email.
Step 4: Receive the certificate of incorporation in Hong Kong
Clients will receive a soft copy of the enterprise registration certificate and other documents via email. If Clients need to get a hard copy, please contact JNT for further support.
The time to receive the enterprise registration certificate is about 02-03 weeks from the date of submitting the valid application.
4. Our service package
The annual company incorporation and maintenance service package include all that is needed to legally operate and manage a company in Hong Kong:
- New company establishment (Ltd.)
- Registered Address Service – 1 year
- Business Secretarial Service (Correspondence Person) – 1 year
- Procedures & resolutions as requested by the government – 1 time
The following original corporate documents are issued with a new Hong Kong company and are all included in the price quoted. These are all documents you need to legally run, manage and operate your Hong Kong company.
- Unlimited number of resolutions for non-routine services
- AGM Preparation
- Annual Filing
- Annual Filing government fee
- Corporate Secretary submits Annual Filing and AGM Preparation
JNT is proud to be a pioneer in providing comprehensive solutions for businesses. We will help the Client to prepare all the necessary requirements for the registration and maintenance of the company. We have supported hundreds of local and global entrepreneurs and companies in successfully launching projects worldwide. Contact us to start your “Go Global” strategy today!
Auth. Zed Nguyen
