How to start a company in Hong Kong?

4 min readMay 27, 2022

Business people may be particularly interested in learning how to start up a company in Hong Kong because of the appealing business environment and competitive tax structure. Due to the shortened incorporation process and standards, applicants can apply for a Hong Kong corporation and receive ready-to-use documentation within 24 hours, allowing them to start doing business right away.

Choose the right business type

Before incorporating a Hong Kong company, investors should analyze the demands of their company, its size, financial capability, and the characteristics of each entity type.

The following are the most common Hong Kong entity types:

Limited Liability Company (Private Limited Company, Public Limited Company, Limited by Guarantee)
Sole Proprietorship
Partnership
Foreign Company Office

Pick a Hong Kong company name

Before registering a company in Hong Kong, you should come up with a unique name for your Hong Kong business. Make sure that the name you choose is unique and that no other company in Hong Kong has the same name as yours, make sure it is available. You can do a Hong Kong company name availability check on Startupr website.

Requirements For Hong Kong Limited Company

Entrepreneurs must meet the following business entity requirements to form a private company in Hong Kong:

At least one director must be a natural person (above the age of 18), who can be of any nationality; not restricted to only Hong Kong citizens.
Shareholders: A minimum of one and a maximum of 49 shareholders are permitted in a private limited company in Hong Kong.
A company secretary who is either a Hong Kong resident or a firm.
In Hong Kong, a registered address is a required local address for company registration. It is not possible to use a P.O. box.

You can find more requirements for a Hong Kong company here.

Begin the process of forming a company in Hong Kong

The following documents are required for forming a company in Hong Kong:

A copy of the company’s articles of association
A fully filled incorporation form with the necessary information (name of the business, company address, business activities described in detail, shareholders’, directors’, and corporate secretary’s information, members’ responsibilities, share capital recorded on incorporation, number of shares assigned).
Other documents: For corporate shareholders and directors — Copy of the company documents such as the Certificate of Incorporation, the Articles of Association, the related documents for showing the UBO (ultimate beneficial owner) along with the UBO’s copy of Hong Kong identity card / International passport, and copy of residential address proof.
For resident shareholders and directors — Copy of residential address proof or Copy of Hong Kong identity card (HKID).
For non-resident shareholders and directors — Copy of International passport, overseas residential address proof.

Obtain the licenses and permits for your business

Most business operations in Hong Kong are permissible. However, a license or permit granted by a related department of the Hong Kong government is required for the specific type of businesses.

Open a business bank account

You’ll need a specific type of bank account when starting your firm: a business bank account. A business bank account is one that is opened in your company’s name. This is also known as a corporate bank account or a commercial bank account by some banks. The second step is to fill out the bank’s account opening form. Most banks make this information available online, so you may print it out and fill it before going to the bank.

Complete the annual filings

A Hong Kong company must adhere to regulatory compliance in order to keep its active status and avoid an unexpected fine from the government.

The following is a summary of the Hong Kong company’s ongoing compliance:

Annual Business Registration Certificate Renewal: One month prior to the expiration date, submit an application for renewal.
Annual General Meeting (AGM): The meeting must be held within 18 months of the company’s formation date, and no later than 15 months for subsequent meetings.
File an annual return with the CR within 42 days of the incorporation anniversary.
File an annual tax return with the IRD
Employer’s return with IRD

If you fail to comply with the annual criteria, your company will face a penalty or be forced to close down. Follow up on the government’s notices and calendar to maintain track of the compliance timeline.

Conclusion

Hong Kong is one of the largest business destinations for startups and businesses of all sizes, thanks to its favorable tax policy and world-class financial market, as well as the ease with which companies can be formed. You can meet with our experts in your home country to discuss how to start the business registration process in Hong Kong. Startupr will assist you in starting your business in Hong Kong.