For about two decades, Hong Kong has been working on structures and policies to help it become one of the best destinations for foreign investments. These efforts are now paying off because Hong Kong is now considered one of the freest places to do business and, therefore, a perfect option for an entrepreneur looking forward to catapulting his/her investment to success.
In the past few years, many businesses have moved their operations to Hong Kong because of its incredible tax structure. This has allowed businesses to improve their profit holdings and not worry about getting taxed higher. Hong Kong has also led the way in terms of easing rules and regulations for new businesses.
While the jurisdiction comes with countless benefits, including world-class infrastructure and a straightforward tax regime, most investors want to get conviction beyond a reasonable doubt that it is the best. In this post, we will answer the frequently asked questions on company registration.
1. What Legal Business Formations Can You Select?
When you decide to open a business in Hong Kong, the type of formation you select is very important because it will determine how you operate. So, here are the main business structures that you can consider:
- Branch Office.
- Limited liability company: This can be either a company limited by shares or guarantee.
It is important that business owners understand the pros and cons of registering different kinds of businesses, this is important because the rules and regulations for different businesses is varied. Tax structures and liabilities too are different for a partnership and a limited liability company.
Once you have decided, which model favours you the most, you can start the registration process. Bear in mind that you have access to all the paperwork, which is required for the same in advance to make the registration process smoother.
2. What Documents Do I Need to Open a Company in Hong Kong?
The documents that you require for company incorporation are outlined in the Companies Ordinance, and you need to prepare them professionally. First, you need to select the right formation and pick the right name for your company. Then, prepare the following documents and submitting them for company incorporation:
- A copy of the business’s articles of association.
- The company name.
- Details of the company’s shareholders, directors, and company secretary.
- The company’s registered address.
- A comprehensive description of the company’s activities.
Businesses need to come clean when it comes to the documentation process. In some instances, you will be required to show additional paperwork, which might be required by the authorities. While some industry types might not need a lot of paperwork, other businesses, which are novel in nature, might be required to flourish greater details and paperwork regarding the nature of their business operations.
The five points mentioned on the list would suffice in most instances. It is important to coordinate with the authorities and follow everything, which they say. A slight error or misleading paperwork can land you in trouble and big farewell to your dreams of registering your new company in Hong Kong.
3. After Getting a Certificate of Incorporation, Do You Need Anything Else to Start Operating in Hong Kong?
According to the Companies Ordinance of Hong Kong, the certificate of incorporation shows that you are allowed to operate in Hong Kong, but it does not exempt you from other legal obligations. In addition, you will require a business registration certificate (BRC) from the Inland Revenue Department. Depending on your industry, additional licenses might be required from the Hong Kong administration.
It is important that as a business, you follow all the guidelines and the various rules and regulations, which are stipulated by the Hong Kong authorities. Failure to comply with the same can attract fines, penalties and other serious repercussions, including losing the license and suspension.
4. Is It Possible to Register a Company in Hong Kong without Travelling There?
One of the things that make Hong Kong stand out from its peers in Asia and across the globe is the simplified system of company registration. Indeed, you can even register a company without traveling there by using an agency. Agencies are made of experts with experience in administrative matters, including how to register and run companies in Hong Kong.
Because they are experts, like GuideMeHongKong.com, it implies that you will get professionally done documents and the process of registration will be completed faster. In addition, the selected agency can act as your company secretary and address. This will be an excellent way to cut the costs of recruiting a secretary. The experts can also help you to draw strategies for success in the Hong Kong market.
There are a number of companies, which claim to allow you to remotely create a company in Hong Kong. However, as a business owner, you need to do your research and check for the companies who you are working with before you make a deposit and start with the registration formalities. This will allow you to have complete peace of mind when it comes to taking forward the engagement in Hong Kong.
5. Is it Possible to Open a Corporate Bank Account without Travelling to Hong Kong?
While it is possible to register a company without traveling to Hong Kong, you will need to make a trip to the island to open a bank account. Banks are strictly following know-your-customer protocols, and they want to know you more. The lovely thing is that most banks can complete the process pretty fast so that you can start operations immediately.
This is where you need to be safe when it comes to handing over your funds to companies claiming to help you open a bank account. At no point should you hand over the details and money to anyone claiming to help you in this regard. This is simply because, banks in Hong Kong do not allow this.
The Final Word
Opening a business in Hong Kong is quite a good proposition. However, you should pay attention to the paperwork and work with a credible agency to help you in this regard. For more questions, feel free to mention them in the comments section below.