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A Complete Guide to Company Registration in Hong Kong
Updated: May 10, 2022
Before we dive into the nitty gritty details of company registration in Hong Kong, let me first start by listing some of the advantages and reasons why you should register a company in Hong Kong.
Why should you register a company in Hong Kong?
If you are looking for overseas investment opportunities, you know how difficult it is to find just the right place to invest your money and make a profit from your investment.
All that considered, here are some of the reasons why you should register a company in Hong Kong.
The following reasons will convince you why Hong Kong is one of most attractive business destinations for those looking to invest in international markets.
Low government taxations
Both the world bank and world bank group rate Hong Kong as having the lowest tax jurisdictions and business-friendly taxation system.
Both the personal and corporate taxes are quite low as compared to other jurisdictions in the world.
Political and Economic stability
China has the second largest economy in the world and this can be attributed to long term political stability that enables businesses to thrive.
Although Hong Kong uses a different kind of system from the mainland China, it has immensely benefited and continues to thrive due to political and economical stability enjoyed by the country.
Dispite a few hiccups between the HK governenment and some HK companies concerning national security, BBC reports that business experts agree that Hong Kong remains a key regional business and financia hub.
This makes Hong Kong a prime spot to invest your resources because you are guaranteed stability which will allow your business to grow.
Government support to the business community
Hong has one of the most business-friendly regulations that enable foreign investors to tap into Hong Kong's rich market, resources and potential.
According to Forbes magazine, Hong Kong hugely depends on international trade and finance. Making it an attractive place for foreigners to invest in.
Additionally, the government has introduced a series of incentives and programs to help promote and cushion foreign businesses in Hong Kong to ensure they thrive.
Availability of skilled labor
With a population of about 8 million people, Hong Kong offers a wide range of expertise in different sectors of the economy.
As a foreigner, you can easily work with Chinese workers since most of them are proficient in English in addition to local languages.
Hong Kong offers huge demand for your products/services
Hong Kong is known to be a world’s marketplace. Despite it producing lots of services and products, it’s also a huge consumer of them.
Ease of doing business in Hong Kong.
According to the world bank Hong Kong ranks at position three world wide on the ease of doing business category.
With all your documents ready one can often have a company registered and start operating in less than 2 weeks.
Click on SODA Global marketing to start your company registration process in Hong Kong today
Highly developed infrastructure
Hong Kong has world class infrastructure to enable you to do your business with ease and grow your company.
Some of the infrastructure include:
Fast internet connections.
Well developed and maintained roads.
Availability of ports and Sea freights.
Availability of Airport and Air freights.
How to register a company in Hong Kong.
It’s always highly advisabe to use the services of professional company registration experts like SODA Global Marketingl to ensure quick and successful registration of your company.
Since they are well versed with the Chinese regulations and requirements, they are far more likely to ease your workload and boost your speed to reach the Chinese market.
However, this complete guide will give you a general outline of the procedures and requirements for registering a company in Hong Kong.
Hong Kong Entity Types:-Decide on the type of company you wish to setup
There are various types of business entity types that you can set up in Hong Kong.
You can set up any of the following types of business entities in Hong Kong, Like:
1. Partnership- This is a legal binding business registration where two or more people come together to mobilize their resources to create a business with the sole intention of making a profit.
2. Sole proprietor- This type of business entity refers to a business registered under a sole business person. It’s also legal binding.
3.Limited company- A limited company is one which the liability of the legal entity is only limited to the shares of the owner.
4.Unlimited Company- For an unlimited legal entity, the liabilities of the business entity are not limited to the shares of the owners. Their private property can be used to offset company liabilities.
5. Company limited by guarantee- This business entity type doesn’t have shares and
therefore, the assets and capital for company operations of the company are dependent on the guarantee that owners will pay for company them.
A company can either be a public or private limited company.
What is the difference between a public and a private Hong Kong company?
A public Hong Kong company is a legal business entity having more than 50 shareholders, but the liabilities of the company are limited to the shares of each shareholder in case of bankruptcy.
While a Hong Kong private company is a legal entity with less than 50 sharehoders and the liabilities of the company are limited to the shares of each shareholders in case of bankruptcy.
For the purpose of this article we will focus on the procedure of registering a private Hong Kong Company.
This is because oftenly, as a foreign investor, you would be looking to venture into starting a business as a private startup company.
Then once you have had success and grown the company, you can then go public, if you like.
How to set up a private limited company in Hong Kong
Choose Business Name
The first step in registering a Hong Kong Company is by deciding on the name of the company.
Hong kong's companies registry stipuates that a valid private company name must end with the term "Limited" for it to qualify as a valid name.
The companies Registry is a Hong Kong government agency that is responsible for registering, validation and regulating companies in Hong Kong.
Drafting of Articles of Association
What are Articles of Association for company registration in Hong Kong?
Articles of Association are legal documents drafted while registering a company that specify the operations terms and purpose of a company.
Drafting of Memorandum of Association
What are memorandum of association articles in a Hong Kong Company?
Memorandum of Association articles are legal documents drafted during the registration of a company that show the relationship between shareholders and the company as well as the objectives of the company.
As a Company Registration service provider, we help you draft both the Articles of Association and Memorandum of Association.
Click here to begin your Company registration process in Hong Kong
Choosing a company Secretary
According to Hong Kong companies Registrar it’s obligatory to appoint a company secretary based in Hong Kong.
Which is why you should work with us to start your journey into the Chinese market.
Getting all your document ready
These are the documents required for registering a Company in Hong Kong:
Identity documents and/or passports of shareholders if they are foreigners.
Identity documents and/or passports of directors if they are foreigners.
Identity documents and/or passports of company secretary
Particulars of directors and shareholders: Emails, Phone numbers and Addresses
Particulars of Secretary:Emails, Phone numbers and Addresses
Company offices/offices Address
Submitting documents to the registrar of Companies Hong Kong
After getting all the documents ready, your next step would be to
submit them to the Companies Registry
We can easily gather and categorize all the documents that you will need to register your Hong Kong company.
We will also submit these documents for you. All you have to do is go to SODA Global Marketing Marketing to begin your Hong Kong company registration journey today.
Paying Business name reservation fee and Company registration fee
The final step would be paying for the services and waiting to get your hong kong company registration certificate.
The costs hugely vary depending on the type of company you are setting up and other services you receive during the registration process.
Applying for a hong kong business setup license
After getting your HK company registration certificate, your next step would be getting your business permits and licenses.
And that’s it,
Congratulations!
You are now a proud owner of a legally registered company in Hong Kong.
Now, like any other Chinese business person, you are legally allowed to trade in Hong Kong.
So what next?
Setting up your company for success in the chinese market.
Unlike any other market in the world where you may have developed businesses before, the Chinese market is different.
Despite it’s huge economy and population offering massive demand for all industry categories, the Chinese market offers a unique challenge to all overseas companies.
Foreign companies often find it difficult to overcome its language, culture, special internet environment, and the business regulatory environment.
SODA would like to act as a bridge to link YOU to China.
SoDa will help you from the very start of business registration to finally helping your company penetrate the chinese market successfully.
Grab this ONE time COMPANY REGISTRATION AND MARKETING PACKAGE to kickstart your business success in China.
Conclusion
Like most good things in life, business endeavors are challenging and most importantly if you are trying to penetrate a competitive market in a different country from your own.
With this in mind, you can always ask for help whenever you are lost instead of fumbling for months trying to get everything right.
We are here to help you at every step of the way, Join us to SODA Global Marketing,we are already listed as Florida eCommerce Marketing Agencies