Registering a company is an essential step for any budding entrepreneur. It’s one of the first steps you need to take before you can do anything else, like explore different business plans or promote your product.
Although it sounds simple on paper, registering a company in Hong Kong has its fair share of intricacies. But don’t worry! We’ve compiled 6 frequently asked questions about company registration in Hong Kong to help you make the right decisions and get started on the right foot.
If you’re reading this, it’s probably because you want to know more about the Hong Kong company formation process. Many people are looking for information on how to register a company in Hong Kong because it is one of Asia’s most prosperous economies.
Before establishing a business in Hong Kong, you should think about a slew of factors. To begin with, ask yourself if you and your company will benefit from it. If you have an idea for a business, the first step is to register your company. Hong Kong company registration questions are frequently asked, and this article is here to answer them.
How to register a company in Hong Kong?
It’s as simple as filling out a form and sending in your payment to have a Hong Kong company registered for you. However, there are a few prerequisites that must be met first. To register a company in Hong Kong, you should:
1) Decide on a name for your business and check its availability with the government;
2) Find an office that is registered with the government and has the appropriate licenses for your business’s type;
3) Apply for tax registration from the Inland Revenue Department of Hong Kong or Customs and Excise Department of Hong Kong.
4) Register for social insurance coverage from the Mandatory Provident Fund Schemes Authority if necessary;
5) Obtain a trade license from Trade and Industry Department of Hong Kong if applicable;
6) Purchase a business license from the Transport Department of Hong Kong if required.
What if I want to register my company offshore?
Here’s the thing: you can’t register your company offshore. Registering a company in Hong Kong means that your company will be legally headquartered in Hong Kong.
This also means that if you want to incorporate your company, you have to declare where it will be registered and incorporated. This is necessary because company law is different for each country and has its own set of regulations and requirements.
Registering a company in Hong Kong also means that certain services or activities may not be allowed; therefore, it’s important to make sure you understand what you can and cannot do before registering your company in Hong Kong.
For example, there are restrictions on legal partnerships like holding shares with foreigners. If this is something that interests you, then double-check with your solicitor before making any decisions about where to register your business.
How much does it cost to register a company in Hong Kong?
How many shares you plan to issue determines the cost of registering your company in Hong Kong. According to the structure of your business, the cost of registering a company varies.
The average price ranges from $4,000-$6,000 HKD (approximately $500-$700 USD). It takes an average time frame of about 2 weeks to register a company in Hong Kong.
The cost of registration is HK$5,000 for one share, HK$10,000 for two shares, HK$20,000 for three shares, and so on.
The more shares you plan to offer your company, the greater the registration fee will be.
You also need to complete some additional filings with the Hong Kong police force and the Securities and Futures Commission (SFC). These filings are done at an additional cost.
How much it costs to register a company in Hong Kong will depend on how many makers you want to offer your business and on whether or not you’ve already registered with other agencies like the police force or SFC.
What are the legal requirements for registering a company in Hong Kong?
Hong Kong requires that an applicant for registration be a natural person or company with its head office in Hong Kong.
When should I register my company in Hong Kong
It’s best to register your company as soon as possible. This way, you can start doing business immediately. If your company doesn’t have a local address, you may not be able to sign contracts with clients.
The Hong Kong government will also take longer to process your application if it is submitted after the first year of establishment. You should always try to register your company before any other steps, like starting an online store or hiring employees.
What documents do I need when registering my company in Hong Kong?
When you register a company in Hong Kong, you’ll need to submit documents that prove you are eligible for registration. These documents include the following:
- Hong Kong ID card (if not a Hong Kong resident)
- Certificate of incorporation (or corporate resolution)
- Board resolutions
- List of shareholders or members
- A copy of the company’s Memorandum and Article of Association
- A copy of each director’s identity document
- A copy of the nominee shareholder’s identity document
- A list of authorized persons
- Copies of any contracts or agreements that need to be produced