What Is The Company Formation Process In Hong Kong?

by FastLane Group Accountant, Auditor, Payroll

This article is originated from: https://fastlanepro.hk/company-formation-process/

Hong Kong serves as a competitive platform in the Asia-Pacific region for many entrepreneurs and the city thrives on the presence of such individuals. With a reputation for possessing a business – friendly infrastructure, economic freedom, the presence of a globalized financial platform and constant innovation are frequently attributed factors that draw entrepreneurs to set up business entities in Hong Kong. But how easy is it for an individual to actually establish a company in Hong Kong? In this article, we will outline the company formation process in Hong Kong.

1. Selecting A Company Name

The most important stage of incorporating a new company in Hong Kong is selecting a name for your business. The company name may be in Chinese, English, or both. It is mandatory to select a unique name for your company, as any duplication with other companies, present or the past, will be rejected.

2. Determining The Appropriate Legal Entity

After the completion of your market analysis and research, an appropriate company structure and the legal entity must be determined before company registration. The structure of a company influences the day-to-day operations of your business and helps set the foundation on which further development can be achieved. As such, the appropriate choice of the above can ensure efficient handling of matters such as tax obligations, legal liabilities and also allows for potential future investment.

2.1 Common Business Structures

· Branch Offices

· Sole proprietorship and partnerships

· Limited company

· Company limited by guarantee

· Company limited by shares

It is common to register companies as a limited company. One of the advantages of the limited companies includes :

A more direct and convenient process for ownership transfer and fund raising compared to other business entities

A segregation of the legal entity in Hong Kong

To protect personal assets from business dangers.

3. Submission Of Application Documents

Upon selection of the above, the following application documents and their corresponding fees must be submitted to the Hong Kong Companies Registry either electronically or as a hard copy:

Incorporation Form – Form NNCI (for company limited by shares) or Form NNC1G (for company not limited by shares);
A copy of the company’s articles of association (See Q4); and
A Notice to Business Registration Office (IRBR1)

Luckily, you don’t have to physically be in Hong Kong to incorporate a company. Even foreigners and Hong Kong non-residents are not prohibited from incorporating a company in Hong Kong! With the Hong Kong Government’s e-Registry system, applicants can register their companies online. You may also consider engaging a professional firm to assist you in the incorporation process by acting on your behalf. However, upon successful incorporation, most Hong Kong banks will require you to submit hard copies of all your documentary evidence in person.

Please include attribution to fastlanepro.hk with this graphic.

Company Formation Process In Hong Kong

Conclusion

The FastLane Group is your one-stop solution for company formation process in Hong Kong. We offer guidance in company setup and registration, company secretary, audit, tax computation, profit tax return filing and a registered address for your company registration matter. For further information about company formation in Hong Kong, please visit our next blog that introduces What are the key positions in a Hong Kong Company?