Company incorporation in Hong Kong and bank account

Incorporation

Hong Kong remains one of Asia’s leading international business centers.

As a Special Administrative Region (SAR) of China, Hong Kong has legal and economic systems separate from those of mainland China.

Its common law legal system and simple, low-rate tax system make it a popular choice for international entrepreneurs and for international banking.

Company incorporation in Hong Kong can still be challenging the first time. Plizz offers a complete company registration service in Hong Kong: we guide you through each step and provide the services you need afterwards, such as company secretary, registered address and designated representative.

Incorporation process in Hong Kong

Setting up a company in Hong Kong takes a few clear steps. First, choose the type of company and a company name. A search on the Companies Registry website shows whether the name is available.

A private company limited by shares needs at least one shareholder, at least one director who is an individual, at least one share, a company secretary who lives in Hong Kong (or a Hong Kong company acting as secretary), and a registered office address in Hong Kong. After the name search, you complete the incorporation form and provide copies of the required documents. They are filed through the e-Registry with the Companies Registry, which also registers the company with the Business Registration Office.

Straightforward online applications are usually processed within about an hour, and paper filings normally take about four working days. Allow extra time before filing for the know-your-customer (KYC) checks that your company secretary must complete.

Why set up your business in Hong Kong?

Hong Kong offers clear advantages to international businesses.

Its tax system is simple: companies pay profits tax only on Hong Kong-sourced profits, at 8.25% on the first HK$2 million and 16.5% above that, and there is no VAT, no capital gains tax and no withholding tax on dividends. Hong Kong also has a strong legal system, a business-friendly environment and a skilled workforce.

Together, its stable economy, skilled workforce and simple rules mean less time on administration and more time on your business.

What types of legal entity exist in Hong Kong?

Sole proprietorship: simple, for single-owner businesses

A sole proprietorship is the simplest business structure in Hong Kong and suits individuals running a small business alone. The owner is responsible for every aspect of the business, including its debts. Regulation and tax are simpler, but the owner has unlimited personal liability.

Partnership: shared ownership and responsibility

In a partnership, two or more people set up and run a business together. Hong Kong law recognizes two types of partnership: general partnerships and limited partnerships.

In a general partnership, all partners are liable for the debts of the business without limit. A limited partnership has one or more general partners with unlimited liability and one or more limited partners whose liability is limited to their contribution.

Plizz can help you weigh the advantages of a partnership, choose the right type, and draft a partnership agreement that sets out each partner’s expectations and reduces the risk of disputes.

Limited company: separating business and personal assets

A private limited company is the most popular choice for SMEs in Hong Kong because it separates business and personal assets. Shareholders’ liability is limited to their shares, which protects their personal assets from business risks. Hong Kong has two kinds of limited company: private and public.

A private limited company can have from 1 to 50 shareholders and cannot offer its shares to the public. A public company can offer its shares to the public and faces stricter rules. All limited companies must keep accounts, have them audited every year and file an annual return.

Plizz supports you through the whole registration of a limited company in Hong Kong, including the legal documents, financial reporting and ongoing compliance.

Branch and representative office: a presence for a foreign company

A foreign company can open a branch or a representative office in Hong Kong. A branch is an extension of the parent company that trades in Hong Kong under the same name. It registers with the Companies Registry as a registered non-Hong Kong company and pays profits tax on its Hong Kong profits.

A representative office cannot carry out profit-making activities. It is limited to representing the parent company, market research, quality control and other non-commercial work, and it must still register with the Business Registration Office of the Inland Revenue Department (IRD).

Plizz helps you choose between a branch and a representative office and handles the setup and ongoing compliance for either.

Can foreigners set up a business in Hong Kong?

Yes. Foreign individuals and companies can own 100% of a Hong Kong company once they pass the know-your-customer (KYC) checks, and the company has the same rights as any local company. It must still meet the requirements of the Companies Ordinance, administered by the Companies Registry (CR).

Your company needs a registered office address in Hong Kong, an approved company name and a company secretary based in Hong Kong. These are the basic conditions for doing business in Hong Kong within the law.

Why do you need a business registration certificate in Hong Kong?

The business registration certificate (BRC) is issued by the Business Registration Office of the Inland Revenue Department (IRD). Every business operating in Hong Kong must hold a valid certificate and display it at its place of business.

A company incorporated in Hong Kong is registered for business registration at the same time as it is incorporated. Other businesses must apply within one month of starting business. The certificate is valid for one or three years and must be renewed before it expires.