Professional Consultation & Services for Hong Kong Company Incorporation & Accounting

Frequently Asked Questions

Q: What are advantages for incorporating in Hong Kong?
A: Hong Kong has been a leading international finance and business center in the world. It is a territory equipped with stable political environment, well-developed infrastructure, ever-growing capital market, highly educated working professionals, and an attractive tax regime. Being as one of the most dynamic economic regions in the world, Hong Kong not only offers a supreme location for entrepreneurs and firms to participate in the Asian economies, but also serves as the doorway to the Chinese market.

Q: What is in a Hong Kong Company Formation service?
Company Formation may consist of company name availability search, preparation of company incorporation documents, submission, retrieving of certificate of incorporation, obtaining of business registration certification, obtaining shares certificate, company chop and company stamp, bank account opening, registered office address, company secretary, and more.

Q: May non-Hong Kong residents incorporate a local limited company in Hong Kong?
A: Yes. Non-Hong Kong residents may incorporate a local limited company in Hong Kong.

Q: Can the registered office of a local limited company be situated outside Hong Kong?
A: No. The registered office must be situated in Hong Kong.

Q: Is a company secretary compulsory requirement?
A: A company must appoint a local Hong Kong company secretary who must reside in HK or a body corporate that must have its registered office in Hong Kong. The company may also appoint a nominee secretary.

Q: What are the duties of a company secretary?
A: The company secretary has to ensure that the company is in compliance with the statutory requirements of the Hong Kong Companies Ordinance and must maintain the statutory books and records of the company.

Q: Can a sole director or shareholder act as a company secretary?
A: No. The sole director/shareholder cannot act as company secretary.

Q: What are the company structures in Hong Kong which are available for entrepreneurs?
A: Company limited by shares, company limited by guarantee (or not limited by shares), sole proprietorship, and partnership.

Q: What are the requirements regarding the significant controllers?
A: All companies incorporated in HK are required to ascertain a person who has significant control over the company, and maintain a significant controllers register.

Q: Is the maintenance of company accounts mandatory?
A: Each year, company accounts must be audited by Certified Public Accountants (CPA) in HK. Companies must file the audited accounts with annual tax return to the Inland Revenue Department (IRD).

Q: What is the profit tax rate in HK for businesses?
A: HK uses a two-tiered profit tax system i.e. The profits tax rate for the first $2 million of assessable profits is 8.25% for corporations and 7.5% for unincorporated businesses. The profits tax rate above $2 million is 16.5% for corporations and 15% for unincorporated businesses (who are mostly sole proprietorships or partnerships).