Doing Business in Hong Kong
Hong Kong has been one of the leading and open economies in the world to do business and is ranked third in the ease of doing business as per the World Bank’s Doing Business 2020 report. The country has been continuously enhancing its business facilitation measures. Hence, it has been one of the ideal choice for overseas companies to set up their regional headquarters in Hong Kong.
There are number of advantages in choosing Hong Kong as business jurisdiction.
Hong Kong has been a strategic location to China and the Southeast Asian market. Its closer proximity to China, similar culture, language and social customs have attracted foreign investors to enter the Chinese market. Hong Kong has easy access to all the major markets in the Asian region. Doing business in Hong Kong is the best option to enter the Chinese market.
Closer Economic Partnership Agreement (CEPA) is the first free trade agreement executed between Hong Kong and China. As per the CEPA, both countries have agreed to promote investment, trade and commerce to improve the business environment in the region.
The legal system of Hong Kong Special Administrative Region (HKSAR) is separate from the Mainland’s legal system and follows the ‘One Country, Two Systems’. Hong Kong is one of the corruption-free economies in the world. Investors are free to operate their business in a level playing field without bothering about corruption.
Hong Kong is one of the leading financial hub and regional business hub in Asia.
Foreign investment is welcome without any restrictions and receptive to foreign investment. A foreign investor can invest 100% in any Hong Kong entity and there are no restrictions imposed. There is no Government policy to protect the local industry from foreign investors.
Hong Kong has the best and world class infrastructure like uninterrupted electricity, high-speed rail services, digitised telecommunications, best mobile phone and connection services even in tunnels, readily available drinking water and the busiest Hong Kong international airport.
Hong Kong taxes are lower among the world countries. Hong Kong’s low tax system attracts foreign investors. Hong Kong adopts a territorial system of taxation and tax is levied on the income earned in Hong Kong only. The limited tax base and low tax rates makes Hong Kong’s tax incidence lower than any other developed economies.
- Profits tax rate is 16.5% for both local and foreign companies.
- No withholding tax on dividend distributions or interest payments from a Hong Kong entity to residents and non-residents.
- No tax on capital gains earned by individuals.
- No sales tax or VAT
Choose the Right Type of Business
The following are the forms of business that can be chosen by the foreign investors. It is important that you make the right choice in the type of business entity.
- Company incorporated in Hong Kong
- Private Company limited by shares
- Public company limited by shares
- Company limited by guarantee
- Private Company unlimited by shares
- Public company unlimited by shares
- Branch of a foreign company
- Representative or liaison office by a foreign company
- Partnership
- Sole proprietorship
Private Limited Company Registration in Hong Kong
Private company limited by shares and foreign company branches are the most commonly used business type by foreign investors.
A Private limited company, either as a stand-alone entity or subsidiary of a foreign company is the simplest form of business with limited requirements – a registered office, a resident company secretary and resident director / agent. We generally provide these services for all our clients and describe them as ‘domiciliary services’. We also assist our clients in providing advice on corporate law and regulatory compliance.
Hong Kong Company Formation
USD $
900
Basic Package
- Company Formation
- All Government Fees
- Company Secretary for 1 year
- Legal Address for 1 year
Pricing Details
Please see the full price list and all additional services by clicking the link below.
Hong Kong Company Setup FAQS
Private limited Company can be incorporated within one day through e-filing. We have ready-made (shelf) companies for sale.
The profits tax rate is 16.5% which is the same for local and foreign companies. A two-tiered profits tax is levied on Corporates – 8.25% on assessable profits up to HK$ 2 million of assessable profits and 16.5% on any part of assessable profits over HK$ 2 million.
No, you can incorporate a Hong Kong company from outside Hong Kong. However, we will verify your identity and address proof documents to comply with the Companies Registry regulations.
Yes, changing the name of the company is a simple procedure and can generally be completed within two working days.
Yes, you can be the Company Secretary to your Company if you are a Hong Kong resident and not a sole Director of the Company. As per the Companies ordinance, sole Director of the Company cannot act as Company Secretary. UniCorp is a professional services firm which can provide Company Secretarial and other ancillary services to the Company.
There are periodical returns required to be filed with the Companies Registry. Engage UniCorp as your service provider and we will take care of the annual statutory compliance. You can focus on operating your business efficiently. UniCorp provides professional third party directors, company secretary, a registered office, payroll services, preparation of accounts and tax compliance services.
Yes, we can assist to open a company bank account, either in Hong Kong or in other jurisdictions. UniCorp has strong relationship with a number of financial institutions worldwide for a decade and is able to arrange introduction and account opening on behalf of the Company. We are also familiar with their account opening processes and customer identification and due diligence procedures.
Yes, most of the foreign investors use Hong Kong companies to enter the Mainland Chinese market. Hong Kong offers easy access and entry, both geographically and commercially, to Mainland China. In addition, the Cooperation of Economic Partnership Arrangement (CEPA) between Hong Kong and China facilitates better trade facilities between both countries. Hong Kong and China have entered into a Comprehensive Double Tax agreement in 2006 which provide beneficial treatment for Hong Kong companies investing in China.
Hong Kong serves as the ideal base to set up a WFOE (Wholly Foreign-Owned Enterprise) or Representative Office in China. The former can serve as a subsidiary company and it is possible to make sales and earn revenue. The latter is typically designed to carry out marketing, quality control, market research services but is not permitted to book any revenue. UniCorp assists clients to set up both the entities.
Why Incorporate With Us?
UniCorp Solutions Limited (the Company) is a Business consultancy and Trust and Corporate service provider (TCSP) in Hong Kong licensed by the Hong Kong Companies Registry. It provides A-Z solutions to corporates and the wide range of services include – Company formation, trust, nominee and corporate secretarial services, tax consultancy and Bank account introduction. We help you in choosing the right entity required for your business.
