Hong Kong Company Formation

Seamless Hong Kong Company Incorporation

Hong Kong, a Special Administrative Region (SAR) of China, is a major international business centre. Its low-tax regime and business-friendly environment attract many investors and entrepreneurs worldwide. To harness these benefits, you must consider company formation in Hong Kong.

FAME, an expert in company incorporation services in Hong Kong, can help you with the procedures. Our advisory services help you maximize the benefits of establishing and operating a business here. The HK company formation with a bank account is not challenging, but it is an excellent decision to partner with a consultant for a hassle-free process.

Exploring Hong Kong for company formation possibilities?

Establish a corporate presence in HK with FAME’s services.

Benefits of Company Formation in Hong Kong

Company incorporation in Hong Kong can offer many benefits. The country is a global financial centre and provides ease of doing business. So, let’s look into the detailed benefits of company setup in Hong Kong.

Strategic Location

Hong Kong enjoys a strategic location in Asia, attracting many businesses. Its proximity to China gives it a well-established demand market. Moreover, it is a gateway to large, established, and strong Asian markets.

Well-Developed Economy

It has a strong economy. The GDP per capita is high, and the unemployment rate is low. Trade, professional services, and finance are HK’s most vital sectors. Also, you have access to a huge base of skilled workforce to hire.

Advanced Facilities

The country enjoys an international-level infrastructure and transportation system. Its regulatory and legal system enables a welcoming business environment for companies to prosper.

Foreign Ownership

Hong Kong permits 100% foreign ownership. Foreign individuals and corporates can be the shareholders in a Hong Kong company.

Controls

There are no currency exchange controls or money transfer restrictions. You can transfer, deposit, and withdraw money from HK banks freely without withholding or other taxes. You can also open your bank accounts outside Hong Kong.

Taxation

Hong Kong does not charge high corporate taxes. The corporate tax rate, also called profits tax, is 16.5% of assessable profits. These profits are generated in Hong Kong or derived from the country. You are safe from taxes like VAT, dividend withholding, and capital gains. So, if you operate in Hong Kong, you have a reduced tax burden.

Physical Presence

Your physical presence is not mandatory at the time of company registration. But it might be a requirements at the time of opening a bank account. You can also manage your Hong Kong company from your own country.

No Minimum Share Capital Requirements

The minimum paid-up capital requirement is HK$1. Generally, companies have a share capital of around HK$ 10,000. You can have these as 10,000 ordinary shares, each valuing HK$1.

Requirements for Company Incorporation in Hong Kong

Before the company setup in Hong Kong, you must be aware of the following prerequisites:

Registered Address

You don’t need a physical office address. You can use a registered address as the office address. You need this address to receive legal documents and official communications.

Naming Norms

You can have a name in English, Chinese, or both. But it cannot have both English and Chinese characters. The name must end with Limited or its Chinese equivalent. You must not include any name linked to national, state, or local governments.

Meeting Rules

An Annual General Meeting (AGM) is mandatory for every company. You must have the first AGM within 18 months of incorporation. You cannot allow more than 15 months of gap between two AGMs.

Possible Legal Structures

Sole proprietorship
Partnership
Limited company
Public limited company
Representative office
Branch office

Directorship and Shareholding Rules

You must have at least one director – a local or foreign resident. Natural persons and corporates can act as directors. They can be residents of any country in the world. There is no upper limit on the number of directors.

You must have a minimum of one shareholder and a maximum of 50. An individual or a corporate with residency of any country can be a shareholder. Shareholders can own the shares locally or abroad.

Shareholder and director can be the same person. You are also allowed to have nominee directors and shareholders.

Reporting Requirements

You must create and maintain a register of all natural and legal persons holding significant control in the company. Also, information on your company’s shareholders, company secretary, and directors is publicly available. You can use nominee shareholders or directors for privacy. The details of beneficial owners and power of attorney do not need filing or availability in public records.

Accounting and Auditing

Creating and maintaining accounts is mandatory. Certified Public Accountants conduct annual audits of these accounts. You must submit these audited accounts and annual tax returns to the Inland Revenue Department.

Company Secretary Requirements

You must have a qualified Hong Kong resident as a company secretary. It can be a local person or a corporate. But the company secretary is not allowed to be the director or shareholder of the company. You must appoint a designated representative for your company to handle the Significant Controllers’ Register work.

The Procedure of Hong Kong Company Formation

Company formation in Hong requires you to follow a sequence of steps. First, you must select a business activity and a legal structure. In the next step, you must choose a company name. The name must be unique and not taken by any existing entity. The Hong Kong Companies Registry will approve the name.

The next step in company incorporation in Hong Kong is preparing the incorporation documents. Here, our business formation experts will help you write these documents. The Articles of Association and Memorandum of Association mention the company’s vision, governance structure, and share capital details. You must appoint the directors and secretaries. After this, all of them, including shareholders, sign the necessary documents.

The fourth step of company setup in Hong Kong involves appointing directors and company secretaries. After this, you must set up a registered office to have an address where you receive all official communications.

In the last step of company formation in Hong Kong, you must complete the application form. Submit the form and all the necessary documents to the Hong Kong Companies Registry (CR).

The documents necessary for HK company formation with a bank account include the following:

Completed application form

Articles of Association of the company

Copies of passports of non-resident directors and shareholders

Copies of international address proof of non-resident directors and shareholders

In the case of corporate directors and shareholders, copy of the parent company’s registration documents

You can submit these documents either:

Through the mobile application CR eFiling

In hard copy to the CR

Through e-Registry portal, available 24-hours

After processing your documents and application form, you’ll receive the Business Registration Certificate. You must also get the necessary permits and licenses required for the nature of the business you will carry out.

The Business Registration Certificate contains the following details:

Name

Certificate number

Registered business address

Business type

The start and end date of the business

After you receive the certificate, we help you open a bank account. Major international banks have their branches in Hong Kong.

Improve core operations while FAME handles your company incorporation.

Let’s get you started with expert company setup services in Hong Kong.