Hong Kong has for many years won the tag of the ultimate investment hub in the globe. As an island that operates independently from the Mainland China, Hong Kong has established a business based economy. The administration supports businesses that in return contribute greatly to its tax basket.
To enter and join this high potential jurisdiction, the most preferred business formation is a limited liability company. As you plan to enter and do business in Hong Kong, here are three things you need to know;
The requirements of registering a company in Hong Kong
Once you decide to register a company in Hong Kong, the first step should be collecting all the required documents.
You need documents such as the articles of association, copies of shareholders and directors’ passports, and initial minutes authorizing the company formation.
Other requirements include the following;
- Complete name search.
- A resident company secretary.
- Identify a company address
Note that you can either register the company on your own by presenting the incorporation document to the registry office or using an agency. The agency can also act as the company secretary.
How to open a corporate bank account?
Once your company has been incorporated, it will not be possible to start until a bank account has been opened.
Banks require applicants to present the certificate of incorporation, copies of passports of directors, the company secretary, and details of all operations. You might also be required to provide a detailed structure of the company and the expected clients.
Hong-Kong is the perfect city for any kind of entrepreneur (startups, Blockchain, ICO,…). Indeed, you can only spend your time in satisfying your customers instead of doing useless paperwork…Also, Hong-Kong has a very stable economy and a very stable political ecosystem. That’s a real plus is you compare to others juridictions like Dubai, Panama or Seychelles.
Hong-Kong : 100% (real) privacy
Important to know : Hong-Kong is the only juridiction with total privacy! This is not the case for Dubai and Singapore (per example) and this information change…almost everything about your tax strategy!
Being fully private is mandatory because your banking informations will never be shared with other country (except with countries accepting OECD rules). About OECD signing countries, please note that Hong-Kong is only exchanging data (Common Reporting Standard) with the United Kingdom and Japan.
Though the main focus of investors is opening their businesses and growing, it is important to also understand the process of dissolution. Indeed, dissolution or deregistration is a part of a lifetime company, understanding it is a real plus to avoid bad surprise when you will need it…
To dissolve a Hong Kong company, the first step is getting all the members to agree and ensuring the company does not have outstanding liabilities. The company should also cease operations for about 90 days and get a Notice of No Objection from the Inland Revenue Commission.