Hong Kong company formation process

Setting up a company in Hong Kong is a smart decision for businesses with fast-growing needs. With a preferential tax system (corporate tax rate of only 16.5% and no VAT), Hong Kong is a tax haven for investors. Besides, modern infrastructure, a developed banking system and transparent legal transparency have turned this place into a leading international financial center. The prime geographical location, which is a bridge between East and West, makes it easy for businesses to refer to the Chinese market and Asian countries. All of these factors combine to create an ideal business environment, optimize profits and promote sustainable development. However, not all investors understand the process of establishing a company in Hong Kong, Viet An Law would like to guide the process through the article below.

Hong Kong Company Formation Process

Step 1: Choose a company name to register

When naming a company in Hong Kong, businesses need to comply with a number of strict regulations. The company name can be registered in English, Chinese, or both, but it must never be a combination of English and Chinese letters. To ensure that the company name does not infringe on the intellectual property rights of a third party, investors should double-check the information on the website of the Hong Kong Business Registration Department or the Hong Kong Intellectual Property Office before making a decision. To check if the desired company name has been registered, investors can take the following steps:

• Visit the website of the Hong Kong Business Registration Department
• Use the company name search tool to check.
• Enter the name of the company you want to register with in the search box.
• The system will display search results, indicating whether the company name has been registered or not.

Also, to check if the company name infringes intellectual property rights, you can visit the website of the Hong Kong Intellectual Property Office and do the same search. A special point to note is that limited liability companies are required to have the word “Limited” (meaning “limited”) at the end of the company name.

Step 2: Determine the company’s business form

Once you’ve chosen an impressive and unique name for your company, you’ll need to take the next steps to define your company’s business model. The information below is information to carefully consider:

• Choice of type of company:

The choice of the type of business company is a strategic decision, directly determining the success or failure of the business. Each type of limited liability company, joint stock company or private enterprise has its own characteristics in terms of legal responsibility, ability to raise capital and management. Therefore, choosing the right type depends on many factors, from business size, development goals to financial capabilities. To make an informed decision, entrepreneurs should consult with legal and accounting professionals.

• Charter capital:
  • Number and par value of shares: You need to decide on the number of shares to be issued and the par value of each share. The par value of the shares is the value stated per share, however, the actual value of the shares can vary depending on a variety of market factors.
  • No minimum limits: Hong Kong law does not stipulate a minimum amount of charter capital for companies. This provides flexibility for investors, allowing them to decide on the amount of capital that suits the size and needs of their business.
  • Influencing factors: The amount of charter capital will affect the company’s reputation, ability to borrow capital, and business license requirements.
• Office Address:
  • Registered address: You need to provide a legal registered address in Hong Kong. This address can be a corporate office or a service address provided by companies that provide virtual addresses.
  • Role of address: The registered address will be used to receive official notifications from the government and competent authorities.
• Other important notes:
  • Company Secretary: According to Hong Kong law, every company must have a company secretary. The company secretary is responsible for ensuring that the company complies with legal regulations and carries out administrative procedures.
  • Business licenses: Depending on the type of business you have, you may need to apply for additional special business licenses.

Step 3: Prepare the registration dossier

To complete the company registration procedure in Hong Kong, investors need to prepare complete documents including the company’s charter, registration form and notify the Business Registration Office. Then, submit this entire dossier to the Company Registration Department. Along with the dossier, the investor must pay the company registration fee and the business registration fee. The current registration fee is HKD 1,720 (US$220), which can be reduced by 10% if done through the “e-Registry” portal. The business registration fee and tax fees are HK$2,200 ($281) for a one-year certificate and HK$5,870 ($751.6) for a three-year certificate, between 2024 and March 31, 2025. Investors can choose a one-year or three-year subscription. If the documents are prepared in accordance with the applicable laws and regulations, the Companies Registry will issue a Certificate of Incorporation together with a Certificate of Business Registration, proving that the company exists legally.

Step 4: Make a company seal and print the company’s charter

After completing the registration procedure, the company can proceed to make a seal and print the company’s charter. Hong Kong has simplified its seal regulations, giving companies the option to use or not to use a common seal. In addition, the company’s charter can be stored electronically.

If you need assistance with the procedure for establishing a company in Hong Kong, please contact Viet An Law for the fastest support!