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).
- 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.
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.
Having trouble registering an LTD in Hong Kong? Looking for advice on incorporating a company in Hong Kong? Need an individual consultation on company registration in Asia? Why not contact IQ Decision UK? We can handle all that and a lot more.