Hong Kong is one of the world’s economic powerhouses, with a gross domestic product (GDP) of $369 billion, or roughly $50,000 per capita. This large economy makes it an attractive place to do business, and it is no surprise that many people are lining up for company registration in the region. This article will describe the steps to take to incorporate a firm in this region.
Why Register a Hong Kong Company?
As we have mentioned, Hong Kong has one of the largest economies globally. It is a strategic location that serves as a gateway to the huge markets in Mainland China and other Asian regions. The region has one of the strongest cargo hubs globally, making it an ideal place for a thriving business.
How Does the Company Registration Process Work?
Incorporating an enterprise in this region is pretty straightforward.
You first need to gather the required documentation, which includes the business name, passport copies for all shareholders and directors, and an Articles of Association that outlines the rules and regulations for your firm.
Once these documents are ready, you can submit them to the Business Registration Office for approval. Once approved, you will receive a certificate acknowledging the approval, and you will be free to start operating.
How Much Does It Cost to Register a Company in Hong Kong?
The standard cost of incorporating a business in this region is HK$2,150 ($274) for a one-year certificate, but there is a HK$2,000 waiver ($255) instituted by the government that brings the fee down to a paltry HK$150 ($19). This waiver lasts till March 31, 2023, and if not renewed after, expect to pay the standard HK$2,150.
What Do You Need to Register a Hong Kong Company?
A Company Name
The name is the first thing that differentiates your business from competitors, so you need to pick a unique one. Avoid selecting a name that is already taken or similar to an established trademark.
You can perform a simple search on the Company Registry’s website to see if your intended name is already taken. If not, you are free to use it.
An Appointed Secretary
A secretary is an official that provides guidance to directors and shareholders on how to run their firm and ensure it complies with local laws. The law stipulates that every foreign-owned firm must have a local resident appointed as a secretary. If you do not have anyone to appoint, Osome can provide a secretary that will help you with registration and management.
Legal Structure
You must decide on the legal structure for your enterprise. The most common ones include;
- Limited Liability Company: As the name suggests, this structure offers limited liability, as in, you won’t be personally responsible for debts or claims accrued by your business. It is the best structure to pick if you seek outside investors.
- Partnership: This is when two or more persons agree to form an enterprise and share responsibility for managing it. The owners are jointly liable for any debt or legal actions against their firm.
- Sole Proprietorship: This is a one-person show wherein the owner is personally liable for claims against their firm. It is the easiest type of structure to set up.
A Local Office Address
Another legal requirement for every corporation is to have a local registered address where you can receive mail concerning business matters. Osome can provide one for you so that you don’t have to rent an office that you may not use frequently.
Identification or Passport Copies for Owners and Directors
You must provide valid identification cards or passport copies for every appointed director and shareholder of the firm you want to register. You must also provide proof of residence for all of them.
Conclusion
We have shown you the steps to take to register a company in Hong Kong. Doing it yourself is fairly easy if you meet the requirements, but if you need help, Osome is available to assist you with services like a corporate secretary and a local office address.
