Why Setting up your Business Company in Hong Kong?

Hong Kong Advantages

Incorporation requirements and procedures

Requirements

Setting up a limited company in Hong Kong (HK) is a straightforward process with minimal restrictions. The main requirements include:

• Unique Company Name: Ensure there are no existing HK companies with identical names or similar names to well-known companies.
• Directors and Shareholders: A minimum of one director and one shareholder is required, but none of them must be HK residents.
• Company Secretary: A resident company secretary and a registered office in HK are necessary. Our firm can provide HK resident company secretary and registered office services.
• Company Name: The company’s name should end with the word “Limited” but doesn’t need to include the words “Hong Kong.”

The company secretary’s role involves tasks like preparing meeting minutes, notices of annual general meetings, annual returns, and ensuring compliance with Companies Ordinance.
Additionally, a HK company must submit audited accounts annually to the Inland Revenue Department, with the first audited accounts due within eighteen months. The financial year-end date can be set on any date within a year, with commonly used dates being 31 March and 31 December.

Requirements:

Nominee Director and Shareholders Services:
We can act as registered shareholders and directors for our clients’ companies, holding their shares in trust. This arrangement maintains the confidentiality of our clients’ ownership, with only the HK Inland Revenue Department having access to this information. Our clients’ interests are protected through “Declaration of Trust” documents, signed by us and stamped by the IRD.

Formation Procedures:

1. Submission of Formation Form: The client provides details of the proposed company name, shareholders, directors, secretary, and registered office using a Formation Form. We verify the registrability, which typically takes two to three working days.
2. Document Preparation: We prepare all necessary documents for company incorporation, including the Memorandum and Articles of Association, appointment of initial directors and secretary, notice of registered office, and an application for a business registration certificate.
3. Client Sign-off: The client signs all documents (without dating them) and returns them to us.
4. Filing and Registration: We file the documents with the Companies Registry and apply for a business registration certificate.
5. Document Dispatch: Once the business registration certificate is obtained from the Inland Revenue Department, we send the documents (including seals and certified true copies) to the client for use.
6. Completion: The entire process is typically completed within two weeks, excluding transit time for documents.

Key Corporate Features:

• Type of Company: Ltd
• Average Timeframe to Set Up a New Company: 7 working days
• Average Timeframe to Activate a Shelf Company: 1 day
• Migration of Domicile Possible: No

Corporate Requirements:

• Standard Authorized Share Capital: HK$10,000
• Minimum Paid-up Capital: HK$2
• Bearer Shares Allowed: No
• Minimum Number of Shareholders/Members: One
• Minimum Number of Directors: One
• Corporate Directors Permitted: Yes
• Local Directors Required: No
• Local Meeting Required: No
• Company Secretary Required: Yes

Taxation:

• Corporate Tax Rate: 16.5%
• Ordinary Tax: Applicable to Hong Kong source income only
• Tax Exemptions: Available
• Double Taxation Treaties: With China (Corporate and Personal Income Tax) and other countries for shipping and aviation
• Value Added Tax Rate: None

Disclosure and Reporting Requirements:

• Disclosure of Beneficial Owner: Yes
• Government Register of Directors: Yes
• Government Register of Shareholders/Members: Yes
• Annual Return: Yes
• Submission of Accounts: Yes
• Audit Required: Yes