Hong Kong is a region that is working as a special administration for China. It has all the qualities that make it an ideal place for setting up any company or business. Hong Kong is blessed with natural beauty as well as rich culture. Along with its jurisdiction, business environment, and Tax benefits Hong Kong is also known as a tax haven.
Let us understand what are the steps that are required to set up a company or business in Hong Kong.
Setting up your business in Hong Kong
The first step towards setting up any business in any region is to recognize the need and nature of the Business. Analyze all the necessities that are required for the business along with all the favorable resources and conditions. Once you have done all the research then proceed towards other required steps.
Here are the steps that are required for Hong Kong company incorporation.
Understanding local organizations and institutions in Hong Kong
During the process of company setup in Hong Kong, you have to deal with three interlocutors that will continue throughout your company’s life.
- Company Secretary
The company secretary will work as your primary contact. It will connect and resolve all the corporate questions regarding your company’s establishment and maintenance.
- Companies Registry
Companies Registry is a department of government that is responsible for registering companies in Hong Kong. It also includes the regular monitoring of companies.
- IRD: Inland Revenue Department
The Inland Revenue Department is also a government department. It is responsible for all the taxes and duties. In simple terms, you have to file the tax return of your company with IRD. It will determine what amount you have to pay as a tax for your company.
Give a name to your company or business
You must name your business or company in any language including English, traditional Chinese, or both.
Legal vehicle of your company
After keeping a name for your company, select the suitable legal form for your business. There are mainly three types of company vehicles in Hong Kong,
- Limited Company
- Sole proprietorship
- Partnership
Company Secretary
Each company in Hong Kong must have a local company secretary. That secretary has to be a resident of Hong Kong. Once you have hired a company secretary, it will maintain all the company’s records, directors, shareholders, etc. It will also organize occasional meetings and board meetings. It will also rearrange all the tax filing and monitor the conduction of business.
Address of the company
Now you have to select the address of your company and register it. That address will be used as a destination for receiving all the legal documents from the government.
Documents of incorporation
You have to prepare all the documentation that is involved in setting up a company in Hong Kong. However, there are not many that are required.
Government Fees and companies registry
Once you have gathered all the documents of incorporation, it is also required to submit them. You can submit them online as well. And after that, it will issue a certificate of registration.
While registering your incorporation in Hong Kong, you will be asked to pay some fees to the government as an application fee.
Permit and license
Chances are quite high that you may not need any permit or license to run your incorporation in Hong Kong. However, some businesses that include restaurants and food courts, will need permits, food licenses, and hygiene licenses.
Tax reporting and financial reporting
Once you have set up your company, it is important to report the taxes and maintain financial reports so that you won’t land in any type of legal offense.
And this is all that is required for company registration Hong Kong.
Now you have understood well what is required for setting up a company in one of the largest financial centers in the world.
