Hong Kong is one of the top jurisdictions that have sprung back quickly after the disruptions caused by the COVID-19 pandemic in 2020. By the close of 2021, Hong Kong’s economic growth had shot to 6.5%. This rebound was attributed to good planning and the Hong Kong administration’s relentless focus on supporting business growth. The focus is to transform the economy into a pacesetter, which makes it an excellent jurisdiction for an offshore company.
To take advantage of the fast-growing Hong Kong economy, the first step should be registering it in line with the Hong Kong Companies Ordinance. In addition, you will need to understand and get right all post-incorporation services. In this post, we highlight the requirements for company registration in Hong Kong and the main post-incorporation executive functions you need.
Important Facts about Hong Kong
- Hong Kong has a population of 7.5 million (according to the latest 2021 statistics).
- GDP of Hong Kong is USD368.6 billion (2021 estimates).
- Service industry contributed 92.3% of the island’s GDP. Coming second and third are Industry (7.6%) and agriculture (0.1%), respectively.
- In 2020, Hong Kong was ranked 3rd by the World Bank on ease of doing business report.
- The main industries in Hong Kong are clothing & textiles, tourism, banking, and shipping.
- FDI stock for Hong Kong is USD 2.2 trillion (2017 estimates).
Registration Requirements for Offshore Company Requirements
Now that you know the key facts about Hong Kong, how do you go about registering a business? Here are the main requirements:
- Company name.
- The preferred business structure.
- Company secretary.
- Registered address.
- Articles of association.
- Copies of passports of directors and shareholders.
- The share capital of the company.
Post Company Registration Services that You Need to Know About
Once you are through with company registration in Hong Kong, the next phase will be even more important. In Particular, you need to get the following right.
- Filing tax Returns
Hong Kong takes matters of tax very seriously, and you need to get it right. Remember that the tax obligations for your company will depend on the nature of the business, deductions, and exemptions. For a business that generates tax inside Hong Kong, the corporate tax is 8.25% for the first HKD 2 million and 16.5% for anything beyond that mark.
- Payroll Management
Managing staff payroll is never easy. In Hong Kong, the process falls under labour laws and involves how you manage employees’ wages, bonuses, and deductions, among others. To avoid getting distracted from the core activities of your business, it will be an excellent idea to work with professionals.
Like payroll management, accounting activities can be pretty tasking. These activities involve recording, analysing and correctly interpreting a business’s financial information. In Hong Kong, you need to ensure your business follows the Hong Kong Financial Reporting Standards (HKFRS), which define the method you should use to recognize, measure, present, and disclose information dealing with finance-related transactions.
Why You Should Work with Company Registration Experts
Although Hong Kong has simplified the process of company registration so much, it is still complex to many foreign investors. If you are not from a legal or business-related field, preparing the documents can be even more complex. The best way to get it right is to work with experts in company registration in Hong Kong like GuideMeHongKong.
The lovely thing about experts is that they do not just assist with company incorporation but will come in handy to help with executive functions. Having helped other top-performing companies succeed, these experts can tell you what works and what does not.
Registering a company in Hong Kong is the best thing that you can do for fast growth and success. By working with professionals, the process becomes way simpler, and you are sure of taking advantage of every available opportunity. They will also help you demonstrate tax substance and conquer even the neighbouring markets.