Hong Kong – Frequently Asked Questions
8-minute read
Overview:
Incorporation
How do I incorporate my business in Hong Kong
Company formation in Hong Kong is simple with these steps. You first have to decide on your type of business entity (i.e. company type) and company name. A quick search through the Companies Registry will show if your intended name is in use or not. The minimum requirement for Hong Kong companies are at least one shareholder, minimum $1 HKD of share capital, a company secretary that resides in Hong Kong and a local office address. After completing the name search and confirming the rest of the information, there is a list of incorporation forms and copies to submit along with your application through e-registry to the Hong Kong Companies Registry and Business Registration Office.
The entire registration process via an e-form, depending on the applicant’s experience and credentials, could take up to 7 to 14 working days to receive your certificate of incorporation.
For an in-depth guide, check out our guide on “How to register a business in Hong Kong“.
Why choose Hong Kong as a place of business?
Incorporating in Hong Kong is a strong choice when deciding where to base yourself. Hong Kong is a great place for business, with many investors being attracted to the location and the reason is clear. The tax-friendly environment is a big attraction for foreign businesses keen to start a business in Hong Kong. A productive legal system, and pro-business setup are some other factors that offer plenty of lucrative opportunities for businesses, besides an attractive tax regime and productive workforce. Stable economy, strong workforces, and business-friendly tax policies let you get up and running sooner- so you can spend less time tangled in admin and more time to invest in business activities.
Click here to find out more about the benefits of incorporating in Hong Kong.
How much does it cost to register companies?
The majority of service providers in the industry will charge you for each step of the registration service. Additionally, many providers in Hong Kong do not offer transparent pricing.
At Sleek, we offer transparent pricing and charge HKD5,299 (including government fees) for our one-stop services that ensure full compliance. The fee includes an admin fee of HKD129,a government fee of HKD3,870, a Company Secretary Fee of HKD1,300, and an HK Registered Address Fee of HKD1,500.
We are pleased to provide support throughout the registration process.
How long does it take to register companies?
The company registration process typically takes 2-4 business days once all your documents are in order. The timeline primarily hinges on the readiness of your required documents and the operating hours of the relevant authorities.
What are the minimum requirements for registering a company in Hong Kong?
The most common choice for business registration in Hong Kong is the private limited company structure, which entails the following prerequisites:
-
A minimum of one shareholder, aged 18 or above, who can be either a local or a foreign individual.
-
At least one director, aged 18 or above, who may also be a local or foreign individual.
-
A single person can serve as both a shareholder and a director.
-
A registered address within Hong Kong is mandatory for the company’s establishment.
-
The minimum paid-up capital per share is HK$1. You also need a physical address in Hong Kong as the registered office for official correspondence and legal purposes. It must be a non-PO Box address capable of receiving all government communication and notices.
Finally, every company must appoint a Company Secretary who resides in Hong Kong. This individual will help the directors to prepare and file all necessary documentation to keep the company compliant.
Can a foreigner start a business in Hong Kong?
Yes! Anyone who has completed the Know Your Customer records checking process will have the right to register Hong Kong companies and enjoy the financial benefits as a local company. However, the Companies Ordinance and Companies Registry CR will require your firm to have a registered office address, a verified company name and a company secretary based in Hong Kong.
Read here for more information on liability, director, shares distribution and what information we need from you for the company registration and Hong Kong Companies e-Registry!
Can a foreigner open a bank account?
It is very important for each new company in Hong Kong to have a business account. There are 2 approaches to opening an account in Hong Kong and many choices – either with traditional banks such as DBS or online financial services such as Transwap and Airwallex. Both approaches vary slightly as traditional banks value in-person meetings and more completed documents in the business registration process. Whereas for online financial services, you can fill in the information on their website and go through the process online. Both options have their own pros and cons. Read here for more details.
Sleek has many banking partners that can help with your business needs. Contact a team member today for referrals and email recommendations.
What is a Business Registration Certificate?
The Business Registration Certificate is a document issued by the Business Registration Office showing details of a company. Businesses operating in Hong Kong require a Business Registration Certificate and Business Registration Number. If you have a business in Hong Kong, you are required to apply for a Business Registration Certificate within 30 days of commencing operations. This number is issued by the Inland Revenue Department (IRD) and the Companies Ordinance.
In order to keep operating as a business and protect the associated assets/shares, the certificate needs to be renewed annually. You may apply for the relevant documents via the e-Registry at the Hong Kong Companies Registry. Read a relevant article here.
What is a Business Registration Number?
Business registration number is the Tax Identification Number (TIN). BRN is a unique number assigned to a business by the Inland Revenue. The Business Registration number comprises 8 numerals at the front of the business registration certificate number (e.g. 99999999-&&&-&&-&&-&). All the numerals of the Business Registration number are used as the identifier equivalent to TIN for entities.
What is the difference between BRN and CRN in Hong Kong?
The BRN consists of the initial 11 digits from the business registration certificate number, while the company registration number is a 7-digit figure. You can find this 7-digit number in the upper left corner of the Certificate of Incorporation. Read more here.
What is Articles of Association?
Articles of Association are a company document which sets out the rules and guidelines of how the board can operate the company. It is often viewed as a contract between company members and the company.
How often do I have to renew business registration?
For a registered business, its Business Registration Certificate has to be renewed annually (unless it is a certificate for 3 years). The business registration office will usually send the business registration renewal demand note by post to the business address approximately in the middle of the month preceding the commencement month of the renewal Business Registration Certificate.
For example, if the renewal Business Registration Certificate will commence in May, the Business Registration Office will issue the demand note in mid-April. Upon payment, the demand note will become a valid Business Registration Certificate. If you do not receive such a demand note, you should inform the Commissioner in writing within 1 month of the expiry of your current Business Registration Certificate.
The renewal can still be done either in person or by post as follows:-
- In person – you should visit the Business Registration Office with your old Business Registration Certificate and request a fresh demand note. If your business address has changed but the Business Registration Office has not been advised, you should also complete the form IRC 3111A to notify the change.
- By post – you should send a photocopy of your old Business Registration Certificate with a crossed cheque made payable to “The Government of the Hong Kong Special Administrative Region” to the Business Registration Office. A receipted Business Registration Certificate will be posted to your business address soon afterwards. If your business address has changed, you should also attach an advice of the new address specifying your business registration number, business name, old and new business address or registered office address, and the date of change.
With effect from 14 February 2011, all renewal demand notes will be issued in plain A4 size paper. For further details, please refer to “Format of Business Registration Certificates, Branch Registration Certificates and Renewal Notices”.
Which other permits of licenses do I need?
Apart from BR, you may also need to apply for other types of licences or obtain the recognised professional qualifications for operating certain kinds of business.
Please visit the website of the Trade and Industry Department for information on other licences, permits, certificates and approvals relevant to import and export operations and other business operations in HK.
Can you register your company online in Hong Kong?
Absolutely, you can! Sleek’s streamlined online company registration process requires minimal effort on your part. We’ll assist you in arranging the appointment of a local Corporate Secretary, securing a registered address, setting up a business bank account, and various other tasks, all without the need for you to be physically present.
Does a Hong Kong company need a resident director?
Hong Kong company directors aren’t obligated to be residents, and physical presence in Hong Kong is often unnecessary during the incorporation process. To register a Hong Kong Private Limited Company, you must have at least one director and one shareholder, with the option for a single individual to assume both roles.
Can a foreigner be a director in a Hong Kong company?
Yes. There is no requirement under the Companies Ordinance that a director must be a Hong Kong resident.
What documents do you get after registering a company in Hong Kong?
After the incorporation process, business owners will receive a green box containing essential documents like Articles of Association, Statutory book, Share Certificates, Certificate of Incorporation, Business Registration Certificate, and Company Chops. These documents hold significance and require regular updates. The subsequent steps after company formation often involve obtaining relevant licenses and opening business bank accounts. Having a clear understanding of the process in advance enables early preparation and smooth success. Read more here.
Ready to launch your business in Hong Kong? Talk to our expert team for proven guidance!
Company Secretary
What is a company secretary or corporate secretary in Hong Kong?
A company secretary is an officer responsible for the company/corporation. Some company secretaries are certified by the Institute of Chartered Secretaries in Hong Kong. The individual will be a gatekeeper for the firm and make sure that the Hong Kong company is fully compliant from a corporate governance point of view under the statutory laws of the Hong Kong Companies Ordinance and the government. Although it can be often overlooked, the company secretary is a key role with important responsibilities. Read more information from our website here.
What does a company secretary do?
Company secretaries are typically responsible for convening and providing administration for annual general meetings (AGMs): for example, producing agendas, taking minutes, conveying decisions and handling meeting correspondence. Providing legal, financial and/or strategic advice during and outside meetings.
Read our article “A Comprehensive Guide to Company Secretary Responsibilities” to learn more.
Why do I need a company secretary? Can I operate without one?
Having a company secretary is a legal requirement for every limited company in Hong Kong. The Companies Ordinance mandates the appointment of a company secretary to ensure compliance with government and company laws. The designated person must be a resident of Hong Kong and fulfill various responsibilities, such as preparing for general meetings, maintaining annual requirements, and defining the duties of shareholders and directors. Additionally, the company secretary acts as the point of contact with government agencies.
Operating without a company secretary is not permissible. Engaging in such activity is prohibited by law, as stipulated in the Companies Ordinance in Hong Kong. It is mandatory for companies to designate a company secretary who meets specific criteria, including being a resident of Hong Kong and at least 18 years of age.
Which company in Hong Kong must have a company secretary?
Each limited company operating in Hong Kong is obligated to have a company secretary. On the other hand, sole proprietorships are not required to appoint a secretary, but this business structure is limited in its usage due to the owner bearing sole responsibility for all debts and facing unlimited liabilities.
What is the difference between a company secretary and a designated representative in Hong Kong?
In Hong Kong, a company secretary and a designated representative are distinct positions. A company secretary is a statutory position required for all Hong Kong companies and focuses on ensuring compliance with legal and regulatory requirements, maintaining company records, and advising on corporate governance matters.
On the other hand, a designated representative is appointed to assist with the company’s significant controllers registered to a law enforcement officer and can be a shareholder, director, employee, or a qualified professional such as an accounting professional, a legal professional, or a person licensed to carry on a business as a trust or company service provider. It’s worth noting that some service providers may charge additional fees for acting as the company’s designated representative.
Read a relevant article here.
What are the requirements of a company secretary?
To appoint a company secretary that complies with the regulations of the Companies Registry, we have to understand that there are different requirements for company secretaries for different types of companies:
For private companies, the company secretary can be a natural person or a corporate body that has a Trust or Company Service Provider Licence. The individual does not have to be a Hong Kong resident, but he or she has to ordinarily reside in Hong Kong. If you’re using a body corporate as your company secretary, the registered address of that corporate must be in Hong Kong. The sole director of a private company must not also be the company secretary.
Public companies or companies limited by guarantee must have a company secretary and at least two directors, one of whom may be the company secretary.
For non-listed Hong Kong companies, there is no requirement for qualification for company secretaries.
For listed companies, the company secretary has to be a qualified accountant, chartered secretary, lawyer or hold some other qualifications that show the candidate has the ability to handle the duties of a company secretary.
What is corporate governance?
Corporate governance in Hong Kong involves paying attention to and respecting the interests of a company’s key stakeholders while achieving a company’s objectives. It is a body of rules and process determining the structure of a company.
It is the company secretary’s role to make sure that structure is consistently carried out.
Why outsource company secretarial services?
Outsourcing your company’s secretarial duties is a great way to save time and money. Especially for foreign entrepreneurs living outside of Hong Kong, such as in Australia or China, the process of registering and up-keeping a company in Hong Kong can be challenging and time-consuming. Sleek’s services can help maintain the business and fulfil the mandatory laws of a Hong Kong company under the Hong Kong Companies Ordinance while saving costs on headcount and potential Hong Kong office addresses. Contact us if you’re interested or need any assistance.
Why do I need a company secretary?
After incorporation, the Company Ordinance requires every limited company to have a company secretary in Hong Kong for complying with the government and company laws. The appointed person needs to reside in Hong Kong full time, with responsibilities such as preparing for general meetings, maintaining the annual requirements for the firm, as well as defining and updating the duties of each shareholder and director. The company secretary is also responsible for communicating with government agencies when they reach out to the company.
What are the duties of a company secretary in Hong Kong?
The company secretary takes care of all matters of the company in order to comply with the regulations of the Companies Ordinance. Their responsibilities depend on the company’s size and nature of business.
Here are the main duties of a company secretary:
- Organizing and attending all meetings
- Advice the company on corporate governance
- Checking the information in statutory books
- Filing statutory returns
- Complying with the statutory requirements
- Updating shares transfer
- Handling other administrative matters
The designated company secretary’s duties include being responsible for regulating the company operations and corporate governance. Others include preparing for the First Board Resolution, providing assistance in the Annual General Meeting, renewing the Business Registration Certificate documents, as well as informing the directors and members of the listed company of any changes.
How should I select my company secretary?
Since the company secretary handles a wide range of duties for your company, it is important to find a company secretary that has the following qualities:
Knowledgeable
A company secretary has to perform duties beyond normal secretaries. He or she should have a set of knowledge and experience regarding corporate governance and company compliance. If you’re hiring a corporate body as your company secretary, you must ensure that the company holds a Trust or Company Service Provider Licence like Sleek.
Organized
From annual general meeting minutes, billings to important mails from the bank or the government agencies, the company secretary has to keep records of a large amount of documents and important details for the company. It is important that the candidate is highly organized and capable of filing important documents neatly so that the company can refer back to respective folders easily.
Responsible
Duties such as renewal of the business registration certificate and submitting the right documents to the Companies Registry and Inland Revenue Department are a must in order to avoid penalties. The company secretary must understand the importance of submitting relevant documents on time to ensure a smooth operation for the company.
Professional
The company secretary has to represent the company to communicate with government agencies such as the Companies Registry and Inland Revenue Department. They have to remain professional when they respond to emails or phone calls on behalf of the company.
At Sleek, we offer company secretarial services that you can trust. Contact us if you’re looking for a company secretary that possesses all the above qualities.
Can you be the director and the company secretary?
A company secretary in Hong Kong can be an individual or a corporate entity. However, it’s important to note that a sole director of a private company cannot also act as the company secretary. In such a case, the company must have more than one director to appoint one of them as the company secretary. Compliance with this rule is essential for private companies in Hong Kong.
When should you switch your company secretary in Hong Kong?
Since the company secretary takes care of a lot of important duties for your company, you may need to consider changing your company secretary if you face the following problems:
- He or she charges you hidden fees
- Billings are delivered late
- Billings are incorrect
- Business Registration Certificate not renewed on time
- Fail to submit documents on time
- Fail to file returns on time
These common problems would greatly hinder the daily operations of your company and even violate the regulations of the Hong Kong Companies Ordinance. Failure to accurately handle government filings may result in government penalties. As an entrepreneur, the efficiency and accuracy of your administrative matters are vital to keeping your business running smoothly.
You may want to appoint another company secretary if you encounter issues with your current company secretary.
How do I switch to Sleek’s services?
Thank you for choosing Sleek as your new secretarial service provider! It is not uncommon to change your company secretary, and the process is simple. Before you leave your current service provider and transfer to Sleek, you need first get in touch with us to carry out a series of KYCx (Know Your Customer) process. After the approval, we will require you to notify your current service provider of the determination.
Sleek offers not only secretarial services for companies but also a registered address for your company. Read about the entire process and the details of our services from our website here for more advice, and switch to Sleek’s seamless services today!
Need a corporate secretary for your business?
Accounting & Tax
What are Sleek’s accounting and bookkeeping services?
Accounting and bookkeeping are essential to running a successful company anywhere. We help our clients with their bookkeeping, accounting and auditing requirements in coordination with the Hong Kong Inland Revenues Department. The specifics include day-to-day operations, financial reporting and record-keeping.
What is Bookkeeping?
Maintenance of account books to help with the smooth running of the company. It is a record of year-round entries for the financial year, including profit and loss statements, balance sheet, ledger accounts, account receivables and payables, and bank reconciliation statements. Our SleekBooks accounting solution will help automate a lot of these processes to help you save time and money.
All Hong Kong-incorporated companies must maintain proper account books to comply with the Hong Kong Companies Ordinance.
Why should I outsource accounting for my business?
As a small business or startup owner, outsourcing accounting services offers numerous benefits. By delegating bookkeeping tasks to experts, you can prioritize your core products and services while enjoying a full accounting department experience. From daily accounts receivable and accounts payable to payroll, transaction coding, Profits Tax Return filing, and financial reporting, outsourcing provides comprehensive support for your business’s financial needs.
Why choose Sleek as an accounting and bookkeeping service provider?
When your business is ready to scale and grow, it’s crucial to delegate routine administrative tasks like accounting and bookkeeping to trusted experts who understand the challenges of entrepreneurship.
At Sleek, we provide comprehensive accounting services for small businesses in Hong Kong. Our dedicated team prepares financial statements, handles bookkeeping, and offers expert accounting advice. By entrusting your accounting to us, you’ll save valuable time and avoid costly late fees or penalties, ensuring compliance with local authorities.
With Sleek, you not only receive the expertise of dedicated accountants but also gain convenient access to all your documents and financial data through our user-friendly app. Your documents are securely digitized and stored in the cloud, allowing you to work from anywhere you choose.
How to outsource accounting, tax and bookkeeping services?
Outsourcing accounting services can help companies save cost and headcount, especially if they are small in size. At Sleek Hong Kong, we use trusted accounting softwares such as Xero and ReceiptBank to assist in our accounting services by recording your expenses and tracking your business transactions. Our team also utilises cloud accounting to ensure that your annual financial statements and audit work are up-to-speed! Individual year end reports and annual tax returns submission will be filed during the filing dates to the Hong Kong Inland Revenues Department. Your designated accounting manager or certified public accountant in Hong Kong will be in constant communication for any issues regarding the accounting service such as financial reporting and important information updates.
However, there are things to consider if you wish to get an external auditor/ accountant to settle your accounts. Click here for more information about picking an external auditor.
You can also check our article about HKAS.
What accounting software does Sleek use?
SleekBooks is our proprietary accounting software solution designed to record company transactions in a compliant manner. With features such as multi-currency accounting, P&L and balance sheet reports, and a comprehensive audit trail, SleekBooks ensures a seamless experience. Our tools recognize and reconcile invoices and receipts, update documents and outstanding bank balance daily, support single and multiple currencies, provide a clear list of unpaid invoices, and alert you to any missing documents for accurate reporting.
If you need regular access to modify entries, automated invoice creation, integration with third-party cloud apps, and the ability to access reports and accounts on the go, we recommend opting for a Xero subscription. Xero offers these features along with the convenience of their mobile app.
What is cloud or online accounting?
Cloud accounting, also referred to as online accounting, involves hosting accounting software on remote servers, shifting the entire process to a cloud-based system while retaining the same functionality as desktop accounting. This approach is akin to the PaaS (Platform-as-a-Service) business model, where data is sent to a separate location for processing before being returned to the user or client.
One of the key advantages is that users can access software applications remotely through the Internet or Intranet. In the context of a Hong Kong accounting firm, employees from various departments can access the same up-to-date data and software version without missing any updates. Additionally, cloud accounting software eliminates the need for individual desktop installations and maintenance, providing businesses with real-time reporting and visibility.
Moreover, most cloud platforms offer API functionality, enabling third-party software to connect with your system and provide additional value to your business accounting processes.
How should I submit my data?
You can submit your data in any format that is convenient for you. Simply drop your files in our app, store them in a cloud, or email them to our experts, and they will handle the rest with utmost care.
How is a statutory audit done in Hong Kong?
Auditing for Hong Kong companies is a mandatory requirement before tax submission is made in accordance with the Hong Kong Inland Revenue Department. Apart from our accounting services, Sleek is also experienced in offering auditing services for companies of various sizes and status. Subscribe to the accounting and bookkeeping plan to prepare for an easy and organised audit later.
What are Unaudited Financial statements?
Unaudited financial statements provide an accurate picture of a company’s financial health. Unaudited financial statements include a balance sheet and a profit or loss statement (P&L).
What are the tax filing requirements for Private Limited Companies in Hong Kong?
Tax filing requirements for companies include submitting the Profits Tax Return annually. Newly incorporated companies receive their first Profits Tax Return after 18 months of incorporation, and three months are given to prepare the accounts and audit report for the initial filing. The subsequent tax returns should be filed before the deadline based on the Company’s Accounting Year End Date.
Additionally, companies that have hired employees must file the Employer’s Return of Remuneration & Pensions annually. This report should include the salary and wages paid to employees for each fiscal year (April to March) and is typically submitted in April every year.
What is Employers Return?
Employer’s Returns are tax filing forms, known as IR56B, submitted by employers to report employees’ and directors’ income information. It includes details on salaries, bonuses, allowances, deductions, and exemptions. Submission is required by April-end annually, aiding tax calculation and ensuring employee tax compliance.
What are the Payroll services provided by Sleek?
Sleek’s payroll services include: One time set-up of the company payroll profile in Talenox Monthly Payroll Run, sending of Reports and Payslip Expense claims reimbursement to be added on payroll with the help of DEXT Employees access to the Talenox payroll software for payslip viewing MPF monthly e-submission (applicable to HK based employees) IR56B Employer’s Return for the tax assessment period of 01 Apr – 31 Mar Upgrade available for an extended version of Talenox which include: Leave Management System IR56E for new employee IR56F/G for the resigned employee.
How much do accounting services for Hong Kong companies cost?
We are dedicated to bringing our clients different levels of accounting services and bookkeeping based on their companies, office and business requirements. We can assure you there are no hidden fees in our services. Please refer to our pricing table and documents above for additional details on our accounting services. Each price range caters to different levels of company expense, starting at HKD 3,000 per financial year for companies with less than HKD 15,000 in monthly expense. Contact us and visit our site today for advice or tailor make your plan that’s most suitable for your business.
Want to know more about annual returns? You can find it here.
What kind of services does Sleek cover in declaring offshore profit tax exemption?
Sleek is experienced and dedicated to helping our clients and their companies indicate offshore profit taxation exemption claims in their tax return to the Hong Kong Inland Revenue Department. However, Sleek will not be able to cover clients in answering any immediate, or after period questions from the Hong Kong Inland Revenue Department regarding the specific documents and details on the status of the company on a monthly quarterly basis.
*Sleek will review the average expense level and adjust the pricing accordingly. Message us to find out more or check out our audit page.
What happens if the company exceeds the expense limit for the plan?
Our accounting plan can grow with your company when needed, you’ll only need to pay the difference. Once the company’s financial year end is completed, Sleek will review the Avg expense level and adjust the pricing accordingly.
