Things You Should Know About Registering a Company in Hong Kong

Hong Kong is a vibrant economy- anyone hearing about the favourable conditions in the region will consider opening a company here. However, registering a business isn’t as easy as going to the registrar and filling a form. Here are some things that you should know before incorporating a company in Hong Kong.

Types of Companies in Hong Kong

These are the types of companies in Hong Kong:

Sole Proprietorship: A sole proprietorship is a one-person company. The owner is liable for all the debts and losses but will have the rights to every profit.

Partnership: A partnership is similar to a sole proprietorship in Hong Kong, however, instead of a single person, multiple partners run the company. The maximum number of partners in a Hong Kong partnership is 20.

Private Limited Company: The most common form of a private limited company is a company limited by shares. 

Representative Office: A representative office is an office of a foreign company established in Hong Kong for research purposes. A representative office can’t conduct business activities.

Which One Should You Go for?

You see, locals can open any kind of company they want. However, foreigners need to go for a private limited company.

Sole proprietorship and Partnership are for smaller firms. They don’t stand as separate legal entities but are the ‘ownership’ of the beneficiary, so the owner’s personal funds are not protected from that of the company.

A Private Limited Company is for SMEs and bigger businesses. They stand as separate legal entities. To Register a Company in Hong Kong, a foreigner should prove their business plan will have a significant impact on the development of the local economy, for example, creating job opportunities for locals. Things like that are only possible with a private limited company.

What are the Requirements for Opening a Company in Hong Kong?

Sole Proprietorship and Partnership don’t really have any special requirements. You should have the funds to run your company and take the necessary licenses. Of course, for every type of business in Hong Kong, you need to think of a unique company name which is different from other companies and isn’t vulgar or offensive.

For private limited companies, you need to fulfil these requirements:

●     There can be 1 to 50 shareholders of any nationality. They should be at least 18 years old. A corporate body can also be a shareholder.

●     The company should have a director who can be a shareholder. The director doesn’t necessarily need to be resident in Hong Kong. However, a company director in Hong Kong should also be at least 18 years old and in the case of foreigners, shouldn’t have had any criminal charges.

●     Every company should have a resident secretary or outsource secretarial services from another company registered in Hong Kong.

●     You need a registered address. It should be a physical address and not a PO Box Number.

●     Depending on the nature of your business, you need to apply for various licenses and permits. Be very careful regarding this, as not having necessary permits means you may have to face criminal charges in the future.

How to Register Hong Kong Company Easily?

Hire a Corporate Service Provider that offers Company Registration Hong Kong. They will incorporate your business for you, and also get you the necessary licenses.