Plan to form a Hong Kong company? If you want to know how company registration in Hong Kong works, then you should read this article.
Any individual over 18 may form a Hong Kong company under the Companies Ordinance. In Hong Kong, private limited liability companies are most frequent.
LLCs have a distinct legal identity, limited liability for their owners, a strong public reputation, and a lasting structure; raising money and transferring ownership is simpler than with sole proprietorship and partnerships. Foreign businesspeople call this a Hong Kong offshore firm.
How to register a Hong Kong company?
Whether you’re a local or international entrepreneur, you should choose a professional business. Such firms are well-versed in local laws regulating corporations and skilled in Hong Kong company creation.
Hong Kong business registration: basics
- Name – Before forming a Hong Kong business, the name must be authorized. Registering a firm Companies Ordinance, Hong Kong Effective 1 March 2018, every Hong Kong-incorporated business, save those listed on the HKSE, must produce and maintain a record of all important shareholders.
- Upon request, all enterprises must select a Designated Representative (DR) to disclose SCR data to local authorities. The New Hong Kong Companies Ordinance guide has information.
- Executives One director minimum, infinite maximum. The director might be of any nationality and not live in Hong Kong. Directors must be 18 and not insolvent or convicted of misconduct. Directors needn’t be stockholders. Corporate nominees might join individual directors. Directors Worldwide board meetings are possible.
- A Hong Kong PLC might have 1 to 50 shareholders. Shareholders may live anywhere. The same individual may be a director and shareholder. Any nationality may be a shareholder over 18 years old. Persons or companies may be shareholders. 100% local or international ownership permitted. Allow nominee shareholders. Worldwide shareholder meetings are possible.
- In Hong Kong, a company secretary is required when forming a business. If a person, the secretary must live in Hong Kong; if a corporation, it must have a Hong Kong office. A solitary director/shareholder cannot also be the company secretary. The corporate secretary maintains statutory books and records and ensures statutory compliance. One may be appointed secretary.
- Although there is no minimum share capital requirement, Hong Kong corporations must have at least one shareholder and issue one ordinary share upon incorporation. Share capital isn’t limited to the Hong Kong Dollar. Stamp duty is required to transfer shares. No bearer shares.
- Registering a Hong Kong corporation requires a local Hong Kong address. A PO Box is not a valid registered address.
- Hong Kong Company Laws make director, shareholder, and secretary information public.
- Hong Kong Companies Registry requires officer information. To protect the secrecy, use a professional services business to nominate a corporate shareholder and nominate an individual director.
- Hong Kong’s corporate tax rate is 16.5% on assessable earnings. Hong Kong taxes only earnings produced in or from Hong Kong. Hong Kong has no capital gains, dividends, or GST/VAT. Hong Kong Corporate Tax guide provides tax information.
Register your Hong Kong corporation today!
Fintech Consulting assists you in achieving your company goals by providing incorporation and corporate bank account opening services that make setup fast and easy.