Company in Hong Kong
1. What types of companies are there in Hong Kong?
The most common type of company in Hong Kong is the private company limited by shares. But there are also other possible ways, although less used, by companies with foreign shareholders. Check out this post we published on our blog, addressing this topic : https://www.brasia.hk/post/abrir-uma-empresa-em-hong-kong-ou-na-china
2. How long does it take to register a company in Hong Kong?
Up to 7 days normally. But you should also consider the time of making important decisions about the company and preparing and sending documents to Hong Kong, a step that usually takes some time.
3. Do I need to travel to Hong Kong to start my business?
It is not necessary. Brasia can do the registration for you .
4. Do I need to travel to Hong Kong to open a business bank account?
Yes, conventional banks in Hong Kong ask key people in the company to visit the bank and have an interview. However, there are currency operators in Hong Kong, focused on startups and small businesses, that offer multi-currency virtual accounts with a 100% online opening process.
5. What is the requirement regarding the corporate structure of a Hong Kong company?
The company must have at least 1 shareholder, which can be an individual or legal entity, must have at least 1 individual director, must have a corporate secretary and a registered address in Hong Kong. Brasia offers corporate secretary and address of record services as well as business use.
6. Is the company director required to be a local or resident of Hong Kong?
It is not necessary. A foreigner or resident of another country can be appointed as a director of the company. However, it is necessary to note that this director will from time to time need to sign important company documents and send them to Hong Kong.
7. What is the minimum capital required to register a company in Hong Kong?
The minimum capital for registration in Hong Kong of a company limited by shares is HKD 1.00. Registered capital can be increased after incorporation of the company, however, the change may be subject to additional costs and stamp duty . It is necessary to take into account the resources needed for the company's records and maintenance, until its operation has sufficient revenue to cover local costs.
8. Does the company in Hong Kong need to have its own office or is it possible to use a shared address?
It is possible to use a shared office for company registration. This is a common practice in Hong Kong. Normally, service providers that offer this type of “hosting”, provide a local telephone line, exclusive to your company, and forward all incoming correspondence. In this way, you can conduct the operation remotely. Brasia offers shared address and, when necessary, coworking stations for local teams.
9. Are Hong Kong companies taxed?
Yes. Hong Kong applies a tax of 8.25% on the first HKD 2 million of corporate net income and 16.5% on the remaining net income. In many cases, it is possible to obtain an exemption from this tax, depending on the company's activities and the way these activities are controlled. In addition, there is no import or export tax on most products, and there is no tax on dividend payments or capital gains.
10. Does a company in Hong Kong need to carry out accounting?
Yes, a Hong Kong company needs to keep an accounting record of all its movements, with supporting documents, and prepare the annual income tax return. In addition, accounting records need to be audited annually. Brasia offers all accounting, auditing and annual reporting services to keep your company in Hong Kong up to date. We also offer customized reports for balance sheet consolidation.
11. What is the Hong Kong fiscal year?
The Hong Kong government follows a fiscal period from April 1st to March 31st, but your company is free to choose the period that best fits your schedule. Many companies opt for the period from January 1st to December 31st.
12. Is the information of directors, shareholders and controllers of the Hong Kong company public?
Yes. In Hong Kong, through paid consultation with the government, anyone has access to information on who the directors and shareholders of a company are. In addition, companies are required to maintain an internal record of their controllers and beneficiaries, which is available for verification by the Hong Kong government if required.
13. Can a Hong Kong company export products from mainland China?
No, a Hong Kong company is not considered a Chinese company. Exports from China always rely on a mainland Chinese company with an export license to export the country's products. The Hong Kong company can purchase products from a Chinese exporter and export the goods to the international market.
14. What should I consider when deciding whether to open a company in Hong Kong or mainland China?
The decision on the location of the company will depend on the scope of its activities. Check out this material that we published on our blog with some tips: https://www.brasia.hk/post/abrir-uma-empresa-em-hong-kong-ou-na-china
CONTACT
We are available to discuss with you about your project with our foreign consultants in Asia.
Send your contact to info@brasia.hk or get in touch using our form. We look forward to hearing from you!