Updated: May 18
A virtual office is a physical address and optional office-related services based on a chosen subscription, but without the need to buy or rent office space. When doing business this way, company owners and employees can work from another location and still have a guaranteed business presence in Hong Kong.
A virtual office can provide important advantages when setting up a company in Hong Kong.
Foreign investors in Hong Kong have a variety of business options in terms of the types of companies that can be incorporated in Hong Kong and how new companies can be set up. A virtual office in Hong Kong is good for both small companies and start-ups, but it can be a solution for any company, regardless of the field of business. When investors set up a company in Hong Kong through a virtual office, they can benefit from many advantages of regular office space at a lower cost. Also, it will maintain a professional business image.
SMEs in Hong Kong
Advantages of a virtual office
at Hong Kong
- Access to office supplies and features;
- Lower costs compared to traditional rented offices;
- Pay only when you need it, based on the on-demand services provided by the Hong Kong virtual office package.
Registered address options
Modern locations on Hong Kong Island, Kowloon and more
Yes. Different options and office sizes
Yes. Full Service
High speed wireless Internet
Facilities in Hong Kong
- Hong Kong address;
- Mail and voicemail forwarding;
- Secretary, IT support, etc.
On request, depending on package selected
Local business phone
Available for certain Hong Kong virtual office packages upon request
In most cases, monthly option
Different business solutions, including the use of conference rooms and other types of office space
Approximate cost in Hong Kong
Starting at approx. HKD 700 per month
Converting from a Traditional Office to a Virtual Office in Hong Kong
Yes, it is possible with our help. Registrar of Companies notified of new address
The main advantages of a virtual office in Hong Kong are summarized as follows:
• Lower cost: Monthly or annual lease and subscription fees for additional services are lower compared to renting office space or buying property in Hong Kong and then staffing and equipping.
• Flexibility: Virtual offices offer flexibility to employees and business owners: they can work remotely without having to commute.
• Good corporate image: When choosing to work through a virtual office, there is nothing short of corporate image.
• Complete services: Most virtual office packages, including those offered by us, include full general services as well as a variety of add-ons, so business will run smoothly and without inconvenience.
Because of these specificities, a virtual office may be a better fit for some types of businesses than others. For example, when opening a manufacturing business, investors still need to focus on the setup of the actual area where the manufacturing process will take place. If you want to open a virtual office in Hong Kong, our company formation team in Hong Kong are ready to give you personalized advice.
VIRTUAL OFFICE IN HONG KONG
A virtual office is a way for a company to operate and manage in Hong Kong. It functions much the same as a traditional one, with the main difference being that it is outsourced.
Unlike regular offices, virtual offices are set up in existing spaces that are already equipped. There are no fees for renting or buying property or for purchasing major office equipment and paying utility bills.
When a Hong Kong company is incorporated through a virtual office, the business owners and employees do not need to be in a fixed location all the time. This flexibility is very useful for many businesses.
The virtual office is located in a modern building. This address is used for company formation and for correspondence with authorities and customers. Thus, the company maintains a professional business image.
A virtual office package includes most of the facilities found in a regular office. Examples include secretarial services, use of office equipment and additional meeting room space, as needed and as scheduled or reserved.
Hong Kong Virtual Office Package
Our company has extensive experience in providing company formation services and virtual office services. The virtual office packages we can offer you and your business include:
1. Excellent business address: The virtual office is located in a Hong Kong office building, which is a reliable and risk-free base for communicating with customers;
2. Registered office: This is a mandatory requirement for setting up a company in Hong Kong;
3. Mail receiving and forwarding: Including receiving mail and packages destined for your company at the virtual office address, as well as the subsequent forwarding process;
4. Send and receive faxes: Your business can have access to our local fax numbers, and our specialists will collect and send faxes to you;
5. Local phone number in Hong Kong: Available for direct calls from customers or business partners and general company details.
Investors interested in working through a virtual office in Hong Kong should note that some additional services available to the company need to be arranged on an as-needed basis. However, this is not a problem as most of the buildings where virtual offices are located are modern and equipped with the necessary facilities as well as connectivity options (investors will be able to rely on local internet connections to set up virtual meetings as required).
We recommend verifying all facilities at the selected virtual office location so that you have a clear idea of what is on offer, space available, options available for additional meeting room space, and communication facilities. Some of the questions that can be included in the general checklist include internet accessibility and speed, conference room projectors, whiteboards, audio equipment, video conferencing equipment, and the presence of extras like coffee makers.
When choosing to work through a virtual office in Hong Kong, it is important to have all the necessary facilities. We recommend contacting our Hong Kong company formation team to find out more about the packages we offer for this purpose as well as general information about company formation.
Incorporating a company in Hong Kong is a simple process, but requires a series of mandatory steps. Having a registered office is one of them, and it is important to decide whether this will be in the form of a virtual office (meaning the address of the office will be used for registration purposes). If this is the chosen method of incorporation, one of our specialists can help you make the necessary arrangements, after which help you prepare your company's constitutive documents and handle all remaining steps.
Requirements for Hong Kong Companies
Whether operating through a virtual office in Hong Kong or not, locally incorporated companies (as well as branches of foreign entities) need to comply with the latest tax and reporting laws. These relate to accounting principles and the need to prepare financial statements, but also to principles of corporate taxation.
Additional requirements for companies may relate to liability of legal entity, and founders and company directors.
It is useful to understand these requirements before setting up a company in Hong Kong.
Below, our team of Hong Kong company formation specialists covers some of the most important issues about taxation and accounting:
Two-tiered corporate income tax rates, i.e. 8.25% for the first HK$2 million of assessable profits and 16.5% for the remaining value thereafter; the smaller two-tiered rates apply to unincorporated businesses;
Dividends paid from profits taxed in Hong Kong are not taxed; dividends received from foreign companies are not taxed as they are considered foreign-sourced income;
Hong Kong has no VAT or sales tax;
Both employers and employees must pay social security contributions;
The standard rate of property tax is 15% of the net assessable property value;
Most companies will use a tax year that coincides with the calendar year;
Profits tax returns must be completed and submitted within one month of issue (in most cases, the Inland Revenue Department issues on April 1);
Hong Kong has signed more than 40 double taxation agreements, for which a company is resident if it is incorporated in Hong Kong, or if it is incorporated outside Hong Kong but managed and controlled by the Special Administrative Region.
Virtual Offices by Hong Kong Company Type
Virtual office packages are available for many types of businesses. In most cases, the type of company is not the criterion for judging whether this method of doing business is suitable. It is important to decide whether the type of service provided can accommodate this method, if working remotely, rather than a continuous office presence, is a choice for business models.
Virtual office packages are available for many types of businesses. In most cases, the type of company is not the criterion for judging whether this means of doing business is suitable. It is important to decide whether the type of service provided can accommodate this method if working remotely, rather than having a continuous office presence.
A virtual office in Hong Kong is suitable for both partnerships and limited liability companies. Generally speaking, companies that provide location-independent services are the biggest beneficiaries of using this option. For example, freelancers can benefit greatly from working in a virtual office if they don't want to make their home address public. In addition, the professional look of the office, as well as any other extra services that may be included in the package, will help the entrepreneur or his start-up to project a good and professional business image from the very beginning.
A virtual office is understandably more suitable for SMEs or sole proprietorship in Hong Kong (although this preferred form of business for entrepreneurs running their own businesses comes with the greatest degree of liability). Mid-sized companies can still function well with a virtual office, especially if part of the team doesn't need to be in the office all the time (for example, an IT company can have a virtual office at a Hong Kong address while all or part of the programming team works remotely).
A virtual office in Hong Kong can be used for: Freelancers, Entrepreneurs, Start-ups, Partnerships between two or more professionals such as accountants or lawyers, even for people who want to expand to Hong Kong (upsize) but don't have resources for permanent and traditional office space. For the latter, a virtual office is a suitable solution, allowing them to open a company (or branch office) in Hong Kong and establish a presence in the SAR. This allows foreign companies to be present in the market for local customers without having to set up new locations or stores.
Finding the right way to run a business successfully from a virtual office is an important management decision for a company founder. Appropriate packages for virtual offices in Hong Kong do allow for additional office or conference room space when needed, meaning that small and medium companies can indeed cut expenses and use it as needed for marketing, research or general development of the business in their field .
When it comes to choosing the right company type, our team of experts specializing in Hong Kong company formation can provide you with important information on each business form, its formation requirements, and subsequently applicable accounting and reporting requirements.
A private limited liability company is the preferred business form in the SAR due to its combination of simple and fast registration, low requirements and limited liability to the founder. This means shareholders are only liable to the extent of the capital they have invested in the company, they are not liable with their own assets, as it would be the case for a sole proprietor or a general partnership (and as a general partner in a limited partnership). Furthermore, this limited liability company is suitable for both small and medium-sized companies - both of which can easily manage their business through a virtual office if the type of activity allows for this way of working. Investors should keep in mind that apart from following the registration steps and the steps to get a virtual office package, they also need to apply for special permits and licenses.
Doing Business in Hong Kong
Hong Kong has an open policy to foreign investment and allows foreign capital to take full ownership of a company when it is established. There is no specific investment approval policy for commercial projects, but investors should abide by basic laws and the provisions of the Companies Ordinance.
When you choose our company registration services, our company registration specialists in Hong Kong will ensure that your business runs smoothly and all legal requirements are met. This refers not only to the actual regulations of registering a company with the Companies Registry, but also to those required for taxation, annual accounting and reporting.
The evolution in the first quarter of 2023 can be summarized as follows:
There were 6,310 private companies, 72 guarantee companies, and 4 public companies in January 2023;
February saw an increase in the number of private companies, 10,637, guarantee companies, 48, with a total number of companies incorporated of 10,686;
In March there were 26,099 private companies and 77 guarantee companies, with a total number of companies incorporated of 26,178.
The number of private companies in Hong Kong remains high as private companies are the preferred business form for both local and foreign investors. A virtual office is a suitable option for this type of company, as this form of business is suitable for small and medium businesses, unlike a public company for large corporations. If you are an entrepreneur in Hong Kong, if you run a small business, an online business, if you have just launched a start-up or are interested in scaling up, a virtual office may be a suitable option. Overhead costs for a business will naturally vary depending on the field, size, and many other criteria, however, a virtual office is a suitable solution for all business owners looking to save on these types of expenses. As working from home becomes more popular and the number of employees and professionals working this way increases, industries of all kinds are finding new ways to be more flexible, and many people avoid entering into an office space lease agreement when a virtual office is a more suitable option.
Once investors set up a company in Hong Kong to operate through a virtual office, they can request the services of our accountants in Hong Kong. Our team will assist in the preparation and filing of annual financial statements for companies subject to this requirement. We also provide tax filing and payment compliance solutions. If you are a business owner interested in learning more about how to register with a virtual office and how to adapt this option to your situation, our Hong Kong company formation consultants can help you learn more about company registration in Hong Kong and Hong Kong company management. If you have any questions, please contact our Hong Kong company registration experts.
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