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Company Formation in Hong Kong

Company Installation Service in Hong Kong

With the assurance of Sirket.io, in Hong Kong set up the company. Contact one click, get Hong Kong company within 5 days.

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Company Formation in Hong Kong

WHO CAN FORM A COMPANY IN HONG KONG?

Both local and foreign individuals can establish companies in Hong Kong. Foreign investors have the right to establish 100% foreign-owned companies in Hong Kong, and there are no local residency or citizenship requirements for company founders or directors.

COST OF STARTING A COMPANY IN HONG KONG

The average cost of establishing a company in Hong Kong is $2,000. Company formation in Hong Kong is completed within an average of 5 business days.

TYPES OF COMPANIES IN HONG KONG

Private Limited Company: The most common type of company formed in Hong Kong. The liability of shareholders is limited to the number of shares they own. ‍ Public Limited Company: A type of company whose shares are publicly traded and listed on the stock exchange. Suitable for larger businesses and investors. ‍ Branch Office: A business unit that allows foreign companies to do business in Hong Kong. It is considered an extension of the parent company. ‍ Representative Office: Allows foreign companies to conduct marketing and research activities in Hong Kong, but cannot engage in commercial activities. ‍ Partnership : A business structure formed between two or more people in which the partners have unlimited liability. ‍ Limited Partnership: A type of partnership in which one partner has unlimited liability and the others have limited liability.

ADVANTAGES OF SETTING UP A COMPANY IN HONG KONG

Company formation is quick and online applications are usually processed within an hour. Low tax rates (8.25% for the first HKD 2 million, 16.5% thereafter) and tax exemptions on certain incomes. Its location in the heart of Asia provides easy access to China and other markets. There are no restrictions for foreign investors and no citizenship or visa is required. Its strong financial infrastructure, legal framework based on the English legal system and reputation as an international financial centre provide businesses with a reliable and predictable environment.

INCOME TAX RATE IN HONG KONG

Income tax rates in Hong Kong are progressive. As of 2023, the income tax rates for individuals are as follows: ‍ HKD 0 2% ‍ HKD 50,001 6% ‍ HKD 100,001 10% ‍ HKD 150,001 14% ‍ HKD 200,001 17%

CORPORATE TAX RATE IN HONG KONG

Corporate tax rate in Hong Kong: For first HKD 2 million in income: 8.25% For income over HKD 2 million: 16.5% Additionally, there is no tax on certain incomes in Hong Kong, such as capital gains, VAT and dividend tax

PRICE

Fast and Easy Hong Kong Company Establishment

We only set up your company in Hong Kong in 5 business days.

LTD
$2000/One Time Payment

The company establishment fee of HKD3,970 to be paid to the government is included in the price.

Contact us to get information about Accounting and Auditing Packages.

Services
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Private Limited Company Establishment
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Business Registration Certificate
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Company Secretarial Service
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Hong Kong Company Address
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NAR1 Annual Declaration
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Business Bank Account Opening Support

Types of Company in Hong Kong

There are several types of companies available for investors who want to start a company in Hong Kong. Most common type of company, although Limited Company, different structures according to the needs of investors selectable. Each type of company has its own advantages and legal requirements. Company when choosing, business goals, capital structure, risk factors and tax advantages are in view must be kept.

Limited Company (Private Limited Company) is the most preferred company in Hong Kong because the responsibility of the shareholders is limited to the capital they have placed, and the company has a separate legal entity. This structure is an ideal option, especially for small and medium-sized businesses. Foreign companies for office or representative office opening options are also available.

Limited Company (Private Limited Company)

  • The most common type of company
  • The responsibility of the partners is limited to capital
  • Minimum 1 director and 1 shareholder required
  • Company secretary located in Hong Kong is mandatory
  • Separate legal entity

Public Limited Company

  • Can be more than 50 shareholders
  • It can be quoted to the stock market
  • Subject to stricter regulations
  • Detailed reporting requirements

Branch Office (Branch Office)

  • Operating as an extension of the parent company
  • No separate legal personality
  • The parent company is responsible for all responsibilities
  • A local representative must be appointed

Representative Office

  • For non-profit activities
  • Can do marketing and market research
  • Cannot engage in commercial activity
  • Simplest company structure

Partnership (Partnership)

  • Two or more people/company partnerships
  • Unlimited liability
  • Limited affiliate option available
  • More flexible management structure

The basic legal must be fulfilled for any type of company to operate in Hong Kong there are requirements and management structure conditions. First of all, all companies, before the start of operation first Business Registration from the Hong Kong Internal Revenue Department Certificate) should take. This registration is mandatory within one month from the establishment of the company. Her the company appoints a company secretary based in Hong Kong and shows a physical office address You’re required. PO Box addresses are not accepted. Companies must also undergo annual audit and should be reported regularly.

From the point of view of the management structure, each company should be at least one real person director. This director may be a citizen of any country and is not obligated to reside in Hong Kong. But company secretary must be resident in Hong Kong. The same person of single shareholder and director it is possible, but this person cannot be the company secretary. Shareholder structure change by company type can show; for example, in private limited liability companies, there can be a maximum of 50 shareholders, in public companies there is no limit. The company’s board structure, according to the size and type of company should be shaped. All these requirements by the Hong Kong Company Law (Companies Ordinance) regulated and audited.

When choosing from these types of companies, the size of the enterprise, the field of activity, risk factors and tax advantages should be taken into account. The distinctive advantages and disadvantages of each structure from, it is important to choose the most suitable type of company by meeting with professional consultants.

Company Establishment Process in Hong Kong

Company installation process in Hong Kong, usually progressing quickly and efficiently, good is a system organized. The process can typically be completed within 5-7 working days. First step as, the name of the company you want to establish in the Hong Kong Company Registry (Companies Registry) need to be checked if it is available. After the name approval, the company’s establishment documents It is prepared and presented to the Companies Registry. Among these documents, the establishment application form, the company’s main contract (Articles of Association), identity information and address documents of directors and shareholders must be found. After all documents are approved, the company’s Founding Certificate (Certificate of Incorporation and Business Certificate are issued. Foreign investors are not physically required to be in Hong Kong; however, some banks, companies may request a personal call during the bank account opening. Online from some Hong Kong banks it is possible to open a bank account. Appointment of a company secretary based in Hong Kong and physical office address is mandatory.

Documents Required to Establish a Company in Hong Kong

Documents required to establish a company in Hong Kong, seamless establishment of the company and legal is of great importance for fulfillment of requirements. Hong Kong Company Editor (Companies) These documents requested by the Registry) and the Internal Revenue Department, the company constitutes the basis of the establishment process. Documents for foreign investors are in English or official Translations must be submitted. Complete and accurate preparation of all documents, ensures the rapid progress of the establishment process. These documents are the legal status of the company, the management structure and must clearly demonstrate the status of ownership.

Important Documents:

  • Passport copies of directors and shareholders
  • Proof of address for the last 3 months (invoice, bank statement, etc.)
  • Selfie video with 3 seconds passport
  • Company Formation Documents
  • Articles of Association
  • Form Application Form (Form NNC1)
  • Job registration notice (Form IRBR1)
  • Company Secretary Appointment Certificate
  • Association structure declaration
  • Share distribution and value
  • Company activity field description (at least 2 sentences)
  • HSIC code selection
  • Customer status detection form
  • Advanced due diligence form (for some sectors)
  • Financial year-end date notification
  • Registered office address declaration

These documents may vary depending on the type of company and the field of activity. Also, some private sectors additional license and permit documents may be required for. Complete and accurate preparation of documents, is critical for smooth progress of the establishment process.

Company Establishment Costs and Annual Costs in Hong Kong

Two main as company establishment costs, official fees and operational expenses in Hong Kong can be collected on the header. Basic expenses to be paid during the establishment phase, company registration fee and work registration fee. 1 year HKD 2,250 or 3 year HKD 5,950 for job registration. Besides this, annual among the ongoing costs of the company secretariat service, registered office address rent, accounting and there are audit fees.

  • Foundation Expenses
  • Company registration fee
  • Registration fee: 1 year (HKD 2,250) or 3-year (HKD 5,950)
  • Notary and translation costs
  • Annual Expenses
  • Company Secretariat
  • Registered office address rent
  • Accounting and auditing fees
  • Renewal fee

Note: Additional license costs may be required for some private sectors. Other official fees to the account must attend.

Taxes and Accounting in Hong Kong

Tax and accounting system in Hong Kong is one of the simplest and most efficient systems worldwide it is accepted as. In Hong Kong, which implements the Territorial tax system, only Income from Hong Kong is taxed. This system, in particular international trading companies provide significant advantages for it. The fiscal year usually starts on April 1st and ends on 31 March. Each company prepares annually audited financial statements and submits tax returns It has. VAT (Value Added Tax) or VAT (Value Added Tax) or GST in Hong Kong Services Tax) is not available. This is an important feature that distinguishes Hong Kong from many countries.

Tax Types and Rates in Hong Kong:

  • Corporate Tax
    • First 2 million HKD 8.25%
    • For 2 million over HKD 16.5%
  • Salaries Tax
    • Progressive tax rates for employees (2-2% 17%)
    • Standard rate maximum 15%
    • From 2024/25 to 5 million HKD revenue 16%
  • No VAT or sales tax
  • No capital gains tax
  • No withholding tax on dividend payments
  • Income from Hong Kong alone is taxed. There is no tax on incomes from abroad.
  • No withholding tax on interest payments
  • No weal tax

Tax Declaration Processes in Hong Kong:

Tax statements and financial obligations are systematically regulated in Hong Kong. Every company, from the end of the fissile year, it is obliged to submit regular tax returns. Tax Office (Inland Revenue Department) usually on the first business day of April each year sends and companies must fill out these forms and return them within one month. Tax Representative additional time may be granted for appointed companies within the scope of “block extension.” Electronic application if done, an additional month is granted.

Basic Financial Obligations:

  • Tax and Accounting
  • Annual tax return presentation and temporary tax payments
  • Recording in accordance with Hong Kong Financial Reporting Standards
  • 7 years of accounting records
  • Preparation of annual independent audits and financial statements
  • Annual report presentation to Company Registry

Fines and additional fines if these obligations are not fulfilled in a timely and accurate manner sanctions can be applied. Therefore, benefiting from professional accounting and auditing services is highly recommended. Especially for foreign investors, to comply with local regulations working with an experienced accounting company is of great importance.

For more information about Hong Kong, you can read our blog posts.