Hong Kong Company Formation

Opening a company in Hong Kong

Why start a company in Hong Kong? What are the advantages in the state of Hong Kong?
Hong Kong is a small country, which is currently under the rule of China (its full name is "Hong Kong - Special Administrative Region of the People's Republic of China")

Hong Kong is a convenient solution for many entrepreneurs.

The city has 7.4 million inhabitants, and is a huge business center. The country has a 0% tax on all income originating outside the country. Because Hong Kong is a city-state, it follows that generally all income is outside the country.

The country is in southern China, right on the southern coast, more or less in front of Macau.

The local currency is the Hong Kong dollar (HKD).

The language spoken in Hong Kong is Chinese, but English is spoken fluently in Hong Kong.

The process of opening a company in Hong Kong
Opening a company in Hong Kong is a process that includes signing documents, and making a video call with a representative from Hong Kong who is authorized to open a company.

In Hong Kong there is no need for a local director or local shareholder. In Hong Kong you also do not need any European citizenship to open a company. You can open a Hong Kong company even if you are a foreign citizen. This means that it is possible to open the company with 100% shareholding in the name of a foreign citizen - in your name, or even in the name of a foreign company. The director can be foreign and there is no need for a local director.

To open the company in Hong Kong, there is no need to deposit equity capital. This is different than countries such as Germany, Bulgaria, Estonia, Spain, Austria, etc., which require an actual deposit of money as equity in a minimum amount that varies from country to country, as a condition for opening the company. As mentioned in Hong Kong, this is not the case, and the company can be opened without paying a single dollar in favor of equity.

local secretary
In Hong Kong there is no requirement for a local director, but there is a requirement for a local secretary, as well as a local address. We also operate a local secretary and we also have a local address, which your new company in Hong Kong can use regularly.

After submitting the registration documents and making the video call, the company is opened and a certificate of incorporation is issued, like the one we issued:

Opening a bank account in Hong Kong - current account for the company
After opening the company, it is time to open a current bank account for the company.

In Hong Kong, those who want to open a bank account are required to physically come to Hong Kong. The easiest bank to open is HSBC, which not everyone knows that the letters are an abbreviation of Hong Kong Singapore Bank Corporation, i.e. the bank corporation of Hong Kong and Singapore. In other words, Hong Kong is HSBC's home court and therefore this bank is the easiest to open an account there.

However, there is an alternative, and that is opening an internet bank account. Indeed, similar to our "Zero One" bank, there are internet banks that would be happy to have your company in Hong Kong as a customer.

Registration with the Hong Kong Tax Authority
Simultaneously with the opening of the company, the new company will be registered with the tax authority in Hong Kong.

Company maintenance
The company requires annual maintenance of payment to the local secretary, payment of fees, annual submissions of reports, a local address (which we will provide for you), as well as submissions to the tax authority.

The costs in Hong Kong are low due to the relatively cheap cost of living.

Hong Kong tax
The corporate tax in Hong Kong is only 15%, but the company in Hong Kong is completely exempt from any tax on profits whose source is outside Hong Kong. In other words, 0% tax on all income outside Hong Kong.

For sales to the local Hong Kong market, the VAT is 0% as well. That means there is no VAT in Hong Kong at all.

Questions and answers
Question: Is it necessary to physically fly to Hong Kong to open a company in Hong Kong?
Answer: The entire process is carried out remotely and at no stage is it necessary to physically come to Hong Kong. There is no need to fly to Hong Kong to open the company, nor the company's bank account. The entire process of opening the company and the company's bank account is carried out remotely without setting foot on Hong Kong soil.

Question: Who provides the local address for the new Hong Kong company?
Answer: We will provide the local address.

Question: Who provides the local secretary for the company in Hong Kong?
Answer: We will provide the local secretary for you.

Question: How can I find a good accountant to handle our new Hong Kong company?
Answer: We will connect you with a local accountant.

Question: If I want to come to Hong Kong to open a bank account, what should I do?
Answer: We will try ahead of time to arrange a meeting for you at the branch in order to sign the account opening forms, so that everything will be in order before you arrive, so that you don't just walk around the city in order to find which branch will accept you and open a bank account for your new Hong Kong company.

Question: What kind of company in Hong Kong should I open?
Answer: In Hong Kong there is only one type of company - the Limited ("Ltd"). Therefore there is really nothing to be confused about.

Question: Do you need a European passport to open a company in Hong Kong?
Answer: There is no need for a European passport. We can open a company in Hong Kong for any foreign citizen as long as he has a valid passport.

Question: How long does it take to open a company in Hong Kong?
Answer: The process of opening the company, including signing the power of attorney and sending it, should take about 2 weeks. After that, the process of opening a bank account takes between 1-3 weeks, depending on the readiness of the banks to accept the new company as a customer. Of course, these are times that depend on third parties, so this is only an estimate.

Question: Is it possible to open a company in Hong Kong for a person with American citizenship or a person living in the USA?
Answer: Yes. We know how to open a company in Hong Kong for a person with American citizenship or a person living in the USA.

Question: How much does it cost to open a company in Hong Kong?
Answer: Click here to contact us and get an up-to-date quote for free!