Hong Kong is the perfect place to start a business. If you want to set up company in Hong Kong, this post is just for you as it looks at the basics of company incorporation in Hong Kong. It can be overwhelming going through all the legal requirements of setting up a company. However, this post will help simplify things for you. Keep in mind that it is not a substitute for legal advice.
What Is Company Incorporation?
Before you can proceed with understanding the basics of company incorporation, you need to first know what company incorporation is. In the simplest of words, an incorporated company is a legal entity that has a separate identity from its shareholders and owners. Once you have incorporated a company, you will be able to create a corporate bank account, separate the company assets from personal assets, and sell shares. The best time to incorporate the business is sooner rather than later. You must incorporate the business before you conduct any activities. This will help ensure that you begin on the right foot.
Difference between Sole Proprietorship and Limited Liability Company
Since you are interested in the incorporation of a company, you must know the difference between a sole proprietorship and a limited liability company. A sole proprietorship business is one where only one person is involved in decision making. If you want to grow your business, establishing a limited liability company is the best way to go. Opting for a limited liability company helps protect your assets and provides your business with more credibility. Moreover, people are more likely to invest in a company than a sole proprietorship business.
Foreigners Can Incorporate a Company in Hong Kong
What makes Hong Kong such an attractive destination for investors is that foreigners and non-residents can incorporate a company without much hassle. Besides, the directors and shareholders do not need to be nationals or reside in Hong Kong. You do not need to be present in Hong Kong to start your company as you can simply use the 24-hour Companies E-Registry portal to submit all the required documents. But, you will need to visit Hong Kong to create a corporate bank account since banks require you to be present for the creation of your account and you will need to submit hard copies of the documents.
How You Can Submit Incorporation Documents?
If you want to handle the incorporation of the company on your own, you can either submit the incorporation documents in person or use the 24-hour Companies E-Registry portal as mentioned above. To submit the documents in person, you will need to visit the Companies Registry on Queensway. However, most entrepreneurs prefer hiring a professional to handle all the work.
What Do You Need to Incorporate a Company In Hong Kong?
- 1 registered address
- 1 director
- 1 shareholder
- 1 licensed company secretary
- Filled IRB1 and NNCI forms
- Business Registration and Certificate of Incorporation
- Significant Controller Register
Now that you have an idea of the basics of company incorporation in Hong Kong, you can either apply online or send hard copies.