Hong Kong, with its strategic location and pro-business environment, attracts entrepreneurs and businesses from around the globe.

Setting up a company here offers numerous advantages, including easy access to mainland China, a pro-business climate and a straightforward registration process.

This guide will walk you through the steps necessary to establish your business in Hong Kong.

1. Select Your Business Structure

The first step in registering a company is to choose the appropriate business structure. The options available in Hong Kong include:

• Branch Office

• Sole Proprietorship

• Partnership

• Company Limited by Guarantee

• Company Limited by Shares (Private and Public)

Most businesses opt for a private limited company due to its favourable structure. This guide focuses on registering a private limited company.

2. Choose a Company Name

Your company name is crucial and must be unique. It can be in English, Chinese, or both, but mixing characters from both languages is not permitted. Conduct a name search through the Cyber Search Centre or the Company Search Mobile Service to ensure your chosen name is available.

Here are further guidelines from the Companies Registry.

3. Appoint Directors

You need at least 1 director to register a company. Directors can be natural persons or corporates, residents or non-residents of Hong Kong, and must be at least 18 years old.

4. Determine Shareholders

A private limited company must have at least one shareholder, with a maximum of 50. Shareholders can be individuals or corporates, and 100% foreign ownership is allowed. The sole director can also act as a shareholder.

5. Designate a Representative

A Designated Representative (DR) must be appointed to assist with the Significant Controllers Register (SCR). The DR can be an individual or a corporate entity.

6. Assign a Company Secretary

Every limited company in Hong Kong must have a company secretary who is a Hong Kong resident or a corporate with a registered office in Hong Kong. The sole director cannot also be the company secretary.

You can appoint blynq to be your Company Secretary. Our service also includes a Designated Significant Controllers Registers Officer.

7. Register a Local Address

Your company must have a registered local address in Hong Kong. P.O. boxes are not accepted; you need a valid physical address.

8. Determine Share Capital

The minimum share capital requirement is HKD 1.00 (ca. USD 0.13), and it can be in any major currency, not just the Hong Kong Dollar.

To register your company, you need to complete and submit the following documents:

• Incorporation Form (NNC1)

• A copy of the company’s Articles of Association

• Notice to the Business Registration Office (IRBR1)

• For foreigners: a copy of passport and proof of residential address

• For Hong Kong residents: a copy of HKID and proof of residential address

Submit these documents either electronically through the e-Registry or CR eFiling mobile application, or in hard copy at the Companies Registry.

Collect Certificates

Once your application is approved, you will receive a Certificate of Incorporation and a Business Registration Certificate.

Obtain Necessary Permits and Licenses

Depending on your business activities, you may need specific permits or licenses. Check the Licensing & Permits section of GovHK and the Business License Information Service for more details.

Open a Business Bank Account

Opening a business bank account is essential for your operations. Numerous local and international banks in Hong Kong offer various services to meet your needs.

For detailed information, refer to our article on opening a business bank account.

You can also outsource this process to blynq.

Understand Taxation

Hong Kong’s tax system is based on territorial principles, meaning only profits generated within Hong Kong are taxed.

For incorporated companies, the two-tiered profits tax regime applies a rate of 8.25% on the first HKD 2 million of profits and 16.5% on any amount above that.

There is no capital gains tax, dividend withholding tax, or VAT/GST.

Maintain Annual Compliance

To remain compliant, ensure you:

• Conduct an annual audit of accounts by a Hong Kong CPA

• File an annual return with the Companies Registry

• Renew your Business Registration Certificate annually or every three years

• Hold an Annual General Meeting (AGM) every financial year

While the registration process in Hong Kong is straightforward, the documentation can be complex.

Outsourcing to a registered agency can streamline the process, ensuring all documents are correctly prepared and submitted. This is especially useful for those who are overseas.

Agencies can also serve as your company secretary and provide a registered office address.

Wrapping up, selecting the right business structure in Hong Kong is crucial and can significantly impact your venture's trajectory.

It's a decision that shapes your financial liabilities, tax obligations, and operational flexibilities.

At blynq, we specialise in simplifying this process for you.

Our team is here to provide tailored advice, ensuring your business structure aligns seamlessly with your goals.

Whether you're just starting out or scaling up, we're here to support you every step of the way. Don't hesitate to reach out – let’s start your success story in Hong Kong!