Hong Kong is a top pick for entrepreneurs who want to set up a business in Asia. The Chinese special administrative region acts as a gateway from the West to Mainland China. Due to low tax rates, the region attracts a large number of foreign entrepreneurs every year.
If you are looking to open a company in Hong Kong, you must know that it has a very simple procedure for incorporation. You don’t even need to enter Hong Kong to start a business in the region as a foreigner. There are many hong kong company formation services that can help you through the process. In fact, they can handle the entire thing for you. You can also do it on your own through the e-Registry portal online.
Here’s how you can open a company in Hong Kong as a foreigner:
Pick a name for your company.
First, you have to choose the name of your company. You cannot pick a name that is already registered with another company based in Hong Kong. Furthermore, you cannot choose a name of obscene or objectionable nature.
Choose your business type.
While foreigners can set up several types of businesses in Hong Kong, you must register your business as an incorporated company if you want to open a company without entering Hong Kong. It’s recommended that you register a public limited company if you are a large corporation, although most entrepreneurs choose to open a private limited company.
Register the company.
The next step is to get your company registered. While company formation agents typically handle this step, you can very easily do it on your own. You will be required to appoint a resident of Hong Kong as a representative of your company as stipulated in the Companies Amendment Ordinance of 2019. The resident you appoint will need to keep an up-to-date ‘Significant Controllers Register’ which may undergo inspection by law enforcement officials at any time. If you register the company through the online portal, you will need the following:
● Company’s Incorporation Forms
● Copies of Identification for Shareholders and Directors
● Proof of the Company’s Hong Kong Office Address
This step normally takes at least two weeks. You can easily get it done if you hire a trusted incorporation provider.
Open a corporate bank account in Hong Kong.
Once your company is ready to operate and has a good business model, you can open a corporate bank account in Hong Kong.
This step is almost similar to opening a corporate account in another country. You have to provide the bank with everything that shows that your business is legitimate and has high-profit potential, such as financial figures, strong online presence, and even projected earnings.
You will also be required to provide the bank with your company’s registration certificate, proof of business, and a completed corporate account application for the chosen bank.
If you are opening a company from overseas, you will need an incorporation specialist to assist you through this step. Incorporation providers have good relations with major commercial banks in Hong Kong, which will help expedite the entire process.