Many investors are attracted to Hong Kong, for obvious reasons! The strategic location of the jurisdiction, as well as the high-end infrastructure, are some of the best in the world. The tax-friendly environment and pro-business set up are very attractive for foreign businesses looking to start or expand. Setting up a business in Hong Kong is quick and easy compared to a lot of other places. Anyone who is interested in opening a business in Hong Kong can do so in person or remotely within two weeks. Keep reading for a few key steps in opening a company remotely.
Step 1: company type
Different company types are available to suit different business needs. However, a private company limited by shares is the most common option. The company will be incorporated in Hong Kong and can take advantage of all the tax benefits and concessions available to any fully incorporated business. It is a separate legal entity in its own right from the owners.
Step 2: company name
The proposed company name must be different from the registered company names on the index of Companies Registry. All Hong Kong company names must end with a suffix ‘Limited’. Names can be in English or Chinese language, or in both English and Chinese but not a combination of both languages in the same name.
Step 3: company structure – management and governance
A private limited company requires:
- Director: At least one who is a natural person of any nationality. A corporation can also act as director;
- Company Secretary: At least one who is a natural person ordinarily resided in HK or a Hong Kong company with a Trust or Company Service Provider License (TCSP); Registered office:
- A business address in Hong Kong
Sleek is happy to act as Company Secretary and provide a registered office address for your company.
Step 4: company structure – share capital and ownership
Share capital represents the actual contribution of funds as capital from shareholders to the company. It can be in any currency and amount. You can decide the right level depending on the business nature of the company. It can be in a nominal amount of HKD $1 to start with.
There must be at least one shareholder who can be a person or a corporation. A shareholder or beneficial owner who owns more than 25% of the issued shares or voting rights of the company is regarded as a Significant Controller.
Step 5: financial year-end
Every Hong Kong company needs to prepare financial statements annually. The Hong Kong government fiscal year-end is 31 March, therefore the most common financial year ends are 31 December, 31 March or 30 June. It is up to each company to decide on its financial year-end based on their business needs.
All of this can be done with help from Sleek! Sleek has to conduct due diligence check on each new set up. Once the KYC (Know Your Customer) and due diligence check on each new client has been set up and approved, The company incorporation process can be completed in as little as 1 business day.
When you have all the above details ready or if you have any query, feel free to contact us for assistance.
The article is written by:
Marketing Manager for Sleek Hong Kong – A company enables entrepreneurs and investors to incorporate their company and manage their corporate, accounting and tax compliance online.