Incorporation in Hong Kong: all you need to know

Hong Kong company formation is a simple process that can be completed in as little as two weeks. The first step is to choose a company name and register it with the Companies Registry. Next, you will need to prepare the company’s Articles of Association and submit them for approval. Once these documents have been approved, you will need to pay the incorporation fee and file the required paperwork with the Registrar of Companies.

The benefits of incorporating in Hong Kong are numerous. Firstly, it is a highly respected jurisdiction with a strong legal system. Secondly, setting up a company in Hong Kong is relatively quick and easy. Finally, there are many tax advantages to incorporating in Hong Kong. For example, profits from business activities conducted outside of Hong Kong are not subject to taxation in Hong Kong.

Corporate service provider such as 3E Accounting offers a list of benefits on company incorporation which can make your company setup easily in Hong Kong.

Advantages of Setting Up a Company in Hong Kong

Liability is limited

Hong Kong is a renowned global business hub and its incorporation laws are favourable for many types of businesses. One key advantage is the limited liability that comes with Hong Kong incorporation. This means that shareholders are only liable for the debts and obligations of the company up to the amount they have invested. This provides peace of mind and security for investors, knowing that their personal assets are protected in the event that the company encounters financial difficulties.

Establishment flexibility

Since the British handover of Hong Kong to China in 1997, the city has enjoyed a high degree of autonomy under the “one country, two systems” framework. As a result, Hong Kong has its own legal system, currency, customs territory and immigration policy. It is also a separate member of the World Trade Organization. Businesses operating in Hong Kong therefore benefit from predictable legal and regulatory regimes as well as low taxation.

The ease of setting up a company in Hong Kong is reflected in its rankings in the World Bank’s “Doing Business” report. In 2019, Hong Kong was ranked 4th globally for “ease of starting a business”, up from 5th position in 2018. The city particularly excels in areas such as “ease of getting credit” and “protecting minority investors”.

What are the necessary things to incorporate a business in Hong Kong?

1. According to the Companies Ordinance of Hong Kong, there are a few things that are required in order to incorporate a business.
2. First, you must have at least one director who is a natural person and resides in Hong Kong.
3. You also need to have a company secretary who is either an individual or a corporation that is licensed by the Companies Registry.
4. The company must also have a registered office in Hong Kong where all official documents will be sent and kept.
5. Lastly, the company must have share capital of at least HK$1,000 divided into shares of no less than HK$1 each.
6. However, it should be noted that businesses incorporation procedures may vary depending on the type of business you want to set up.

In conclusion, incorporation in Hong Kong is a great way to set up a business. The process is simple and straightforward, and the benefits are numerous. If you’re looking at how to register a limited company in Hong Kong, consider the above-mentioned points.