Step by step guide to incorporate Hong Kong company
Before the start of the engagement to incorporate Hong Kong company, it is important for our international clients to know what to expect throughout the engagements. In this way, our clients are able to better plan for travel, signing of business contracts and issuing of sales invoices.
- Our team of experts will recommend the most suitable business entity depending on our international clients’ business goals and activities. The most common option is to incorporate a Hong Kong offshore company using our legal registered address. With this option, our international clients are able to conduct business using a Hong Kong company and enjoy tax exemptions for overseas profit. Our team will communicate closely with our clients to determine the optimum paid up share capital, corporate structure and whether there is a need to apply for any licenses.
- Tetra Consultants will assist our international clients to reserve the preferred company name. Tetra Consultants will provide our international clients a local registered address and company secretary. Our legal team will also draft articles of incorporation, business plan and other required incorporation documents for our clients’ review. Once confirmed, we will submit the same to Hong Kong Companies Registry to incorporate Hong Kong company.
- On average, the company registration will be completed within 1 week after receiving all required KYC documents. Once the company is registered, Tetra Consultants will courier the Certificate of Incorporation, Memorandum & Articles of Association, Register of Directors and Register of Shareholders to our clients’ preferred addresses.
- Thereafter, Tetra Consultants will immediately proceed to open a corporate bank account for the newly-established company. There will be 2 options for our clients to choose from. Firstly, you can choose to open a corporate bank account with a reputable Hong Kong bank such as Citibank or HSBC. These banks are world-class institutions with excellent internet banking facilities. However, Hong Kong banks will require our clients to travel to Hong Kong to sign the account opening forms. Our banking team will accompany our clients to the bank meetings to ensure a seamless and swift account opening process.
- Alternatively, Tetra Consultants can provide our clients non-travel corporate banking solutions. We will contact global banks to board your newly-established Hong Kong companies. In most cases, Tetra Consultants secure banking solutions in Switzerland, Singapore and other offshore-friendly banks for our international clients. From our experience, the recommendation is to contact both local and overseas banks to ensure minimal time delay in this part of the engagement. This is due to the increasing scrutiny of the bank’s on-boarding team and compliance team.
- On average, the corporate bank account will be opened within 4 weeks after company incorporation. Tetra Consultants will courier the internet banking token and access codes to our clients’ preferred addresses. See this webpage to find out more about corporate bank account opening for Hong Kong companies.
- Contact us to find out more about how to set up business in Hong Kong. Our team of experts will revert within the next 24 hours.
FAQ
Why should I form a company in Hong Kong?
- Forming a business in Hong Kong is a straightforward process as the jurisdiction is considered to be one of the easiest to incorporate in along with providing numerous benefits like a business-friendly tax system for foreign investors which allows maximizing profits, no VAT, import, property tax, and no tax on dividends & interest.
- Additionally, there is easy business set-up and transparency compliance, a trustworthy political environment and a strong, stable economy, world-class infrastructure, and a good supply of high-quality manpower.
What are the different business structures available in Hong Kong?
- In Hong Kong, the most popular business structures are limited liability company (LLC), Branch office & Representative office.
What are the minimum requirements for setting up a Hong Kong LLC?
- Limited liability company is the most preferred type of structure by the foreign investors which can be formed with the minimum requirement of a director of any nationality, a shareholder of any nationality, a local registered office, a company secretary along with the benefit of no minimum capital requirement.
How much does it cost to open a company in Hong Kong?
- Depending on the services you need from Tetra Consultants, the total engagement fee will differ. Our services include planning and strategizing with your company, assisting you in the incorporation process, ensuring that you are compliant, and more. This total fee includes the registration fee charged by the Hong Kong government.
Can foreigners open a company in Hong Kong?
- Yes, Hong Kong allows 100% foreign ownership of the company.
Can a foreigner be the director of the company?
- A foreigner has absolute freedom to serve as an individual director and shareholder of a company in Hong Kong. There is no necessity for a local inhabitant to do so.
Is there any requirement for a local registered address for a company to be set up in Hong Kong?
- Yes, it is compulsory for a Hong Kong-registered company irrespective of whether offshore to secure a local physical address that is not a PO box or virtual office.
How do I set up a sole proprietorship in Hong Kong?
- The two-step registration procedure involves – selecting an appropriate business name and registering the business with the Inland revenue department’s Business Registration Office and obtaining a registration certificate.
