Company Formation in Hong Kong
Top 5 Advantages of Hong Kong
- Low corporate income tax and no tax imposed on sales and capital gains
- Ease of doing business
- Strategically located
- Free economy, free market
- Clean governance
How long does it take to register a Company in Hong Kong?
It would be not fair to set your expectations in a way to assume for the incorporation to be finished within a day. In some jurisdictions it is extraordinary fast (for example in Estonia) in some slower. It all boils down to one thing: 'When are the necessary (basic) documents ready?' The process is counted from the moment on we have all the needed documents. Please consult with our consultants to understand what documents you need to kick-start the process.
- 3-5 days for remote registration, including name search, if all required documents are made available
- Shelf company/ies immediately available for use in place
- Note: Openning of a corporate bank account (online) may be included in the package in which case additional 2-3 days is alloted for processing
What are the steps to register a company in Hong Kong?
The registration process of a company in Company Formation in Hong Kong with LegalBison is very simple. There are only 6 steps:
- Initial consultation and agreement
- Payment of the full invoice
- Good News: The Hong Kong governmenent has reduced fee for E-Incorporation by 10%
How high are the corporate income tax in Hong Kong?
If the two-tiered rates apply 8.25% for the first HKD 2 million and 16.5% on the remainder.
- If two-tiered rates do not apply, profits tax is capped at 16.5%
- Hong Kong only tax those profits that are sourced within Hong Kong
- No tax is also levied on sales tax, on goods and services and even on capital gains
What Double-tax treaties has Hong Kong?
Primarily to avoid double taxation and fiscal evasion, Hong Kong has concluded Double Taxation Agreements or tax treaties with over 40 jurisdictions so far, namely:
Austria, Belarus, Belgium, Brunei, Cambodia, Canada, Czech, Estonia, Finland, France, Georgia, Guernsey, Hungary, India, Indonesia, Ireland, Italy, Japan, Jersey, korea, Kuwait, Latvia, Liechtenstein, Luxembourg, Macao SAR, Mainland China, Malaysia, Malta, Mexico, Netherlands, New Zealand, Pakistan, Portugal, Qatar, Romania, Russia, Saudi Arabia, Serbia, South Africa, Spain, Switzerland, Thailand, United Arab Emirates, United Kingdon, and Vietnam.
Without VAT number
- VAT is limited in Hong Kong
- Not required for company registration nor can a company get one thereafter
- VAT number nor the Business Registration Number (BRN) is required to be reflected in invoices
- The latter will then serve as the Tax Identification Number of the business
With VAT number
- Not applicable for this jurisdiction
- Do you want to travel or do everything remotely?
- Do you want to set up a new company or buy a ready-made/shelf companies
Note: Some of the shelf companies we can offer you already have existing bank accounts
Documents to provide
- Passport copies (a scan) of all individuals above, also beneficiary owner if applicable
- A Power of Attorney (POA) from (all) partners/shareholders is needed (in case of a remote company registration)
- Certified company documents (in case at least one of the shareholders is going to be a foreign company)
Information we need to start
- 3 options of your desired name for the company and a company contact email address
- Names, addresses and emails of all shareholders and board members
- Short description of your companies’ activity
- Remote incorporation is possible in Hong Kong but due to the technicality and intricacy of the process, it is prudent to get the services of a consultant or service providet to save you time and from hustle. If you opt for this, you will the be required to execute a Power of Attorney or a better option for Hong Kong is an Enduring Power of Attorney
- The same may be drafted by us to comply with the Hong Kong rules on forrmat and will be sent to you for signature and shall have to be legalized or apostille. Afterwhich, it will be registered with the Hong Kong High Court and we'll take everything from there
- You must appoint your designated representative who must be a Hong Kong resident who shall maintain and update your ‘Significant Controllers Register’
Accounting and auditing
- Whether there was business activity or not, everey company registered in Hong Kong, unless expressedly exempt, must file with the Inland Revenue Department (IRD) their annual audited accounts and annual tax return
- It is required that the auditor must be a member of the Hong Kong Society of Accountants and must hold a practicing certificate
- Regardless of place of operations a business license is an additional requirement if the business you seek to conduct is an insurance agency or a financial service provider
- If you are in based in Hong Kong and/or your company will operate dealig with recruitment and employment, travel and event-related activities, restaurant, retail, and education you will need to seek for an additional license
What are the residential requirements in Hong Kong?
- There is no residency requirement in order for you to become a director but a Hong Kong office address is needed
LegalBison offers help with all of the above requirements. We assist and are local on ground. Speak now for free with one of our consultants to get your business started.
FAQs about Hong Kong
- Very business friendly
- Competitive tax rates
- A growing EU economy
- Fast incorporation
- 0% tax
- Everything remote
- Ideal offshore jurisdiction
- Advantageous taxation
- Fast and cheap process
- Top economy
- Low taxes
- Business friendly
- Ideal EU jurisdiction
- 5-10% tax
- Fast and cheap process