No matter what part of the world you are located in, there are several steps one has to follow if they want to register a company in that country. The same can be said about Hong Kong. Now you may find a countless number of articles or blogs on the internet regarding the steps to register a company in Hong Kong, but if you are really serious about opening a company over there, then you should visit the country on your own. No amount of reading will ever match up to the information you will receive from the experts and officials who handle the company registration.
There are several companies and agencies in Hong Kong whose sole task is to help out third parties to register their companies in the country. These companies and agencies provide all sort of services so it is really wise to actually visit the country first and note down the things they can offer you and make up your mind regarding what you think is the best for your company.
Why Hong Kong?
Before you start your company in Hong Kong the very first question that should come to your mind is “Why Hong Kong? “. The answer is actually very simple; more money and more control. Out of all the countries in Asia, only Singapore and Hong Kong are the ones that do not require you to keep locals on the board of directors. In other words, you will be in full control of your company. Yes, all 100% of the share will be yours. This means that if you are smart enough to guide your company into a successful path and get your business to start gaining traction, you will be generating a whole lot of money only for yourself. Sounds very alluring right?
How to register?
Finally, we can get down to what you been looking for; the procedure to register a company in Hong Kong. The first and foremost thing that you need to decide before registering is whether you want to buy a company that has already been registered or if you want to start a company in your own desired name. In terms of cost, there isn’t much difference between the two; however, the procedural time is quite faster for an already existing company.
Once you have decided which route to follow, you will be needed to register your business with the Business Registration Office of the Inland Revenue Department. Keep in mind that you will be required to register your business within one month of starting your operations. The registration process requires certain details including your name, the details of your passport, nationality, your residential address and if you have shareholders, then a percentage of shares need to be mentioned as well. This information is needed to be provided for every director you have in the company as well.
While there are no restrictions on any nationality, there must be at least one shareholder and one director in the company. One single person can end up doing the work of both if needed. The other requirement is that the company secretary needs to be somebody from Hong Kong or can be a Hong Kong company itself. As I mentioned earlier, there are several companies agencies that help out to register a company for a third party. For a small fee, they will act as your secretary meaning you will not have to go out of your way to find a local secretary or a company for that matter.
How much does it cost?
Let us talk about the most important issue regarding company registration, i.e. the cost of all these. Now, as mentioned earlier, there are numerous companies and agencies that will help you register your business but their rates vary depending on their services and other factors. However, the following rates are more or less the ones we have worked with in the past and it wouldn’t deviate much from these.
- Incorporation service fee of HK$ 1000
- HK$600 for the annual company secretary parking fee.
- Incorporation government fee and disbursement HK$3150
- Yearly register address parking fee of HK$ 600
- HK$300 for HKCPA document certification fee for the bank account.
Alongside that, there are other optional services that may require you to spend a couple of extra bucks. These will include;
- Nominee shareholder parking- HK$ 600 annually per beneficiary owner.
- Nominee director parking- HK$600 annually per beneficiary owner.
There are yearly maintenance fees as well and the figures look like these;
- A government fee of HK$2,555 and it includes the business registration fee of HK$2450 as well as the companies registry annual filing of HK$105
- A service fee of HK$1200. This includes the HK$600 which is the annual parking company secretary fee and the address parking fee of HK$600
The processing time to get the documents of registration does not take too long. If you happen to deliver all your documents and applications in paper form then your certificate will be in your hand within the next 30 minutes. But if you deliver by post then it may take you only two working days. Once you have received your certificate of registration, you will be required by law to display your Business Registration Certificate at your location of business.