A Complete Guide on How to Register a Company in Hong Kong

Hong Kong's strategic advantages include low taxation and a favorable business environment. This makes it a top choice for company registration.

Hong Kong company formation — another term for Hong Kong company registration — is simple. Whether it’s a sole proprietorship or a limited liability company, you only need to know a few tips and understand some requirements.

Let's discuss the steps to register your business in Hong Kong.

What Should You Know Before Registering a Business in Hong Kong?

There are many reasons why many businesses are registered in Hong Kong. According to the latest edition of the Global Competitiveness Booklet 2023, Hong Kong is ranked 7th.

This can be for many reasons, including its low taxation, business-friendly environment, intellectual property protection, and stable legal and political environment.

All of these factors make Hong Kong a strategic location in which to do business.

When you start a business in Hong Kong, you will deal with the three main interlocutors, including:

• Your company secretary
• The Companies Registry
• The Inland Revenue Department

How to Register a Company in Hong Kong

Understanding the company registration process, including the procedures and requirements, is helpful to start a business in one of the world’s most popular economies.

Step 1: Choose Your Company Name

The first step in Hong Kong company registration is the most obvious, as every company needs a name.

One obstacle is that over 1.3 million companies have been listed in the Hong Kong Companies Registry.

That said, you should do a thorough name search beforehand. Try to come up with important name considerations or brainstorm several name ideas.

Remember to ensure that the name does not infringe any intellectual property rights or “IPR.” In other words, the company name must be original.

You also have the option to register with a name in either English or Chinese. However, your company name cannot be a blend of both English and Chinese. 

If you decide on an English name, it must include the full word "Limited" at the end (e.g., Business Hong Kong Limited) rather than the abbreviated form "Ltd." 

If you find that companies have names similar to yours, you can try to make them different. You can do this by adding extensions such as “Asia Pacific,” “Far East,” “China,” “Holdings,” etc.

If you want to check if a particular company name is available, you can check the Companies Registry website (Cyber Search Centre). The information is based on the public record of all registered companies. For a more user-friendly resource, you can use our name pre-registration tool.

Step 2: Choose the Right Legal Entity

The next crucial step is to select the right legal structure for your company. This will affect factors such as filing taxes and even how business is done in general.

Below is a list of the main possible legal entities to choose for your Hong Kong business:

• Private limited company (accounting for more than 90% of incorporations in Hong Kong) — also known as “limited companies” or “LLCs”
• Company limited by guarantee (mostly for non-profit organizations)
• Sole proprietorship
• Partnerships
• Branch Office

Step 3: Select a Company Secretary 

Every company in Hong Kong should have a local company secretary. Thus, appointing one is a mandatory step in establishing your company.

A company secretary acts as the main contact person for your business. The Hong Kong authorities may contact them for any information about your business.

Having a company secretary is beneficial in many ways. This particular role will help your company maintain compliance without fail.

Another important thing you need is your company's registered address. With this, governmental departments will be able to send you correspondence.

That said, use your company secretary’s address as your registered business address. This is to avoid complexities in communication.

Step 4: Appoint Legal Representatives for your Company

There are 2 types of legal representatives that any Hong Kong company should have: directors and shareholders.

Requirements regarding directors are as follows:

• Any company should have at least 1 director who is an individual person
• A director does not need to reside in Hong Kong
• A director does not need to be a shareholder

The role of a director is to manage and supervise the affairs of the company. They should act in the company’s best interest and ensure that the company remains compliant. A director does not need to be employed or paid by the company.

NOTE: The company directors are appointed by the shareholders.

Requirements regarding shareholders are as follows:

• A company must have at least 1 shareholder and a maximum of 50 shareholders
• Shareholders may consist of individuals or companies
• There is no nationality restriction in Hong Kong for shareholders
• Shareholders do not need to reside in Hong Kong

The role of shareholders is to own the company and approve certain key decisions. In particular, shareholders review and approve the company’s annual financial statements. The shareholders appoint the directors responsible for managing the company.

Step 5: Set the Amount of the Share Capital

A company in Hong Kong must have a share capital.

Hong Kong is a very liberal jurisdiction, meaning that you enjoy maximum freedom:

• There is no minimum or maximum amount for a company’s share capital
• The share capital may be expressed in any major currency, even if most companies use Hong Kong dollar (HKD), US dollar (USD), or Euro (EUR)

Our recommendation is usually to set up your company with a low amount of registered capital. For example, many companies are set up with 100 shares for 100 HKD.

Please note that there is no legal obligation on the calendar for payment of your share capital. Also, there is no need to deposit the share capital in a bank account before your company can be registered.

If your company is remotely registered, see how you can get a business address remotely in Hong Kong.

Step 6: Prepare and Submit Your Incorporation Documents

There are incorporation documents that need to be provided when you set up a company in Hong Kong. These documents will be subject to approval before you can start your business operation.

Let’s take a look at all the required documents and how you can prepare each one.

• NNC1 Incorporation Form — This is the form provided by the Companies Registry of Hong Kong. This form must be signed by at least one of your company's shareholders.
• A copy of identification documents (HK ID card or passport) of a shareholder and a director.
• Article of Association of the Company — This is a standard legal document that defines the internal rules of your company when it is established. The Article of Association outlines internal affairs elements such as the transfer of shares, the appointment of directors, compliance with relevant ordinance cap(s), and more. Most companies use the sample of Article of Association of a Private Company Limited by Shares provided by the Hong Kong Companies Registry.

Once you have these documents prepared, the next step is to submit them.

Here are some ways you can submit incorporation documents to the Companies Registry:

• Using Companies e-Registry’s online portal platform, which is available 24/7
• Mailing your document to the Company Registry address
• Going to the Company Registry and submitting the documents in person

When you submit these documents, you will also need to pay the applicable government fee. These fees are often paid on a yearly basis. That said, make sure to keep yourself informed of the fees, as they can be changed by the HK government.

Step 7: Get a Business Registration and Incorporation Certificate

After submitting all the relevant documents, you will receive your business registration certificate and incorporation certificate within two to six business days. These can be collected at the Companies Registry office.

These documents confirm that your company exists and is in good standing in Hong Kong. A valid business registration certificate is crucial, and it includes the renewal process and the role of the company secretary in ensuring compliance.

They will be required to open a bank account.

Your Business Registration Certificate (BRC), issued by the Business Registration Office, needs to be renewed annually. Your certificate of incorporation is indefinitely valid.

These documents include basic information about your company, such as its name, registration date, address, and unique identification numbers. However, they do not include confidential information, such as the identity of directors or shareholders.

It is important not to lose these documents. We generally recommend leaving the originals with your company secretary.

Step 8: Get a Bank Account for your Company

Once your company is set up, you can immediately apply for a bank account for your company.

There are multiple banks and financial institutions in Hong Kong.

When you work with us, our team will present various options available and help you choose the right bank for your business. After you make your decision, we will assist you through the opening process. 

Step 9: Stay on Top of Taxation and Financial Reporting Requirements

When your company is successfully incorporated, you will be reported of existence by the IRD. Make sure to keep up with the updated tax information to ensure your company’s compliance.

The good news is Hong Kong offers several benefits when it comes to taxation. As you are incorporated, here are some of the benefits you may be eligible for:

• A Corporate Tax rate of 8.25% (on the first HKD 2 million of profits)
• A Corporate Tax rate of 16.5% thereafter
• 0% Corporate Tax rate on offshore profits thanks to Hong Kong’s territorial tax regime
• No capital gains tax and no Value Added Tax (VAT)

Hong Kong does not impose VAT or capital gains tax, which decreases companies' tax burden and allows for tax exemption.

These are just some benefits you’re eligible to receive as an incorporated business in Hong Kong. Always check the Hong Kong Government website for the benefits you may be missing out on.

Hong Kong Company Formation: Key Considerations for Foreigners

Foreigners looking to register an offshore limited liability company in Hong Kong should keep the following points in mind:

1. Directorship and Shareholding: Foreigners can be the sole directors and shareholders of a Hong Kong company. There are no requirements for local resident directors or shareholders.
2. Physical Presence: While it is not necessary to be physically present during the company registration process, some banks may require your presence to open a bank account.
3. Operation from Abroad: Foreigners who do not intend to relocate to Hong Kong can freely operate their Hong Kong offshore company from overseas.

Benefits of Company Incorporation in Hong Kong

Now that you know how to register a company in Hong Kong, let’s explore some of the benefits you can expect afterward:

• Operate From Anywhere in the World With Ease — Yes! One of the main benefits of incorporating a Hong Kong limited company is that you can run your company from anywhere in the world. You don't need to be physically present in Hong Kong to operate. So whether you have a physical store in Thailand or an online store in Singapore, your business can be on the global scale radar.
• Access to Global Clients — Hong Kong is considered a Special Administrative Region or a ‘golden’ gateway to Mainland China. That means you can easily gain access to selling, promoting, and delivering your service or products to over 1.3 billion people. 
• International Talent Pools — With its multicultural environment and flexibility in work, your company can gain access to diverse and highly skillful individuals. Their expertise will come in handy depending on what you need for your business.
• Solid Intellectual Property Protection — Hong Kong’s government authorities highly regard IP as one of the most important mechanisms for businesses. They see innovative ideas and creations as something that should be treasured. Thus, these institutions set up a comprehensive framework to help businesses protect their intellectual ideas, properties, innovations, and more.

How to Register Your Hong Kong Company: Different Methods

Here are some of the most common methods of incorporating a business in Hong Kong.

1. Register On Your Own

You can register a company in Hong Kong as an individual. Follow the steps above, prepare the necessary documents, and submit them to the IRD and the Companies Registry.

• Pros: You can save costs on hiring someone else to register your business for you. Plus, you will be able to control every confidential information.
• Cons: This process can be time-consuming to start with. You will need to prepare every document yourself, and this can be a daunting task.

2. Register Your Company in Hong Kong With an Agency

If you choose to incorporate your Hong Kong company with an agency, you will save time. This includes the preparation of the annual incorporation documents.

There are many agencies you can choose from, like Air Corporate. Look for one that offers a full-service incorporation package with three pricing tiers and no hidden fees. The services should be affordable and provide you with the right options to fit your needs.

• Pros: Fast, simple, and efficient solution to register your business, as you will get to work with experts who are in the industry. They will help you prepare the documents needed on time and deliver the work without missing anything.
• Cons: Not all agencies are experienced with and updated on Hong Kong’s compliance rules and regulations. Some agencies may also charge you more than you need to pay to register a business in Hong Kong.

Register Your Company in Hong Kong — The Simplest Way with Air Corporate

Looking to register your business in Hong Kong? Air Corporate offers you more than just a dedicated accountant and service for incorporation. 

Here are other things you can expect from Air Corporate incorporation services:

Pre-incorporation service:

• Verify your company’s name and availability
• Prepare all the documents necessary for incorporation
• Register your business in Hong Kong
• Fill out the incorporation application with the Companies Registry
• Receive a Certificate of Incorporation (CI)
• Receive a BRC (valid for 1 year)

Other company necessary tools, like:

• Business documentation
• Professional templates
• Articles of Association
• Company chops (a.k.a. company stamps)
• Secure document scanning and forwarding services
• And more

Post-incorporation service:

• Company secretary services
• Business bank account opening
• Significant controller register
• Registered office address
• Designated Representative (DR)
• Virtual office services
• General advisory and consulting

Consult with an expert at Air Corporate to see what you need to make your company incorporation successful and cost-effective.