Brief Introduction to the Overall Situation of Hong Kong Company Registration:

Hong Kong has a total area of about 1,075 square kilometres and a population of around 8 million. It comprises Hong Kong Island, the Kowloon Peninsula and the New Territories. Hong Kong is an information-rich international metropolis and one of the world's freest ports for commerce and trade. Coupled with its sound infrastructure and well-established legal system, it offers entrepreneurs and businesspeople a uniquely favourable business environment. As a result, more and more businesspeople choose to register companies in Hong Kong, build international structures and create international brands. This not only helps enhance the company's image and strengthen its competitiveness, but also helps expand into international markets and create greater profit potential. To help businesspeople from different countries quickly understand Hong Kong company registration and subsequent follow-up matters, the editor has prepared the following concise explanation for reference:

Hong Kong Company Registration and Follow-up Matters

1. Concept of Hong Kong Company Registration

A Hong Kong company refers to a limited company or unlimited company registered within the Hong Kong Special Administrative Region. Generally speaking, a limited company registered in Hong Kong by overseas persons is an entity company, which may operate locally as an “onshore company” rather than an offshore company or shell company.

2. Hong Kong Company Name

Hong Kong company naming is relatively flexible. Regardless of the amount of registered capital, the government allows company names to include words such as “International”, “Group”, “Holdings”, “Industrial”, “Publishing”, “Logistics”, “Construction”, “Tourism”, “Finance”, “Healthcare”, “Foundation”, “Association”, etc. Place names you like may also be added before the company name, such as “France”, “the United States”, “Shanghai”, etc.
A Hong Kong company may register with both a Chinese and an English name, or choose only one language. The Chinese name ends with “有限公司”, and the English name ends with “LIMITED”. To avoid duplicate names, a company name search is required before registration.

3. Registered Capital for Hong Kong Company Registration

The customary registered capital for a limited company is HKD 10,000. The amount of registered capital determines the scope of liability borne by the shareholders. Shareholders may decide the registered capital according to the actual needs of the company. If the company plans to invest in Mainland China, the actual registered capital will still be subject to the relevant rules of the Chinese government.

4. Shareholders and Directors of a Hong Kong Registered Company

To set up a Hong Kong company, one or more shareholders and directors are required. Shareholders may be corporate entities or individuals; individuals must be at least 18 years old (Mainland Chinese citizens or overseas persons holding a valid passport or identity document are both acceptable).
Before registering a Hong Kong company, shareholders, directors and the chairman of the board must first be confirmed, and the shareholding proportions of each shareholder arranged.

5. Company Secretary and Registered Address for a Hong Kong Registered Company

A company registered in Hong Kong is a local entity company (not an offshore shell company). Government regulations require a limited company to have a lawful registered office address and appoint a qualified company secretary. The company secretary may be a Hong Kong resident individual or corporate body; if needed, our company can provide assistance.

6. Business Scope of Hong Kong Company Registration

In principle, there are no major restrictions on the business scope of a Hong Kong company. A company registered in Hong Kong may engage in different industries or sectors. When applying for a Business Registration Certificate, business owners may decide whether to define the business scope:

• Undefined business scope: more suitable for enterprises engaged in diversified business

• Defined business scope: more suitable for enterprises with a stronger degree of specialisation

7. Information Required for Hong Kong Company Registration

Usually required: company name, shareholder and director details (copies of identity card or passport), shareholding allocation among shareholders, submission of a business engagement letter, and signing of statutory documents (signed in person).

8. Procedure for Registering a Hong Kong Company

After filling in/signing the registration documents and submitting them for processing, the general procedure is as follows:
Complete the Hong Kong company authorisation letter → (or sign the company registration agreement) → make payment → arrange in-person signing of statutory documents → submit immediately to the Hong Kong Government for processing → prepare the green box after issuance of certificates → complete in 8–10 working days → handover/file.

Additional information:

• Purchase a ready-made Hong Kong company: about 3–5 working days

• Branch company: about 2–4 working days

• Online submission for registration: about 3–5 working days

Remarks:
A. If a business scope is added, the processing time will increase by 1–2 working days; if the business scope review is not approved, the time will be calculated separately.
B. If the company name is not approved, the processing time will need to be recalculated, and the processing fee will increase accordingly.

9. Services Included in Hong Kong Company Registration

The services usually included in Hong Kong company registration are:

• Certificate of Incorporation

• Business Registration Certificate

• 16 copies of the Articles of Association

• 10 share certificates

• One set of company seals (chop seal, signature seal, and one small round seal)

• One minute book for board meetings

• One set of company application materials

• One blank receipt book

• One document box

Also included is company secretary service for the first year (Hong Kong phone, fax, registered address, etc.).

10. Service Fee and Payment Method

The service fee for item 8 is RMB 7,800.
50% is payable in advance before processing, and the full stamp duty on the company’s registered capital is collected in advance; the balance is payable within seven working days after registration is completed.
Payment may be made in cash, by transfer, telegraphic transfer, cheque or cashier’s order to our designated Hong Kong or Mainland bank account.

11. Subsequent Changes to Hong Kong Company Information

After registration is completed, business owners may make changes to company information as needed, including:

• Increase in capital (about 2 days)

• Change of directors (about 2 days)

• Change of registered address (about 2 days)

• Change of company name (about 10 days)

Our company provides attentive service, and business owners do not need to come to Hong Kong in person to handle the procedures.

12. Subsequent Bank Account Opening for a Hong Kong Company

After a Hong Kong company is registered, a bank account may be opened or not opened. A local Hong Kong account or an offshore account may be opened.
Documents usually required for account opening include: CTC account-opening documents, proof of address, business plan and relevant supporting documents, bank initial deposit, etc.

13. Subsequent Trade and Commerce Services for a Hong Kong Registered Company

The range of services provided by our company mainly helps business owners resolve issues relating to enterprise operation, management and development in Hong Kong. Overall, these can be summarised into two major areas: “supporting facilities” and “business follow-up”, enabling business owners to start operating a Hong Kong company at a relatively low cost.

14. Annual Audit / Annual Return Services after Hong Kong Company Registration

After registering a Hong Kong company, annual audit and annual return procedures are required every year.

• Annual audit: renewal of the certificate once a year with the Hong Kong Inland Revenue Department/Business Registration Office (equivalent to the annual inspection of a Mainland company, but not the same as tax filing)

• Annual return: re-filing information once a year with the Companies Registry of Hong Kong
  The renewal or filing date is extended by one year from the company’s incorporation date.

15. Follow-up Financial and Tax Services

After a Hong Kong company is registered, accounting records must be kept, books must be prepared, and tax returns must be filed within the prescribed time.
Please note: if a Hong Kong company is not profitable, it generally does not need to pay tax; if the profits are sourced from overseas, exemption may also be applied for. If you want the enterprise to grow further and become stronger, we strongly recommend that you properly handle bookkeeping, auditing and tax filing.

16. Hong Kong Company Tax Information

Hong Kong has a narrow tax base and few types of taxes. For enterprises, Hong Kong generally only has:

• A one-off stamp duty on registered capital

• And annual profits tax levied on the company’s net profit (profits tax rate: 16.5%)

Compared with Mainland China, Hong Kong generally does not impose business tax or value-added tax. As for imported and exported goods, with the exception of tobacco and alcohol, cosmetics, motor vehicles and certain special items, duties are mostly exempted.
At present, salaries tax (individual income tax) is charged in 4 bands at 2%–17%, and the personal allowance is approximately HKD 108,000 as prescribed (subject to the rules of the year).

17. Invoices and Seals after Hong Kong Company Registration

Hong Kong company invoices are not uniformly printed by the Inland Revenue Department, but are printed and issued by the board according to the nature of the company’s business.
Invoices, receipts and other documents must be stamped with the company seal, and are valid only after being signed by the person in charge. Seals may be customised according to actual needs.