Registering a Local Business in Hong Kong
- Roger Pay
- 2 days ago
- 6 min read
Registering a Local Business in Hong Kong
You’ve got a business idea, a plan, and the passion to make it happen. Now it’s time to make things official and register your business in Hong Kong. While starting a company can feel overwhelming, breaking it down into clear steps makes the process much more manageable.
This guide will walk you through the key steps for registering a local limited company in Hong Kong.
Step 1: Choose Your Business Structure
First, you'll need to decide on the legal structure for your company. The most common types in Hong Kong are sole proprietorships, partnerships, and incorporated companies.
Sole Proprietorship: This is ideal for small businesses with a single owner. The business and its owner are legally considered the same entity, which means you are personally responsible for all business debts and liabilities.
Partnership: This structure is for a business formed by two or more people. Responsibilities and funding are shared, but so is the liability—each partner is legally responsible for the actions and debts of the others.
Incorporated Company: This is a separate legal entity from its owners. This structure offers a high degree of liability protection, meaning the owners are generally not personally responsible for the company’s debts. This type of company can be further classified into several categories, with a private company limited by shares being the most common choice for small and medium-sized businesses.
Step 2: Name Your Company
Once you've chosen a structure, you'll need a company name. Before you get too attached to a name, make sure it’s available. You can check for existing company names and trademarks on the government's Cyber Search Centre, Company Search Mobile Service, and Trademark Register websites. Review the "Guideline on Registration of Company Names for Hong Kong Companies" to ensure your name meets all the requirements.
Step 3: Complete and Submit the Application Forms
You'll need to prepare three main documents for submission:
Incorporation Form: This is either Form NNC1 (for companies limited by shares) or Form NNC1G (for companies not limited by shares).
Articles of Association: This document outlines the rules for the company's internal management.
Notice to Business Registration Office.
The easiest way to submit these is through the government's digital e-Registry or the CR eFiling mobile app. If you prefer a physical submission, you can also deliver hard copies to the Shroff on the 14th floor of the Queensway Government Offices.
Step 4: Collect Your Certificates
After your application is approved, you'll receive your Certificate of Incorporation and Business Registration Certificate.
If you apply online, the process is fast—private companies limited by shares can often receive their certificates within an hour via email.
If you submit hard copies, it usually takes about four working days, and you can collect the certificates in person.
Step 5: Get Any Other Required Permits or Licenses
Depending on your business, you may need additional permits or licenses to operate legally. The Hong Kong government's Trade and Industry Department has informative guides and a list of licenses and approvals to help you figure out exactly what you need.
By following these steps, you’ll be well on your way to officially launching your business in Hong Kong.
Fees
Fees for registering a company in Hong Kong typically include two main government fees: the Company Incorporation Fee and the Business Registration Fee.
Company Incorporation Fee
This is the fee paid to the Companies Registry for the legal formation of your company. The amount varies based on the method of submission:
Electronic submission: The fee is HK$1,545.
Hard copy submission: The fee is HK$1,720.
If the application is unsuccessful, a partial refund can be applied for.
Business Registration Fee
This is a mandatory fee paid to the Inland Revenue Department for your Business Registration Certificate, which all businesses in Hong Kong are required to have. The fee depends on the length of your certificate:
One-year certificate: The fee is typically HK$2,200.
Three-year certificate: The fee is typically HK$5,870.
It's important to note that the Protection of Wages on Insolvency Fund levy, which was previously a part of this fee, may be temporarily waived by the government as a business-friendly initiative. For the most current information on waivers, always check the official website of the Inland Revenue Department.
Professional fees
If you're using a professional service provider to help with your Hong Kong company registration, you'll need to budget for their fees in addition to the mandatory government fees. These professional fees can vary widely depending on the services included.
Breakdown of Professional Fees
Professional fees cover a suite of services designed to simplify the incorporation process and ensure compliance. They include:
Company Incorporation and Document Preparation: This covers the drafting and filing of all necessary documents, such as the Articles of Association and the incorporation forms, on your behalf.
Company Secretary Services: All limited companies in Hong Kong must appoint a local company secretary. Bestar includes the first year of this service in their registration package. The annual cost for this service is from HK$2,300 to HK$10,000 or more.
Registered Office Address: Your company must have a physical registered office address in Hong Kong. If you don't have one, Bestar can offer this, with an annual fee starting around HK$900.
Bank Account Opening Assistance: Bestar offers help with preparing the documents and coordinating with banks to open a corporate bank account, which can be a complex process for non-residents. Our professional fees for this service can vary significantly, ranging from HK2,000 to HK8,000 or more.
Company Kit: This includes essential items like the company's common seal, statutory books, and share certificates.
Cost
Our total professional fee can range from HK$4,500 to HK$20,000 or more, depending on the scope of services. For a comprehensive package that includes government fees, company secretary, and a registered office address, you can expect to pay anywhere from HK$8,000 to HK$15,000 for the first year. It's important to get a detailed breakdown of costs from Bestar to understand what is included and what might incur additional charges.
How Bestar can Help
Registering a Local Business in Hong Kong
Hiring Bestar for your company registration in Hong Kong offers significant advantages that go beyond just saving time and effort. While the government has made the process increasingly streamlined, Bestar's expertise can be crucial for ensuring long-term success and compliance.
1. Expertise and Efficiency
Bestar is specialists who are deeply familiar with Hong Kong's legal and regulatory landscape. We stay up-to-date on the latest changes and can ensure your application is completed correctly the first time. This minimizes the risk of errors that could lead to delays, rejection, or costly penalties. Our knowledge helps you:
Avoid common pitfalls: They can guide you through the intricacies of choosing the right company name, preparing a compliant Articles of Association, and meeting all legal requirements.
Expedite the process: By handling all the paperwork and filing, we can often complete the registration process much faster than a first-timer, sometimes in as little as one day for online submissions.
2. Comprehensive Compliance Support
Beyond the initial registration, a Hong Kong limited company has ongoing compliance obligations. Bestar provides services that are legally required and critical for good corporate governance.
Company Secretary: Hong Kong law mandates that every limited company has a company secretary. Bestar can act as your company secretary, handling all the required duties, such as filing annual returns, maintaining statutory records, and communicating with the Companies Registry.
Registered Office Address: Your company must have a physical address in Hong Kong. Bestar offers this as part of their packages, ensuring you have a compliant address to receive official mail and government notices.
Significant Controllers Register (SCR): We can assist with maintaining this mandatory register, which tracks the ultimate beneficial owners of the company, and ensure it is filed correctly with the Companies Registry.
3. Strategic Business Advice
Bestar offers more than just administrative support. We can act as strategic partners, providing valuable advice that can have a positive impact on your business.
Choosing the right business structure: We can help you determine whether a sole proprietorship, partnership, or limited company is the best fit for your business goals, tax situation, and liability needs.
Tax planning: Bestar can provide guidance on Hong Kong’s tax system, helping you understand how to maximize deductions and exemptions and stay compliant with local tax laws.
Holistic services: Bestar offers integrated services, including accounting, auditing, and payroll management, allowing you to centralize your back-office functions with a single, trusted provider.
4. Assistance with Bank Account Opening
For companies with non-resident directors and shareholders, opening a corporate bank account in Hong Kong can be one of the most difficult parts of the process. Bestar can make this much easier by:
Pre-screening: We can help you prepare your company profile and documents to meet the bank's strict requirements, increasing your chances of a successful application.
Liaison: We can act as a bridge between you and the bank, assisting with scheduling interviews and responding to follow-up questions.
Alternative banking solutions: We have connections with modern fintech companies that offer streamlined, online-only account opening processes as an alternative to traditional banks.
By leveraging the expertise of Bestar, you can save time, reduce risk, and focus on what truly matters: growing your business.
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