Requirements For A Foreigner To Start A Company In Hong Kong In 2019

Initially it was possible for non-residents of Hong Kong to open a Sole trader company in Hong Kong without the resident permit. Currently foreigners are only allowed to open a limited company unless one has the intention of staying in Hong Kong.

A foreigner can travel personally for Hong Kong Company Setup; after ensuring that they have a company secretary and office based in Hong Kong. Fortunately you can circumvent these requirements by engaging agencies that provide such services for lower than 6,000 Hong Kong Dollars Per annum. The same agent can act as a company secretary for several companies which makes their fee cheaper. The agents’ office space can also be used by several companies at a fee.

You can also avoid the unnecessary travel expenses by engaging e-registration instead of paper registration. The agent can act on your instruction via email or phone call and mail documents to you, via DHL services for authorization and signatures as you make payments electronically.

The Requirements And Procedures For Opening A Company In Hong Kong

After choosing your brand name, you will be required to make payments for the agency’s fee. The agency will carry out a name search for your Hong Kong Company Setup.

After this you will be required to send a copy of your passport or any official identification document like your driver’s license as a proof for residence attached with a questionnaire showing your address, passport number with names of directors and shareholders.

The Agency sets-up your company via e-registration if your company is made-up of a simple structure. You will receive the company’s business registration certificate and certificate of incorporation within 2 hours after certifying the passports online.

You can receive pre-signed documents like NNC1 form, Articles of Association and Incorporation form, for shareholders and directors to sign if you opt for a company with few layers. The original document can be mailed via DHL to your licensed agency.

The Whole Process Takes Less Than 5 Working Days.

The Total Costs incurred in the Maintenance and Registration of a Company in Hong Kong

If you decide to engage a licensed agency for your Hong Kong Company Setup, for provision of a Company Secretary and Office Address Services; then you will have to incur the following expenses in the first year:

• 2,070 HKD for company kit(like stamps and seal) and other incorporation documents
• 1,730 HKD as government fee for company registration
• 250 HKD as government fee for Business Registration Certificate
• 3,500 HKD for Company Secretary Provision
• 2,000 HKD for provision of Registered Office Address
• 300 HKD fee per officer for e-registration handling (if you opt for e-registration)
• 1,000 HKD to assist in opening a business bank account ( It is cumbersome when trying to open a bank account on your own). This amounts to 7,550 HKD for the first year. However in subsequent years,
• You will spend 5,855 HKD for registered address, company secretary and renewal of business license.
• You will also incur auditing and accounting fee depending on the number of business transactions. The audit fee is also subject to factors like the annual company turnovers. You may be required to pay 8800 HKD for less than 60 transactions, while more than 60 to 120 transactions per annum will attract a fee of 12,000 HKD. If your transactions range between 120 to 240 transactions per annum, it will attract an accounting and auditing fee of 17,700 HKD.

The Company may also incur additional fee based on the complexity of their business

Transactions.

The Hong Kong Requirements For Opening A Multi-Currency Business Account

As a member of Financial Action Task Force, Hong Kong banks must adhere to regulations that are in tandem with International Risk Management Standards. It is mandatory for banks in Hong Kong to seek necessary documentation from customers to curb money laundering.

If you are a new business owner in Hong Kong, you will be required to produce the following documents in English before you can open a bank account;

• Reference letter from personal bank
• Provide any Previous or existing employment contracts
• Existing or Previous Business Card
• Previous Company’s working attestation
• Professional Certificate relating to your industry of interest
• Your individual Resume

However if you have been running a business previously, you will be required to provide a proof of business through the following documents;

• Certificate of Business Registration
• Certificate of incorporation
• The Latest filed Annual Tax Returns
• Business Card
• A proof of Trading history like agreements with suppliers and customers

You will be required to prepare a Hong Kong Company Setup business plan, however if you lack the expertise the licensed agency can assist you in drafting one. The business plan doesn’t require to be too detailed but should provide a clear business direction including your place of operations.