How to Register a Thai Company in Hong Kong

Hong Kong is known to have one of the most liberal economies in the world.

There are almost unlimited advantages to opening a company in Hong Kong, especially as a foreigner. 

For those located in mainland China, Taiwan, Thailand, and other surrounding countries, registering your company in Hong Kong could be one of the best decisions for your business objectives.

Setting up a company in Hong Kong from Thailand is cheap, fast, and easy. Although, it's important to understand that this creates a separate legal entity from your Thai business.

Depending on your industry and activities, you will likely still need to obtain a Foreign Business License (FBL) to operate in Thailand under Thai law.

In this blog, the overall Thai company registration process in Hong Kong, the benefits of doing so, and other important points to remember.

Benefits of Thailand Company Registration in Hong Kong

Here are the benefits of doing business in Thailand:

• Remote Company Setup: Another benefit of setting up your Thai company in Hong Kong is that you can do everything without leaving the country. Everything can be handled online or through authorized agents.
• Favorable Tax Regime: Hong Kong boasts a territorial tax system, meaning only profits generated within Hong Kong are taxed. This can be a significant advantage for Thai shareholders, especially compared to Thailand's corporate tax rate. You can also benefit from:
• No capital gains tax
• No withholding tax on dividends paid to non-residents
• Low corporate tax rate (currently 16.5%) for qualifying profits
• Enhanced Reputation: A Hong Kong registration grants Thai owned companies international credibility and a prestigious image, potentially boosting investor confidence and attracting new clients.
• Simplified Business Operations: Hong Kong offers a business-friendly environment with a streamlined regulatory framework and efficient government services. This can simplify administrative tasks for your Thai company.
• Access to Regional Markets: Hong Kong is a key gateway to mainland China and Southeast Asia. A Hong Kong registration can facilitate regional expansion and access to new markets.
• Cost-Effective Solutions: While a private limited company requires a registered address and company secretary, virtual office services are readily available in Hong Kong. These services provide a professional business address and secretarial support at a much lower cost than renting a physical office and hiring a full-time secretary.

Registering a Thai Company in Hong Kong: Step-By-Step

Now, let's take a look at the necessary steps to register your new company in Hong Kong. 

Preparation (Before official registration):

Company Name Selection:

• Brainstorm proposed company names for your Hong Kong subsidiary.
• Conduct a name availability check through the Hong Kong Companies Registry's online service or appoint a company secretary to handle this for you.
• Remember, the name cannot be identical to an existing company and should comply with Hong Kong regulations.

Corporate Structure:

• Decide on the legal structure for your subsidiary (sole proprietorship, limited liability company (Ltd.) etc.). Consider factors like ownership, liability, and tax implications. For most cases, a Limited Liability Company offers the best balance.

Company Secretary:

• Appoint a licensed company secretary in Hong Kong. They will handle legal paperwork, filings, and ensure ongoing compliance for the company with a foreign director.

Registration Process:

Document Preparation:

• Your company secretary will prepare the necessary documents, which may include:
• Completed company incorporation forms
• Articles of Association (defines company rules and operation)
• Proof of identity and residence for directors and shareholders (copies of passports and utility bills)
• Confirmation of company name reservation

Company Registration Submission:

• The company secretary will submit the completed documents through e-registration to the Companies Registry.

Approval and Issuance of Certificates:

• Upon approval, you'll receive your company's Certificate of Incorporation, signifying your company's legal existence.
• You'll also receive a Business Registration Certificate, allowing you to operate in Hong Kong.

Post-Registration:

Now you have a new company registered in Hong Kong. Easy as that!

The entire process takes about five business days from start to finish. The next steps will be:

Open a Corporate Bank Account:

• Open a business bank account for your Hong Kong subsidiary to manage finances.

Tax Registration:

• Register your company with the Inland Revenue Department (IRD) for relevant taxes like corporate income tax and potentially Goods and Services Tax (GST) depending on your business activities.

Additional Considerations:

• Depending on your industry, you may need licenses or permits from specific government departments.
• Explore visa and work permit requirements for yourself or any employees who will be working in Hong Kong.

Cost of Registering Your Company

Now that we've gone over the steps of setting up a limited company in Hong Kong, let's talk about the cost associated with this business development venture.

The first year is going to be more expensive since you'll have to set it up from scratch. 

In each company incorporation agency in Hong Kong, company secretaries charge differently, but on average, they cost around HKD10,000.

Typically, the price will swing wildly between each provider from as little as USD90 to as much as USD5000.

So you'll need to do some shopping.

Utilizing the Help of Air Corporate

Cheap, efficient, and trustworthy — is that more your style? Consider registering with us at Air Corporate today, and Thai businesses will be registered in Hong Kong in under 48 hours, guaranteed.

You will pay for the incorporation documents, company registration fee, Business Registration Certificate, which is a government fee, office and secretary fee, e-registration handling fee (if you don't enter the country), and assistance in opening your company bank account. 

You can open an account yourself, but if you don't want to put in all of the effort and spend the time to do so, you can pay for assistance.

After your first year, the fees associated with a Thai limited company are the Business Registration Certificate, annual return, and the amount you're paying for a secretary and office. 

After 18 months, your company will have to start filing a corporate income tax return.

If you used a good company secretary to set up the company, they will likely also be able to assist with accounting and filing taxes. 

If you've noticed, a licensed company secretary is crucial to making this process run smoothly.

So what are you waiting for? Register with Air Corporate today for as little as $90 and get a company in Hong Kong in less than 48 hours!