ATA Corporate Formation & Management Limited  


Time: 2008-7-1 Author: admin Source:

Hong Kong Company Registration

If you live and work overseas, but want to invest or set up a business in Hong Kong, you can simply rely on ATA in doing so. ATA can take care of everything for you, since ATA is familiar with business formalities and investment portfolio in Hong Kong, where ATA is able to give you a tangible solution.

Hong Kong is an international metro with abundant information and opportunities. With an area of 1,100 square kilometers and a population of over 8 million, Hong Kong is the freest trading port in the world. Together with sound infrastructure and complete legal system of its own, it provides an advantaged commercial environment to many entrepreneurs and traders. Therefore, more and more people establish their own companies in Hong Kong with different purposes, which improve not only the image of the company but also the competitive ability of the company. ATA especially make brief explanation as follows to pave a way for you to your business success in Hong Kong:

1. Corporate Shareholders, directors and secretary:At least one shareholder, one director and one secretary is needed for a Hong Kong limited company. A natural person aged above 18 years old is eligible for a shareholder and director or both. Shareholder could also be acted by legal person, as far as corporate structure is concerned. In Hong Kong a statutory secretary should be acted by a Hong Kong natural or legal person for and on behalf of the company to ensure compliance with ongoing legal returns, accounts, audit and other requirements. Details of the company's directors, shareholders and secretary must be filed at the Companies Registry for public search.

2. Company Name: In Hong Kong, a trade name is much easier to define as long as you do not infringe the trademark of other companies. The name of limited company should be ended with “limited”. You can have English name or Chinese name or both. If you like, you can add country name or city’s name in front of or inside the company name, such as: France, USA, Italy, Japan, London, Beijing, Shenzhen, Shanghai and so on. 

3. Business Scope: In principle, there are not great restrictions on business scope of Hong Kong companies. But you are advised to define your business activities before you set up a Hong Kong company; it is your choice whether to show the business activities on the business registration license or not.

4. Registered Capital and paid-up capital: The registered capital for a Hong Kong limited company could be as low as HKD 10,000.00 and there is no need of capital paid up (capital injection), while capital duty should be levied at the rate of 0.1% by the government based on the size of the registered capital. Shareholder or director could decide later on the size of paid-up capital according to your business going. If you want to use this company to invest in China, you’d better raise your registered capital as high as one million RMB so as to reach the criteria required by the Chinese government.

5. Processing Steps: Fill out an application form→ Payment→ Sign statutory documents personally→ Forward to Hong Kong government relevant departments immediately→ Finish within 7-15 working days→ Collect the documents at designated office

Documents Required for Business Setup: If you want to have a company registered in Hong Kong,  your are simply required to fill out an application form, together with copies of the Passports and sign the whole set of statutory documents personally. ATA will cater to your registered address and legal secretary if necessary. For the bank account opening you might need business plan and address proves (ater, electricity and phone bills in the latest three month) for bank reference.

ATA Services and fee for Business Setup: ATA services include one business registration license, one certificate of incorporation, four chops, one copy of share certificate, 16 copies of M & A, one copy of statutory book for director’s record, one official receipt, one green paper box. The service charge is HKD8800.00 for the above services including government fee except for the registered capital tax.

6. Bank Account Opening and Service Fee:ATA is often honored as valuable business partners by many local or international banks in Hong Kong. ATA’s assistance in bank account opening and follow up will make you easier to establish business relationship and smooth paper processing with banks. ATA’s service in bank account opening includes recommending bank, making appointment, offering certified true copy by CPA, working as a referee and guide for the whole processing, providing contact address and doing documents follow-up. The service fee is only HKD1800. Documents required for bank account opening will be offered on request.

7. Legal secretary, commercial secretary and service fee:Although a legal secretary is a must for a Hong Kong limited company required by the local government, a commercial secretary would be an alternative offered by ATA. ATA commercial services include information and data processing, taking order, trade documents processing, telephone answering, travel arrangements, meeting planning, telephone transfer, mailing service, research work, and telephone survey. A secretarial service could be done virtually through e-mail, fax, telephone and the Internet to small, medium-sized, and home based businesses. Whatever gets the job done--non-traditional, but it works. The monthly service fee for legal secretary is HKD100 only while the monthly fee for commercial secretary ranges from HKD300 to HKD1200 accordingly.

8. Annual Return and service fee:Each year the company must submit an annual return to the Hong Kong Companies Registry and the Hong Kong Inland Revenue. If failed doing so, penalties will be implemented accumulatively, you can’t expect that the company will be suspended and cancelled eventually as China does, the maximum fine could be as high as HKD700 per day per owner. The annual fee for annual return and non-business tax return service is around HKD5800.00 which depends on the government’s annual public offering.

9. Accounting, auditing, tax layout and tax return and fee:If a company has business running on in Hong Kong, account book should be well kept monthly for an annual audit before you carry on a tax return to the Inland Revenue. ATA can arrange bookkeeping and auditing for you in time of need. Every company is required to finish tax return on the 18th month from the date of company incorporated in Hong Kong. Submission of “nil” profits tax return without auditor’s report and financial statement would be accepted for not yet commence business corporation, otherwise, the auditor’s report and financial statements must be submitted together with profits tax return after making the account books ready. The services fee for completed “NIL” profits tax return is HKD 1,000.00. While book-keeping fee is HKD 4, 000.00 and auditing fee is HKD 6, 000.00 for the company whose turnover is less than HKD 5 millions, surcharge is 0.1% on exceeding amount of turnover.

10. Taxation in Hong Kong:Hong Kong has created an image of low tax and few tax environment. The distinctive taxes for enterprises are Income taxes (salaries tax, profits tax); profit tax is levied at rate of 15% for unlimited and 16.5% for limited companies accordingly. Salaries tax ranges from 2% to 17% on net income (before deduction of the allowances). There are several features of the Hong Kong tax system. For most commodities, there are no import tax and export tax.

11. Other services in Hong Kong:ATA provides SMEs with assistance services such as corporate legalization or notarization, bank reference letter, entry visa or work permit.

12. Contact Us:For further queries, you are welcome to visit ATA website or email to / or contact any of the following branches, thank you.
HONGKONG TEL:852-27826888     SHENZHEN TEL:86-755-82143272    
BEIJING TEL:86-10-58674409       SHANGHAI TEL: 86-21-58763186  
GUANGZHOU TEL:86-20-87550061  YIWU TEL:  86-579-85206707         
CHENGDU TEL: 86-28-86676605    QUANZHOU TEL:86-595-22515909   
XIAMEN: 86-592-2280281 s

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