The free economy in Hong Kong has attracted many investors to incorporate business in the country. The latest technology, world-class infrastructure, and fair legal system has made Hong Kong a distinguished place for entrepreneurs. Also the process for new business registration is simple and easy.

The number one 3E Accounting limited, a corporate service provider in Hong Kong provides Hong Kong secretarial services to guide you on the registration process and set up business promptly and cost-effectively.

In this article, we look into the major steps to follow for simple registration process of the business in Hong Kong:

Select The Business Entities And Name For Your Company

There are different types of business types in Hong Kong. They are sole proprietorship, partnership, company limited by guarantees and shares. You should do some research about these company types and select the right business structure for your company as per your requirements.

You should select the name of your company as per the guideline of registration of Company Names for Hong Kong Companies. You should be aware of patent, trademark, and copyright issues while selecting the name for your company.

Prepare And Submit The Documents

There are certain documents that are to be submitted to the company registry. The documents are:

• Company Incorporation documents
• Copy of articles of association of your company
• Notice to company registration office

Obtain Business License And Permits

It is the next step to start your business. There are different kinds of licenses and permits that you may require as per your business structure. You can check it out on the online license service or government websites.

Taxation In Hong Kong

The tax rates are low in Hong Kong. The country doesn’t charge any taxes on the commercial activities that are operated outside the country. Furthermore, there are different tax deductions and allowances that reduce the payable amount of taxes.

The country doesn’t impose tax on capital gains. The profit taxes are 8.25% for companies with profits of HK$2 million and above it, the profit taxes are 16.5%.

Requirements For Insurance And Pensions

It is compulsory to register your staff in the Mandatory Provident Fund before you start a company in Hong Kong. It assures the company complies with the act of Employees Compensation and ensures that your company has defined policy to consider all the employees; part-time as well as full-time. The employees must be 18-65 years to work in the company.

Requirements For Annual Filing

It is crucial to comply with laws relating to filing annual records of your company within the time fixed by the company registry. Following are the prerequisite you need to follow for annual filing:

• Filing an annual return every year
• An audit reports along with tax return should be filed in IRD (Inland Revenue Department) each year

These requirements differ depending upon your business structure and the location of your company.