Hong Kong history has led it into the paths of unique self-autonomy that make it operate with relative independence from mainland China. Even after China fully regained Hong Kong from Britain in 1997, the freedom to operate as a separate entity remains.
For investors, nothing can be compared to Hong Kong because of its sound banking system, political stability, and straightforward tax system. Besides, it is the gateway to the mainland China and the entire Far East that provides an enthralling market or source of industrial products for companies. To enjoy these benefits, you must do first things first; incorporate a company in Hong Kong. In this post, we provide you with a complete guide to incorporating a company in Hong Kong.
The shift to limited Liability Company
In the past, people who wanted to run businesses in Hong Kong were required to open sole trader companies. This form of a company did not require the holder to have a resident permit. However, this has changed over time as Hong Kong shifted to Limited Liability Company as the preferred unit of running a business. A limited liability company is easy to form and has a wider operational jurisdiction.
Required documentation for company incorporation in Hong Kong
The company incorporation takes place in the company registry and is enshrined in the company ordinances. Under the law, you will be required to have the following documents and presenting them to the registration office.
- Copies of the shareholders’ passports
- Name suggestion for your company
- Proof of residence
- Details of a Hong Kong resident secretary
- Company offices in Hong Kong
Once all the required documentation is done and details submitted to the office of company registration, you will have to wait for approximately two weeks. Remember that the registration office could contact you to check for further information, clarification, or omissions. Remember that even after the registration is over, you will need one more step before starting to operate; opening a bank account.
For many people, the process of registering a company can be overwhelming because of the paperwork and procedures. However, this should not bother you because it is possible to register a company using an agency without having to travel to Hong Kong.
Registering a company using an agency
Agencies are professional establishments with professional, technical, and huge experience on incorporating businesses. Because they have been in the system for some time, they understand every requirement and can assist clients to make appropriate adjustments if the need for registration shifts.
Note that the process of registering the company will be almost similar to an individual travelling to Hong Kong and following it on his own. You will need to first identify the agency of choice, send all the documentations, and required fees.
Agencies are very useful because they help companies to get expert company secretary services and operational offices. For companies that will not be very busy, an investor may opt to share the secretary services in order to keep the costs as low as possible. Other services that agencies can provide include filing and bookkeeping. After the incorporation of the company, you should expect the following; certificate of incorporation, certificate of share ownership, articles of association, and business registration certificate.