Opening an open company in Hong Kong is one of the popular business options available to businesses looking to expand their business to international markets. As a leading provider of Hong Kong business incorporation services, we can provide you with a full range of services from initial registration, naming, and new business location to the new company’s management and operations. Opening a Hong Kong company is also a very convenient way of doing business for those wishing to extend a company in the Chinese market. It has several attractive advantages for doing so. One of the main benefits of doing business in China is that it has been established and developed itself, so the business rules and regulations are often more lenient than in other countries, making doing business here much more comfortable and quicker. Companies can save on the cost of setting up a business by using an offshore company – typically the registration fees are much lower in China due to the size of the economy and its favoured classification as an ‘offshore’ business. It means that companies can also save on paying out taxes by taking advantage of their country’s favourable tax regime.
However, there are still some other costs associated with company registration in China. For example, registering a foreign company requires an additional fee which is known as an exit fee. The exit fee will mean that your company will be required to pay a specified amount of money when it decides to shut down operations when the open company in Hong Kong. Additionally, you may also be required to pay an exit fee if you choose to sell your stake in the company at any point during the registration period. These fees are typically higher than the registration fees required in Hong Kong and could be equal to or higher than the domestic firm’s registration fees.
Another essential thing to consider is that there are some differences between free company formation and standard business registration. It is necessary to make sure that you have a permanent address in China. Without a lesson, it will be difficult to prove that you are established in China and unable to trade in China without having your name registered in that country. To give you an idea of how much this can cost you:
Hong Kong is widely regarded as the most popular option for registering a company in China due to its corporate law system. Consequently, most companies wishing to incorporate in Hong Kong use the same rules and corporate formation method used in Hong Kong, with few variations. One significant difference between these two countries is the need for an individual’s identification number, or PIN, to start a company. In China, however, this requirement is absent, making it easier for companies to be incorporated without a PIN. Another significant difference between Hong Kong and China is that most people use their social security number instead. It makes it far easier for Chinese people to access bank accounts in Hong Kong than in China.
The next step in the process to incorporate in Hong Kong is to set up a registered office address, or RPE, known in the local parlance. If you do not have your RPE at this time, this will have to be organized by a company that specializes in establishing residential addresses for businesses. Your company will then be able to use the address as its permanent business address once the incorporation process has been completed. You must have your RPE registered at the Companies House in Hong Kong – this can be done via a simple application. You will also need to decide how many staff members will be in your company, the type of business you intend to operate, and your company’s name.
Company incorporation is a complicated affair in Hong Kong, requiring careful planning and arrangements for the whole operation. You will be required to have most shareholders, which will be decided by the rules and regulations of the Securities and Futures Department of Hong Kong (SFC&H) – the government body in charge of ensuring that all the rules and regulations relating to company registration adhere. Most companies must appoint one director for the entire company, with a different number of directors nominated by shareholders. You will also need to ensure that a qualified document is issued to your company incorporating company – this is known as an ‘application’ and is usually made to the Secretary of State’s Office.
The next step in the company formation process is to pay a one-time business registration fee. It will be delivered to the Hong Kong Company Registration Department (HCPR) upon completing the incorporation process. The Company Registration Fee includes a reference fee and an annual administration charge, which you pay to the HCPR. If your company intends to have more than one director, additional fees are payable for each other director.