- Costs of Company/Business Formation in Hong Kong and Its Maintenance
- Accounting & Audit
- Documents Required for Registering a Company/Business in Hong Kong
- UK Payment System Account for Hong Kong Company
- How to Order the Service of Company Registration in Hong Kong and an Account with the UK Payment System
Setting up a company in Hong Kong is not only prestige but also a real opportunity to launch a promising business in a jurisdiction offering reasonable taxes, sound corporate laws and a sufficient level of protection. Another advantage of this product is an account with the UK payment system. Having registered a company/business in Hong Kong and opened an account, you will be able to start working right away.
Advantages of the 2-in-1 company registration. Hong Kong company with the UK payment system account:
- Technically, Hong Kong is not offshore.
- Profits made outside of Hong Kong are not subject to taxation in the jurisdiction.
- The corporate tax rate is low, only 16.5%. But there are significant benefits for new companies.
- The company/business registration procedure in Hong Kong is relatively simple. Opening a bank account in Hong Kong is much more complicated, so we offer a corporate account with the UK payment system.
- Company/business registration service in Hong Kong can be provided remotely.
- Moderate requirements to the legal entities (see below).
- No fiscal control or customs duties.
- Authorized capital of newly-registered companies in Hong Kong should correspond to certain requirements, and we know the way to deal with them.
- Companies in Hong Kong must keep accounting/tax records, but the requirements are as simplified as possible.
- Very low costs of company/business incorporation in Hong Kong. This statement is also true for the cost of maintaining a company.
- There is no formal requirement for proving an actual business presence in Hong Kong. However, we still recommend that you tackle this issue as responsibly as possible when establishing a business in Hong Kong as it is much easier to run a company if you are actually present there.
- Legislation in Hong Kong is based on the principles of Common law.
- Hong Kong has a well-developed trust legislation.
- Almost no restrictions on types of business.
- Little influence of corruption and bureaucracy on any business processes.
Basic requirements for a legal entity when setting up a company in Hong Kong:
- At least 1 shareholder and 1 director. There is no requirement for residency status or organizational form of business (legal entity/self-employed business person). At least one of the Hong Kong company directors must be physically present in the jurisdiction.
- There are virtually no restrictions on the company name in Hong Kong, except for the standard ones in the offshore/mid-shore jurisdictions. For example, the English language only, mandatory ending is Limited, and a certain list of prohibited words and expressions.
- Registered company address is an essential condition of company registration in Hong Kong.
- Secretarial services are mandatory.
- No lower limit for the authorized capital (yet the recommended minimum size is 10 thousand HKD).
Costs of Company/Business Formation in Hong Kong and Its Maintenance
In today’s economic circumstances, the question of costs for implementing a project related to running a business abroad is becoming one of the most important. We are not ready to say that one can set up a company in Hong Kong for free, or for a price comparable to a few cups of coffee, yet it is not too expensive. The same applies to the cost of company maintenance and the inevitable overhead costs.
Company registration in Hong Kong (2,640 USD). What does it cover?
- Preparation of the set of documents, payment of all state fees, building a company seal, the first year of running actual business in Hong Kong is 1,200 USD.
- Secretarial services, annual maintenance is 350 USD.
- Registered company address in Hong Kong, annual maintenance is 340 USD.
- Making entries into the register of key controlling persons is 350 USD.
- Service of keeping/updating the register of key controlling persons, annual maintenance is 390 USD.
Company renewal in Hong Kong (1,590 USD). What does it cover? (The service is provided a year after company registration on a regular basis):
- Registered company address in Hong Kong, filing relevant data to the Companies Registry / Inland Revenue Department is 350 USD.
- Services of the company secretary is 350 USD.
- Keeping/updating the register of key controlling persons is 390 USD.
- Filing the company’s corporate governance report in Hong Kong is 200 USD.
- State fee is 200 USD.
Accounting & Audit
The cost of these services is calculated on an individual basis. We should note that trying to cut corners will eventually lead to higher costs. Performing this work on a proper professional level is extremely difficult. Tax evasion is out of the question. We will take a closer look at certain approximate rates below. They can only be considered if the company/business registration in Hong Kong has been carried out according to all the rules.
Accounting & bookkeeping, from 650 USD per year:
- Comprehensive information on the company’s financial situation in Hong Kong.
- Cash flow forecasting and management.
- Preparation of profit and loss statement, balance sheets, subsidiary reports (quarterly).
- Ratio analysis to evaluate the company’s performance in Hong Kong.
- Diversification of the company costs.
Annual mandatory audit for Hong Kong companies, from 1,000 USD per report:
- Preparation of audit reports including balance sheet, profit and loss statement, cash flow statement, notes to financial statements
- Reviewing and preparation of supporting accounting documents, registers, financial statements, bank statements, invoices, contracts, etc.
- Reviewing bank reconciliations and minor company expenses
- Review and inventory control
- Pre-audit before the annual audit
- Access to financial instruments (depreciation method, cost system, pricing policy, etc.).
- Review of payroll documents
- Internal control, due diligence
Documents Required for Registering a Company/Business in Hong Kong
Preparation of these documents is a demanding challenge. It is no secret that a considerable part of rejections are due to mistakes made at the preparatory stage. In particular, this refers to the preparation of documents. Therefore, we recommend you to be as accurate as possible. Please discuss any disputable aspects with our experts.
Basic steps to company registration in Hong Kong:
- Select a company name. It must be in English. There is also a list of prohibited words/expressions. We recommend you to come up with several alternative names.
- Collect a set of documents required. These include at least copies of passports of all directors/shareholders and their proof of actual residence.
- Prepare the data on the Hong Kong company-to-be (lines of business, registered address, authorized capital).
Important note. All documents must be in English, or translated into English and notarized.
The list of documents you will get upon successful company/business registration in Hong Kong carried out by the Offshore Pro Group experts:
- Certificate of Incorporation
- Business Registration Certificate
- Memorandum and Articles of Association
- Form NNC1 (official registration of a company in Hong Kong)
- Directors’ written resolution on opening a bank account (minutes on opening a company bank account with an authorized signatory of the bank account specified)
- 3 seals
Important note. All of the above mentioned company documents can be sent from Hong Kong via courier delivery service. The shipment is not included in the basic set of services and is charged extra.
UK Payment System Account for Hong Kong Company
In order to do business any company needs a settlement account. The law does not set special conditions on the preferred/undesirable jurisdictions for opening company accounts. But if a Hong Kong company is just starting its business, it will be quite difficult to open an account with a European bank.
But Hong Kong companies have access to a good alternative which is a UK payment system that does not impose unnecessary requirements on its clients yet provides a rich set of quality services. This option can be used as a working solution at the initial stage. And after a while, when your business is up and running, you will be able to open a Hong Kong company account with any bank you like.
The must-have set of documents:
- Certificate of Incorporation (Chinese and English)
- Memorandum and Articles of Association
- Written resolution of the directors confirming the appointment of director(s) and distribution of shares of the company in Hong Kong
- Register of shareholders
- General Power of Attorney (with apostille)
- Declaration of Trust
- Share certificates
- Certificate of Good Standing
Please note that all documents must be in English, or translated into English and legalized.
How to Order the Service of Company Registration in Hong Kong and an Account with the UK Payment System
We try to make the whole process as smooth as possible for our clients. Therefore, even such a complicated double task as company registration in Hong Kong with simultaneous opening of an account is carried out as transparently as possible for you.
How can I become the owner of a company in Hong Kong with an account in the UK payment system?
- Please contact us in any convenient way and briefly describe your situation. The main thing is that you should be confident you really want to become the Hong Kong company owner. The best way to contact us is via email (firstname.lastname@example.org), but you can also choose an alternative communication option (please see the full list of communication channels).
- If your decision is positive and we understand that your request can be implemented, we will discuss the details of the order and send you an invoice (the minimum price starts from 5339 EUR). Information about payment options is available here.
- After that we will ask you to send us a set of necessary documents for full-fledged company registration in Hong Kong and the simultaneous opening of an account with the UK payment system.
After that you will only have to wait a little bit. Usually this double service (company registration in Hong Kong & bank account) takes about 4 weeks. But in view of the current political situation and the COVID-19 pandemic it may be slightly extended. Please feel free to contact us right now.