Q: What does the fee for registering a new company include?

For details, please refer to our: Price List

Question 1

Can shareholders and directors of a Hong Kong company be entirely mainland residents?

Accepted Answer

Yes, mainland residents with Chinese ID cards can register a company. In fact, residents of any country can register a Hong Kong company. Hong Kong law does not place any restrictions on the nationality of shareholders and directors of Hong Kong companies. Any person over the age of 18 can serve as a shareholder (holding shares in a company incorporated in Hong Kong) and director. In fact, most offshore company registration jurisdictions do not have any restrictions on the nationality of shareholders and directors.

Question 2

How can I verify that my Hong Kong company is legally incorporated?

Accepted Answer

Very simple. You can ask your friends or any other person to go to the Companies Registry Search Hall on the 13th floor of Queensway Government Offices, Hong Kong, to conduct a search. You can also check whether your Hong Kong company has been legally incorporated through the website of the Hong Kong Companies Registry. Moreover, a bank's willingness to open an account for your company is sufficient proof of your company's legality.

Question 3

What are the requirements to set up a limited company in Hong Kong?

Accepted Answer

As long as you are at least 18 years old and hold an ID card or passport, you can register a company in Hong Kong. Additionally, you must provide a Hong Kong address as the company's registered address and a Hong Kong resident/or a Hong Kong company to serve as the company's statutory secretary. (Usually, the registered address and company secretary are provided by our company).

Question 4

What is the process for registering a new Hong Kong company?

Accepted Answer

The process for registering a brand new Hong Kong company is as follows:

Submit the Memorandum and Articles of Association and pay the relevant government fees
Companies Registry issues the Certificate of Incorporation
Submit documents for appointment of directors and secretary
Apply for a Business Registration Certificate (one working day)
Complete the process and mail the complete set of documents to the client

Question 5

How long does it take to set up a company?

Accepted Answer

It typically takes about 8 working days to register a Hong Kong company. Our express service requires only 1 day to establish, and you can collect all statutory documents on the 3rd day.

Question 6

When can I access the company's background records at the Companies Registry?

Accepted Answer

Generally, you can access the company's background records at the Companies Registry 16 working days after the registration date. The information is stored in a film format for public inspection. You can also check your Hong Kong company's information through the website of the Hong Kong Companies Registry.

Question 7

What does the fee for registering a new company include?

Accepted Answer

For details, please refer to our: Price List

Question 8

Are there any hidden fees?

Accepted Answer

Our fee includes all expenses necessary for a limited company to start operations (excluding bank fees for opening a bank account), with absolutely no hidden fees.

Question 9

How should we pay after deciding to set up a company?

Accepted Answer

You can pay by transfer, wire transfer, check, or cashier's check to our designated Hong Kong account. Overseas clients can remit funds to our company account in Hong Kong.

For details, please refer to: Payment Methods

Question 10

What documents do I need to provide to set up a limited company?

Accepted Answer

To set up a Hong Kong limited company, you only need to provide a copy of your ID card or passport, along with a completed director/shareholder information form.

Question 11

Where can I collect the company documents after the company is registered?

Accepted Answer

You can collect them from our office in person, or we can mail them to your designated address.

Question 12

Can I immediately use the company for business after receiving the documents?

Accepted Answer

Yes, after you receive the company documents, you can start using company letterhead and receipts for business activities. If you need to open a bank account, you must bring the company documents (including the Certificate of Incorporation, Business Registration Certificate, NNC1, NAR1, articles of association, and company chop) to the bank for processing. If you need our assistance, please let us know in advance.

Question 13

When is the financial year-end date for a Hong Kong company?

Accepted Answer

The first fiscal year of a newly established company can be any date. Subsequent fiscal years will follow this rule. It is typically best to align the fiscal year with the calendar year, making December 31 a natural choice. However, companies with business connections to mainland China, whose mainland accounting operates on a calendar year basis, may find it convenient to use December 31 as their fiscal year-end date.

Question 14

Do Hong Kong companies need to be audited?

Accepted Answer

Yes. All Hong Kong companies must prepare audited accounts each year. The Companies Ordinance and Inland Revenue Ordinance require all Hong Kong incorporated companies to prepare annual financial statements and submit these statements to a certified accounting firm for audit. After the audit, the company must file a Profits Tax Return with the Inland Revenue Department, attaching the audited accounts.

Question 15

Do directors need to submit a report to the government?

Accepted Answer

The directors' report is a part of the audited accounts and is not required to be submitted separately.

Question 16

When do companies need to file tax returns?

Accepted Answer

Newly established companies should receive the first tax return about 18 months after incorporation. The company must complete and file the return within one month of receiving it. After the first filing, the company will typically receive subsequent tax returns annually.

Question 17

What is an annual return?

Accepted Answer

All companies incorporated in Hong Kong must file an annual return with the Companies Registry within 42 days of the company's anniversary of incorporation. The annual return informs the government of any changes to the company's shareholders, directors, or capital structure. If there are no changes, you still need to confirm this with the government. Late filing will incur late fees, and continuous non-filing may result in the company being struck off.

Question 18

Does a Hong Kong company have to pay tax if it has no profits?

Accepted Answer

No profit, no tax. However, even without profit, a Hong Kong company must still prepare audited accounts and file a tax return. Profits tax is calculated at 16.5%* of profits. Hong Kong companies customarily use March 31 as their fiscal year-end date, and you can defer filing taxes for one year.

(*Under the two-tiered profits tax system, the tax rate for the first HK$2 million of assessable profits is reduced to 8.25%)

Question 19

What tax system does Hong Kong have?

Accepted Answer

Hong Kong's taxation mainly consists of three categories: property tax, salaries tax, and profits tax.

Property tax is calculated at 15% of rental income after deductions.

Salaries tax is calculated on salary income using progressive rates, with a maximum tax liability not exceeding 15% of total salary income.

Company profits tax rate is 16.5%* of the company's assessable profits. Assessable profits refer to profits earned from operations in Hong Kong. Since many mainland clients do not operate in Hong Kong (e.g., no office, workspace, or employees in Hong Kong), they do not need to pay Hong Kong profits tax. Please note that having transactions in a local bank account and a registered address in Hong Kong does not equate to 'operating in Hong Kong.'

(*Under the two-tiered profits tax system, the tax rate for the first HK$2 million of assessable profits is reduced to 8.25%)

For more information on the two-tiered profits tax system, please refer to: Corporate Taxation

Question 20

Are products entering and leaving Hong Kong taxed?

Accepted Answer

With the exception of tobacco and alcohol, goods entering and leaving Hong Kong generally do not need to be taxed. However, all imported and exported goods must be declared, and declaration fees are charged based on actual goods value.

Question 21

Are there any taxes to be paid when establishing a company?

Accepted Answer

No, there are no taxes required when establishing a company.

Question 22

Which department produces the company's invoices and receipts?

Accepted Answer

Hong Kong company invoices and receipts are not uniformly printed by the tax department but are produced and issued by the board of directors based on the company's business nature. Invoices, receipts, and other documents are effective once they bear the company's stamp and are signed by the responsible person.

Question 23

How are annual company accounts, audit arrangements, and tax filings handled?

Accepted Answer

We can handle accounting and tax filing directly, and coordinate audit arrangements with an independent auditor. You only need to provide the information to us. Fees are determined based on the actual workload, and we only begin after both parties agree on the fee amount. We will not charge you without your prior consent.

Question 24

Why does a Hong Kong company need a company secretary?

Accepted Answer

According to the Companies Ordinance, every Hong Kong company must designate a company secretary. For a Hong Kong company, the company secretary must be a Hong Kong resident or a company incorporated in Hong Kong. The company secretary is responsible for keeping the company's legal records, filing the annual return with the Companies Registry, and preparing minutes and resolutions for the board of directors.

Question 25

Can I change the company secretary?

Accepted Answer

Yes, but this requires a resolution from the board of directors and filing the relevant documents with the Companies Registry in a timely manner.

Question 26

After receiving the company documents, what else do I need to do before starting business?

Accepted Answer

After receiving the company documents, you can immediately use them for business activities. You may want to consider opening a bank account, designing your company logo, business cards, letterhead, and other business stationery.

Question 27

How do I open a bank account?

Accepted Answer

To open a bank account, all directors and shareholders must be present at the bank with their ID cards or passports and other identification documents. The bank may also require proof of your residential address and business plan. We can recommend suitable banks for you and assist with the preparation of the application materials.

Question 28

Does a Hong Kong company need a company chop?

Accepted Answer

While not legally required, a company chop (company stamp) is conventionally used in Hong Kong and is useful for business purposes. It can be used on invoices, receipts, and other documents to represent the company's approval.

Frequently Asked Questions

Categories

Company Registration

Payment

Documents

Accounting and Taxation

Company Secretary

Starting Business

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Frequently Asked Questions

Categories

Company Registration

Payment

Documents

Accounting and Taxation

Company Secretary

Starting Business

Haven't found the answer you're looking for?

Frequently Asked Questions

Categories

1Company Registration8 questions

Company Registration

2Payment1 questions

Payment

3Documents3 questions

Documents

4Accounting and Taxation11 questions

Accounting and Taxation

5Company Secretary2 questions

Company Secretary

6Starting Business3 questions

Starting Business

Haven't found the answer you're looking for?

Frequently Asked Questions

Categories

1Company Registration8 questions

Company Registration

2Payment1 questions

Payment

3Documents3 questions

Documents

4Accounting and Taxation11 questions

Accounting and Taxation

5Company Secretary2 questions

Company Secretary

6Starting Business3 questions

Starting Business

Haven't found the answer you're looking for?