Starting a Company in Hong Kong

Of the many legal entities permissible in Hong Kong, the majority of entrepreneurs starting a company in Hong Kong do so through a limited liability company (LLC). The government fee to register an LLC is US$550.

Starting a company in Hong Kong is controlled by the Companies Registry (CR) and Hong Kong company law is outlined in the Hong Kong Companies Ordinance of 1997. Through the CR companies are registered and administered, corporate compliance and disclosure requirements are monitored, and statutory audits by public accountants are regulated.

Starting a company in Hong Kong requires the appointment of a local, resident company secretary. A company also requires a local registered office address.

After starting a company in Hong Kong, company details are available for public viewing via the CR's online public register. Available details include shareholders and directors information, date of incorporation, share capital and registered address.

After starting a company in Hong Kong, it is necessary to submit audited accounts (relating to its Hong Kong operations) annually with the Inland Revenue Department (IRD).

The government fee to register a Hong Kong branch of a foreign company is HK$1,720 (US$221).

In 2010, more than 100,000 limited liability companies were incorporated in Hong Kong.

In accordance with the Hong Kong Companies Ordinance of 1997, setting up a company in Hong Kong requires the appointment of at least one local resident director. Thereafter, an unlimited number of local and international directors may be appointed. Furthermore, when starting a company in Hong Kong at least one shareholder must be appointed. Both local and international, corporate and individual shareholders are allowed.

Also established via the Companies Registry, a Hong Kong branch company retains the legal identity of its foreign parent. The Hong Kong branch must adopt the same name as its parent, and is required to file audited financial statements (relating to its Hong Kong operations) annually with the IRD.

Because of the restrictions on activities placed on a Hong Kong representative office, this entity is the least preferred option by foreign investors starting a company in Hong Kong. A Hong Kong representative office is useful for entrepreneurs wishing to conduct preliminary market surveys and feasibility studies before making a long-term investment commitment to Hong Kong. The government fee for setting up a representative office is HK$2,600 (US$335) which is the cost of obtaining a Business Registration Certificate from the Companies Registry.

A Hong Kong limited liability partnership (LLP) requires at least two partners, who can be individuals or companies of any nationality. Because partner liability is limited, it is attractive to some investors. In accordance with Hong Kong tax regulations, each partner is taxed on his or its share of income from the LLP.

Entrepreneurs starting a company in Hong Kong using this entity is required to register through the Companies Registry and the government fee for setting up a representative office is HK$2,600 (US$334).