Hong Kong has long been a magnet for startups and global enterprises alike as it is renowned for its thriving market and providing endless opportunities for all businesses looking to expand their way. You may think that company registration is difficult as a first-time entrepreneur, but in fact, setting up a company in Hong Kong will have an efficient and smooth process if you have the right support. If you have the desire to start a business in Hong Kong, but don't know what to do, what the next plans are, or get lost in outdated advice, this article will be the guide for you. Let's take a look at SMEBro's guide on setting up a company in Hong Kong.
Is it easy to start a business in Hong Kong?
Yes, opening a business in Hong Kong is considered relatively easy compared to other places. Some of the main reasons are business-friendly environment, world-class infrastructure, legal transparency, and strategic location. The opening process has clear regulations, foreign ownership allowed, simple incorporation process, low and simple taxes. Hong Kong has a solid banking system and having access to a global financial hub. Why is opening a business in Hong Kong so promising? Because it acts as a bridge between the global market and the Mainland China, making it ideal for companies targeting Asia.
Streamlined registration can be done online or in person, can be done in a few working days, the low tax regime is considered simple and attractive for entrepreneurs, plus the government offers funding schemes to support different industries. There are many compelling reasons why starting a business in Hong Kong is easy and promising.
How much does it cost to set up a company in HK?
Setting up a company in Hong Kong is relatively affordable with typical costs ranging from HKD $10,000 – $25,000+ (first-year estimate) depending on your setup and if you use service providers. This cost covers everything from company formation to legal basics for the first year.
How long does it take to register a company in Hong Kong?
Registering a company in Hong Kong does not take long. The usual timeline is 2-3 days if all requirements are ready and processed online, and an average of 5-7 business days if including preparation and document collection. For example, if you want to register a Private Limited Company and use an agency, you need to prepare company details such as proposed company name, type of business, registered office address, and share capital structure.
A Guide to Set Up a Company in Hong Kong
If you are a solo founder, director, or shareholder, what you need to prepare is the full name from ID or passport, nationality, residential address, passport copy, Hong Kong ID, email and phone number, plus percentage of shares held by each shareholder. The company secretary must be a Hong Kong resident or a corporate secretary firm.
Setting up a company in Hong Kong
Now, SMEBro will explain Hong Kong Limited Company Establishment Process.
- Discussion and evaluation
The consultant will provide you with one-on-one case discussions to get the most suitable business plan for you, select the company category that suits your business, and explain every detail that matters to establishing a Hong Kong company.
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Prepare incorporation documents
You are required to prepare copies of several things that we have written above such as Hong Kong identity cards or passports, company secretary, and proof of residential address for applying to open a company.
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Pre-check company name
You will be asked to check pre-selected company name in both English and Chinese to ensure that your company name has not been used before and chosen appropriately to avoid unnecessary risks. We will carefully review the name and provide professional business name if needed.
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Payment of service charges and government fees
You can choose to remit the service fee, company registration fee and business registration fee (HKD $1,720 & $2,150) to our accountant by cash, deposit or transfer. After we receive the funds, we will immediately start the company opening process.
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Company establishment
Once the company is established, we will hand over the Business Registration Certificate (BR), Company Incorporation Certificate (CI) and other relevant company documents to the business owner.
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Open a bank account
We will help you to prepare the documents required for account opening, and make an appointment to open a business account at a local bank or online wallet.
Does a limited company have to have a company secretary?
Having a company secretary is necessary, and every Hong Kong limited company must have one under the Companies Ordinance (Cap. 622). The company secretary is responsible for ensuring that the company stays compliant with local laws from filing annual returns to the company registry, maintaining statutory books and records and handling changes to the company structure.
Most entrepreneurs use a professional secretarial service, and we have prepared a bundle for everything from the opening business process to providing a company secretary. This bundle will make it easier for you to start your business and ensures compliance from day opening.
Why register a company in Hong Kong?
There are tons of advantages when you have a business in Hong Kong. Some of the key things why opening a business is very profitable in Hong Kong are simple tax system, no VAT, no capital gains tax, no withholding tax on interest or dividends, corporate tax for first HKD 2M profit is 8.25% and above that is 16.5%. Transparent legal system, based on English common law, robust rule of law and contract enforcement, recognized for IP protection and ease of doing business.
This will be great for E-commerce, dropshipping business, import-export companies, SaaS and digital startups, holding companies, and investment entities. If you want to start getting a business with added credibility in global markets, immediately open your new business with SMEBrother, and our professional company secretarial services will do everything you need starting from: Assisting you for Hong Kong company registration, complying with Hong Kong's regulatory requirements, opening a new bank account, auditing, accounting and tax consultation, and many more.
