Starting a business in Hong Kong

The most common organizational & legal form for doing business in Hong Kong is LTD. Both experienced businessmen & novice startuppers select it to register a company in Hong Kong. Starting a business in HK SAR requires enlisting services of professional agents knowledgeable about local legislation & experienced in complying with current regulatory requirements. 

The following criteria must be met to start a business in HK:

• choosing a unique name & registering it with a relevant government agency;
• having no less than 1 director (can be a foreigner but may not be a stakeholder);
• having no less than one & no more than fifty stakeholders;
• having a secretary (must be a physical person or legal personality (requires having a registered local office); must maintain company records & ensure compliance with HK legislation; if directors/stakeholders are one & the same person, then can’t be a secretary).

Requirements

• having no less than one stakeholder;
• having authorized capital (isn’t limited to HKD & can be in any other currency);
• having a local address (can’t be a PO box);
• submitting data on personnel, stakeholders & directors to the Company Register.

Taxes

Income tax is sixteen point five percent & only imposed on profits earned overseas. There’s no capital gains tax, VAT or dividend tax.

Things to Keep in Mind

• annual financial reporting (invoices & tax returns) is required.
• annual audits are conducted by certified public accountants.
• annual payment of state duty is required.
• making a written decision instead of the AGM is permitted.

Registering a company in Hong Kong requires:

• having a company charter;
• having a company name;
• having a local address;
• providing description of business activities;
• providing information on key stakeholders;
• providing information on issued shares;
• providing documents confirming beneficiaries’ address & identity.