Private limited liability Company in Hong Kong
Any person above the age of 18, either resident of Hong Kong or a foreigner can register his new private limited company in Honk Kong. This process is governed by the Companies Ordinance of Hong Kong. Although the process to get started in HK is easy but it will be good to hire a professional firm that understands the rules and regulations of company registries in Hong Kong. Hong Kong attracts businessmen of the world to start or expand their businesses because of the following reasons.
1) The company registration process in Hong Kong is very simple
2) Hong Kong offers open oriented market
3) The tax system of Hong Kong suits all types of businesses including small or large
4) Hong Kong is the gateway to China and Asia. Due to its location, it is the center of all types of business activities and market
Hong Kong Entity types are divided into the following three types.
1) Limited liability company
2) Partnerships
3) Branch office
4) liaison office
5) Sole proprietorship
Consider about following points related to the business entity.
1) What is the type of the company?
2) What is the size of the company?
3) What are the financial conditions of the company?
4) What are the features of each part of the business entity?
Most of the people chose the private limited company. Information in this article is related to only private limited company set up.
Following are steps to be taken to get started HK.
Preparation before filing Application:
1) Approval of company name:
Decide your company name and get it approved before proceeding further. Check the availability of the proposed name of the company by visiting this site.
2) Company Ordinance:
a) Company secretary
First of all, appoint a secretary. The company secretary performs following important functions.
– The secretary maintain the statutory books of the company
– The secretary maintain the record of the company
– The Secretary ensure the company‘s compliance with all statutory requirements
b) Director (s):
– There is no limit of directors
– No rule for residence of Director. He can live in the Hong Kong or outside the – – – Hong Kong .
– Director must not be involved in any illegal activity or bankrupt
– The minimum age limit required is 18 or above.
– Directors and can also be the shareholder
c) Shareholder:
– 1-50 shareholders at a time.
– The shareholder can be a resident of any country
– The age limit for the shareholder is 18 years or above.
– Not only a person but a company can also be the shareholder of any private limited company
3) Share capital:
There’s no minimum share capital required in Hong Kong. Bearer shares are not allowed
4) Registered address:
For the company registration in Hong Kong, it is mandatory to have a local address.
5) Public information:
Information about company officers, directors, shareholders, and company secretaries is public information.
6) Taxation
Hong Kong has an internal revenue department. Hong Kong offers many tax benefits to companies. These benefits are given below.
a) Hong Kong applies one of the lowest corporate tax rates in Asia and the world. Corporate tax rate of 8.25% on the first HKD 2 million and 16.50% on any amount after HKD 2million.
b) No capital gain tax
c) No VAT
7) Permits and license
Any permit or licenses if required then get them. You may need many permits and certificates in Hong Kong to set up the business. You can also get help from the Government website. This website will guide you about which permits and licenses you may require.
8) Documents requirement
Following documents are required to submit to the CR office to register your company in Hong Kong.
Filled application on Hong Kong application form. This form requires the following information.
a) Company Name
b) Registered address
c) Brief description of business activities
d) Particulars of directors, shareholders and company secretary
e) Number of shares taken up by the subscriber
f) Share capital register on incorporation
g) Liability of members
– Copies of documents of the company for corporate shareholders
– Copy of article of association
– A copy of each Hong Kong ID card for Hong Kong Residents
– A copy of each passport and residential address for foreigners
9) Bank Account.
For transactions, a bank account is necessary. Bank requires information on the specific form with certification by company secretory, public accountant, lawyer, or banker. Some formalities to open a bank account are given below.
a) The registered address of the company
b) The contact information of the company
c) Business owner’s name.
d) The incorporation documents of the company
e) A certified true copy of the company’s identification documents
f) A certified true copy of the company’s business registration certificate
g) Audited financial statement and business plan
h) Name of ultimate beneficial owner for nominee shareholder/stockholder of the company
10) Filing Maintenance (Annual)
a) Renewal of business registration certificate. The application should be submitted one month before the expiry date.
b) Holding of the annual general meeting
c) Annual return with the CR, filing in CR 42 days before the completion of one year of incorporation
d) Annual tax return with the IRD a profit tax return with the audited account should be submitted.
e) Employ return with ERD
11) Pension and insurance
Enrollment of the employees in the Mandatory Provident Fund Scheme is a must-do action. This requirement is governed under the Ordinance of employ Compensation. This enrollment will guarantee that you are having a proper policy for the employees of your company. The age limit of the employees working in Hong Kong is 18-65 years.
12) Finances and funding
Small businesses in Hong Kong can get supported. If you are looking for funds to support your business in Hong Kong, contact any one of the below resources for funding.
a) HKTDC
b) InvestHK is a government organization that helps foreign enterprises in Hong Kong.
Hong Kong being a business-friendly and business hub in the world offers you to start your business confidently.