In recent years, Hong Kong has emerged as a global financial hub attracting hundreds of international companies to establish their headquarters. And why not – Hong Kong’s tax-free environment and low administrative costs make it an attractive option for setting up a business. But what are the benefits of Hong Kong company registration? We look at the benefits of Hong Kong company formation.
What exactly is the branch office facility in Hong Kong? A branch office is an out-of-the-office location attached to a parent corporation. One of the prevalent corporate structures for foreign company registration in Hong Kong consists of the company secretary, two or more sales representatives, and one or more finance officers. Generally, it bears some key corporate features as follows:
According to the Companies Registry, all the above features must comply with the law. The law stipulates that the main office building must be the only workplace of the parent company in Hong Kong. Therefore, the buildings occupied by the Hong Kong branch office must be used exclusively for that purpose. All employees employed by the parent company in Hong Kong are also required to work there.
The main difference between the Hong Kong branch and the registered office is the location. With a unit, you have the convenience of working from the location of your choice. However, with a registered office, you must go to the designated representative office and then take up your work there. You will still be required to submit all the relevant documents and perform the corporate duty as per the law.
If you are applying for business registration in Hong Kong, you may require additional requirements. For instance, you may be required to show a business license. Likewise, you will be required to open a business bank account and designate the board’s primary member as the company secretary. You will be expected to keep the above details ready and available whenever the Hong Kong branch and the registered office’s respective appointments are made.
The Companies Registry requires you to pay a nominal fee whenever you wish to avail of the foreign company secretary’s services or the registered office agents in Hong Kong. You need not pay any application or registration fees when applying for a new business operation in Hong Kong. It also applies to the annual visit permit, annual return ticket, and annual clearance fee. You need not pay any stamp duty when you are making payments by credit cards or money orders. However, if you wish to make payments by personal check, you will be required to pay a small fee.
Every time you make a payment to the Companies Registry, it will be deducted from your current bank account balance. The Companies Registry is the authority that registers and maintains companies’ details and ensures they comply with the law’s requirements. These requirements include paying the necessary taxes and paying the annual registration fee. To process the registration, the Companies’ Registry requires certain information like its name, address, and registered office. The Companies Registry will also require you to submit copies of the previous years’ income tax returns and the latest annual financial reports.
You may need to submit the company’s ownership in the register of companies, and you must mention the type of company (i.e., partnership, limited liability partnership, etc.). If you are not sure about some information in the register of companies, you can contact the Companies Registry Assistance Centre. The assistance officers are available in Hong Kong, Kowloon, and Kaifeng. Once your application has been approved, and your bank account has been credited, you will receive a registration number and instructions for sending your company registration forms to the Companies Registry’s designated address in Hong Kong.