If You’re a Foreigner Registering a Company in Hong Kong, Take These Things Into Consideration
You might have a lot of questions being a foreigner thinking of registering a business in Hong Kong. Good news is that it is really simple for a foreigner to set up a company in Hong Kong, especially when there are multiple company registration services in the state which could help take you through the entire process of the business incorporation. Anyway, there are some things you should know if you are a foreigner registering a company in Hong Kong, and we point that out.
You have two options as a foreigner starting a business in Hong Kong. They are:
“A foreign company”, or rather a foreign office. A foreign company in Hong Kong usually means a subsidiary of an international company. You have the option of opening a foreign company in Hong Kong if you already have a registered business in some other country and you just want to run a business in the state.
Private Limited Company
Another option for you is to open a private limited company in Hong Kong. Note that you don’t have the option of a sole proprietorship or a partnership. Also, don’t forget that even if the description might be somehow confusing, the foreign company should also be registered as a private limited business firm. Here are the things you should know before registering a private limited company in Hong Kong.
At least one director is needed in a Hong Kong limited company. The director can be a Hong Kong resident or a non-resident but should have a good moral character and shouldn’t be bankrupt. So, you are free to become a director if you want and another requirement for you is to be at least 18 years old. There is no limited to the maximum number of directors.
You need at least one shareholder in the company. The shareholding can be 100% foreign, no instruction says otherwise, and the good thing is that the director themselves can be the shareholder. Also, the shareholders can be from any place in the world, and company shareholding is also allowed. The share amount isn’t specified, but as a rule of thumb, the minimum amount is about 1,000 Hong Kong Dollars.
You need to appoint an office secretary and this time; the secretary should be living in Hong Kong. Otherwise, you can also decide to get help from secretary services in Hong Kong but remember that the secretary outsourcing company that you decide to work with is based on the city as well.
The very favourable tax regime is one of the reasons for foreigners registering a company in Hong Kong. The corporate tax rate in Hong Kong is 8.25% for the first HKD 2 million and 16.5% after that, charged from income derived in the state. There is no capital gains tax and GST/VAT.
You will need a registered address in Hong Kong for your company. This address must be a physical address and cannot be a PO Box address. Getting a designated address is the reason many foreigners want to come at least once in Hong Kong before starting a business. This is still the case even if they are not planning to stay here.
You need to propose a company name. As a certified company registration support in Hong Kong, we recommend our clients to think of some alternative names for their company with preference. The company names shouldn’t be too similar to other companies.
Foreigner Registering a Company In Hong Kong: The Documents You Need
First things first, you need every documentation that proves your compliance with the above requirements of opening a company in Hong Kong. You need to propose a name for your company. Next, write an application with a brief introduction of the type of business you want to conduct. You also need to prepare public information, which basically is a profile about the company’s directors, shareholders and secretary and is to be provided to the registrar of companies. But don’t worry, if you want, this information can be kept confidential, only between you and the registrar.
As you are a foreigner registering a company in Hong Kong, you need a copy of your passport and residential address. Other documents are subject to the type of business you want to do in Hong Kong. You can contact us for more information.
Hong Kong Business Visa
One of the most asked questions by a foreigner registering a company in Hong Kong is the visa. For foreigners starting a business in Hong Kong have a privilege of a special visa scheme, the Entry for Investment. The requirements are easy, you’ll get this visa as long as your business idea is viable. You can also show the investment proof such that you have enough money to fund your business. The permit is first issued for a year and is subject to be extended if your company continues making income. You can invite your spouse or family to Hong Kong with this visa and can later apply for a permanent residence.
Of course, you need business licenses and permits to run a business in Hong Kong. This depends on the nature of your business. In any case, talk to a legal party about what you might need to keep yourself off troubles in the coming days.
Are you a foreigner registering a company in Hong Kong? Looking for help? Now that you know what you need for starting a business in Hong Kong as a foreigner, you can contact us for further assistance with your Hong Kong company registration.