What's The Process For Starting A Business In Hong Kong?
18 June, 2018
Hong Kong is the world's record holder for the freest economy for the past two decades. Also, Hong Kong is among the global leaders in business. The city ranks above the USA, UK, and Japan in terms of government corruption.
The first and the most important thing to understand about Hong Kong is that opening a business in Hong Kong is relatively easy and cost-effective. As a foreigner, you can wholly own 100% of your business in which you enjoy being the sole director and shareholder. Moreover, Hong Kong is undoubtedly the best gateway for establishing your business in China or other Asian nations.
Read on to learn more about the processes and fees for starting a business in Hong Kong.
So, what's the process of starting a business in Hong Kong?
The process of opening and starting a business in Hong Kong is relatively straightforward, as you can see in the following steps.
- A Hong Kong company secretary.
- A copy of the directors & shareholders passport or HKID.
- You must have at least one director and one shareholder.
- A copy of residential address proof of director/shareholder.
- A copy of the registered incorporation documents, if the shareholder is a company.
- A completed company incorporation form, which would be provided by Startupr, with the company's detailed particulars.
Please Note: The director and the secretary cannot be the same person. Officially certified translated versions of any non-English documents must be presented.
Hong Kong company incorporation is certainly a viable option for almost any entrepreneur because it requires only a minimum issued capital of one share at HK$1.
When you apply for incorporation, you will also be automatically applying for the business registration certificate.
Startupr can act as your Hong Kong company secretary, and also assist you with all the incorporation documents and guide you through the process.
Our incorporation fees as your agent to complete the whole incorporation are as below:
The Fee Structure:
- Startupr Incorporation – $99
- Certified Copies of Documents – $12
- Registered Address – 0USD (Free of Charge)
- Filing of Annual Return and e-Certificate (NAR1) – $80
- Startupr as an Agent/Company Secretary – $225/1 Year
And, The government Fees Include:
- Shipping Cost – DHL & Handling Fee – $95
- Filing of Annual Return and e-Certificate (NAR1) $25
- Hong Kong Government Incorporation Fee $530 (CR Incorporation and IRD – Business License)
As you can see the process is quite simple, but if you still face any difficulty while incorporating, you always have the option of hiring the experts.
What are the types of companies in Hong Kong?
Opening a foreign business in Hong Kong is by and large confined to one business type and, i.e., Private Limited Company. However, if you already have a business elsewhere, there are a couple of other options.
Private Limited Company: It is one of the widely used business types in Hong Kong. Since it is incorporated in Hong Kong officially. You will enjoy the same tax benefits as resident entrepreneurs do including the free trade agreement with China.
Branch Office: If you already have a company that is registered somewhere else, you can quickly open a branch office in Hong Kong. This type of entity is not self-governing from its parent company and comes with a set of limitations.
Representative Office: It is the most limited way to establish a presence in Hong Kong. Such offices can't take part in any of the profit-making activities. In short, you will most likely be unable to sell or make goods and services in Hong Kong. This type of office is well-suited if you are planning to open an office for a non-sales based branch of your company like marketing or support staff.
Note: Here the more focus is on limited companies.
The Procedure: The key to success is to start before you are ready.
The way toward setting up a business and enlisting it with the government will depend on whether you are setting up a partnership, a corporation or a sole proprietorship. No matter what, the first step will always be the registration of your company.
Just fill out the form and online and pay required fees to get a registration certificate. This business registration certificate will be valid for one year.
- Before you begin the process of starting a business in Hong Kong, you are required to choose a name for your company and ensure that it is legally available in Hong Kong.
- If you are confused about your company name, then you can find a full list Hong Kong's registered company names online.
- If you are going to register your business online, you are in luck!
- Assuming all your documents are in order and you are approved, the whole procedure to incorporate your business can be completed in less than 24 hours, if you sign up for the expedited services.
- If you email your documents, you can expect your "Certificate of Incorporation and Business Registration Certificate" to be issued within four business days.
- One thing that you may want to get your business started is to access your bank account in Hong Kong so that you can start funding your venture.
- Old-world bank accounts only work correctly in one country. They hold money just in one currency. And, it gets too expensive when you try to use them across borders. So, the solution is opening a Borderless account in one of the renowned banks of Hong Kong.
Hong Kong is considered as one of the principal financial centers and free port. Lots of foreign entrepreneurs go for running their own business in Hong Kong. It is also is an ideal choice to set up your business. It boasts an international economy and extensive government support, including some tax incentives and advisory offices.
To start your new Hong Kong company, ALL ONLINE, get in touch with Startupr now!
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