The Legal Requirements to Incorporate A Company in Hong Kong!
If you are planning to start a global business, especially in Hong Kong, you may encounter many limitations that may seem impossible for you to go through.
But after researching the proper way and researching it, you can find one that you will know comes with many nasty comments.
Therefore, if you want to run a company in Hong Kong, many factors must be considered in terms of legal requirements and should be fulfilled.
We help you quickly set up an online company register in Hong Kong by excluding political reasons.
In this article, we will guide you about the legal requirements to incorporate a company in Hong Kong in detail, so keep on reading the informational blog.
Legal Requirements To Incorporate An Online Company Register
The limited liability companies come with limited liability for their owners, separate legal personality, strong public perception, and an enduring structure; the transfer of ownership and raising capital is in this regard as compared to other business organizations like partnerships and sole proprietorships.
Foreign business owners often opt for this entity as an offshore company in Hong Kong.
So how to incorporate a company in Hong Kong by fulfilling the legal requirements irrespective of whether local or foreign entrepreneurs?
You are strongly advised to hire the services of legal professionals to guide you in this regard.
Let’s have a look at these legal requirements.
1. Company Name
Before you plan to proceed with the incorporation of a company in Hong Kong, you must approve your company’s name to save yourself from any inconvenience.
2. Companies Ordinance
With the amendment act that is effective from 1 March 2018, every company created in Hong Kong except the names of those listed on the Hong Kong Stock Exchange is liable to create and maintain a list of all persons who have to play an essential role in the company.
3. Designated Representative
All companies in Hong Kong must appoint DR and are liable to report the SCR to the prescribed legal authorities upon demand.
4. Directors
In the incorporation of a company in Hong Kong, a minimum of one director and a limited number of directors are permitted.
A director of an unlimited company must belong to any nationality, be a natural person, and need not be a resident of Hong Kong.
The age of a director should not be less than 18 to be a director of the company should not be convicted for any malpractices, and must not be bankrupt.
There is no need for the directors to be shareholders, and the corporate directors nominated for the appointment of directors are essential in addition to the individual director.
Meetings for the board of directors can also be held worldwide.
5. Shareholders
It is essential for the incorporation of a private limited company that there should be a maximum of 50 shareholders, and the minimum number should be 1 in Hong Kong.
The shareholders and the directors can be different or the same individual, and there is no need for residency in the company. The shareholder belongs to any nationality and must be 18 years of age.
The shareholder can act as a company and person as well, as 100% local or foreign shareholding is permitted, and the appointment of the nominee shareholders is also allowed.
The meetings for the shareholders also have the same schedule as directors and can be held anywhere in the world.
6. Company Secretary
While planning to set up a company in Hong Kong, the appointment of a secretary is mandatory in a company.
Suppose the secretary is an individual and must be residing in Hong Kong.
If it is a body incorporated, it should have a registered office or place for the commencement of business in Hong Kong.
It is noticeable that the same individual cannot act as a company secretary in the case of a shareholder or sole director.
The responsibility of the secretary includes maintaining the statuary books and papers and documentation of the company, and he makes sure the company complies with all types of statutory legal requirements.
7. Share Capital
In incorporating the company in Hong Kong, starting with any amount of capital is legal as there is no requirement for the share capital amount.
The general nominee for the company’s incorporation in Hong Kong should have at least one shareholder with one regular share issued on any information.
Share capital used for the company can be expressed in any primary currency and is not limited to the dollars in Hong Kong.
Shares are completely transferrable without cost and are subject to the stamp free as the bearer shares are not allowed.
8. Registered Address
It is a must for the company in Hong Kong legally to have a registered address for running the specific business.
The registered address should not be a PO box and must be a physical address.
9. Public Information
As per company rules, the information about the company officers, shareholders, and the secretary is public.
10. Honk Kong Company Registry
The company officers must file the necessary information in the Hong Kong company registry office.
If you want to keep the information confidential, you have to appoint the nominee for the individual director and corporate shareholder by hiring the services of professional and skilled lawyers.
11. Taxation
The profit tax or corporate tax is set at 16.5% to reach the profits after setting up the company in Hong Kong.
As in Hong Kong, it follows the rules and regulations applied to the specific territory and is subject to the tax rules in Hong Kong.
In Hong Kong, there is no capital gains tax, and holding tax on dividends or GST prevails in Hong Kong.
12. Ongoing Compliance Accounts
To set up a company in Hong Kong, they must prepare and maintain the accounts as they must be calculated and checked annually by certified public accountants in Hong Kong.
In the inland revenue departments, the records for tax returns and audited accounts must be filed.
Each company is liable to file the tax records in the company registry office and should pay the annual registration fees.
13. Business Registration Certificate
It is a legal requirement for a company to get a business registration certificate and renew it once every three years.
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Frequently Asked Questions (FAQ)
I believe after going through this article you get a deep understanding of the topic.
Now here are some commonly asked questions that you might also have in your head.
So, let’s explore them.
Q1. What Are The Legal Requirements For a Company in Hong Kong?
It is a legal requirement for a company to have an identified name and should be limited.
If it is public and private, it should be privately limited on its end.
Q2. How Can I Incorporate a Business in Hong Kong?
- Choose the name and type of the company
- File application
- Collect certificates
- Get other certificates and documents
What Are The Steps For The Incorporation of The Company?
- Reservation of the company name
- Getting the digital signature certificate
- Application for the director identification number
- Writing the memorandum of the application
- Writing of articles of association
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Conclusion
So it is clear from the above facts that there are some legal requirements for an online company to register in Hong Kong to run their business smoothly and evenly.
However, the requirements for a company to run its business in Hong Kong are different in different areas and states, but the basic requirements are the same, without which it is impossible to go further.
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