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Hong Kong Incorporation

🇭🇰 Hong Kong Incorporation

Steps for  setting up your company.

Below are some  steps to take in order to establish a new company in Hong Kong.

1️⃣Determine Your Company Name

  • ✔️ The first and foremost Step steup new company in Hong Kong is of course the name of your company which could be in Chinese or English or both.
  • ✔️The first and foremost step in setting up a new company in Hong Kong is to select a name for your company, which can be in Chinese, English or both but it should not be in use or been used.

2️⃣Legal Entity For Your Business

  • ✔️ Determining the legal structure of the entity is the next step before registering company.
  • ✔️ The structure of the company which is according to the requirements entity.
  • ✔️ According to the structure of the entity the compliances and taxation policies are determined.

3️⃣Company Registration

  • ✔️ To set up a new business in Hong Kong, one need to register business with the Companies Registry
  • ✔️ It is the body responsible for the incorporation of company in Hong Kong.
  • ✔️ Most entrepreneurs choose to register and incorporate their companies as a limited company in Hong Kong because of the numerous advantages associated with it.
  • Limited companies are a separate legal entity and offer protection of personal assets from business risks.
  • Moreover, the process for transferring ownership and raising funds or capital is more straightforward for limited companies, compared to other business entities.

4️⃣Incorporate your Business Entity

  • ✔️ The process of incorporating a company in Hong Kong is relatively easy, the documents required for the same are
  • 1. A copy of the directors’ and shareholders’ identification documents
  • 2. Proof of address
  • 3. Signed Incorporation form by the authorizing persons.
  • To incorporate and register company,fees is applicable along with the above documents.

5️⃣Open a Company Bank Account

  • ✔️ The most pertinent thing you have to do is to open a corporate bank account in order to start funding your ventures.
  • ✔️ While the process for opening a personal bank account is quite straightforward, you will need to prepare more paperwork and documents to show to the bank to open a corporate bank account.
  • ✔️ Mentioned below are some of the documents you need to prepare before heading down to a traditional bank to open a corporate bank account.
  • Most of Hong Kong's banks require the registered address of the company as well as the contact information of the company and its business owners.
  • All documents required and specified in the bank’s application form including certification by either a company secretary, public accountant, banker or lawyer.
  • The incorporation documents of the company
  • A certified true copy of the company’s identification documents.
  • Proof of business such as audited financial statements or business plan.
  • Details of ultimate beneficial owners for nominee shareholders/stockholders of a company.
  • A certified true copy of the company’s Business Registration Certificate.

💡 Looking for something better suited for a new business?

  • ✔️ It's not always easy for young businesses to provide all the information banks require.
  • ✔️ So, built with startups and SMEs in mind, Neat Business offers a modern alternative to a bank account, which can be done fully online.
  • Documentation is straightforward: you need is a passport copy and Business Registration Certificate.
  • All other company documents are obtained directly from the companies registry by Neat, and do not have to be provided by the client.
  • Of course Neat conducts robust KYC and proper due diligence on all applicants (using an award-winning KYC process), but just because a company is new, doesn't mean they'll be turned away (as is the case with many banks in Hong Kong).

6️⃣ Get Permits and Licenses 📜

  • ✔️ The next step in setting up your business in Hong Kong is to obtain any permits and licenses your specific business entity may require.
  • ✔️ There are various types of permits and licenses that might apply to your business depending upon the nature of your services and products.
  • ✔️ In order to determine which permits and licenses best suits your business entity, check out the government websites and online license services.

7️⃣ Hong Kong Tax 💰

  • Hong Kong has a territorial tax regime.
  • In short, there is no profit tax enforced for companies conducting their business outside of Hong Kong.
  • Hong Kong has some of the lowest tax in Asia, and in the world.
  • In addition, there are numerous deductions from which your business will be able to benefit.
  • The current profits tax rate that is applied to businesses operating in Hong Kong is
  • 8.25% on the first HK$2 million of profits
  • 16.5% on everything thereafter
  • No capital gains tax

8️⃣ Pensions and Insurance Requirements 🧾

  • Before starting a new business in Hong Kong, you will also need to enroll your employees in an MPF scheme (Mandatory Provident Fund).
  • This is a requirement under the ordinance of Employees Compensation and guarantees that you have a proper policy in place to cover all the employees of your business entity.
  • In addition, you need to make sure that all the employees of your company that are working as part-time or full-time employees, are aged between 18-65.

9️⃣ Annual Filing Requirements 🔄

  • In order to maintain the success of your company, you are also required to follow all the rules and regulations regarding the annual filing for your company.
  • You also need to be aware of the deadlines that are administered by the Companies Registry.
  • The requirements that you need to follow during the annual filing of your business entity are as follows:
  • Under the Companies Ordinance (CO), you need to file an annual return each year
  • A tax return must be filed to the Inland Revenue Department (IRD) every year, together with audited accounts
  • The requirements for filing an annual report varies with the type of business structure, whether you are a Registered Non-Hong Kong Company or a Local Limited Company in Hong Kong.

🔟 Access Resources and Funds 💸

  • As a financial hub for many entrepreneurs, Hong Kong also offers grants to small business.
  • Are you seeking funds and resources for your startup in Hong Kong? In that case, below are some of the resources available in the Hong Kong market which can help you provide funds for your business entity.
  • Startup programmes such as HKTDC offer various services to startups from operational management to sales promotions.
  • For setting up a new business to expanding an existing startup, entrepreneurs can meet with InvestHK, a government organization which helps foreign entrepreneurs set up in Hong Kong.

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