Business Registration in Hong Kong: The Basics Explained
Hong Kong is an ideal place to find new clients and forge working relationships. After all, it’s the flagship financial center of the Asia-Pacific region.
However, to succeed in this business hub, you need to know the basics of trade. Here, we’ll discuss the business registration in Hong Kong.
Keep reading to learn more.
Select an Appropriate Business Structure
Private limited companies, sole proprietorships, and partnerships are the most commonly chosen business structures when running a business in Hong Kong. Private limited companies have members who share liabilities and are limited to a maximum of 50 members.
Sole proprietorships are businesses owned and managed by a single individual and have unlimited liabilities but the individual can draw income from the business. Partnerships are businesses owned by two to 20 persons with shared liabilities.
When choosing a business structure it is important to consider the advantages and disadvantages associated with each type such as:
- legal implications
- investment potential
Submit an Advertisement to the Registry
Businesses must first submit an advertisement to the Registry containing the basic information of their business. This includes:
- company name
- main business activity
- contact details
The advertisement will then be published in the Hong Kong Gazette and the registry will subsequently register the business. This registration is mandatory. The business must pay the registration fees, before being issued a business certificate.
File for a Business License
After registration, the company must apply for the relevant licenses needed to operate. Depending on the nature of the business, the applicant must present documents such as:
- incorporation application
- certified copy of the business registration certificate
After submitting all necessary documentation, the company will receive a business license confirming its registration in the Companies Registry.
Register Your Business Trademark
For a company to register a trademark, the applicant must fill out an application form and show proof that they have the right to use the mark. The trademark must be registered for a certain type of goods or services, and the registration is only good in Hong Kong. Once the trademark is filed, it must be renewed every ten years.
Register for Tax Registration
Once registered, a company must obtain its tax registration number from the Inland Revenue Department and use it to pay tax in Hong Kong. Businesses have until the 15th day of the month after they were established to register their tax number.
They cannot start trading until they have received this unique identification number. Businesses will also be required to register for Value-added Tax and Profits Tax in their first year of operation.
Registering for tax can be done online with the Hong Kong tax department. However, companies outside Hong Kong must provide additional documents and information. Failure to register for tax can result in severe penalties.
Ultimate Guide to Business Registration in Hong Kong
Business registration in Hong Kong is relatively easy compared to other countries worldwide. If you are looking to set up a business in Hong Kong, consult a professional or knowledgeable advisor who can provide you with support and guidance.
Take the first step in growing your business and join the Hong Kong business community today!
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