Hong Kong is one of the places known as business-friendly cities in the world, because it attracts many global entrepreneurs and companies. Apart from having a favorable business environment, Hong Kong also has low taxation, making it a top choice for many people who want to apply for company registration. Learn about how to set up a company in Hong Kong with us, because you will think it might be hard when you don't understand how to start. This article will explain several important steps, requirements and tips for those of you who want to know local laws and regulations for company registration in Hong Kong.
What are the benefits when set up a company in Hong Kong?
Hong Kong is a city with a high standard of living, with superb infrastructure and has a vibrant culture. For these reasons alone, Hong Kong can become the right place for international trade and investment. Some of the things below are reasons why you should learn to set up a company in Hong Kong.
Cheap to set up and straightforward
Company registration in Hong Kong is cost-efficient and relatively fast. All you need to have is a business registration certificate from the Companies Registry which you can get within a few days. Don't worry about future costs, because government fees for incorporation are transparent and reasonable. Hong Kong does not require minimum registered capital or a local director, there are no restrictions on foreign investment, and has a business-friendly environment.
Business-friendly taxes
Hong Kong has one of the lowest tax systems in the world with a two-tiered profit tax rate for corporations with 8.25% tax on earnings up to 2 million Hong Kong Dollars, and 16.5% on earnings over 2 million Hong Kong Dollars, and with an exemption for the first 6,000 Hong Kong Dollar profit. The country has a territorial tax regime, which means there is no additional corporate tax for companies conducting business outside Hong Kong.
Vibrant business environment
Hong Kong has become a dynamic hub for SMEs because it offers adaptability and an innovative environment. There are already more than 360,000 SMEs in Hong Kong, and Hong Kong has become the world's top ten countries with a competitive economy.
Many entrepreneurs want to expand their business in Hong Kong, because the Hong Kong Government supports innovation and technology development, by allocating 500 million Hong Kong Dollars to launch a Digital Transformation Support Pilot Program as digital solutions for SMEs.
Things to know before registering a company in Hong Kong
Before setting up a company in Hong Kong, you must know several things first. Because many people want to open a company in Hong Kong, you have to understand how institutions and local organizations work in Hong Kong. When you want to set up a company in Hong Kong, you have to deal with three main interlocutors, such as The Companies Registry, The Inland Revenue Department, and the company secretary.
Limited Company and Unlimited Company in Hong Kong
The company secretary must be the primary contact person during company establishment and maintenance. On the other hand, the IRD and Hong Kong Companies Registry will collaborate to ensure that your business complies with the laws of Hong Kong, upholds accurate statutory records, and is monitored for timely filing of the annual return.
How to set up a company in Hong Kong?
There are nine steps to setting up a company in Hong Kong, once you are familiar with local organizations and institutions.
Choose a company name
Choose the legal entity for your company
Select a company secretary
Appoint legal representatives
Set the amount of the share capital
Prepare the incorporation documents
Obtain a business registration and incorporation certificate
Set up a company bank account
Keep up the taxies and financial reporting
We will explain several important steps to make it easier for you when setting up a company.
Choose the right legal entity
This is crucial, because it can affect factors such as filing your taxes and how your business is done in general. The list of main possible legal entities for your business are: Private limited company, company limited by guarantee, sole proprietorship, partnerships, and branch office. Familiarize yourself with what features each legal structure has, and adapt it to the nature of your business.
Select a company secretary
Having a local company secretary will make it easier for you to establish your company. This is your main contact person when Hong Kong authorities want important information about your business. This role is crucial for your company, because they must be able to comply with the authorities without fail. Don't forget to include the company address, so that it is easy for government departments to reach you and send you correspondence.
Prepare the incorporation documents
The documents are subject to approval before you can start your business. You need to prepare the NNC1 Incorporation Form provided by the Companies Registry of Hong Kong, A copy of HK ID card or passport of a director and shareholder, and Article of Association of the Company. Submit all of them to the Companies Registry, by using e-Registry's online portal platform, mailing your documents, or going to the Company Registry and submitting the documents in person.
After submitting these documents, you need to pay the applicable government fee, which can be paid on a yearly basis.
If you feel overwhelmed with establishing a company in Hong Kong, and need an agency to take care of everything, SMEBrother is your solution. SMEBrother has been providing business services for SME companies since 2012, and will help with all your business needs like a brother. We know that SME business is difficult, but with our knowledge, years of network, and reasonable pricing, we can support our clients and become your business brothers.
All business services starting from auditing services, opening a Hong Kong company, accounting, auditing, opening a Hong Kong bank account, tax issues, and anything you need to run your business smoothly from the start until your business grows.
Everyone knows that you need to earn a lot to live well in Hong Kong. If you are still far from opening your own business in Hong Kong, there is another thing you can do as a foreigner, namely looking for a job in Hong Kong. But of course, you know that looking for work in Hong Kong as a foreigner will not be the same as being a citizen. This article will discuss how to get a Hong Kong work visa so that you have the opportunity to live well and contribute to Hong Kong.
How to Get a Job in Hong Kong as a Foreigner
As a foreigner, it will be easier for you to get a job in Hong Kong if you can speak Mandarin or Cantonese. But if you don't really understand the language and are still in the learning stage, you can look for a job with a universal language like English, although the competition will also be more difficult. But if you are fluent in both languages, it will be easier for you to get a job at local companies. The thing you have to prepare is to get a Hong Kong work visa.
Every local citizen will struggle to get a job in their country, so foreigners also cannot find work that easily. Apart from having to compete with local residents, they must have different permits from local citizens when applying for jobs. Everyone has the right to live well in Hong Kong, but still with fair opportunities and applicable regulations
Job opportunities for foreigners in Hong Kong
Hong Kong government has a program called talent list which encourages foreigners to move to Hong Kong under the Quality Migrant Admission Scheme. It will be easier for you to get work in Hong Kong as a foreigner, and sometimes those professions do not require a visa. But the applicants must meet certain experience and education requirements in order to qualify.
Every year the admission scheme allows for 1000 expats to enter Hong Kong. Some qualifying professions are: Actuaries, investment managers, fund managers, film industry professionals, game developers and producers, data scientists, cyber security specialists, fintech professionals, IT experts, marine engineers, etc.
Applying job in Hong Kong
Write a resume in English, Mandarin, or Cantonese, depending on which language is best for you. Of course, you have to adapt to open job applications, and adjust them to existing needs. Follow a Hong Kong-style CV, by looking for references on the internet or your contacts in Hong Kong, entering your personal information, and making sure you fill in your name, address, email address, and telephone number at the top of your resume.
List your education details with your latest achievements, you can put your marital and visa status to ensure the company understands where you come from. Arrange your CV concisely and fit everything on one or two pages only. You don't need to bring proof of qualifications or references to your application, but just in case you need to bring it to the interview.
During the interview, bring a copy of your CV, Hong Kong ID card if you have it, your academic qualification documents, reference letter, letter of resignation if necessary. You can ask about the minimum wage and average salary, or you can do research first. Adjust your salary to your work time, and make sure this figure can meet your needs for living in Hong Kong.
How do I get a Hong Kong work visa?
Getting a work permit or employment visa in Hong Kong is not too difficult, and is free. Apply for Hong Kong work visa under the General Employment Policy (GEP). Submit the work visa application form by presenting the documents in person or mailing it. The visa under the GEP scheme has an active period, so you must already have a confirmed job offer or your workplace has asked you to show a work permit or work visa.
Things You Need to Know About Business Visa for HK Foreigners
For the visa application, you must write the open position of the potential employer. There are separate rules for visa applications and the Immigration Department will require several requirements such as: A graduate degree or professional experience for the job position, your potential salary and working conditions are comparable to local standards, measure your contribution to the local economy, the company can show that there are no local citizens who can fill the particular position.
After you are approved to get a work visa under the GEP scheme, you need to invite your spouse and your children under the age of 18, and prove your marriage is genuine. You must be able to show that you will support your family financially and guarantee them a life in accordance with the standard of living in Hong Kong and suitable accommodation. Your spouse can also get a job without having to take care of an extra work permit or visa.
Is there a special agent to help with processing a work visa in Hong Kong?
Do you understand what you have to prepare to apply for work in Hong Kong and get a work visa as a foreigner, but are you confused about finding free time and the amount of documents that have to be taken care of? SMEBrother will be a professional agency for you in arranging work permits or work visas in Hong Kong.
SMEBrother has become the right place to take care of anything related to business, from small to medium-sized businesses, for anything needed by anyone who wants to survive their business in Hong Kong. We also have other services for personal, such as opening a Hong Kong bank account, applying for work visa, opening a Hong Kong company, tax treatment, and many others.
We have been focusing on providing one-stop company registration, publicity and related professional services for SMEs and micro enterprises for almost a decade. We hope that anyone who wants to increase their business and their income in Hong Kong will be able to open up a better future.
When you start a new business, of course you already have an idea of the brand you will design and use. It is not only enough for you to have a good brand, eye catching and easy to remember, but it must be secured before your brand and logo are used by other people. You certainly don't want other people to ride on your success because your brand has not been officially registered, and someone else is ahead of you. That's why you should know about creating a trademark in Hong Kong as your intellectual property protection. If you already have trademarks, it prevents anyone from misusing or copying them.
Why Register Your Trademark?
Hong Kong has a trade marks ordinance to protect registered trademarks. You need to register your trademark, because you can show proof that you are the owner of the mark. For example, if you don't have a trademark yet but your brand and logo are already circulating on the market, you have to take action in accordance with common law to pass it off, and hope that no one misuses it. Misuse of trademark can cause financial losses and customer trust regarding your brand. Taking care of it in advance will ensure that every brand you register will be protected by law.
Things to Prepare Before You Register Your Trademark
Each trademark application has criteria that must be met. You cannot carry out a registration application if you still cannot achieve some of these criteria. Some important things you should note are: Ensure your trademark is distinctive, there are no words used that have no association with your business. Don't use descriptive words about your goods and services such as Good Bags, Best Wash Service, etc.
You can't use well-known terms in your line of business, for example you can't use Mc'Donaldu for your fast food restaurant. Ensure your trademark is not already applied or registered to the similar goods and services. If someone has already applied, your registration application may be rejected.
There are also certain words from the Hong Kong Government that may not be used by applicants as part of the trade mark, such as: Power Bank, iPod, Boogie, Caterpillar, Jacuzzi, Karaoke, Bluetooth, MacBook, Blu-ray, Popsicle, CompactFlash.
Getting trademark in Hong Kong
Now we find out how we got trademark in Hong Kong. Follow the method below, until you can have your own trademark for your business.
Trademark registration process
Filed the application for registering a trademark to the Trade Marks Registry office. You can take care of it online or visit the office directly. The applications need to be filed with the Intellectual Property Department of the Government of the Hong Kong SAR. Trademarks can only be registered which are being used by a company or a person or are about to be used in the future.
Submit the Trade Mark Form T2, personal details of the applicant, a clear image of the trademark, specification of the trademark, claims for priority consideration. After the registrar receives your application, the examiner will look at the application to see if there is any missing information or any deficiencies.
After the deficiency check is complete, it's the stage of search and examination. The examiner will search the trademark records to see whether there are similar or similar trademarks that have been registered or applied for the same or similar goods and services.
The examiner will check whether your application complies with the registration requirements under the Trade Marks Ordinance. The examiner can raise an objection when the requirements are not satisfied, and you have 6 months to overcome the objection, and can add another 3 months in the future. You can choose from several options, such as providing evidence that your brand has a distinctive character, filing a consent from the previously registered owner which prohibits you from registering your mark, filing an amendment to remove the services or goods affected by the objection.
If you want to insist on registering your trademark even though someone has already registered it first, you can file a hearing request to present all the evidence and wait for the hearing officer's decision. Same goes for the trademark you create, everyone can view your new trademark and file an opposition within 3-month form the date of publication. You can respond to the opposition or withdraw your application.
For valid registration without problems, it can be valid for the next 10 years, and must be renewed every ten years.
Cost of trademark in Hong Kong
If there are objections, oppositions, or deficiencies in your application, you can continue the procedure and it can be completed within 6 months. Depending on how complete your requirements are, the process can take up to 12 months. The application fee and form that must be submitted to the Intellectual Property Department of the Government of the Hong Kong SAR is HK$1,300.
Benefits and Challenges Doing Business in Hong Kong
If you have an additional trademark class in the application, there is an additional fee of around HK$650. Class in a trademark if you want to refer to the type of goods and services that you want to obtain a trademark.
Hiring professionals to set up your business trademark in Hong Kong
Registering a trademark can be a challenging process and you can be overwhelmed with the paperwork. You can look for an agency or a professional to take care of all trademark registration issues. If you don't understand where to start to create a business trademark, SMEBrother is here to help.
SMEBrother is your best place for registering your business, obtaining a trademark, legalization, or any other needs for your small and medium-sized business.
So contact us right now and start preparing your trademark until we come to you to take care of all the paperwork and any requirements until it's finished. We have more than a decade of experience helping new business owners in taking care of their business needs, including providing personal advice and administrative help when applying for copywriting and trademarks.