Company in Hong Kong: taxes, procedure, fees

It is quite simple to register a company in Hong Kong, since the standard size of the authorized capital is only 1000 HKD (approximately €120), and if required, the whole procedure will not take more than 48 hours (in case of electronic submission of documents).

The choice of Hong Kong as a place of registration of a legal entity is justified by tax advantages:

• VAT 0%;
• zero rate of the tax on dividends.

And if the company does not operate in Hong Kong, then there will be no income tax at all. If the income is generated in Hong Kong, then the income tax rate will be 16.5%.

Hong Kong is also a good way to enter the Chinese market.

Package of services and cost

The total cost of registering a company in Hong Kong and further business support consists of the following services:

1. Company registration — €299.
2. Secretary services — €39 per month or €394 per year (a local legal entity that is a licensed service provider in Hong Kong shall act as a secretary).

This service sincludes:

• company’s registered address;
• maintaining and keeping legal entity’s files;
• execution of such documents as the Certificate of Incumbency, Corporate Register, Share Certificate, internal resolutions;
• dealing with Hong Kong state authorities (tax authority, Registrar etc.);
• monitoring deadlines for reporting, payment of state duties.

3. Director services — legal entity: €49 per month or €495 per year; individual — €99 per month or €999 per year.

This service includes:

• representation of the company;
• signing of documents.

In principle, there is no difference; however, with an individual director fewer documents will be required for submission.

4. Accounting — €999 per year, provided that the number of transactions per month is 10 or fewer (incoming and outgoing). If payments are more than 10 per month, the cost of accounting shall be calculated individually upon the provision of bank statements.

5. Audit — the amount is also calculated individually on the basis of accounting and bank statements.

6. Business license — from the second year, 250 HKD per year (approximately €30).

7. Support for opening a bank account (includes 3 attempts with different banks) — €1490.

The client shall select the package of required services independently.

Step-by-step procedure and terms of registration

To register a company in Hong Kong, only 7 steps shall be completed:

1. The client shall select the package of services on the website: local secretary/director/support for opening a bank account, annual or monthly subscription.

2. Meeting with the client (in person / via conference call), after which the bill is paid. It is better to hold a personal meeting, otherwise more additional attention will be paid to the client later.

3. The client shall collect and send a minimum set of documents (passport, document with residence address and CV), decide on the company’s name and the size of the authorized capital, state the company’s activities.

4. If the name is unique, it must be approved with the Registrar on the individual basis.

5. The documents prepared for registration shall be sent to the client for signing.

6. The client shall send signed scanned documents and their originals (registration is carried out in electronic format) back.

7. The client shall receive the set of corporate documents.

The minimum list of documents for an individual includes:

• scanned valid passport (in colour);
• any document confirming the registered address where the client’s first and last names are indicated: water/electricity bill, bank statement etc.;
• CV that specifies education, employment over the past 10–15 years, approximate amount of annual income and well-being in general.

Additionally, you will need to provide an official certified translation of the documents in English or Chinese, if the documents are in the language other than these ones.

At the earliest, it is possible to register a company in Hong Kong in 3 business days. The period consists of one day to prepare documents after a personal meeting and receiving a minimum package of data and 2 days for registration procedures.

Who helps with incorporation in Hong Kong?

YouReg deals only with officially recognized service providers who have an operating license. Currently, KP Secretarial (Hong Kong) Limited, a local company with a valid license from the local Registrar, is connected to the Platform. We guarantee fast and high-quality execution of registration documents, compliance with deadlines and local legal aspects.