B.C.G

As an increasing number of companies look towards business formation
within major commercial districts in Hong Kong, let us take a brief look
at the various steps involved in business formation in Hong Kong.
Implementing business operations in Hong Kong need not be a cumbersome
process as long as organizations stay well informed and act
pro-actively.

Determining the type of business

Naturally, the first step in the process involves making a decision
regarding the type of business you are looking to set up. The most
common form of incorporated businesses in Hong Kong is that of a limited
company. A limited company offers particular advantages in the form of
concessions and benefits, pertaining especially to business and income
tax.

If you already have an existing business outside Hong Kong,
you may choose to opt for the branch office option. In order to
register a branch office, companies will have to register with the
Companies Registry under the ‘Registered Non Hong Kong Company’
category. This type of business structure is not recognized as
independent from its parent enterprise.

A more restricted type
of business is also available in the form of a representative office.
These businesses are not allowed to make any kind of transactions, and
as such, are usually set up in order to conduct important market
research and analysis, prior to the implementation of business
operations.

Incorporating a business

Once you have decided upon the type of company structure to be set up,
you can begin the incorporation process. Hong Kong regulations stipulate
that any company looking to register within the city, will need to send
a range of documentation, preferably virtually, through the Companies
Registry’s e-Registry platform. The documents required include an
Incorporation Form (Form NNC1), a company’s Articles of Association
(AOAs), and a Business Registration Office Notice (IRBR1). All documents
must be sent along with the relevant fees. Processing times for
incorporation applications can range anywhere between 30 minutes to two
working days.

Opening a bank account

Once you have received a Certificate of Incorporation from the Companies
Registry, it is time to set up your company bank account. Banks will
require the relevant incorporation certificates and documents, and may
even require a base deposit. Companies will also have to provide crucial
documentation regarding proof of residence and identity, in compliance
with Hong Kong’s anti-money laundering programs. Once a bank account has
been opened, companies are free to begin searching for office spaces
across the city.