Because economists have described Hong Kong as an investors’ paradise, it’s no surprise that both small and large businesses have applied to be registered here. It is one of the freest economies with a high element of autonomy, and companies can benefit from the business-friendly tax system. They can also use Hong Kong as a doorway into trade with Asia and Mainland China.
Perhaps you are about to venture here with your business. If that’s the case, this article will help you understand more about the registration procedure.
Use The Internet As A Valuable Resource
By going online it is possible to access large amounts of data that are relevant to your situation. You can discover the difference between the business registration number and company registration number, and learn that both would be required whenever you opened bank accounts, signed contracts or rented office space. Helpful specialist websites can help you understand why both numbers are needed and link you to companies that specialize in company incorporation.
Establish Whether You Need To Be Registered
Your new company may be either a Limited Liability Company (LLC), Sole Proprietorship, Partnership or something else. If you are carrying out activities in order to make money you will need to register. This applies to any form of trade or commerce, and also clubs that provide facilities and services to its members for social interaction or recreation.
You may have established a business presence in Hong Kong or had your company incorporated under the Companies Ordinance. Alternatively, you may be renting out your premises or have a representative or liaison office here. Even if no business is being conducted in HK, a limited partnership fund registered under the Limited Partnership Fund Ordinance would also need to be registered.
Know When To Register
It’s not possible to register your business before it has commenced. You have one month to register if you start:
- A sole-proprietorship
- Limited Partnership Fund
- General partnership
Or have:
- An unincorporated body of persons
- Non-Hong Kong company
- Branch business.
You’d need to research one-stop company and business registration if you lead a business that is incorporated or registered under the Companies Ordinance.
The Registration Process
You will be required to complete the relevant application form for your business, and to submit sufficient proof of identity. There will be fees and levies that need to be paid too.
Individuals use form 1(a) and body corporates 1(b). General partnerships use form 1(c) whilst Limited Partnership Funds need 1(ca). An unincorporated body of persons will need form 1(c) and a Branch would require 1(d).
Identity Requirements
For individuals, partnerships and unincorporated bodies of persons, if you live in Hong Kong you’ll possess an identity card that you can use. Nonresidents would have to submit a copy passport. A body corporate would need to send in its Certificate of Incorporation or a legal equivalent. A certified copy of a translation would be needed for anything that’s not written in Chinese or English.
Limited Partnership Funds need a Certificate of Registration and a copy of the Hong Kong ID card or a copy passport. No identity requirements are needed for Branches.
The Company Name And Submission
You’ll need to select a business name that’s either Chinese, English (ending with the word ‘Limited’) or both. You can use English letters but not words for Chinese names, and there are limited symbols you can use. Don’t mix and match English and Chinese letters or the application will be bounced. A Branch or Representative office should have the same name as the parent company.
Some company names will be rejected, for instance, if it’s the same or similar to a business already in the Companies Registry. If the name seems to be overstepping an existing trademark or is deemed offensive, it would also be rejected. The best way to save time is to check your business name’s availability before you begin.
How To Apply
You can apply in person, by post or online. People can visit the Business Registration Office in Wan Chai, Hong Kong. Make sure you fully pay the postage if writing or your application will not be accepted. The eTAX facility exists online for:
- Sole proprietorships
- Partnerships (not Limited Partnership Fund)
- Branch registration
Whilst the whole process may take time and money, it should be seen as a valuable investment in your business. Once you are registered you will be able to secure premises and function as a company. In turn, you can reap the benefits of conducting business in this profitable location for many years to come.
