Whether it is to realize one's own ideals or aspire to make great achievements, before starting a business, one must first understand the form of establishing a company. There are basically three main forms of company formation in Hong Kong, including:​

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• Private limited company

• Sole proprietorship

• Partnership business
   

What is a private limited company?

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The most common is "Limited". A limited company is actually a legal entity separate and distinct from its members, ie a legal person. Shareholders of a limited company have limited liability for the company's debts and obligations.

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There are also different ways to set up a limited company, including buying existing company, or newly registering a company:

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Existing company — Some documents such as company certificate and seal are already available. You only need to select the appropriate name from the list and register as the director and shareholder of the company.

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Newly registered company - the customer provides the company's Chinese and English names, and after checking the name to confirm that the name can be used, you can go through the relevant procedures.

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What are the requirements for setting up a limited company?

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Hong Kong is a city with vigorous business activities in the world, and the procedures for setting up a limited company are relatively simple.

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First of all, a local private company must have at least one director (at least one director must be a natural person), one shareholder and one secretary (must be a Hong Kong resident or a limited company). Note that one person can serve as a shareholder and a director at the same time, but cannot concurrently serve as a secretary.

Are there any nationality restrictions for company members?

The answer is no. Persons of any nationality can also serve as shareholders and directors of the company, and all positions are accepted by individuals or limited companies. (at least one director is a natural person). The details of the directors, shareholders and secretary must be recorded at the Companies Registry for public inspection.

Pick a big name for your company.

For the company name, you can choose English and Chinese company names according to your needs and preferences.

Does the company need a registered address?

The registered address of the company must be declared.And not just a PO Box. The registered office of a Hong Kong limited company must be located in Hong Kong.

Is there a minimum share capital requirement?

Hong Kong company law does not make any requirement on the minimum share capital.

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What matters must be followed up after the establishment of the company?

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Established companies must meet annual requirements, including: submitting annual returns, holding annual general meetings of shareholders and directors, business registration certificates, and submitting audited financial statements. These seemingly simple but very important procedures that must not be overlooked. It is best to have a company secretary to follow up in time.

 

Next is company tax. Hong Kong's tax base is based on the "regional source concept". If the profit is not sourced in Hong Kong, no tax is required. It should be noted that every year, all limited companies registered in Hong Kong must submit the company's financial statements and tax returns to the tax bureau for tax assessment purposes, so the company's accounting work is very important.

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