How to Register a Company in Hong Kong

Hong Kong continues to be a leading international business hub, attracting entrepreneurs from around the globe. In 2023 alone, 132,246 local companies were newly registered with the Companies Registry, bringing the total number of registered local companies to 1,430,758 by the end of the year. This increase of 39,080 compared to 2022 underscores the city’s thriving business environment and ease of setting up a company.

Getting familiar with the process and the many benefits of registering a company in Hong Kong can make your journey smoother, especially if you’re looking to establish a business here.

Overview of Company Registration in Hong Kong

Hong Kong offers a streamlined and efficient company registration process, making it an attractive destination for entrepreneurs. The city’s legal framework, combined with its strategic location and robust infrastructure, provides a conducive environment for businesses to flourish. Understanding how to register a company in Hong Kong can help you take full advantage of these benefits.

Benefits of Registering a Company in Hong Kong

• Favourable Tax Regime: Hong Kong has one of the lowest tax rates in the world, with no VAT, capital gains tax, or withholding tax on dividends.
• Strategic Location: Situated in the heart of Asia, Hong Kong serves as a gateway to Mainland China and other Asian markets.
• Robust Legal Framework: The city’s strong legal system protects intellectual property and ensures business transparency.
• Ease of Doing Business: Hong Kong consistently ranks high in global ease of doing business indices, thanks to its efficient regulatory environment.

Processes Involved in Company Registration

The process to register a company in Hong Kong involves several key steps:

1. Choosing a Company Name: The name must be unique and comply with the Companies Registry’s naming guidelines.
2. Preparing Documentation: This includes the Articles of Association, incorporation form, and identification documents for directors and shareholders.
3. Submitting the Application: Applications can be submitted online through the Companies Registry’s e-Registry portal, simplifying the process significantly.

Companies Registry and Business Registration 

Role of Companies Registry in Hong Kong

The Companies Registry is pivotal for those learning how to register a business in Hong Kong and administering company registrations. It ensures compliance with the Companies Ordinance, maintains a public register of company information, and provides access to company records for legal and business purposes. The Registry also protects sensitive personal information through its new inspection regime.

Business Registration Requirements

Before you can operate a business in Hong Kong, you must complete the business registration process. This involves:

• Registering with the Business Registration Office.
• Obtaining a Business Registration Certificate, which needs to be renewed annually.
• Complying with all regulatory requirements to avoid penalties.

Steps for Business Registration

1. Prepare Your Documents: Gather the required documents, including the application form, Articles of Association, and identification documents for directors and secretaries.
2. Submit Your Application: Submit the application to the Companies Registry and pay the registration fee.
3. Receive Your Certificates: Once approved, you will receive a Certificate of Incorporation and a Business Registration Certificate, legally establishing your business.

Business Incorporation in Hong Kong

Incorporating a company in Hong Kong means legally establishing your business as a separate entity with its own legal identity. This step is important for establishing proper governance and compliance.

The Companies Ordinance provides the legal framework for company incorporation. It details the requirements for forming a company, such as preparing the Articles of Association and appointing directors and company secretaries. Adhering to these regulations promotes transparency, protects shareholders’ interests, and supports efficient corporate governance. 

Benefits of Incorporating a Company in Hong Kong

• Limited Liability: Shareholders’ liabilities are limited to their share capital.
• Perpetual Succession: The company continues to exist regardless of changes in ownership.
• Capital Raising: Easier access to funding through equity financing.
• Enhanced Credibility: Incorporated companies are perceived as more credible and reliable. 

Types of Business Entities in Hong Kong

Limited Company

An independent legal entity with limited liability, commonly used in Hong Kong.

• Pros: Limited liability, perpetual succession, ease of capital raising.
• Cons: Higher regulatory compliance, more complex setup process.

Branch Office

An extension of a foreign company operating in Hong Kong without separate legal status.

• Pros: Easier setup for foreign companies, no separate legal entity required.
• Cons: Parent company liable for branch debts, limited scope of operations.

Representative Office

A non-profit-making entity for foreign companies to explore the Hong Kong market.

• Pros: Cost-effective market exploration, minimal regulatory requirements.
• Cons: Cannot engage in profit-making activities, limited operational scope.

Registering Your New Company

 1. Prepare for Company Registration

Collect all necessary documents, including a unique company name, Articles of Association, and identification documents for directors and secretaries.

 2. Submit an Application for Business Registration

Submit your application online through the Companies Registry’s e-Registry portal. To avoid delays, make sure all information is accurate and complete. 

3. Complete the Company Registration Process

Once approved, you will receive a Certificate of Incorporation and a Business Registration Certificate, legally establishing your company.  

Business Licenses and Permits

Certain industries require additional licenses or permits to operate in Hong Kong. Here are some common ones:

Financial Services

The financial services industry in Hong Kong is regulated to maintain market integrity and investor protection. Companies in this sector need to obtain a Securities and Futures Commission License, authorising them to engage in regulated activities within the securities and futures markets.

• Procedure: Submit the application, comply with regulatory requirements, and undergo a fit and proper test. 

Food and Beverage

Food and beverage businesses must meet stringent regulations to protect public health and safety. A Food Factory or Restaurant License is required to legally prepare and sell food to the public, adhering to strict hygiene and safety standards.

• Procedure: Apply to the Food and Environmental Hygiene Department, comply with hygiene and safety standards, and undergo inspections. 

Retail

Retail businesses in Hong Kong must comply with consumer protection laws and other regulations. A Retail Shop License allows businesses to legally sell goods directly to consumers while meeting all relevant standards.

• Procedure: Apply to the Trade and Industry Department, ensure compliance with consumer protection laws, and undergo regular inspections. 

Import/Export

Adherence to international trade regulations is required for engaging in import and export activities. An Import and Export License permits companies to trade goods across borders, ensuring all activities are properly documented.

• Procedure: Register with the Trade and Industry Department, submit detailed documentation of goods, and comply with international trade regulations. 

Final Thoughts on How to Register a Business in Hong Kong

Registering a company in Hong Kong offers numerous benefits, including a favourable tax regime, strategic location, and robust legal framework. By following the necessary steps and complying with all regulatory requirements, you can successfully establish and operate your business in this thriving international hub.

How Eaton Club Can Help

Navigating the complexities of registering a company in Hong Kong can be daunting. While you focus on registration, Eaton Club is here to help your business thrive from day one. We own and manage all our locations, providing you with prestigious business addresses, professional support, and collaborative workspaces that can further streamline your business operations and set you up for long-term success. Benefit from our resources and community as you establish and grow your business in Hong Kong. Contact us today to learn more and get started.