Hong Kong is one of the world’s most business-friendly nations. With its free trade and low import duties and taxes, Hong Kong is an excellent place to do business. However, it does require company registration. It is a must to register the company for companies who want to establish a Hong Kong company. However, the benefits of company registration in Hong Kong outshine the things required to start a company.
To formally register for Hong Kong limited Company Registration, you have to submit the following: An annual business report covering the previous year. It includes the income statement, balance sheet, and statement of earnings. Plus, there are additional documents that you have to submit. These include the company’s register, copies of bank statements, copies of stock certificates, and remittances received. Plus, the shareholders’ declaration page, the director’s declaration page, and a copy of the Memorandum and Articles of Association.
Share capital. You have to register the amount of share capital that you have invested in the company. Plus, a letter from the company secretary’s registered office address explains the share capital transfer and the procedures for subscribed shares.
Limited Liability. Limited liability means one shareholder will be responsible for the debts of the company. Plus, there is a clause stipulating that no single shareholder or group of shareholders can manage it. The company secretary will be the one who works for the company by signing off on all the transactions. Therefore, the registered office address is just one shareholder.
The law requires that one of the directors should be a nominee director and not an actual shareholder. It makes it easier for the creditor to recover their money since they do not have to worry that the shareholders’ money will be invested.
Company Formation. Any company formation that you want is allowed. But the law stipulates that there is a minimum number of shareholders that can be shareholders of a limited company anywhere across the globe.
All the information required for Hong Kong company registration documents is available online. You only need to visit the Companies House and Legal Services websites to get all the information you require. If you want to register your new business, you only need to complete and submit the application form.
The information mentioned above is just an overview of the most critical points concerning Hong Kong limited company registration. The Hong Kong government regulates all the companies that are registered here. It has the power to ban the registration of any company that it finds to be fraudulent or unregistered. However, suppose you are new to this business and want to start with a limited liability entity. In that case, you need to find a good company registration service that can give you all the information you need. You can start your search today!
One of the most important things to note about Hong Kong company formation is the mandatory requirement to obtain income tax. The amount of income tax depends on the type of income you earn and the place where you make it. The income tax payable on dividends is computed using the rate of income tax of the Hong Kong jurisdiction. Other taxes are applicable, such as the local government stamp duty and the property tax.
The next item on the list is the company registration fee. It varies according to the type of service you choose. The price is payable by the general meeting or annual public meeting. If you wish to conduct your business online, the company registration fee is only $300, and if you use the traditional method, you need to pay a standard government fee of about $600.
The company registration is conducted at the local office of the Secretary of State. There is also an option for an online general meeting, but you will have to pay a company registration fee in this case. Alternatively, you can go through the prescribed procedure at the government offices where you are registered. The defined process involves the submission of the application form and payment of the government fee.
Once your business is registered at the local office, you can carry out the various activities related to your business. You can open the bank account and issue the company with setting up the seal if you so wish. If you want to get a business insurance policy, you can get one quickly after being registered at the registration office. Your company set up will stay active for a year after you complete all the processes mentioned above.