Business procedures in Hong Kong


There are certain mandatory requirements that come in handy in the context of company registration in Hong Kong. For example, there are certain requirements that have to be observed with regards to areas such as minimum paid-up capital as well as authorized share capital. The latter capital is represented by ordinary shares that are supposed to have a certain value. In Hong Kong, it takes around four to seven working days in order to complete the incorporation of a company. You can also have a company in Hong Kong that is owned only by foreigners. The system of taxation in Hong Kong is also pretty simple.

Taxation and some other features

At present, the rate of corporate income tax is 16.5% and thereabouts. It is the only such tax in this East Asian city. In order to get a company registered with the Companies Registrar of Hong Kong, you need to pay a basic fee, which is not much, and a capital fee that is determined in relation to the nominal share capital. The amount has to be paid in Hong Kong dollars. You also need to pay a certain amount to get your company registered with the tax department.

Registration with tax department and other information

There are two ways in which you can get your company registered with the tax department in Hong Kong. You can avail a one-year registration certificate or a three-year registration certificate. The three-year varieties cost more than the one-year ones. This amount to needs to be paid in Hong Kong dollars. Over here you need to file the yearly returns of your company with the Companies Registrar at least once a year. The only year that you do not need to do it is when you incorporate the company.

Annual return filing and other details

These annual return needs to be filed within 42 days of the anniversary of the company’s incorporation Hong Kong. These regulations, however, are not applicable to private limited companies. They do not even need to submit their basic accounts. Tax returns and audited accounts have to be filed with the Inland Revenue Department within 31st April every year. The audit is supposed to be done by someone from the Hong Kong Institute of Certified Public Accountants. It is also important that he has a practicing certificate. This regulation does not apply to small companies with limited turnover – the watermark is normally around 500,000 Hong Kong dollars a year – and dormant companies, which are ones without any financial transaction in a year. They can file unaudited accounts as well.

Trademark protection

In Hong Kong, you can protect your business trademark with the help of the Trademark Ordinance Law. If you have not registered your trademark then you can also use some other laws in order to protect it. However, such options are only taken as a form of last resort. In these cases, you also need a substantial amount of goodwill in order to enforce the said laws.