Company Formation Guide for Foreigners
As we all know, Hong Kong is one of the major financial hubs in the globe, drawing many foreigners who wish to establish businesses there. However, some people may find the process involved in forming a company to be complicated and cumbersome. You can use this comprehensive guide to get a sense of how simple and convenient it is to incorporate a business in Hong Kong.
Online Application is available
The government of Hong Kong has developed the e-Registry online system to make the process of registering a company considerably simpler and more effective. This helps those interested in incorporating businesses in Hong Kong save time and effort because the registration process can be completed in one working day only. Foreigners wishing to use the e-Registry system must present their passport in person to the Companies Registry office, or hire a Hong Kong Practicing CPA (Certified Public Accountant) or Chartered Secretary recognized by the HKICS (Hong Kong Institute of Chartered Secretaries) to certify their passport copy. As a result, it is strongly advised that you hire a TCSP (Trust or Company Service Provider) licensed agent to handle the entire process for you.
Number of Directors & Shareholders
The Hong Kong government simply requires your company to have a minimum of one director and one shareholder with a maximum limit of 50 shareholders, as well as a company secretary, to register a corporation. It is possible for the single director and shareholder to be the same person. Furthermore, there are no restrictions on the nationality of directors; however, most licensed agents will not accept applications from UN-sanctioned nations unless the customer meets their KYC (Know Your Customer) and AML (Anti-Money Laundering) checking standards.
Minimum Share Capital
A Hong Kong limited corporation must issue at least one share. While the par value principle is no longer in operation, the normal value of each share is $1. To make things easier, agencies would normally recommend 10,000 shares with a share capital of $10,000.
Do I need a Company Secretary (TCSP lincesee?)
Furthermore, the law bans the only director from simultaneously acting as the company secretary; while founding a company in Hong Kong, the law requires corporations to hire a company secretary in accordance with Section 474 of the Hong Kong corporations Ordinance. A company secretary is more than just an administrative function; it is a role that provides significant support to your company to ensure that it runs smoothly even if you do not have a physical presence in Hong Kong. A company secretary must be a Hong Kong resident or a body corporate with a registered office in Hong Kong, in addition to being a qualified TCSP.
How to get a Business Registered Address in Hong Kong?
In addition to naming a company secretary, having a local registered address for your company is a legal need. Hong Kong is regarded for having one of the world’s most expensive home markets, as well as business locations that are priceless. Foreigners who wish to establish new businesses in Hong Kong but cannot afford to rent a physical address can employ a licensed TCSP agency for a low-cost virtual address. When it comes to suggesting a company name, it might be in either English or Chinese, or both. Remember that if your company’s name is in English, it must conclude with the phrase “limited” After you’ve offered potential names for your company, tell your TCSP agency so they can double-check the availability of those names.
What documents would I receive after the company is registered?
Once your company has been successfully incorporated, you will receive the following documents from your agency: a NNC1 form, also known as an Incorporation Form (Company Limited by Shares), a Certificate of Incorporation, a Business Registration Certificate, and a copy of the Articles of Association. The documents stated above can all be needed to open a business account at any local bank, as such records are normally required to go through background checks.
Offshore 0% Tax Status?
As previously said, many foreigners enjoy forming their firms in Hong Kong because we have a 0% tax policy as long as their businesses attain offshore status. Furthermore, there is no income tax, withholding tax, sales tax, Capital Gain Tax, or Value Added Tax (VAT). To be eligible for offshore tax exemption with the IRD (Inland Revenue Department), the company must not have operations, customers, suppliers, or employees in Hong Kong. Furthermore, the company must submit an audited financial statement prepared by HKCPA in order to claim tax exemption.
Why CheapIncorp.com?
Before you choose which agency to hire, make sure the company is licensed to offer company formation, company secretary and registered address service, you may browse the Companies Registry official website which allows you to look up company’s name and their license number. Moreover, it is also important to compare prices with different companies because some will offer an over-priced full package service and claim that you can make unlimited changes to your company anytime. In most cases, small and medium enterprises do not need to make changes throughout the year so be extra careful to avoid such agencies using deceitful tactics. At Cheap Incorporation, we are a honest and reliable firm that adheres to business ethics and remains professional at all times; which means every item listed on our website is as true as it is and no hidden fees will be charged. Our company has a 4.8 star based on over 3,000 reviews with a 91% customer recommendation as we have served over 10,000 customers worldwide.
How to start the incorporation process?
Cheap Incorporation offers an effective, trouble-free, and professional company formation solution exclusively for you. All we need is a suggested company name, a copy of your passport, and a copy of your most recent residence address verification from you. Only a copy of your passport will be accepted by the Hong Kong government; no foreign ID or driver’s license will be accepted. Once you submit the necessary paperwork and information, we will handle everything for you and inform you once your company has been properly incorporated. We also make sure that our payment method is favourable; after you place an order with us, we will email you a payment link via PayPal or a bank wire invoice so that you can remit the applicable fees. We will give you the necessary documentation for approval once we have received your money. Come register your company with us now at info@cheapincorp.com and we will be more than happy to answer and questions or concerns you have for us!