Hong Kong has been known as an international metropolis with full of opportunities, thanks to its sound legal system and favorable business environment. Meanwhile it has been playing the role as one of the most effective ways to entering Chinese mainland market. Therefore, it is quite necessary for investors to have a basic knowledge on Hong Kong business guide.
1. HongKong Company Registration Advantages
Sound legal system;
Favorable business environment like low taxation;
No trade barriers, quotas and foreign exchange controls;
Easy business registration procedures;
Gateway to entering Chinese mainland markets;
Cost-effective way for business conduct;
No limitation on business scope.
2. HongKong Company Registration Types
The most common type of business entity registered in Hong Kong is a private limited liability company. Limited liability companies have a separate legal personality, limited liability for its owners, strong public perception and an enduring structure; raising capital and transfer of ownership is easier when compared to other business structures such as sole proprietorship and partnership. Foreign business professionals often refer to this type of entity as an offshore company in Hong Kong. Governed by the Companies Ordinance of Hong Kong, any person (foreign or local) above the age of 18 can setup a Hong Kong company.
3. HongKong Company Registration
(1) Shareholders and Directors
Regarding members of HongKong business, at least one shareholder and one director is required for a Hong Kong limited company. Any natural person aged above 18 years old could be a shareholder and director or both at the same time, but meanwhile, a legal person could also be a shareholder of a HongKong business.
(2) Legal Secretary
A legal statutory is also required for a HongKong business to ensure compliance with ongoing legal returns, accounts, audit and other requirements on behalf of the company. Details of the company's directors, shareholders and secretary must be filed at the Companies Registry for public search.
(3) Company Name
In Hong Kong, a trade name is much easier to define as long as you do not infringe the trademark of other companies. The name of a limited company should be ended with “limited”. You can have an English company name or a Chinese company name or both. If you like, you can add a country name or city’s name in front of or inside the company name, such as: France, USA, Italy, Japan, London, Beijing, Shenzhen, Shanghai and so on.
(4) Business Scope
A HongKong business could conduct any business, under normal conditions, that means, there are not great restrictions on the business scope of Hong Kong companies. This is also one reason why a HongKong business is one of the most popular way for business doing around the world.
(5) Standard capital
The standard capital for a Hong Kong limited company could be as low as HKD 10,000.00 while the paid-up capital could be as low as HKD1.00. Hong Kong Company Registry has cancelled the registered capital and paid-up concept, there will no any capital exposed in the business registration license and articles of associations.
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4. Hong Kong Bank Account Opening
Tannet is often honored as valuable business partners by many local or international banks in Hong Kong. Tannet’s assistance in the bank account opening and follow up will make you easier to establish business relationship and smooth paper processing with banks. Tannet’s service in bank account opening includes recommending bank, making appointment, offering certified true copy by our CPA, working as a referee and guide for the whole processing, providing contact address and doing documents follow-up.
For the bank account opening you might need business plan and address proves (electricity and phone bills in the latest three month) for bank reference.
5. Tannet Other Related Services
(1) Annual Return
A company must submit an annual return to the Hong Kong Companies Registry and the Hong Kong Inland Revenue each year. You can let it be done by Tannet by simply signing back the confirmation letter. Tannet will give you one month notice before it gets overdue.
If failed in doing so, penalties will be implemented accumulatively, you can’t expect that the company will be suspended and cancelled eventually as China does, the maximum fine could be as high as HKD700 per day per owner.
(2) Accounting Services: Booking, Auditing, Tax Layout and Tax Return
If a company has business running on within Hong Kong, account book should be well kept monthly for an annual audit before you carry on a tax return to the Inland Revenue. Tannet can arrange bookkeeping and auditing for you in time of need. Every company is required to finish tax return annually. Submission of “nil” profit tax return without auditor’s report and financial statement would be accepted for the companies without business operation. Tannet can not only make your accounts well kept, but also makes financial analysis to the previous years and budge report to your future development.
(3) Commercial Secretary
A commercial secretary would be an alternative offered by Tannet, through which Tannet help you with information and data processing, taking order, trade documents processing, telephone answering and transfer, travel arrangements, meeting arrangement, mailing service, policy study and market analysis, telephone survey. A secretarial service could be done virtually through e-mail, fax, telephone and the Internet to small, medium-sized, and home based businesses. For more information, Click here.
Contact Us
If you have further enquire, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website english.tannet-group.com, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to tannet-solution@hotmail.com.
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