When it comes to expanding your business into international markets, Hong Kong is a popular destination for growing businesses.
Here we’ll teach you how to register your US-based company in Hong Kong.
Why Should You Choose Hong Kong?
You’ve probably heard more and more over the years that Hong Kong is the next big thing in the world of international business.
Here are some of the reasons why Hong Kong should be your top destination for international expansion.
- Favorable Taxation: The first of many advantages of doing business in Hong Kong is the very business-friendly taxation policies in effect.
Compared to surrounding economic zones, Hong Kong’s taxation system is highly competitive.
Income made within the Hong Kong economic zone is taxed marginally from as little as 8.23% up to 16.5%.
On top of that, any profit earned outside of the borders of Hong Kong is tax exempt.
- Open Economy: The economy of Hong Kong is very free and open. Virtually every category of business is accepted in the city. Additionally, all currencies are accepted, and companies operating in Hong Kong aren’t required to maintain a bank account in the city.
- Location: Hong Kong’s location offers many strategic advantages. The city is located right on the water with easy access to shipping ports. Additionally, the city offers instant access to mainland China and various other Asian countries by air.
- Simplicity of Doing Business: The best part of expanding your US-based company into Hong Kong is how easy the commercial authorities make it. You can establish your business in Hong Kong and maintain full ownership over the company.
Now that we’ve gone over the specifics of what makes Hong Kong an excellent destination for your business expansion, it’s time to discuss the steps involved in registering your company in Hong Kong.
How to Register Your Company in Hong Kong
Here’s a step-by-step guide to expanding your US-based business in Hong Kong.
1. Find Your Hong Kong Business Entity Type
Evaluate your business and see which business entity best describes the structure of your company.
Each business entity has its own advantages and disadvantages.
The most popular business entity for foreign businesses in Hong Kong is the Limited Liability Company, or LLC.
The structure of an LLC in Hong Kong allows as little as 1 shareholder and director and a maximum of 50 shareholders.
There is no minimum required share capital, and liability is limited to the unpaid amount of shares.
This model is preferred by smaller companies to conduct business in Hong Kong.
If this structure doesn’t suit your business, however, you can embark in a partnership with at least one Hong Kong-based partner, or alternatively move your sole proprietorship to the city.
2. Register Your Company
Next, you’ll need to register your business in Hong Kong to gain the right to operate there.
First, register your business with Hong Kong’s Companies Registry.
There is a collection of forms you must sign to apply for a registry, which can be found here.
These forms include:
- Incorporation Form
- Your Company’s Articles of Association
- and A Notice to the Business Registration Office of Hong Kong
3. Gain Certification
Once your applications are approved and your company is registered in Hong Kong, you will need to collect a series of certifications to start operating.
These certifications include the Certificate of Incorporation and the Business Registration Certificate.
These documents and certificates can be applied for and submitted both in-person via hardcopy and online via electronic form.
4. Additional Documentation
Lastly, after gaining registration and certification, you need to scan for any industry-specific documentation that you will need.
If you sell physical products, you will need to look into importation and exportation regulations.
Depending on the business you run, there could be very little or quite a lot of additional documentation required to get your business up and running in Hong Kong.
After you’re permitted to operate your business in Hong Kong, you’re also required to perform annual filings.
Like the United States, businesses operating in Hong Kong must file annual tax returns and meetings with the IRD.
Additionally, you must renew your business registration forms to maintain your status as a certified business.
Any business with additional certifications must keep up with them in order to operate legally, so be sure to check your status often.
Pay attention to the expiration dates of your certificates to stay in good standing with the IRD.
Opening a Business Bank Account in Hong Kong
It’s ideal to open a bank account in Hong Kong for your business. Like registering your business in Hong Kong, there is a process required for opening a company bank account with a local Hong Kong bank.
While the process is relatively involved, it’s worth it at the end of the day.
The burgeoning economic zone that is Hong Kong is a hotbed of economic opportunities.
When it comes to expanding your US-based business into international markets, Hong Kong is an excellent location for your business venture.
It’s important to evaluate your business structure, type, and goals when contemplating an expansion to Hong Kong With this guide, you can easily expand your business into the world-renowned economic powerhouse of a city.
Looking for help not only registering your company in Hong Kong but also opening a bank account?
Register today with Air Corporate, and you’ll get a company in Hong Kong in under 48 hours.