The Complete Guide to Business Incorporation in Hong Kong

Hong Kong is heaven for new businesses, but Hong Kong company incorporation can still be a tricky process. Read our step-by-step guide here.

Setting up a company in Hong Kong is an exciting time for all involved. For many, it’s a pivotal moment in their careers, but it can also be a complicated and troublesome task if done without thorough research and due diligence. Hong Kong is a haven for new businesses, but working out exactly what needs to be done isn’t always as straightforward as it sounds.

Since being founded in 1994, Premia TNC has offered a range of business services across the APAC region, including company formation, accounting, auditing, taxation, and more. We’ve overseen countless businesses to make their first moves into the Hong Kong market and grow into successful ventures. One thing they all have in common is a solid foundation and all their incorporation matters are sorted before getting ahead of themselves.

In this article, we’ve put together a step-by-step guide for you to follow before incorporating your new company in Hong Kong.

First things first: Why choose Hong Kong Company Incorporation?

Hong Kong has earned a reputation as one of the best places in the APAC region for doing business. Its premier strategic location has made it an ideal gateway into China, especially for foreign business owners, while local businesses also enjoy the potential of expansion into one of the world’s biggest markets. On top of this, with an independent legal system and low, simple, and competitive tax laws, Hong Kong is one of the most corruption-free, secure, and profitable cities to do business in the world.

A step-by-step guide for Hong Kong Company Incorporation:

1. Decide on your company name

In Hong Kong, you can choose to have either a Chinese or English company name. English names must end with “Limited”, while Chinese names must end with “有限公司”.

Regardless of which language you want to use, you will need to find a unique company name that is not being used elsewhere. An easy way to do this is to use the Company Registry’s Cyber Search Centre. Your company name can have a big impact on its future success, so be sure to spend some time thinking about a name that is memorable, iconic, and suits your business nature.

2. Register with the Company Registry

After deciding on your company name, the next step is registering your company with the Company Registry. You’ll need a filled-out application form, the Articles of Association document, and copies of all founder’s passports and ID cards. Once you have filed for your company name and received its approval, you can submit all the documentation and get your company incorporation certificate.

Note that when applying for company registration, you will automatically be making a business registration application at the same time.

3. Organise all necessary licensing

Certain businesses will need licenses, permits, certificates, and more from the government in order to start conducting business. It is at this stage that you should conduct thorough research and get all the licenses required.

For more information on the licenses required, browse the government’s Business License Information Service page, or get in touch with us at Premia TNC. We’ve had plenty of experience helping our clients get licenses for pharmaceutical products, radio transmitting equipment, and much more.

4. Open a bank account in HK

Before your company can properly operate as a business entity in Hong Kong, you’ll need to get a local bank account here. With banking requirements and regulations becoming increasingly stringent, opening a bank account for a newly formed company is not always an easy task in Hong Kong. The paperwork and time invested can be thwarted by the bank rejecting your application on the basis that they do not think they can make a positive return through your business.

One easy way of getting around this is to work with a company like us at Premia TNC, which can help with opening a bank account as part of our company secretarial services. We will use our business connections and deep understanding of the industry to help you open a bank account with significantly less effort on your end, allowing you to focus on actually getting your business off the ground.

5. Register a business address in HK

Registering a physical business address in Hong Kong is a great way to improve the credibility and authority of your new business. Unfortunately for many new companies, it is not always feasible to rent an office located in prime central business districts.

By working with a company that can provide you with a virtual office, you can effectively circumvent this problem and reap the benefits of physical office space.

6. Work out your tax obligations

Staying compliant with taxes is something that you should get sorted from the very beginning of your company at the formation stage. Hong Kong is known as a great place for business thanks to low tax rates, but you still need to pay tax on any profits your company makes in Hong Kong.

From the tax year of 2018/19 onwards, businesses are liable to pay 8.25% tax on profits of up to $2,000,000, and 16.5% on anything over. Get in touch with us to learn more about tax obligations in Hong Kong.

7. Hire your first employees

Once you’ve got your business certifications, you can start to hire your first employees and get your business rolling. Remember that any full-time employees are required to be enrolled in an MPF scheme.

8. Protect any of your company’s intellectual property

Lastly, once your company is incorporated, you should complete the steps necessary to ensure all intellectual property is protected. You’ll need to do this with the Government’s Intellectual Property Department, which is a separate entity from the Company Registry and Business Registry offices. Taking this step early on can prevent unnecessary complications in the future.

Hong Kong Company Incorporation with Premia TNC

With over 27 years of experience, Premia TNC has helped incorporate companies across Hong Kong, Singapore, Vietnam, Taiwan, Malaysia, and Korea. Our team of specialists has helped with all matters relating to the company formation process and can make the process seamless and flawless for everyone involved.

If you’re interested in working with us, reach out to us here.

Please do not hesitate to contact us for further information. We strive to assist you with regard to setting up a Company and opening a business bank account in Hong Kong as well as other free consulting with much less hassle.

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