Since 2003, Healy Consultants Group PLC has assisted our Clients to establish their company in Hong Kong.
Our services include i) Hong Kong company setup services; ii) corporate bank account opening services in Hong Kong and abroad; iii) assistance to open HK merchant account and secure corporate finance; iv) employee recruitment and relocation strategies and v) office rental solutions in Hong Kong.
| Operations and logistics | Resident company | Offshore company | Offshore trust | PLC | Branch | RO |
|---|---|---|---|---|---|---|
| Bank signatory must travel? | Yes | Yes | Yes | Yes | Yes | Yes |
| Doing business in HK permitted? | Yes | Yes | Yes | Yes | Yes | No |
| Allowed to sign contracts with local Clients? | Yes | Yes | Yes | Yes | Yes | No |
| Allowed to invoice local Clients? | Yes | Yes | Yes | Yes | Yes | No |
| Can rent local office premises? | Yes | Yes | N/A | Yes | Yes | Yes |
| Allowed to import raw materials? | Yes | Yes | No | Yes | Yes | No |
| Allowed to export goods? | Yes | Yes | No | Yes | Yes | No |
| Accounting and tax | ||||||
| Corporate tax on local income? | 16.5% | 16.5% | 16.5% | 16.5% | 16.5% | Not allowed |
| Corporate tax on foreign income? | 0% | 0% | 0% | 0% | 0% | Not allowed |
| Corporate bank account | HSBC HK | HSBC HK | HSBC HK | HSBC HK | HSBC HK | HSBC HK |
| Statutory audit required | Yes | Yes | No | Yes | No | No |
| Annual tax return to be submitted? | Yes | Yes | No | Yes | Yes | Yes |
| Access to DTAAs? | Yes | Not all | No | Yes | Yes | No |
| Company law | ||||||
| Issued share capital required? | US$1 | US$1 | US$1 | US$1 | None | None |
| Resident director required? | No | No | Resident trustee | No | No | No |
| HK shareholder required? | No | No | No | No | No | No |
| Minimum number of directors? | 1 | 1 | 1 | 1 | 1 | 1 |
| Minimum number of shareholders? | 1 | 1 | 1 settlor | 1 | Parent company | Parent company |
| Individual shareholders allowed? | Yes | Yes | Yes | Yes | No | No |
| Corporate director(s) allowed | No | No | Yes | Yes | Yes | Yes |
| Corporate shareholders allowed? | Yes | Yes | Yes | Yes | Yes | Yes |
| Public register of shareholders and directors | Yes | Yes | No | Yes | Yes | Yes |
| Immigration | ||||||
| Can the entity hire expatriate staff? | Yes | Yes | No | Yes | Yes | Yes |
| How long to get work permit approved | 3 months | 3 months | N/A | 3 months | 3 months | 3 months |
| Fees and timelines | ||||||
| How long to set the entity up? | 1 week | 1 week | 4 weeks | 3 weeks | 2 weeks | 2 weeks |
| How long to open corporate bank account? | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| Estimate of engagement costs | US$8,655 | US$8,655 | US$16,000 | US$8,655 | US$9,455 | US$10,155 |
| Draft invoice | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF | View invoice PDF |
Advantages of doing business in Hong Kong
Ease of doing business
A Hong Kong company can be easily set up in less than a week. Even though the process for corporate bank account opening is challenging, this can be solved by purchasing a ready-made HK shelf company that already has a bank account.
Taxation
Hong Kong corporate tax rate is 16.5%, which is one of the lowest in Asia. Offshore companies do not have to pay any taxes in Hong Kong.
Excellent business environment
Considered as one of the least corrupt countries, Hong Kong is a leading financial center whose regulation does not restrict foreign investment nor income repatriation.
Disadvantages of doing business in Hong Kong
Strict regulations
It is getting more complicated to register a company as a foreigner because i) at least 1 individual resident director is required; ii) all shareholders and directors have to travel to Hong Kong for bank account opening and iii) certain nationalities are not allowed to register a company in Hong Kong.
High property cost
The cost of an office rental can affect the company’s total net profit as the property price is very expensive in Hong Kong.
Tighter banking restrictions
Hong Kong banks now require Hong Kong companies to have more local substance before they will approve a multi-currency corporate bank account. Examples of local substance include i) business relationships with Hong Kong customers ii) a physical office in Hong Kong and iii) employees in Hong Kong.
Incorporate a company in Hong Kong in 10 steps
Hong Kong private limited company can be incorporated within 1 week with 1 director and 1 shareholder,. The minimum paid-up share capital required is US$1.
Time required to start a new company in Hong Kong is 8 weeks
1 week
1 weeks
4 weeks
1 week
1 week
Compare timelines with other type of businesses in Hong Kong
Open a corporate bank account in Hong Kong
Healy Consultants Group PLC recommends these 10 banks i) HSBC; ii) DBS; iii) Citibank; iv) BNP Paribas; v) Deutsche Bank; vi) United Overseas Bank; vii) Bank of East Asia; viii) Dah Sing Bank; ix) Hang Seng Bank; and x) OCBC Wing Hang.
Opening a corporate bank account in Hong Kong has become more complicated as banks have tightened their regulations to filter out any possibility of money laundering or terrorist financing. The bank officer will physically meet all bank signatories, including all the shareholders and directors of the company.
Engaging a professional service provider will increase bank account approval success rate. Our fee for this service will be US$4,950.
Accounting and tax considerations
corporate tax for non-resident companies
corporate tax for resident companies
VAT rate in Hong Kong
goods and services tax
filing deadline for corporate tax return
signed double taxation treaties
Hong Kong visa requirements
“Entry for investment” visas
All foreign entrepreneurs, except certain nationalities, will be required to obtain this visa to be self-employed in Hong Kong.
“Employment as a professional” visas
Employers are required to apply for employee visas when hiring foreign employees. There are 3 sub-categories i) “IANG” for foreigners who have graduated from recognized Hong Kong institutions; ii) “ASMTP” for employees from mainland China; iii) “GEP” for talented foreigners who have neither graduated from local institutions nor are from mainland China.
Residence visas
This visa is suitable for foreign entrepreneurs who wish to relocate to Hong Kong.
Frequently Asked Questions
The main steps to setup a business in Hong Kong as a foreigner are:
- Decide a unique company name which adheres by the guidelines provided by the Companies Registry. You can check the availability of the name online with the Companies Registry;
- Prepare the company’s constitution;
- Confirm i) the corporate structure; ii) the share capital and the value of the shares; iii) the registered address; and iv) the company secretary;
- Notarize the passports of the directors and shareholder with a Hong Kong public notary and sign all incorporation documents;
- Prepare these Hong Kong Company documents: i) incorporation form NNC1; ii) articles of association; iii) IRBR1 business registration form notice; iv) notarized copy of passport and proof of address for all directors and shareholders; and v) annual returns to the Commissioner of Inland Revenue;
- Submit the complete incorporation package to the Companies Registry and the Inland Revenue Department (Hong Kong tax office) for tax registration;
- Within 1 week of submitting the above documents, if no issues with the filling of the forms, the company would be legally incorporated in Hong Kong.
- Resident company;
- Non-resident limited company;
- Trust;
- Public limited company;
- Branch office;
- Representative office.
Each business entity is meant to have different business goals and they do have different set up requirements. The table below outlines the major differences:
| Operations and logistics | Resident company | Offshore company | Offshore trust | PLC | Branch | RO |
|---|---|---|---|---|---|---|
| Bank signatory must travel? | Yes | Yes | Yes | Yes | Yes | Yes |
| Allowed to import raw materials? | Yes | Yes | No | Yes | Yes | No |
| Allowed to export goods? | Yes | Yes | No | Yes | Yes | No |
| Requirement of a resident Director | No | No | Resident trustee | No | No | No |
| Access to DTAAs? | Yes | No | No | Yes | Yes | No |
The main steps to open a non-resident business bank account are:
- Make a list of all banks that your company is interested to board with. Research their bank account opening requirements and try to get an appointment with their front desk;
- Travel to Hong Kong. It is mandatory for all the members of the corporate structure, the directors and shareholders, to be physically present in Hong Kong for the interview to open the bank account;
- During the meeting, the company must provide the banks with these documents: i) Original proof of residence along with a certified copy in English of the same (should be less than 2 months old); ii) original notarised copy of Certificate of Incorporation; iii) original notarised copy of Business Registration Certificate; iv) original notarised copy of Article of Association; v) duly filled NNC1 form; vi) proof of the business if it is operational at present and vii) a detailed business plan that confirms the need for a Hong Kong bank account while the company is registered in another country;
- The above documents should be submitted to the bank along with an initial payment of the minimum deposit for bank account opening;
- Once the interview is completed, the Compliance Department will conduct their KYC checks. If the due diligence process is successful, then the bank account would be opened within the month.
The steps to be taken for changing an existing company name are:
- Pass a Special Resolution by the company to change its name after incorporation;
- Deliver a “Notice of Change of Company Name” by filling out Form NNC2 within 15 days after passing the Special Resolution either i) online on the e-Registry portal or ii) in hard-copy form at the Queensway Government Offices;
The name change will be effective from the date of receipt of the issued Certificate of Change of Name.
- The company name needs to be unique and it cannot be the same as a name already existing in the Index of Company Names maintained by the Registrar of Companies;
- The company name cannot be identical to the body corporate incorporated or recognized under an Ordinance;
- The company name cannot be offensive, inappropriate or conflicting with the interest of the community;
- Only traditional Chinese characters can be used, and no combination of English letters/words and Chinese characters is possible.
The table below briefly outlines the main differences between a limited company and an unlimited company in Hong Kong:
| Factors | Unlimited Company | Limited Company |
|---|---|---|
| Legal Liability of owner | Unlimited | Limited to the assets in the company |
| Personal assets of the owner | Not protected from business liabilities | Protected from business liabilities |
| Legal & maintenance work | Straightforward | Complex |
To know the specific license required for your business in Hong Kong, you can visit this website.
Register your company in Hong Kong now!Healy Consultants Group PLC has the solution to help you grow.
If your Firm is interested in working with Healy Consultants Group PLC, please complete the 5-minute questionnaire below. Within a week, our Business Development Director will email revert to you with a draft partnership agreement.
