Start a business
If you have ideas and inspiration, start a business! How can I start a business first? Usually the first step is to open a company, open a company account, register a trademark design, etc.
But what about starting a company? To start a company, you can usually register an unlimited company or a registered limited company.
| Establishment of a Limited Company | Establishment of an unlimited company (sole proprietorship or partnership) | |
| Apply to government departments | Companies Registry | Business Registration Office |
| Legal status | A corporate entity with independent legal status | The legal liability of the proprietor or all partners is unlimited, meaning they must bear all the responsibility. |
| Debt liability | The company itself can enter into contracts and incur liabilities | Company owners are fully responsible for company debts and contracts |
| Documents required for application | Incorporation Form A copy of the company's articles of association Notification to the Commercial Registration Office |
Business Registration Application Form Identification documents of the company owner or all partners |
A limited company is easier to set up and has lower costs. It only needs to prepare accounts and file taxes every year, and the tax rate is also lower (15%). However, when the company has debt or litigation problems, the individuals and shareholders will be fully responsible.
If a limited company encounters financial problems, shareholders do not need to use personal assets to repay debts, but can transfer funds. After the annual accounting is completed, the tax return will be audited by a licensed auditor and the tax rate is slightly higher (16.5%).
Establish a Hong Kong company
Hong Kong is a city that integrates opportunities, creativity and enterprising spirit. It has been rated as the "world's freest economy" by the American Heritage Foundation for 24 consecutive years. As an international financial center, Hong Kong's sound legal system, simple tax system, low tax rate, complete supporting infrastructure and communication facilities, and high-quality professionals have won the favor of investors from all over the world. Hong Kong has unlimited business opportunities and is a platform for global trade. Hong Kong's advantages are well known, and tens of thousands of international companies have benefited from setting up Hong Kong companies.
Advantages of setting up a Hong Kong company
• Have a sound legal system
• Leveraging Hong Kong’s popularity, it is easy to gain international credit
• As an international financial center, it has diversified financing channels
• No foreign exchange controls, free flow of funds, and various foreign currencies can be exchanged at any time
• Unrestricted business scope and simple follow-up services • Simple tax system and low tax rate (only involves profit tax, the tax rate for the first HK$2 million profit is only 8.25%)
• Only one profit tax return is required each year
Requirements for establishing a Hong Kong company
• At least one shareholder and director aged 18 or above
• A legal secretary (a Hong Kong permanent resident or a Hong Kong company)
• A registered address in Hong Kong
Hong Kong Company Establishment Process
Step 1 – Proposed Hong Kong Company Name
The company name can be in Chinese or English only, or in both Chinese and English.
Step 2 – Shareholder Profile
A photocopy of the shareholder's identity card (for Hong Kong residents) or passport (for non-Hong Kong residents) and address; if the shareholder is a corporate body, provide the company registration certificate and registered address;
Step 3 – Director’s Personal Information
A copy of the director’s identity card (for Hong Kong residents) or passport (for non-Hong Kong residents) and address; if the director is a corporate body, please provide the company registration certificate and registered address;
Step 4 – Company Secretary Profile
A copy of the company secretary's ID card and address (if you do not use our company secretary service); if the secretary is a legal person, please provide the company registration certificate and registered address;
Step 5 – Company Registration Address
If you do not use our registered address service;
Step 6 – Company’s Authorized Capital
The company's legal capital, issued capital amount and share distribution ratio.
Registration method and time required
• Choose to register via electronic “Easy Registration” (takes 1 day)
• Newly established Hong Kong company (limited company, about 10 days)
• Purchase a ready-made Hong Kong company (i.e. a shell company, which takes about 2 days)
Secretarial Services
From start-ups to business expansion, we are the foundation of your business. If you want your business to be prosperous and worry-free, the new company registration process must not be taken lightly. Our team will provide services to your company with a professional and sincere attitude.
If necessary, our professional team can provide you with a free initial consultation on the following matters;
1) Shareholder structure
2) Share Agreement
3) Directors’ powers and responsibilities
4) Articles of Association
5) Trademark registration
6) Pre-IPO restructuring arrangements
Company secretarial services;
What exactly is a company secretary service? Many clients have always confused company secretaries with ordinary secretaries, thinking that a company is small and does not need company secretary services. In fact, a company secretary is a statutory position under the Hong Kong Companies Act. If the company secretary is an individual, he or she must usually reside in Hong Kong; or if it is a corporate body, it must have a registered office or place of business in Hong Kong. The sole director of a private company cannot serve as a company secretary.
In addition to handling statutory documents between the company and the government, such as changes in directors, changes in company names, and regular reporting of changes to the Companies Registry, the company secretary will also handle and preserve the company's statutory records, handle share transfers and cancellations, etc.
The above work may seem simple, but problems often arise from shareholder disputes, such as the documents for appointing and resigning directors, how long before the capital increase meeting is notified, etc. Major shareholders may also lose the vote due to the secretary's mistakes. In addition, many customers do not know that bank loans only require the signature of the company secretary and a director to be considered valid. In summary, if there is a good company secretary, the directors can focus on the smooth operation of the company without worries, and the rights and interests of shareholders can also be maintained.
Our professional services include;
1. Preparation and filing of annual returns
2. Prepare the minutes of the annual shareholders' meeting and special meeting
3. Change of company registered address
4. Appointment and removal of directors and company secretary
5. Change of Director and Company Secretary Information
6. Change of business nature
7. Increase registered capital
8. Change of company name
9. Distribution of Shares
