Incorporating a Hong Kong Business
There are a number of structures for setting up business in Hong Kong, either as unincorporated entities, such as partnerships and sole-proprietorships, companies with limited liability or by guarantee; or even as a limited partnership, just to name a few.
However the most common types of businesses found operating in Hong Kong are 1. the limited liability company; 2. the Sole Proprietorship; and 3. a partnership
To find out more about each of the different types of entities, please go to the Knowledge section.
To set up a Limited Liability Company
There are 2 ways to do this, ether 1. purchase a shelf company or 2. set up a new company from scratch.
Shelf Company
A shelf company is one that has been pre-incorporated and ready for you to do business almost immediately. All corporate documents can be copied to you within a few hours and a complete kit shortly afterwards.
The benefits of using a pre-incorporated company is that the company is ready to do business almost as soon as you choose which one to use.
To transfer the shelf company to you, we require details of the proposed shareholders, directors, company secretary and the address from which you will carry on your business. If, for any reason, if any of the above is not available at the time, for a fee we can offer our nominee and registered office services to you, click here for details of our other services.
Newly Incorporated Company
With the advent of electronic registration now, setting up a new company from scratch is almost as convenient as acquiring a shelf company. On provision of all necessary due diligence documents, a new limited liability company can be incorporated on an expedited basis within just a few hours. Not too long ago it still took 7-10 days to incorporate a new company.
The benefits of setting up a new company as to purchasing a shelf company is that you can set up a company with the name of your choice (subject to availability), from the start, rather than have to change the name of an existing shelf company. Also the company charter can show you as the initial shareholder of your company, rather than that of the incorporation agent.
To set up a Sole-Proprietorship business
A sole proprietorship business is one set up by an individual in Hong Kong. You have much more flexibility in its set-up and you need not worry about the name as there is no restriction on setting up a sole-proprietorship business that has a name identical* to an unincorporated business that has already established.
To set up a Partnership
Like a sole-proprietorship business, several individuals can set up a partnership. Once again, there is no restriction on setting up a partnership that has an identical name* as another unincorporated business that has already been established.
* Whilst there is no restriction in registering a name identical to one already in existence, care should be taken that the name registered would not infringe on another party's
intellectual property rights and which may consequently result in such third party bringing an infringement or passing-off action.
Registration as an Overseas Company
As an overseas business, you may consider to try out carrying on business in Hong Kong through your foreign entity first before fully branching out and setting up a Hong Kong company. To do so, we can arrange to have your company register itself as a foreign company and operate like a "Branch Office" of your foreign company. This way, you will have a presence in Hong Kong without having to fully set up a Hong Kong subsidiary.
This option may also be suitable for companies in jurisdictions that may treat Hong Kong's low tax rates as a tax haven and consequently give less favourable treatment to a Hong Kong subsidiary than if taxes in Hong Kong were higher.
Other types of business entities
To register set up other types of companies, such as a company limited by guarantee, a charitable company, a limited partnership business, a society, etc,., please contact us for more information.
However the most common types of businesses found operating in Hong Kong are 1. the limited liability company; 2. the Sole Proprietorship; and 3. a partnership
To find out more about each of the different types of entities, please go to the Knowledge section.
To set up a Limited Liability Company
There are 2 ways to do this, ether 1. purchase a shelf company or 2. set up a new company from scratch.
Shelf Company
A shelf company is one that has been pre-incorporated and ready for you to do business almost immediately. All corporate documents can be copied to you within a few hours and a complete kit shortly afterwards.
The benefits of using a pre-incorporated company is that the company is ready to do business almost as soon as you choose which one to use.
To transfer the shelf company to you, we require details of the proposed shareholders, directors, company secretary and the address from which you will carry on your business. If, for any reason, if any of the above is not available at the time, for a fee we can offer our nominee and registered office services to you, click here for details of our other services.
Newly Incorporated Company
With the advent of electronic registration now, setting up a new company from scratch is almost as convenient as acquiring a shelf company. On provision of all necessary due diligence documents, a new limited liability company can be incorporated on an expedited basis within just a few hours. Not too long ago it still took 7-10 days to incorporate a new company.
The benefits of setting up a new company as to purchasing a shelf company is that you can set up a company with the name of your choice (subject to availability), from the start, rather than have to change the name of an existing shelf company. Also the company charter can show you as the initial shareholder of your company, rather than that of the incorporation agent.
To set up a Sole-Proprietorship business
A sole proprietorship business is one set up by an individual in Hong Kong. You have much more flexibility in its set-up and you need not worry about the name as there is no restriction on setting up a sole-proprietorship business that has a name identical* to an unincorporated business that has already established.
To set up a Partnership
Like a sole-proprietorship business, several individuals can set up a partnership. Once again, there is no restriction on setting up a partnership that has an identical name* as another unincorporated business that has already been established.
* Whilst there is no restriction in registering a name identical to one already in existence, care should be taken that the name registered would not infringe on another party's
intellectual property rights and which may consequently result in such third party bringing an infringement or passing-off action.
Registration as an Overseas Company
As an overseas business, you may consider to try out carrying on business in Hong Kong through your foreign entity first before fully branching out and setting up a Hong Kong company. To do so, we can arrange to have your company register itself as a foreign company and operate like a "Branch Office" of your foreign company. This way, you will have a presence in Hong Kong without having to fully set up a Hong Kong subsidiary.
This option may also be suitable for companies in jurisdictions that may treat Hong Kong's low tax rates as a tax haven and consequently give less favourable treatment to a Hong Kong subsidiary than if taxes in Hong Kong were higher.
Other types of business entities
To register set up other types of companies, such as a company limited by guarantee, a charitable company, a limited partnership business, a society, etc,., please contact us for more information.