With the pandemic turmoil of the European and American economy, many global businessmen have pivoted to explore further in Asian countries. Among the different choices, Hong Kong is always the one winning entrepreneurs’ hearts. Wanna know the reasons behind?!
.jpg)
Easy Procedure
Forming a HK limited company is very straightforward, especially if you're doing it with a professional service provider. BRIDGES team has served countless start-ups and SMEs in setting up their company with our all-in-one package (no hidden costs at all) for many years. Let us share a few tips and you will find establishing your own company has never been easier.
STEP 1: Collecting the required documents (please refer to the list below) for registration at the HK Companies Registry :
There are 2 types of Required Documents:
Type I. If the Director / Shareholder is an individual:
> Copy of all Directors & Shareholders’ passports / HKID
> Copy of all Directors & Shareholders’ addresses proof
* The Director & Shareholder can be the same person, which means it only takes 1 person to complete the process.
Type II. If the Director / Shareholder is a corporation:
> Copy of Business Registration (BR) Certificate
> Copy of all Directors’ passports
> Copy of registered office’s address proof
> Articles of Association
> Meeting minutes of agreeing to appoint Directors / Shareholders for this Company
* If the Director is a corporation, it is required to appoint at least one individual Director to comply with the new Companies Ordinance.
STEP 2: Pay and go!
Once your incorporation payment is confirmed, we will get on preparing the Government paperwork for you to sign.
STEP 3: Submitting your signed documents to Government :
Even if you are aboard, we will help submit all signed application documentations to the Government for swift processing. In fact, by the time you reach this step, you are already halfway through setting up your own company. Our team would get it all done for you, like approaching different Government departments to file the required paperwork. For a ready-made (shelf) company, it takes around 2 working days to process; for an all-new company, it would take around 1 week or less to process.
STEP 4: Opening bank account :
You may ask: ‘How can I finish all company setup and bank account opening procedures if I cannot fly to HK?’ The good news is BRIDGES is now able to provide remote incorporation. From business consultation to business set-up, everything can be settled via the Internet. For bank account opening, indeed many traditional banks require physical presence and it usually takes a one-month appointment in advance. However, now with the pandemic, you might consider utilising fintech platforms to facilitate your business transaction especially if you are trading in multiple currencies.
The three reliable bank account alternatives in HK (BRIDGES' business partners) - Airwallex, Statrys and Currenxie - do not require the physical presence of applicants and offer more than 10 different currencies. For more details, please refer to "Traditional Bank Account Alternatives to Run Business".
Bank Account Opening Preparation
The assessment criteria of international banking are getting stricter, including HK’s banking and financial system. Therefore, a thorough preparation before the bank appointment always helps. If you managed to fly to HK, we will help arrange an appointment with bankers in advance on your behalf. What’s more, sets of the certified true copy are included in our package already for presenting to the bankers. Before the appointment, our experienced specialists will advise you of the documents needed to prepare (e.g. passport copy, residential address proof, business plan, business proofs, etc.), so that the whole process could be sped up and the situation of missed documents is minimised. Some banks can even offer our clients pre-screening to let you know whether your provided documents are sufficient for the bank appointment. In general, the assessment time will be around 2 - 4 weeks provided that all required supporting documents are submitted to the bank for review. We work closely with HSBC, Hang Seng Bank, DBS, OCBC Wing Hang Bank, China Citic Bank, etc. and we will guide you through to smooth out the whole process.
Favourable Taxation in HK
HK is famous for having a rather simple and low tax regime. There are two main taxes: Corporate Profits Tax (8.25% to 16.5%) and Personal Salaries Tax (15%), and there is no dividend tax in HK. Generally after 18 months of your limited company incorporated, you will receive the 1st Profits Tax Return. When your company is in good hands like us where there is an in-house Accounting Team able to assist your business with all accounting work, audit arrangement and getting prepared for local tax compliance, you can rest assured that all these essential functions will be handled properly and timely in a legitimate way.
HK Incorporation vs. Singapore Incorporation
Both HK and Singapore are popular jurisdictions in Asia for international businessmen. However, forming a Singapore company requires foreign entrepreneurs to partner up with a local Singapore citizen, while there is no limit on the nationality of the director(s) in setting up a HK company. It means no matter what your nationality is, you can freely form your own company in HK without the need to include a HK citizen as your company’s stakeholder, giving you more flexibility in the company structure.
How HK Serves as a Stepping Stone into China?
For expats who want to set foot in China, they have to set up a special type of entity named Wholly Foreign Owned Enterprise (WFOE) according to the China policy. From our experience, if you own a Hong Kong limited company as a shareholding company, it would be way more beneficial to use it informing your WFOE due to the close economic partnership between HK and Mainland China i.e. under The Closer Economic Partnership Arrangement (CEPA). Not to mention financing in HK is much more accessible than in China, and all major international banks are located in HK, leading to a high standard system in terms of technology and security. In contrary to China, there are no restrictions or approvals needed to receive or transfer funds / foreign currencies in HK as you might know.
=============================================================================
If you have any further questions on setting up your own company, please feel free to email our company incorporation team, at info@bridges.hk to know more about our practical advice.
Mon - Fri : 9:00 - 18:00