Guide: how to set up a business in Hong Kong

Complete guide: Why set up a company in Hong Kong?

Why set up a company in Hong Kong? As a renowned international financial center with access to China mainland, it is not surprising that entrepreneurs choose to incorporate here.
The process of registering a company is simple and straightforward, and it offers many advantages.

This jurisdiction is an ideal place to do business because of its strategic location and world-class infrastructure. In addition, companies registered in Hong Kong give you access to a vast pool of talent and resources. You will also have the opportunity to open a bank account.

Hong Kong has a favorable tax regime that can help your business save money (no VAT, reduced taxation, etc.). Everything is gathered to encourage your installation in this part of Asia, whether we speak about the corporate tax which is reduced there, or the facility of opening a bank account.

Note that the principle of territorial source of taxation is adopted, which means that income is only taxed if it comes from Hong Kong. In other words, if you have no activity on the territory then there is no control and no tax.

Keep in mind that the creation of a company in Hong Kong and its tax does not depend on the nationality, domicile or residence of a person.

The registration of your company offers many advantages. The Hong Kong legal system is based on common law, and the tax system is very favorable to companies (especially when it comes to taxes and profits). By locating in Hong Kong, your company will benefit from the city’s world-class infrastructure and proximity to mainland China. Exchange controls are also very flexible, making it easy to do business in Hong Kong. In addition, the past two decades have seen a boom in business activity in Hong Kong, making it a paradise to locate your company.

Entrepreneur: How to create and maintain a company in Hong Kong?

The first step in setting up and maintaining a company in Hong Kong is to go through the establishment phase. This includes choosing the right company structure and meeting all the necessary criteria. Once the company is created, it is important to maintain it by following all the required procedures and regulations. Our firm, as a company secretary will assist you to open your bank account.

It is important to know that the banking network is excellent with the presence of major banks and international companies such as HSBC. All these banks offer internet banking solutions and multi-currency bank accounts for companies. It is also possible to open a bank account remotely without having to physically go to the banks.

Complete guide here: The advantages of starting a business in Hong Kong

The different types of companies in the jurisdiction of HK

When it comes to company formation in Hong Kong, there is different types of company. Each one meets the different needs of foreign entrepreneurs and investors. However, foreign investors normally choose three types of companies, including limited liability, sole proprietorship and partnership, to set up businesses in Hong Kong.

In Southeast China, the companies established are of the “Private Limited Company” type, which means limited liability company.

This is the reason why those who decide to set up a company in Hong Kong, to have their headquarters or regional offices there, will have the mention “Ltd” or “Limited” following the name of their company.

Many people think that Hong Kong is an offshore jurisdiction, but it is not an offshore jurisdiction. So, if you are willing to set up an offshore company in Hong Kong, you should know that this will not be possible. In this part of the People’s Republic of China, the registered companies will be “Private Limited Company”, in other words, common law companies.

Activities for a company in Hong Kong

After having evaluated the benefits as a shareholder, your choice to create a company becomes concrete and your choice is Hong Kong! You will have to create a limited liability company and check the list of authorized activities in this special administrative zone within the People’s Republic of China.

All companies in Hong Kong must respect the existing rules. For all shareholders, be reassured because many activities are possible to do business in Hong Kong.

For example, you have the possibility to choose the trading activity specialized in import-export, consulting, and even a holding company.

More information: Learn more about the possible uses of a company.

Benefit from the support of our firm to create your company in Hong Kong

If you are still hesitating on the choice of your provider, you should know that we are specialists in the creation of companies in Hong Kong and that we are present on the market since 1998 (date on which we registered our first company). With us, you will have the guarantee that the assembly of your business respects the rules in force.

In addition to business set up in Hong Kong, we are entitled to be your Company Secretary as stipulated in the Hong Kong law. We can also take care of all the documents of your entity and accompany you in the development of your company (account opening, certificate of incorporation, etc.).

Our team is composed of legal and accounting professionals who are at your service to ensure the success of your business activities in Hong Kong and in the rest of the world.

Contact us at +971 52 820 0964 or send us an e-mail: support@merritt.group

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