In this article we show steps to open company in Hong Kong.
Hong Kong is one of the top liberal economies in the world and an offshore center. Opening a limited company is cheap and fast. There are services who offer registered addresses at their office for a small annual fee, so you don’t have to live there. If you apply for offshore status you pay no taxes on worldwide income. Income generated from Hong Kong is taxed 16.5%. If your company for example sell goods to Europe or U.S. you won’t pay any taxes, since income is generated outside of Hong Kong. Even though Hong Kong is a province of the People’s Republic of China, it has its own legal system
However, salaries are taxable, since your company will pay salary to you as a private person. Registered capital in Hong Kong is only 10k HKD. Owner can do business from anywhere in the world. There are agencies which provide secretary and a business address in Hong Kong for 5-6k HKD. They can provide such a low fee, as they do this for many different companies. After you setup company you will be able to open multi-currency business bank account, or if you want you can open account for your company in different offshore jurisdiction, like Singapore.
Hong Kong has great logistical connections to mainland China, so if you want to do business in China, it is great gateway. To open offshore company, your best bet is to hire agency, which will do this for around 2-3k HKD, otherwise it is too much paperwork and bureaucracy.
If you plan to live outside of Hong Kong, you can only open a Limited Company. It is required that you have an office and a secretary in Hong Kong. If you want to open company without traveling to Hong Kong you can do so by e-registration. You will get all documents at your home address and then you send back signed copies.
Documents needed for registration:
Copy of passport
Proof of your residence
Names of the director and shareholders, unless you plan to open company alone
Business plan, which doesn’t need to be too detailed
That’s it, the process of opening company should take around 5 working days and around 11k HKD fees, or less.
From the second year on, you will pay approximately 6k HKD fees to maintain the company. Renewing the business certificate is simple as your agency will handle all the paperwork and send the new business certificate to you. After 18 months of incorporation and every April, agency will fill a profit tax return. Agencies also offer accounting and auditing services for a fee, which increase with number of invoices. Although fee increases you pay less per invoice as you grow your business.
To open the bank account, your agency will apply for it on your behalf, but you will have to go the bank either alone, or accompanied with employee from the agency, so it makes the whole process easier and faster. You will need to deposit 10k HKD, which will represent the registered capital. Finally, if visiting Hong Kong is not an option for you, you can always open an offshore bank account.