Hong Kong’s popularity as a business destination is growing. That is unsurprising, as this city is among the world’s financial hubs. The reason for the city’s growth is loyal taxation, which makes company registration in Hong Kong surprisingly profitable. Let’s review the specifics of this process.
What Form of Company Registration Can You Use in Hong Kong?
In most cases, entrepreneurs prefer to register an LLC (a limited liability company). There are also partnerships and sole proprietorships. Remember that sole proprietorships do not have the status of a separate legal entity. LLCs registered in Hong Kong have their legal personality, which significantly facilitates the following actions:
- the ability to take on debt obligations on loans;
- acquisition of assets;
- entering into contracts;
- participation in litigation.
How to Register a New Company in Hong Kong?
This jurisdiction has a good reputation and business-friendly legislation. The registration procedure is quite simple, but it still requires some effort. To begin with, you should pay attention to the list of required documents. The main ones are as follows:
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Subscribe- a copy of the articles of association;
- a letter from the bank confirming your solvency;
- proof of legal address.
The registration procedure for non-resident companies is simplified as much as possible. Therefore, after you receive the documents, the entire process will take 7 business days or even less. However, this period may change depending on how complete and accurate are the documents you provide. Therefore, make sure to prepare them correctly and not forget anything. Despite all the advantages of Hong Kong for business development, the jurisdiction still has its own laws and bureaucratic system.
Taxes
No economy can exist without taxes, but it depends on the country how much and how often you pay them. A huge advantage of Hong Kong’s tax system is entrepreneurs’ ability to avoid paying fees until they start making a profit. However, businesses still must meet certain conditions. For example, you cannot enter into transactions with local companies. In general, when registering a company in Hong Kong, you will have to pay the following types of fees:
- initial tax, which is 0.1% of the authorized capital;
- general tax in the amount of 16.5%;
- a one-time government fee upon registration (HK$1,720);
- possibly, a tax on share capital.
What Are the Registration Requirements?
For registering a business in Hong Kong, you must meet specific conditions. They are few and not too strict, but they do exist. The following company components are important:
- A director. Their citizenship and place of residence do not matter. Registration does not even require the presence of the business owner in Hong Kong as well as opening of a bank account. You can complete the entire procedure remotely.
- An authorized capital, the amount of which is unlimited.
- A legal address of the company for correspondence.
- A secretary. They must be a resident.
Hong Kong is not in vain in the world rankings of the most favorable cities for doing business. Its laws provide opportunities for companies’ development and scaling. This approach creates an economic miracle that everyone can become a part of today.
