Hong Kong is considered the main hub to access the Asian markets. Any company that wishes to expand or build a business in Asia, should start in Hong Kong as a means to access the markets in Mainland China and beyond. If you are interested in hong kong company formation, there are a few things to know that are specific to this region.
What Structure Will Your Company Have?
This is the first question you need to have a clear answer for. In Hong Kong, you can register a branch office, representative office, or a private company. A branch office allows you to conduct business in Hong Kong while the main office is registered in a different country. It is not treated as a separate legal structure and can only gain access to funds based on the credit rating of the parent entity.
A representative office is a bit different from a branch. Representative offices are not allowed to register a profit. Such company structures make sense for incorporated companies that want to test out the market in the area. Also, this company structure can be used for internal operational activities.
The last company structure that can be registered in Hong Kong is a private company. Most new companies start with this structure as it allows them to conduct profit-making operations and have several economic benefits.
What Are the Steps to Incorporate a Company?
The Hong Kong company formation or incorporation is anything but complicated. There is some paperwork to be filed but everything can be done online or by sending the documents in a physical form to the Companies Registry. The online application is the fastest method as it can be as fast as one hour to register a new company once the documents have been sent.
To incorporate the company, 3 documents need to be prepared. There is an incorporation form that can be found as Form NNC1. The company’s Articles of Association are required. You will also need to fill in the IRBR1 form which is the notice to the Business Registration office.
A Few Extra Things You Should Know
The entire process used for Hong Kong company formation is not complicated. What you should know is that a new company with an office in Hong Kong needs to have a secretary (physical person) in Hong Kong. It also needs to have one director, also based in Hong Kong. The secretary needs to be a Hong Kong resident but the director does not.
If you lack the time to prepare the forms and submit the incorporation application yourself, you can work with various companies that offer consultancy or may even prepare everything for you. You should know that there is a flat fee of HK$1,720 that all applicants must pay, regardless if you do it yourself or have a company do it for you. If the application gets rejected, you are entitled to a refund of HK$1,425. You also need to pay for an application for the business registration certificate which is HK$250 and can be refunded in full if it is rejected.
