Hong Kong is a place of financial importance due to its low tax policies, clearly defined tax laws, non-ambiguity in claiming offshore status for a Hong Kong Company and possibility to incorporate a Company by Foreign Nationals. This is the reason why many entrepreneurs opt for managing their business in Hong Kong. The procedure for incorporating a Company in Hong Kong is mentioned below:
Below considerations must be followed while incorporating a Company in Hong Kong.
The minimum requirements for incorporating a Company in Hong Kong are:-
- One shareholder
- One director ( The Director need not be a Hong Kong resident)
- Minimum one HKD ( Hong Kong Dollar) authorised capital
- A company secretary
- A registered office address in Hong Kong
- A Business Registration Certificate
Directors:-
- Minimum one director required.
- Unlimited maximum number of directors.
- Directors can be natural persons or companies.
- Directors can be Hong Kong residents or non-residents.
- Directors can be of any nationality.
- Nominee directors allowed.
- The sole shareholder can be a director of the company.
Shareholders:-
- Minimum one shareholder required.
- Maximum 50 in Pvt. Ltd.
- A shareholder can be a person or a company.
- Can belong to any nationality.
- Nominee shareholders are permitted.
Company Secretary and Auditor:-
- The sole director cannot be the company secretary.
- If the company secretary is a natural person, he/she should ordinarily reside in Hong Kong.
- If the company secretary is a body corporate, its registered office or place of business should be in Hong Kong.
- Auditor should also be Hong Kong resident.
Practical steps to set up business in Hong Kong:-
Companies can be private or public but the most preferred type of company is Private Limited Company
A. To set up a New Limited Company in Hong Kong:-
- Decide the appropriate Name as per Hong Kong Government criteria (through a search facility on their official website).
- Apply either electronically through e-Registry facility or through hard copy in Form NNC1 (For company limited by shares) or NNC1G (For company limited by guarantee) along with copy of AoA with Registrar along with prescribed fee.
- The Certificate of Incorporation shall be issued within one hour, if applied electronically, or within 4 working days, if applied in hard copy, as a proof of incorporating a Company in Hong Kong
B. To register a place of business in Hong Kong for a Company incorporated outside Hong Kong:-
- Apply for registration as registered non-Hong Kong Company within one month of identification of business place along with certified copies of AoA, MoA, and Certificate of Incorporation etc with prescribed fee.
- Apply in Form NN1 (hard copy Form) to Registrar and appropriate notice to Business Registration office.
- Certificate of Registration shall be issued normally within 14 days.
C. After the Hong Kong Company is incorporated, the following formalities must be complied with:-
- File documents with the Companies Registry: Within 14 days of incorporating a Company in Hong Kong (i.e. after getting the certificate of Incorporation) the following documents must be submitted to the Companies Registry:
- appointment notification of directors and secretary
- consent to act as director
- registered address intimation
- other documents requested by the Companies Registry.
- Open a corporate bank account: Hong Kong offers several choices of banks for opening a corporate bank account.
- Register with Inland Revenue Department: Within one month of incorporating a Company in Hong Kong, the Hong Kong offshore company must be registered with the Inland Revenue Department to obtain a Business Registration Certificate.
- Apply for Business Licenses (if required): If you plan to conduct business operations in Hong Kong and if your business activity requires a business license, you must obtain the same, prior to commencing business operations.
You don’t need to be physically present at the time of incorporating a company in Hong Kong. However, depending on the bank you choose, you may have to meet with the bankers personally in Hong Kong at the time of account opening.
It normally takes 3-4 business days to incorporate a Company in Hong Kong.
For assistance on incorporation of a Company in Hong Kong, you may send your query using the below form.