BB.lv: Company Registration in Hong Kong

Hong Kong Company Registration: Benefits

Hong Kong is renowned for its advanced infrastructure, including high-tech telecommunications, reliable transportation networks, and well-equipped port infrastructure. The government adheres to a policy of free trade and low taxes, creating a favorable environment for doing business.

Opening a company in Hong Kong gives access to a large pool of highly qualified specialists. In addition to these advantages, registering a company in Hong Kong as a non-resident can be beneficial for the following reasons:

• Possibility to open bank accounts in international banks.
• Access to Hong Kong’s developed stock market.
• Ease of hiring foreign employees.
• Preferential taxation.

Open a company in Hong Kong

The Companies Ordinance is the fundamental document concerning the regulation of business activities in Hong Kong. The Companies Ordinance covers a wide range of issues:

• The process of setting up a company in Hong Kong.
• Company management.
• Accounting, preparation of financial statements.
• Procedures for the transfer of shares, changes in the composition of founders.
• Liquidation of companies in Hong Kong.

Steps to set up a company in Hong Kong:

1. Determine the legal structure.
2. Review and submit multiple business names for approval.
3. Prepare a package of constituent documents.
4. Submit documents and application to the Registration Chamber, having paid the fees.

Once the regulator approves the application, you can proceed to the next steps – registration with the Tax Bureau, opening an account in Hong Kong, obtaining the necessary licenses.

Hong Kong Company Forms

Different business needs and strategies require different types of organization. One of the most common is a private limited liability company (LTD). It is an optimal form for small and medium-sized businesses due to such advantages as limited liability of shareholders and management flexibility. An LTD in Hong Kong can be registered by one founder. The structure must appoint one director.

It is also possible to register a company in Hong Kong as a public limited company (PLC), which can raise capital by publicly offering shares on the stock exchange. The PLC structure in Hong Kong must have at least 1 shareholder and 3 directors.

It is possible to establish a Hong Kong Unlimited Company, where shareholders are jointly and severally liable for the company’s debts. In the context of non-profit organizations, the Company Limited by Guarantee is available, which is used mainly for charitable and social purposes. Foreign organizations can open a branch in Hong Kong or explore the market potential and conditions by registering a representative office.

It is possible to limit liability for business debts by forming a partnership in Hong Kong. There are two main types of partnerships: Limited Partnership (LP) and Limited Liability Partnership (LLP). LPs have both general partners who are responsible for the management of the business and have unlimited liability for its obligations, and limited partners who contribute capital but whose liability is limited to the amount of their contribution. An LLP, on the other hand, allows partners to participate in the management of the business without being personally liable for the partnership’s obligations, except in cases of professional negligence or misconduct.

Hong Kong Company Registration in High-Tech Industries

The IT industry in Hong Kong is thriving due to the integration of digital technologies into various aspects of business and everyday life. Innovative developments in artificial intelligence and big data are helping to transform traditional business models. Launching an IT startup in Hong Kong is popular among both aspiring entrepreneurs and international tech companies, who see Hong Kong as a strategic hub for expanding their operations in Asia.

Hong Kong is known for its strong financial sector. With a progressive regulatory environment and access to international capital markets, launching a fintech startup in Hong Kong can be successful. Innovative solutions in the field of blockchain, mobile payments and digital currencies are widely welcomed here.

Hong Kong has emerged as an important regional crypto hub. In 2023, Hong Kong Crypto Regulation was introduced, requiring all crypto service providers to obtain a Hong Kong crypto license.

The green technology and renewable energy sector is becoming increasingly important as the global community strives for sustainable development. The development of energy saving technologies, increasing energy efficiency and using alternative energy sources may be promising.

Taxes in Hong Kong

Hong Kong’s tax system is characterized by low tax rates compared to other developed business centers:

• Income tax from 8.25% to 16.5% (depending on the company’s annual profit).
• No VAT or capital gains tax (in most cases).

Income from foreign sources is taxed at a rate of 0%. TK Deal business consultants can provide detailed information on all legal and administrative aspects of starting a business in this jurisdiction and provide full support in registering a company in Hong Kong.