Did you know that you don’t need to be a Hong Kong resident to start a company here? That’s right – Hong Kong welcomes entrepreneurs from all over the world, with no restrictions on foreign ownership and the ability for foreigners to serve as directors.
Whether you’re looking to expand your global reach or launch a fresh venture in a thriving economy, Hong Kong offers an unbeatable combination of low taxes, business-friendly policies, and straightforward registration. Curious how you can join the ranks of global entrepreneurs in Hong Kong? Let’s uncover the surprisingly simple path.
Why Choose Hong Kong for Your Business?
1. Business-Friendly Environment
Hong Kong’s pro-business policies offer low taxes, efficient regulatory systems, and minimal paperwork, making it an attractive place for both local and international entrepreneurs. You can also register and manage your company remotely without needing to be physically present in Hong Kong.
2. Simple Tax System
Despite being part of China, Hong Kong operates under an independent tax system, boasting one of the most straightforward and transparent tax regimes. With no capital gains tax and low corporate tax rates, Hong Kong is a prime location for businesses looking to maximize their profits.
3. Access to a Broader Market
Hong Kong’s proximity to mainland China and its numerous trade agreements with over 30 countries make it an ideal location for companies that aim to expand their global reach.
Step-by-Step Guide to Company Registration in Hong Kong
Step 1: Choosing Your Business Structure
The first step in setting up your company in Hong Kong is choosing the right business structure. This decision impacts your company’s legal standing, tax obligations, and compliance requirements:
- Branch Office: An extension of a foreign company operating in Hong Kong.
- Sole Proprietorship: A business owned and managed by one individual.
- Partnership: A business shared by two or more individuals.
- Company Limited by Guarantee: Commonly used by non-profit organizations.
- Company Limited by Shares: The most popular choice, limiting shareholders’ liability to their share capital.
Step 2: Selecting Your Company Name
Your company name can be in English, Chinese, or both. It must be unique and not already in use. Conduct a name search using the Cyber Search Centre or Company Search Mobile Service. Follow the guidelines to avoid naming issues.
Step 3: Determining Officers and Shareholders
- Directors: At least one director is required, who must be a natural person aged 18 or above. Corporate directors are allowed under certain conditions.
- Shareholders: At least one shareholder is needed. Hong Kong allows 100% foreign ownership, and the sole director can also be the shareholder.
- Company Secretary: Must be a Hong Kong resident or a registered company.
- Share Capital: Minimum required is HKD 1.00. Bearer shares are not allowed.
- Registered Address: A local physical address is required.
Step 4: Registering Your Company
File an application with the Companies Registry. Required documents:
- Incorporation Form: Use Form NNC1 or Form NNC1G.
- Articles of Association: Outlines the company’s regulations.
- Notice to Business Registration Office (IRBR1): IRBR1
- Identification Documents: Passports and proof of address for individuals, corporate documents for entities.
Submit these electronically via the e-Registry or in hard copy.
Step 5: Collecting Your Certificates
Upon approval, the Certificate of Incorporation and Business Registration Certificate will be issued. For electronic submissions, certificates are sent within an hour. Hard copy submissions are processed within four working days.
Step 6: Opening a Corporate Bank Account
Monx partners with banks like HSBC and online providers like AirWallex and Statrys. Typically, you need to visit the bank in person and provide:
- Registered Address and Contact Information
- Bank Application Form Documents
- Incorporation Documents
- Proof of Business Activities
- Beneficial Ownership Details
- Certified Copy of Business Registration Certificate
Step 7: Obtaining Permits and Licenses
Depending on your business, you may need permits. Check the Licensing & Permits section of GovHK or the Business License Information Service. Track applications via Online License Services.
Step 8: Understanding Your Tax Obligations
The profit tax rate is 8.25% on the first HKD 2 million, and 16.5% on profits above that. No capital gains tax applies. Refer to the Inland Revenue Department for updates.
Step 9: Complying with Annual Filing Requirements
- Annual Return Filing: Updates company details with the Companies Registry.
- Annual Tax Return Filing: Submitted to the Inland Revenue Department.
- Annual Report Requirements: Vary based on company type.
How Monx Can Simplify Your Company Registration Process
Monx handles everything for you, including hiring a corporate secretary, providing a registered address, and filing documents. We also help open bank accounts and guide you through compliance steps.
Contact Monx at hello@monx.team to get started!
