Detailed Guide on Setting Up a Company in Hong Kong

Detailed Guide on Setting Up a Company in Hong Kong for Vietnamese Nationals

Establishing a company in Hong Kong offers numerous benefits for Vietnamese businesses, such as a favorable business environment, a stable legal system, and attractive tax policies. Below is a step-by-step guide to the requirements and process for Vietnamese nationals to set up a company in Hong Kong.

1. Choose the Type of Company

The most common type for foreign businesses in Hong Kong is a Private Limited Company. Key features of this type include:

• Separate Legal Entity: The company can own assets, sign contracts, and assume legal responsibilities independently.
• Limited Liability: Shareholders are liable only up to the amount of their contributions.
• Flexible Management: Offers flexibility in management and operation.

2. Requirements for Establishing a Company

To establish a company in Hong Kong, the following conditions must be met:

• Company Name: Can be in English or Chinese but cannot contain both languages. The name should not duplicate or closely resemble any pre-registered company name.
• Director: At least one director, who can be an individual or a legal entity, with no nationality or residency requirement.
• Shareholder: Minimum of one shareholder, either an individual or a legal entity, with no nationality restrictions. The director and shareholder may be the same person.
• Company Secretary: Required and must either be a Hong Kong resident or a company with a registered address in Hong Kong.
• Registered Address: The company must have a physical office address in Hong Kong to receive official mail and notices.
• Capital Requirement: There is no minimum capital requirement; companies usually register with an initial capital of 1 HKD.

3. Company Incorporation Process

The company registration process in Hong Kong includes the following steps:

• Step 1: Prepare documentation:
  • Choose a company name and check its availability.
  • Gather information on the company’s directors, shareholders, and company secretary.
  • Draft the Articles of Association.
• Step 2: Submit Registration Application
  • Submit the company incorporation form (Form NNC1) and the Articles of Association to the Hong Kong Companies Registry.
  • Apply for a Business Registration Certificate at the Hong Kong Inland Revenue Department.
• Step 3: Receive Certificates
  • Upon approval, obtain the Certificate of Incorporation and Business Registration Certificate.

4. Open a Bank Account

After establishing the company, a bank account in Hong Kong is necessary for financial transactions. Account opening may require the physical presence of a director or shareholder in Hong Kong. Some banks may allow remote account opening through online services.

5. Comply with Legal and Tax Obligations

The company must comply with the following legal and tax obligations:

• Annual Reporting: Submit an Annual Return and update company information with the Companies Registry.
• Accounting and Auditing: Maintain accounting records and submit audited financial statements annually.
• Tax Filing: File a profit tax return and other relevant taxes as required.

6. Important Notes

• Company Secretary: Plays a crucial role in maintaining company records and ensuring compliance with legal regulations. Professional company secretary services are available in Hong Kong.
• Office Address: If there is no physical office, a virtual office service can be used to fulfill the registered address requirement.
• Support Services: It is recommended to use the services of professional consulting firms to ensure a smooth incorporation and operation process.

Establishing a company in Hong Kong requires careful preparation and compliance with local legal regulations. Consulting with experts or reputable consulting firms can help streamline the process and make it more efficient.