Business China

25 Common Problems of Hong Kong Company Registration

+86-020-2917 9715
It is either easy or difficult to register a company in Hong Kong, as long as you figure out the problems. Following are the common problems with it:

1. Q: What are the requirements if I want to set up a company in Hong Kong?

A: Two or more shareholders over the age of 18. Mainland citizens or overseas nationality with passports or identity cards are eligible. Have a registered address and Legal Secretary of the Company Limited (can be provided by the agent company).

2. Q: How long does it take to start a new company? And how long would it take to buy an off-the-shelf shell company? Can I buy a ready-made company before changing its name? How long does it take to change the name?

A: A new Hong Kong company can be completed within 10 to 15 working days from the completion of signing all the statutory documents; a ready-made company can be completed in 1-2 working days, which can be completed on the day of extension; the branch office will be completed within 3-5 working days; after the company has been bought, its name can be changed, which will take 15 to 25 working days.

3. Q: What is the difference between the choice of company name between Hong Kong and the mainland?

A: Hong Kong companies are freer to name, and companies that are harder to register in China can be registered in Hong Kong, as long as their names are not repeated. Regardless of the size of the registered capital, the Hong Kong Government allows the company name to contain words such as international, group, holding, industrial, investment, college, association, center, foundation, research, etc.

4. Q: How can the registered capital of Hong Kong companies reflect? Should the registered funds be in place?

A: The minimum registered capital of a limited liability company in Hong Kong is for 10,000 Hong Kong dollars and has no requirement for injection. There is no registered capital stated on the business registration certificate (BR), which is only reflected in the articles of association (A & A). If the customer needs to show his registered capital, the articles of association is enough to prove.

5. Q: How to open a bank account after the establishment of the company?

A: When opening an account, all directors of the company must go to the bank in person. You can choose to open an account in Hong Kong or in a foreign bank in China, which is called a local account or an offshore account.

The account you open usually includes Hong Kong dollar savings account, foreign currency savings account (including all common foreign currencies, Hong Kong dollar checking account). All three accounts are open to letters of credit (LC). However, if a letter of credit is to be opened, an account must be opened.

The documents to be prepared by the director at the time of opening an account are: the original identity document (ID or passport) of the director / original business registration certificate / original registration certificate / original articles of association / signature seal / original minutes of the meeting/ cash deposited into a new account / if signature witness is required, the director must also prepare the original credit certificate issued by the bank where the director is located (including the name of the person opening the account, passport or ID number, the date of opening the account, the amount of deposit, and the words "good record of bank transactions").
Our services include: recommending account opening bank / preparing account opening document, meeting record and bank account opening applications to be signed by accountant/ arranging referrals / arranging special persons to assist in opening accounts the bank. Normally, your cash deposit will be accepted immediately after you open the account. However, cash withdrawal must wait until the bank checks the company registration office and confirmation. It takes about 20 working days to check a new company.

6. Q: What are the operational differences between the offshore accounts in Hong Kong and the mainland?

A: They are different in several ways:

The first is that Hong Kong's capital flows in and out of the country are unregulated, while offshore accounts opened in foreign banks in China should be regulated by China's monetary authorities. As a result, offshore accounts cannot deposit in cash presently;

The second is bank charges. Hong Kong accounts charge very little, while offshore accounts charge on a per-account basis.

The third aspect is that the documents for opening an account are different. An offshore account can accept a mainland identity card holder to open an account, while a local account in Hong Kong requires the holder of an account to have a passport or a Hong Kong visa/pass.

Fourth, Hong Kong's local accounts are fully functional, while offshore accounts are limited in some functions.

The fifth aspect is the account opening speed, the former is faster, the latter is slower.

7. Q: what materials will be required to register a company in Hong Kong and how long will it take?

A: Hong Kong company registration uses the British company law. So the registration process is roughly the same as British. First, you should sign the Hong Kong company registration agreement, prepay the Hong Kong company registration fee, and the shareholders personally sign the Hong Kong company registration legal document. Legal documents will be submitted to the Hong Kong Companies Registry and the Inland Revenue Department. After 8 to 10 working days, you can obtain the full set of information on the registration of Hong Kong companies and start the operation of the company.

8. Q: Can a company open multiple accounts? Is there a necessary connection between them?

A: There is no basic account or non-basic account in Hong Kong. Enterprises can open countless accounts as needed. They have the same function and status. From the bank's point of view, there is no necessary connection between them. However, all bank lists must be submitted centrally before the accounts are made.

9. Q: What are the capital requirements for the registration of Hong Kong companies?

A: According to the convention, the registered capital of a Hong Kong Limited Company is HK $10,000 (no need to do capital injection). The size of the registered capital of a Hong Kong company depends on the liability the shareholders share in the company. Shareholders may decide the size of registered capital according to the Hong Kong Company Law and their actual needs. If investors intend to invest in China, the size of registered capital should conform to the requirements of the local government of China.

10. Q: Is it a must for the company address to be in Hong Kong?

A: Yes. The Hong Kong Government provides that Hong Kong companies must have a legal Hong Kong company registration address, but the company registration address does not need to be independent. And the Hong Kong Government allows a number of companies to share a company registration address. If necessary, our company can provide assistance.

11. Q: When will a newly formed limited company be able to check the company's background records in the company registration office?

A: Generally speaking, after 16 working days, you can check the company's background records at the company registration office. The information is stored in the form of a film to facilitate the public search. According to this situation, when we open an account for a newly formed company, we'd better notify the parties concerned 16 working days later for checking into the Registrar's office. If the search company has been established for more than 1 month, the results will come out after 3 days.

12. Q: What fees do I have to pay every year after registering a Hong Kong company?

A: There are two annual fees to be paid: the annual audit of the annual report and audit of the accounts.

The annual audit of the Tax Board and the annual report of the Registrar of companies are the fees that must be paid annually. Prices will change as the government adjusts. It floats between about 3, 000 and 5, 000. This fee must be paid even if the company does not have any business.

As for accounting, audit, if the enterprise starts to operate, there is business, so the enterprise must do accounting audit. If the business does not occur, the enterprise does not have to do accounting audit. But tax returns are mandatory.

13. Q: Who is responsible for accounting and auditing every year after the establishment of the Hong Kong Company? If the accountant is handled by your company, what information should be provided? What are the specific standards of the pay? And how long does it take?

A: Accounting can be done by enterprises themselves or entrusted to Hong Kong accounting firms. But the audit must be entrusted to the accountant or auditor. If handled by us, you must submit all records of your business transactions: account books, invoices, receipts, payment vouchers, bank statements, accounts receivable, unpaid accounts payable. Generally speaking, it takes one month to clear accounts and 1-2 months to audit.

14. Q: How do Hong Kong companies file tax returns?

A: After registration of a Hong Kong company, there are two very important matters every year. One is company annual audit, the other is to make the account to file the tax. The annual audit of Hong Kong companies is held once a year from the date of registration. The tax is held once a year and the first declaration is 18 months later.

15. Q: What are the requirements for tax returns of Hong Kong companies?

A: If a company does not operate in Hong Kong, it can make a direct zero return, while the operating company will have to make an account and audit the tax before it can file a tax return. Many clients consult zero reporting requirements, in fact, zero reporting requirements are strict and risky. If there is a business in Hong Kong, then the audit during the formal operation will be more secure for the future development of enterprises in Hong Kong.

16. Hong Kong companies' mode of accounting and tax returns

There are approximately three modes for Hong Kong companies to make tax returns:
(1) Zero tax returns----suitable for companies that do not operate;
(2) Direct tax return after making accounts----suitable for limitless companies to operate;
(3) Make accounts, audit before tax return----suitable for a limited company operating.

17. Q: How can I know if the company name I intend to use has ever been used by other companies?

A: You can check the company name free of charge through the Internet at the online search Centre of the companies Registry or at the Public search Centre, 13th floor, Queensway Government offices, 66 Queensway, Hong Kong. When checking the company name, enter any number of characters at the beginning of the company name you wish to register. The search results will show the company in the companies Registry database with the same name as you entered. (attention: do not enter the full name of the company when you use "start by the name".)

18. Q: How do I change the company name after the company is registered?

A: After a company is registered, a special resolution may be passed to change the name of the company, and within 15 days after the adoption of the special resolution, notice of change of company name may be submitted to the Registrar of companies. The date on which the company name change certificate is issued is the date on which the change of company name takes effect. Please note that a special resolution to change the name is not required to be submitted to the Companies Registry.

19. Q: Can I object to the continued registration of a registered company name?

A: Yes. If you find another company (hereinafter referred to as that company) registered under a name "excessively similar" to your company's name after the establishment of your company, you may object to the Registrar of companies and give the reasons for the objection including any evidence that proves to have caused confusion. If in the opinion of the Registrar of companies, the two are "excessively similar", the Registrar may, under section 222 of the Companies Ordinance, within 12 months from the date of registration of the company's name (hereinafter referred to as statutory period) direct the company to change its name. Therefore, objections to the name of the company should be made early (appropriate for the statutory period) Not less than 1 month before expiry) be sent to the Registrar of companies for investigation before the expiry of the statutory period and, and if necessary, serve a notice.

20. Q: What is the registration procedure in Hong Kong?

A: If the Secretary asked our company for, all government documents and verify the name, are all prepared and assisted by our professional staff, and the specific procedures are as follows: provide company name both in English and in Chinese, free search.
Provide shareholder / director identification (which may be held by one person at the same time) and complete set of documents, and the shareholder director shall sign and confirm, We submit the whole set of green boxes to our customers for 10 working days in Hong Kong, including: certificate of registration (business license, business registration certificate, tax registration certificate, 18 articles of association, stock book, 1 copy, 1 meeting record, 2 atomic prints, 1 steel seal, All original registration documents. Assist in the opening bank account.

21. Q: Can non-Hong Kong residents be appointed directors and secretaries of limited companies?

A: Non-Hong Kong residents may be appointed directors of the company. Provided that the secretary of a company shall, in the case of an individual, be ordinarily resident in Hong Kong and, in the case of a body corporate, have a registered office or place of business in Hong Kong. Each private limited company shall have at least one director and one secretary. If there is only one director of the company, the director shall not concurrently act as secretary of the company.

22. Q: When are companies registered under the Companies Ordinance required to file annual returns?

A: A private company with a share capital shall file an annual return within 42 days of the anniversary of its incorporation for each calendar year (other than the year in which it is incorporated). In the case of other companies, annual returns must be filed within 42 days after the annual general meeting or within 42 days after the date of passing the written resolution in lieu of the annual general meeting, together with the original or certified copy of the audited accounts.

23. Q: How much registration fee will be paid for the delivery of the annual return?
A: The annual registration fees payable by various local companies when delivering their annual returns are as follows:
The annual registration fee payable by a private equity company for filing an annual return within 42 days from the most recent anniversary of incorporation is HK $105. If the annual return is not delivered within 42 days of the prescribed time limit, a substantial increase in the registration fee will be required.
The annual registration fee payable by any other equity firm for filing an annual return within 42 days after the annual general meeting or within 42 days after the date of passing the written resolution in lieu of the annual general meeting shall be HK 140 per year. If the annual return is not delivered within 42 days of the prescribed time limit, a substantial increase in the registration fee will be required. Non-equity company: the annual registration fee payable is HK $105 and the annual return must be filed within 42 days after the annual general meeting or within 42 days after the date of passing the written resolution in lieu of the annual general meeting.

24. Q: We have no business and are unable to pay the higher registration fee for the annual return. Can we waive the payment of this fee?.
A: No.The Registrar of companies has no discretion to waive payment of registration fees. If the company ceases to carry on business, you may consider deregistration or liquidation of the company.

25. Q: My company is due for an annual return. Although the company's profile has changed since the date of last year's annual return, the company's members, whose data and stock holdings remain the same as last year, have not changed. May I leave the part of the third page "particulars of the members of the equity company" on page 3 of form AR1 (that is, the annual return)?

A: No. Even though the figures in "particulars of the members of a company with equity" remain the same as last year, the data of members and their holdings must be reported in the section of "particulars of members of a company with equity". Uncompleted annual returns will be returned to the company or the author.

Guaranteed HK Bank Account
  • James Oliver "True professionals, very helpful and dedicated. Your support team is fantastic."
  • Robert Gatti "Our advisor was brilliant and we were given more help that we knew we needed. What I liked most about Business China's service was the prompt and businesslike approach.It helped us dramatically. At a...
  • Vivian Belfanti "Quality work and friendliness is why I chose to work with Business China. Business China is organized very easy to work with."
  • Tim Orchard "Thanks to Business China’s professional guiding and efficient processing about company incorporation and VAT refunding, our new entity in Guangzhou already step into a virtuous circle. I have to say...
  • Victor Declety "Business China allows us to focus on our customers instead of being tangled into enterprise level business incorporation and maintance."
  • Ben Hunter "Business China is helping people who don't necessarily know how to connect your current business with the booming Chinese market and how to lay out your 'China Dream' here specifically. It has been...
  • Daniel Wong "A great customer experience! The flexability and speed of response from the account manager, as well as the quality of the service process was exceptional."
  • Stacey Morris "Businesss China has been superb. Their customer service is great. The guys there respond very quickly and go above and beyond that help."
  • M. Salem Having real-time information allows us to deal with issues immediately before they become problems.We are satisfy with Business China.
Request a Proposal

Drop Business China a quick message to let us know about your incorporation needs.