Registering Your Business in Hong Kong: Complete Checklist
Hong Kong has always been a top priority for establishing a business. In the past few years, Hong Kong has experienced a rapid surge in the number of business registrations and is expected to grow even further. Hong Kong can be one of the best locations to start a successful business. Starting a business in Hong Kong requires you to register your business in Hong Kong. Hong Kong company registration can be a tricky process if you have an incomplete knowledge of the system.
To register a business in Hong Kong, you are required to follow a predefined procedure that includes all the sections of a business. Hong Kong is a highly favorable place for businesses. Some questions that arise with the idea of registering a company in Hong Kong are how to register a business in Hong Kong and how to get a business registration certificate in Hong Kong. If you follow the correct steps, the registration process can be quite simple. The steps to register a business in Hong Kong are provided in detail in this article. If you want to successfully register your business in Hong Kong and obtain a registration certificate, you must read this article till the end.
Registering a Business in Hong Kong
Let’s dive into a detailed discussion about registering your business in Hong Kong, its benefits, and the types of business entities in Hong Kong.
Why register a business in Hong Kong?
Registering your business in Hong Kong provides you with several benefits that can help you grow at a global level. Hong Kong is situated at a strategic spot, which opens various opportunities to businesses that want to go global. Hong Kong has a highly positive business environment and talented workforce, which can help you establish your business in Hong Kong. The taxation process in Hong Kong is simple and business-friendly, making it affordable for companies. Moreover, to successfully conduct operations in Hong Kong, it is mandatory to register your business with the Companies Registry. You might face legal charges and penalties if you fail to register your business in Hong Kong and still operate there.
Benefits of Registering a Business in Hong Kong
Hong Kong offers numerous benefits to businesses that are registered in Hong Kong. The benefits of registering a business in Hong Kong are mentioned below.
- Low and Simple Tax System – The tax system in Hong Kong is quite simple and low. This makes it easy to understand for both local and foreign entrepreneurs. Hong Kong imposes no tax on capital gains or dividends. The maximum corporate tax in Hong Kong is 16.5%, making it reasonable for businesses to operate in Hong Kong without worries.
- Strategic Location – The location of a business plays a vital role in its success, and Hong Kong can be that location for a business. Hong Kong is situated at a strategic location and acts as a gateway to enter the Asian market.
- Global Access – Hong Kong has emerged as a global financial hub in the past few years. This attracts industries from all over the world to Hong Kong, making it accessible to businesses who enjoy global capital. Access to global capital creates several growth opportunities for businesses registered in Hong Kong.
- Reputed Stature – Hong Kong has a highly reputed stature at the global level making it easier for businesses to attract investors and partners from all around the world. Moreover, if your business is registered in Hong Kong, it can be helpful for you to gain the trust of the customers and investors.
- Skilled Workforce – Hong Kong is home to some of the most skillful employees in the world who have complete knowledge of their field. The workforce in Hong Kong is highly qualified and contributes to every section of a business.
- Advanced Infrastructure – The infrastructure in Hong Kong is extremely advanced, which makes business operations smooth and effortless. The transportation system, communication system and other major infrastructures of Hong Kong are well defined. Hong Kong has some of the best technologies in the world and is continuously improving them.
Types of Business Entities in Hong Kong
Hong Kong has several types of business entities which are given below:
- Limited Liability Company – Due to its asset protection feature, the most common type of business entity in Hong Kong is a Limited Liability Company. An LLC is a separate legal entity from its owners. It protects the personal assets from business liabilities.
- Sole Proprietorship – A sole proprietorship is a business entity that is preferred by small-scale businesses as it is easy to set up. It is a low-risk business entity which is not advisable for entrepreneurs.
- Foreign Company Office – If a foreign company wants to set up its business in Hong Kong or wants to have a Hong Kong office, it can register a branch office or a representative office in Hong Kong.
- Partnership – Another type of business entity in Hong Kong is a partnership. In a partnership, the ownership of a company is shared between two or more than two people, and each one of them is responsible for the acts of the other partner.
Which business entity is right for you?
The selection of a business entity is exceedingly crucial for the success of the business. The choice of a business entity depends on multiple factors, such as the business’s structure, funds, size, and goals. If you want to increase the capital of your business, share the responsibilities of the business, or reduce your burden, then a partnership would be the best-suited business entity for you. If you want to protect personal assets and keep them separate from business liabilities, then choosing a Limited Liability Company would be a wise choice. Similarly, if you want to have a risk-free business with all the profits and earnings in your own hands, then a Sole Proprietorship would be the right choice for you.
How to Register a Business in Hong Kong?
You are required to follow certain steps to successfully register a business in Hong Kong. The steps to register a business in Hong Kong are provided below in detail.
1. Choose a Company Name
To register a business in Hong Kong, you have to first choose a name for your company. The name you are choosing for your company should be unique and appealing to the customers. The name of your company cannot be the same as another company which is already in existence. Therefore, to avoid legal charges, you can use Startupr’s name-checking tool to check whether the name you are choosing is available or not.
2. Select Business Type
The next step is to select a type of business structure. There are various business types in Hong Kong, such as LLCs, sole proprietorships, and partnerships. You can choose a type of business entity for your business based on your goals, funds and size of business.
3. Have a Registered Address
To register your business in Hong Kong, you must have a registered business address. A registered business address is used to send legal documents and also helps to create a credible image in the market.
4. Decide on the Number of Shares and Share Capital
The next step is to decide on the number of shares and share capital. The number of shares can be decided by the approval of all the shareholders and can be increased with their approval only. The share capital depends upon the number of shares issued. It is the total value of the shares issued by the company.
5. Appoint Shareholders
To register your business in Hong Kong, you must appoint shareholders. The company should have at least one shareholder who should be above 18 years of age and can be of any nationality. A shareholder can also be a company rather than a person.
6. Appoint a Company Secretary
You must appoint a company secretary who should be a person who lives in Hong Kong or a company that has a registered office in Hong Kong. The shareholder or director cannot be appointed as the secretary of the company.
7. Complete the Incorporation Form and Submit it to the Companies Registry
After you have made all the appointments, you are required to complete the incorporation form and submit it to the Companies Registry. You can use the incorporation services of Startupr to complete the incorporation form correctly and submit it.
8. Obtain a Business Registration Certificate
After you complete the form and submit it with all the supporting documents, you will be provided with a Business Registration Certificate. You can obtain the Business Registration Certificate from the Business Registration Office of the Inland Revenue Department.
9. Open a Bank Account for Your Business
Opening a bank account for your business is an essential step. A business bank account helps you separate your personal and business expenses. Startupr can also help you with the process of opening a bank account for your business.
10. Register for Business Taxes
Lastly, you have to register your business for business taxes. After you obtain a Business Registration Certificate, you have to complete the Tax Registration Form and submit it with the appropriate documents to the Inland Revenue Department.
Get Expert Assistance in Registering Your Business in Hong Kong!
If you are in search of a location to start your business, then Hong Kong is the place you are looking for. To operate in Hong Kong, you will need to register your business with the Companies Registry. The steps to register your business in Hong Kong are provided in detail above in the article. Furthermore, if you have any confusion in the registration process then you can get help from Startupr.
If you want to get expert assistance in registering your business in Hong Kong, then you can trust Startupr. Startupr can help you establish a business in Hong Kong successfully. It also offers various services such as company incorporation, providing a Hong Kong office address, providing a company secretary, filing annual return forms, filing employer’s returns, mail forwarding, bookkeeping, and other various services.