This write-up is brought to you as a paid partnership with K.F.Lam & Co, Certified Public Accountants
From its position as a getaway to China and some of the region’s emerging markets such as Indonesia and Vietnam (in non-COVID time) to its low corporate taxes and easy rules and regulations, Hong Kong has long been known to be a city where opening and operating a business is easy. It doesn’t not come as a surprise that the city is this year clinching the third spot in the Ease of Doing Business ranking. If the pandemic has surely been an economic disaster for some, it has also proved to be an opportunity for others and entrepreneurship is currently up globally. We’ve partnered with Certified Public Accountants K.F.Lam & Co to bring you a few handy tips on how to get you started if setting up a business in Hong Kong has been on your mind.
From its position as a getaway to China and some of the region’s emerging markets such as Indonesia and Vietnam (in non-COVID time) to its low corporate taxes and easy rules and regulations, Hong Kong has long been known to be a city where opening and operating a business is easy. It doesn’t not come as a surprise that the city is this year clinching the third spot in the Ease of Doing Business ranking. If the pandemic has surely been an economic disaster for some, it has also proved to be an opportunity for others and entrepreneurship is currently up globally. We’ve partnered with Certified Public Accountants K.F.Lam & Co to bring you a few handy tips on how to get you started if setting up a business in Hong Kong has been on your mind.
What type of company should I set up?
In Hong Kong, the most common type of company is a limited company where your liability is limited to what you have invested in, or guaranteed to, the company. The incorporation of such a company is quite easy and follows the steps below:
Step 1
Choosing if your liability should be limited by shares or by guarantee (for non-profit-making organisations mainly) and choosing a name.
Step 2
Processing the application, online or at Queensway Government Offices, with your Incorporation Form, a copy of the Company’s Articles of Association and a Notice to Business Registration Office.
Step 3
Once your application has been approved, you can collect the Certificate of Incorporation and Business Registration Certificate.
Step 4
Apply to other permits and licenses that might be needed to operate your business.
What type of visa should I apply for?
In Hong Kong, the most common type of company is a limited company where your liability is limited to what you have invested in, or guaranteed to, the company. The incorporation of such a company is quite easy and follows the steps below:
Step 1
Choosing if your liability should be limited by shares or by guarantee (for non-profit-making organisations mainly) and choosing a name.
Step 2
Processing the application, online or at Queensway Government Offices, with your Incorporation Form, a copy of the Company’s Articles of Association and a Notice to Business Registration Office.
Step 3
Once your application has been approved, you can collect the Certificate of Incorporation and Business Registration Certificate.
Step 4
Apply to other permits and licenses that might be needed to operate your business.
What type of visa should I apply for?
For non-permanent resident, a visa is a must in order to be allowed to remain and work in Hong Kong. When running a business in Hong Kong, you can choose between an Investment as Entrepreneurs visa or a visa under the General Employment Policy.
When going for the first option, you will have to prove that the company is actively carrying out business in Hong Kong and that the business has been beneficiary to the local economy.
What are the requirements or procedures for maintaining an incorporated company in Hong Kong?
To maintain your company, you will have to renew your Business Registration every year and hand in an Annual Audit and the Annual Tax Return.
What are the corporate taxes like in Hong Kong?
As of today, under the “One Country, Two Systems” constitutional principle, Hong Kong businesses are not subjected to the People’s Republic of China’s taxation system. The local taxation system is rather easy and the corporate Profits Tax rate is 16.5%. But did you know that offshore incomes are not taxable? With an offshore tax claim, you can deduct from your taxable income the sale and purchase activities that are occurring out of Hong Kong.
Not matter where you are at in your company set up process, and whether you need help to establish or grow your business, remember that a certified accountant is the person you need to help you deal with the local regulations.
When going for the first option, you will have to prove that the company is actively carrying out business in Hong Kong and that the business has been beneficiary to the local economy.
What are the requirements or procedures for maintaining an incorporated company in Hong Kong?
To maintain your company, you will have to renew your Business Registration every year and hand in an Annual Audit and the Annual Tax Return.
What are the corporate taxes like in Hong Kong?
As of today, under the “One Country, Two Systems” constitutional principle, Hong Kong businesses are not subjected to the People’s Republic of China’s taxation system. The local taxation system is rather easy and the corporate Profits Tax rate is 16.5%. But did you know that offshore incomes are not taxable? With an offshore tax claim, you can deduct from your taxable income the sale and purchase activities that are occurring out of Hong Kong.
Not matter where you are at in your company set up process, and whether you need help to establish or grow your business, remember that a certified accountant is the person you need to help you deal with the local regulations.
Raymond Lam
raymond@libration.com.hk
+852 3118 2261
K.F.LAM & Co
Certified Public Accountants (Practising)
Unit 3, 10/F, Arion Commercial Centre
2-12 Queen’s Road West
Sheung Wan
raymond@libration.com.hk
+852 3118 2261
K.F.LAM & Co
Certified Public Accountants (Practising)
Unit 3, 10/F, Arion Commercial Centre
2-12 Queen’s Road West
Sheung Wan
