A Step-By-Step Guide To Incorporating Your Business In Hong Kong
Company formation in Hong Kong has always been a target of many aspiring entrepreneurs since Hong Kong is a thriving entrepreneurial hub. According to the statistics provided by the Hong Kong companies registry, promising growth in company registration in Hong Kong is observed. That is a total of 58,803 companies registered within the first half of 2022 – more than half of the total business registered in 2020.
With business registration being a fast, cheap, simple, and convenient process, it is no wonder that many aspiring entrepreneurs see Hong Kong as a haven to start their businesses. Furthermore, Hong Kong gives incorporated businesses a chance to tap into the 1.3 billion people market in Mainland China and is an opportunity given even to foreigners residing outside of Hong Kong. We have to put together a company registration guide for any aspiring entrepreneurs tempted to start a business in Hong Kong.
Documents required for company registration in Hong Kong
Article of association
The article of association is a form that includes the regulations for the daily operation of a Hong Kong company. It should specify the company objectives, the roles, the process of appointing directors, share capital, shareholder meetings, and the company organization.
A duly filled company registration form from the Hong Kong company registry
For a quicker and smoother application process, companies must understand the requirement when filling up the application. Any mistake made or lack of information will result in a delay in approval, eventually costing entrepreneurs more time and money. Here are the details required when filling up the application to incorporate your business in Hong Kong.
- Company’s Name: –
- The company name can be registered under an English or Mandarin name. However, it cannot be registered with a combination of both languages
- Names in English should end with “limited”
- Names in Mandarin should be in traditional Chinese characters found in the Kang Xi dictionary or Ci Hai dictionary. Additionally, names in Mandarin should end with a word equivalent to “limited”
- Company Registered Address: –
- Must be a locally registered physical address
- A P.O box address is not permitted
- Details of key personnel in the company including directors, secretaries, and shareholders
- Do note that the director and secretary cannot be the same individual
- Non-resident directors or secretaries should provide copies of their passports and proof of residency in their country of residence
- Local directors and secretaries should provide copies of their identity cards
- Requirements for a director:
- At least one local or foreign director is required
- Above the age of 18 years old
- A director can serve as both a director and a shareholder
- Requirements for a secretary:
- Must be a Hong Kong resident
- Above the age of 18 years old
- The Share Capital
- No minimum share capital is required in Hong Kong
- However, typically an HKD 10,000 share capital is followed, where 10,000 ordinary shares are represented – HKD 1.00 each.
- The minimum paid-up capital in Hong Kong for one share is HKD 1.00
- Descriptions of the Company’s Activities
- Liabilities of a Company Director
Comparison of registering individually or with an agency
With all documents prepared and ready to be submitted, it is time for entrepreneurs to select the most suitable way to submit the documents. In Hong Kong, in particular, the usage of an agency to register a company is a preferred method rather than registering personally.
|With an agency
|Entrepreneurs have to personally handle a long list of documents with the risk of missing important information or filling inaccurate information
|More experience and less likely to fill up wrong information. This would lead to a quicker registration process.
|In-person company registration
|For foreign entrepreneurs, you would need to fly all the way to Hong Kong which is expensive and complex.
|By using an agency, foreign entrepreneurs need not be in Hong Kong. Instead, all documents required can be sent digitally to the agency.
|Hard to find a company secretary. Would have to undergo the interview process to shortlist the most suitable candidate.
|Ability to fill up roles that are difficult for small entrepreneurs to fill. Companies are ensured that the secretary services provided by the agency are professional and well-trained.
|Individuals are forced to find a physical office and pay rent just to have a physical Hong Kong address.
|Ability to use the agency’s address
Choose PikoHANA as your agency for cost-effective company incorporation in Hong Kong
If you’re an aspiring entrepreneur that wants to register your company in Hong Kong and avoid the daunting process, then PikoHANA can use our expertise in the field to help fasten the process.
With our founder, Matt Foley, having more than 20 years of experience across different regions including Hong Kong, Singapore, and the US, PikoHANA ensures the highest level of quality service to make your entrepreneurial experience more pleasant.
Find out more about company registration in Hong Kong here today!