According to the World Bank Report of Doing business in 2019 Hong Kong is ranked as the 3rd country for […]
Read more
Interested to register a company in Hong Kong?
Loading
Main characteristics for registration in Hong Kong
Corporate tax
0-16.5%
Best choice for:
Online Business
Time to complete the registration
2 weeks
Company Registration in Hong Kong
Hong Kong is the special administrative region of the People’s Republic of China, an autonomous territory and a perfect location for foreign investors to enter the Chinese market. Foreign investment is welcomed by the Hong Kong Government. This jurisdiction offers low and attractive tax regime for foreign investors along with beneficial immigration policies for professionals. Hong Kong is a free port and generally imposes no customs duties on imported goods, with a few limited exceptions. Besides, it is a great location to enter the Chinese market which is the second largest economy in the world and the fastest-growing major economy.
Hong Kong has the status of an important offshore and international finance center.
This article gives you an overview on how to set up a company in Hong Kong and key points on how your business can benefit from it.
Foreign companies and citizens usually consider the following types for company formation in Hong Kong:
- A private or public company limited by shares: there is no minimum share capital required by the Companies Ordinance of a company.
- Company limited by guarantee
- Branch or representative of foreign company
- Partnership
- Sole proprietorship
Company registration documents to be submitted depend on the type of legal entity you choose from.
It usually takes 1-2 weeks depending on the form of business you choose to set up.
Tips: If you file an application online, then the certificate of incorporation is generated electronically and becomes available once the application is fully completed.
The documents and information necessary for preparing application documents are as follows:
Identification document
- Certified International Passport Copy
Address Proof
- Certified Utility bill no older than 3 months. If this document is not in English, certified translation should be provided
Agreement
- Signed Nominee (Trust) agreement
Certification/Translation
- Certification: organization regulated by professional body – notary, lawyer, auditor or bank
- Translation: by translating company with name, seal and publicly available records (certificate issued by regulating body or can be found on internet)
Once the above documents are ready, it is necessary to prepare the following documents for filing to the Companies Registry:
- incorporation form (Form NNC1 or Form NNC1G depending on the type of the company);
- a copy of the company’s articles of association; and
- a notice to business registration office.
There are standard official templates of Model Articles for public companies limited by shares, private companies limited by shares and companies limited by guarantee. It is possible to adopt the Model Articles for your company. However, if you wish to make any amendments, then you are advisable to seek advice with lawyers, as there are mandatory provisions that should be included in the articles of association, such as the company name, capital and initial shareholdings, etc.
The company name in Hong Kong must be approved by the Registrar of Companies before the company is registered. A company name will not be registered if:
- it is the same as a name appearing in the Index of Companies Names of Hong Kong;
- it implies a connection in any way with the Central People’s Government or the Government of the Hong Kong Special Administrative Region or any department or agency of either government;
- it is the same as that of a body corporate incorporated or established under the Companies Ordinance;
- its use would constitute a criminal offence;
- it is offensive or otherwise contrary to the public interest;
- the words “Bank”, “Stock Exchange”, “Unified Exchange”, “chamber of commerce”, “kaifong”, “levy”, “savings”, “tourist board”, “tourist association”, “trust”, “trustee” or any variations are subject to prior approval.
Company name can be in English or Chinese or both English and Chinese. However, it is not permitted to combine English words and letters with Chinese characters.
It is not possible to use such additions as HK or Far East for wholly owned subsidiary of a foreign corporation. It is advisable to make a company name search at the Companies Registrar to check whether the proposed name is not similar to any existing company name.
Tips: your company name is the cornerstone of your brand and this is how you make your first impression. So, you should think how it works on your logo, website, and advertisements. It is essential to check whether there is no registered trademark that has identical name. You should try to avoid such similarities; otherwise you will fail to protect your IP rights.
It is required to appoint a company’s secretary in Hong Kong. A company secretary should be a resident individual or a company having its registered office or a place of business in Hong Kong. A private company having only one director cannot have its sole director to act as the secretary.
Registered address is an official address of a company in Hong Kong used for registration purposes. The registered address is used for official correspondence. That is why, all Hong Kong companies are required to have a registered address in the country.
The certificate of incorporation contains facts held in the official register, including company number, names of shareholders, names of directors, name of secretary, registered office address.
The company certificate of incorporation in Hong Kong is issued in a digital copy once the company is incorporated. The incorporation certificate is accompanied by the business registration certificate if the company’s legal form is limited by shares. The certificates in hard copy can only be obtained in person at the Registrar’s Office. It should be the same person who submitted the incorporation form. Or it can be a person with written authorization to collect the certificate. For this reason, many clients use the services of agents who file and receive documents on behalf of a client.
Alternatively, it is possible to apply for an electronic form of certificate. In this case the certificates will be issued in digital forms. It would be required to apply for hard copies separately, if such certificates need to be certified or apostilled.
We can assist you with obtaining the certificate of incorporation in Hong Kong, including translation, certified copies and apostille.
The official fee for incorporation a Hong Kong company having a share capital is HK$1,720. It is possible to apply for a refund of HK$1,425, if the incorporation is unsuccessful. The registration fee for incorporation of a company limited by guarantee is calculated according to the number of members of the company. The registration fee is HK$170 for up to 25 members, and HK$170 for 26-100 members, and HK$20 for every additional 50 members.
Business registration fee is HK$2,000 for one-year certificate and HK$5,200 for a three-year certificate.
The company should also have annual maintenance costs.
In order to register a company in Hong Kong, it is required to follow these steps:
- preparing articles of association;
- identifying a number of founder members;
- renting an office or using nominal services of registered office address in Hong Kong;
- appointing director(s) and secretary, alternatively using nominal services of director(s) and nominal shareholder(s);
- receiving director(s) Consent to Act as Director in the incorporation form;
- paying registration fees;
- submitting documents to the Registrar of Companies;
- receiving company incorporation certificate and business certificate;
- receiving tax identification number (TIN);
- opening a bank account.
In order to register a company in Hong Kong, it is possible to use this checklist for company formation in Hong Kong:
- preparing articles of association;
- identifying a number of founder members;
- renting an office or using nominal services of registered office address in Hong Kong;
- appointing director(s) and secretary, alternatively using nominal services of director(s) and nominal shareholder(s);
- receiving each director’s Consent to Act as Director in the incorporation form;
- paying registration fees;
- submitting documents to the Registrar of Companies;
- receiving company incorporation certificate and business certificate;
- receiving tax identification number (TIN);
- opening a bank account.
The Registrar of Companies Hong Kong is the official government body of the Government of the Hong Kong Special Administrative Region. It is responsible for incorporation of local and foreign companies. The Registrar of Companies provides the services for obtaining company information contained in the Companies Register. It also receives statutory returns from Hong Kong companies. Besides, the Registrar of Companies is responsible for granting licenses to trust and company service providers. Certain services of this governmental body can be accessed online.
A Hong Kong companies have at least one shareholder whose name is contained in the official record. Shareholders are not required to be residents or citizens of Hong Kong. It can be an individual or a corporation either registered in Hong Kong or overseas.
A company must have minimum one director. If the company has only one director, that director must be an individual and not a corporate director. It is required to appoint as the company’s secretary a Hong Kong resident individual or a company having its registered office or a place of business in Hong Kong. A private company having only one director cannot have its sole director to act as the secretary.
Tips: Nominee services are allowed, in which case the beneficial owners are not revealed.
All companies in Hong Kong are required to keep proper accounting records which must be open for inspection. Financial statements are prepared in accordance with Hong Kong Financial Reporting Standards and are in compliance with IFRS. Financial statements are presented by company’s director before annual general shareholders meeting once per year. The Companies Ordinance also sets forth the disclosure requirements relating to the balance sheet and the profit and loss account (income statement) set out in the financial statements for a company.
All companies incorporated in Hong Kong must appoint one or more independent auditors. An auditor must be a member of the HKICPA and hold a practicing certificate. The requirement of auditor does not apply to a branch of a foreign corporation. In the meantime, the branch is required to file a profits tax return annually and the official authorities may require audited accounts of the foreign corporation to be presented.
Tips: A company may hold the account records at a place outside of Hong Kong. As per request, it must send accounts to Hong Kong for inspection.
All incorporation procedures in Hong Kong takes 2 days. The total term of company formation in Hong Kong with opening a bank account is 2-3 weeks, provided that the bank does not request for additional documents as a part of an identity check. The process of opening a bank account starts after the company is incorporated.
A private company limited by shares is the most commonly used type for company formation in Hong Kong. PLC company formation in Hong Kong allows the shareholders to avoid personal liability for company obligations as each shareholder is responsible within the limits of its share. Further, there is no minimum share capital required by the Companies Ordinance.
Company formation in Hong Kong is a rapid and simple procedure, as all documents are submitted online through a convenient governmental portal. If you plan to incorporate a company by yourself, then it is advisable to follow official guidelines or read our articles about rapid company formation in Hong Kong. Additionally, you may require additional services, such as registered address or translation services which would simplify the whole process.
You can use our checklist for rapid company formation in Hong Kong which allows you to prepare all necessary documents and information as quickly as possible:
- check the proposed company name with trademark register to ensure your company name is unique;
- obtain a registered address in Hong Kong;
- define categories of business activities;
- prepare all sets of documents for registration, including certified copy of passport of each shareholder, address confirmation document of each shareholder.
Company formation in Hong Kong is available for residents and non-residents. The set of necessary documents to be submitted for registration is similar for any citizens or residents. However, non-residents are required to translate documents into English with a notary certification, if such documents are in a foreign language.
It is not required to visit Hong Kong for company incorporation as all procedures are done online. All filings are done online at the Registrar’s Office website.
If you have any questions with company formation in Hong Kong, including with the preparation of necessary documents, please feel free to contact us for further details.
When starting a business in Hong Kong, it is possible to choose between incorporation of a new company or buying a shelf company incorporated in Hong Kong. A shelf company is a ready-made company that has a history, but didn’t have any operations since its incorporation.
However, buying a ready-made company or shelf company is no longer practicable in Hong Kong, since online formation of a new company is much cheaper, faster and safer procedure. When establishing a new company in Hong Kong, it is possible to set it up based on your business needs. For instance, you are free to choose any company name, choose your preferred address, etc.
That’s said, if you are considering to start your business in Hong Kong, then it is advisable to incorporate a new company.
In contrast to other jurisdictions, a company doing business outside of Hong Kong is not considered as an offshore company. So, it is not correct to refer to an offshore company formation services in Hong Kong. However, the low taxes in Hong Kong makes this country not less competitive as other offshore jurisdictions.
Hong Kong offers excellent advantages for offshore companies incorporated in this country, including:
- nominal services in Hong Kong
- lowest taxes
- low operation fees
- access to Asian markets, including the Mainland of China
Ecompany.ltd provides online company formation services in Hong Kong. We offer nominal services, including registered address in Hong Kong. Our flexible company incorporation services in Hong Kong include:
- Low registration fees
- Nominal services, including registered address in Hong Kong
- Accounting, tax and legal services
- Company formation for non-residents in Hong Kong
- Opening a bank account
- VAT registration in Hong Kong
To purchase a ready-made company in Hong Kong and worldwide, please contact us for further details.
The cost of company incorporation in Hong Kong is Euro.
Online company formation on eCompany.ltd
- You can easily search whether your chosen company name is available for registration in Hong Kong. To check the name, please enter the company name in a search field under the top banner on this page and then click “find out”.
- If your chosen company name is available, you can start the process of company formation.
- At checkout, please fill in your personal information and account details for account registration on eCompany.ltd. You can add additional notes or information in your order.
- Complete your order with your preferred method of payment.
- Once your payment is processed, we will contact you about the necessary documents that we need to receive from you in order to prepare incorporation documents on your behalf.
- We will prepare the incorporation documents and submit them for company formation in Hong Kong.
- Once the company is incorporated in Hong Kong, we will send you a standard set of original corporate documents. Please make sure that you entered your correct mailing address.
If you have any questions or problems at any stage of company formation in Hong Kong, please feel free to contact us.
Taxes in Hong Kong
Hong Kong’s tax system is rather simple compared to other countries. This country is favoured for having one of the most convenient and lowest business tax systems in the world. The corporate tax rate is 16,5%, which is not the lowest compared to other jurisdictions. Still, non-resident tax companies can benefit from zero corporation tax rate as company taxes are only levied on companies operating in Hong Kong. Besides, company tax system excludes withholding taxes, VAT, interest taxes and capital gains taxes. There are no significant tax incentives for foreign investment. Hong Kong is a free port and generally imposes no customs duties on imported goods (with a few exceptions).
A company is a tax resident in Hong Kong if it is incorporated in Hong Kong or its management and control is exercised in Hong Kong. Tax resident companies are taxed on a territorial basis and are taxed only on income generated or accrued from Hong Kong. Foreign income is exempt from taxation in Hong Kong. If a company is Hong Kong non-tax resident, then it is taxed on income generated or accrued from Hong Kong.
Taxable period in Hong Kong equals the accounting year. The Hong Kong business tax year is from 1 April to 31 March.
Each company submits annual tax returns with the Inland Revenue Department. Generally, Profits Tax Return is issued on 1 April. The corporation tax deadline for filing Profits Tax Return in Hong Kong is not later than one month from the issuance date of each year’s Profits Tax Return.
Corporation tax rate in Hong Kong is 16.5% and is levied on taxable income. Corporation tax applies only if the company both carries on business in Hong Kong and earns profits from that business which are sourced in Hong Kong.
The Corporation tax rate in Hong Kong is 16.5% and is levied on taxable income. The Hong Kong tax rate for companies is not the lowest compared to European countries, but the Hong Kong company tax rate applies to tax residents companies. This tax applies only if the company both carries on business in Hong Kong and earns profits from that business which are sourced in Hong Kong. Otherwise, it is excluded from corporate taxation. That said, though the current Hong Kong corporation tax rate is averagely high, it is an attractive jurisdiction for offshore company formation.
The tax rate for companies operating in Hong Kong in the form of a limited company is 16,5% tax on all profits received in Hong Kong. However, small companies may choose to have Two-Tier Profits Tax Regime, which allows the first HK$2 millions of profits to be taxed at 8,25% tax rate and the remaining profits to be tax at the general 16,5% tax rate.
The corporation tax is payable for the accounting year starting from 1 April of one year and ending 31 March the next year. The taxable income is calculated on the basis of the preceding year in Hong Kong.
Overseas companies are subject to Hong Kong corporation tax on income derived in or from Hong Kong. The corporation tax rate is 16,5%.
The corporation tax rate is 16,5%. Since the rate of corporate tax is reviewed annually, please contact eCompany.ltd for updated information.
Similar to the corporation tax rate as given above, the limited company tax in Hong Kong is currently 16,5% on company’s profits received in or from Hong Kong.
Dividends from Hong Kong companies are exempt from tax in Hong Kong. There is no dividend tax in Hong Kong applied to dividend income from foreign investments, but can be taxed in other country. Non-residents do not have any tax on dividends from Hong Kong companies.Hong Kong does not impose withholding taxes on dividends or interest from Hong Kong companies.
Interest income is exempt from tax liability in Hong Kong. There is no withholding tax on interest in Hong Kong.
Royalty income is taxable under income tax.
There is no capital gains tax in Hong Kong. Capital losses are not deductible for profits tax purposes.
There is no VAT on goods and services in Hong Kong.
Investment and other passive income is tax exempt in Hong Kong.
Hong Kong does not levy tax on capital gains. For this reason, there is no tax on selling a business in Hong Kong.
Company Liquidation
Voluntary and involuntary liquidation of companies incorporated in Hong Kong is regulated by the Companies (Winding Up and Miscellaneous Provisions) Ordinance (Cap 32) and the Companies (Winding Up) Rules.
A company incorporated in Hong Kong can be liquidated compulsory based on a court order. There are the following reasons for a compulsory winding up of a company in Hong Kong:
- Failure of the company to pay its debts;
- Non-compliance with statutory requirements;
- The court is of the opinion that it is just and equitable that the company should be liquidated.
The petition is filed to the court by a creditor, shareholder or the company itself and must be published in the Gazette. The liquidator of the company takes control of the company, its assets and accounting records. Once the companies are disposed and the dividends are paid to the creditors, it can be finally liquidated.
Voluntary Liquidation is initiated by company’s members or creditors.
The members pass a special resolution which shall be published in the Hong Kong Gazette within 14 days. Usually it takes 12 months to complete the company liquidation in Hong Kong. Directors of the company appoints a liquidator who is responsible for controlling the company, its assets, debts and accounting records. In case the liquidation process is more than a year, a general meeting is kept annually for informing the members about the liquidation process. Once the liquidator settles all company’s debts and assets, it prepares a final account with indication of the distribution of the company’s property. The account is present at a final general meeting. Finally, the company is written off the Company Registrar.
Note: the company liquidation in Hong Kong is an expensive procedure. It is strongly advised to seek advice before you decide to liquidate your company in Hong Kong. Our experts will provide you with appropriate guidance and assistance.
Contact Us & Get Professional Consultation!
Stories from the Blog
Subscribe to newsletter