With a global trading network that spans the entire world, Hong Kong is the export powerhouse of South Asia. Company registration in Hong Kong could be advantageous for both new investors and established companies.

As a sole director or shareholder, foreigners may possess all or a portion of a corporation. Hong Kong, a superpower that has proven to function as a firing cannon for businesses looking to expand in Asia and beyond, is hence also regarded as the investors' paradise.

It is a global financial hub run by a business-friendly administration that will do everything in its power to guarantee the prosperity of any enterprise that operates there.

Important Advantages of Selecting Hong Kong as a Gateway for International Business Development

Find out why Hong Kong is the best option for Indian companies wishing to grow abroad.

A.   1.Strategic Site

In the center of Asia is Hong Kong. It provides great access to international markets, Southeast Asia, and Mainland China. The city is perfect for companies that rely on international trade because of its state-of-the-art ports and air freight services. It serves as a hub for major global banks and multinational corporations as well. As a result, Hong Kong becomes a worldwide corporate hub that gives Indian enterprises a competitive advantage in foreign markets, in addition to being a strategic location.

B.    Easy and Minimal Tax System

Income derived locally is subject to a profits tax in Hong Kong. Depending on their eligibility, businesses can choose between the single-tier and two-tier tax regimes.

C.   3.Tax Regime on Two-Tier Profits (for eligible entities):

8.25% of the initial assessable profits of HKD 2 million

16.5% of the leftover earnings

Standard flat rate, or single-tier regime:

16.5% of all profits that are subject to assessment

Hong Kong does not impose capital gains tax, VAT, or GST. For Indian businesses with international aspirations, Hong Kong's extensive network of Double Taxation Avoidance Agreements (DTAAs) and its simple tax regime make it very appealing.

D.   4.Launchpad to China's Mainland and Beyond

Indian businesses can easily enter the Chinese market thanks to Hong Kong's close and legal relations to Mainland China.

1. Hong Kong and Mainland China signed the Closer Economic Partnership Arrangement (CEPA), a free trade deal, in 2003. For Hong Kong-registered businesses operating in China, the CEPA provides additional advantages like zero-tariff access to the Mainland market and simpler entry into regulated service industries like finance and logistics.

F.   5.Doing Business Is Easy

Hong Kong's economy consistently ranks among the best in the world when it comes to ease of doing business. For example, the World Bank's Doing Business 2020 report placed Hong Kong third in the world. The online registration process is transparent, quick, and simple. English is frequently used in legal and business papers, and there are few limits on foreign ownership, which makes things easier for Indian business owners.

1. Stability in politics and the economy
2. A climate that is conducive to business
3. An effective legal system and favourable tax laws
4. In exchange for advantageous treatment, Hong Kong has signed bilateral trade agreements with over thirty countries.
5. Strict regulations are in place to safeguard intellectual property
6. By acquiring a work visa, foreigners can launch a business.top-notch transit and infrastructure facilities
7. A prime location with a highly competent, trained, and productive workforce
8. Hong Kong has no restrictions on foreign investment.

Hong Kong Company Registration Type

Hong Kong Sole Proprietorship Company Registration Number

1. In Hong Kong, a sole proprietorship company registration is necessary for a single owner.

2. All gains or losses are the responsibility of a single owner.

3. A business entity and its owner are regarded as one and the same.

4. They must register with the Business Registration Office of the Inland Revenue Department and pay 15% tax on their assessable profits.

Hong Kong Partnership Business Registration

 #1. Under this corporate form, a single business may be owned by two or more people.

2. Due to the possibility of financial generation and the sharing of obligations, partnerships can raise more money.

3. In a partnership, each partner is responsible for the actions of the other partners.

4. The Limited Partnership is the most common kind of joint venture since limited partners have limited liability.

Hong Kong Public Company Formation

#1. Public firms are those that allow the general public to buy debt obligations or stock.

2. There are more than 50 shareholders in Public Company Formation Hong Kong.

3. Businesses that have had substantial growth in their industry may decide to go public by expanding their shareholder base.

4. The majority of publicly traded companies are listed on a Hong Kong stock exchange.

5. Publicly listed companies must follow a very stringent set of rules in order to receive money from the general public.

The following is the Hong Kong company incorporation process:

Select a Name for Your Business

Choose the type of business entity you want.

Send in the Required Documents

Select a secretary for the company.

Send in your application

Incorporation Certificate

Hong Kong Incorporation Laws

Companies ordinance (Cap. 622)

Ordinance for Business Registration (Cap. 310)

Companies Ordinance (Cap. 32)

Companies Ordinance

(Cap. 571) Securities and Futures Ordinance

Ordinances Concerning Counterterrorism Financing and Anti-Money Laundering (AMLO)

Documents Required for Company Incorporation in Hong Kong

Form for Registering a Hong Kong Company

Identification Documents for the President, Directors, or Stockholders

Details of Business Activities

Copies of each foreign director's and shareholder's passport

Proof of the company's correspondence or virtual address

A Power of Attorney for International Candidates

Association Articles (AOA)

Association Memorandum (MOA)

An Employment or Investment Visa Notarised Copy

Translation into Chinese (Cantonese) or English

Declaration of Minimum Capital Requirements

PLC (Private Limited Company)

Proposed business Name Articles of Association

Standard or Customised Form NNC1

Incorporation form for a business limited by shares Form IRBR1

Notification of Commencement of Business Identification and Address Proof of Directors and Shareholders

Details of the Company Secretary Information concerning Share Capital Consent to Act as a Director and Members for each Director (Form D1B) Registrar's Office Address

Compliance Declaration (Form NAR1)

A sole proprietorship

Certificate of Business Registration (Form 1)

The Sole Proprietor's Personal Identification

Collaboration

Certificate of Business Registration and Partnership Agreement

Partners' Personal Identification

Information about Business Partners

How can TaxEsquire help you register your company in Hong Kong?

The purpose of TaxEsquire India is to make the Hong Kong business formation process more efficient. To register your firm, we gather all the required documentation, have you e-sign it, and then submit it to the Corporate Registry.

We provide you with a workable answer to your regulatory requirements, including the chance to obtain a Hong Kong business registration certificate, a registered address, and experienced corporate secretaries who can react promptly online.

Our excellent team of experts can quickly and effectively register your business in Hong Kong. Our services can therefore assist you in bringing your ideas to life without any mistakes or difficulties.