Ricky Cheung

FAQ

faq
The followings are questions frequently asked by our clients regarding (i) setting up a Hong Kong company or (ii) buying a Hong Kong shelf company.

If you have other queries, please call us or send us an email.

Q1

How long does it take to set up a company in Hong Kong?

7 working days (via traditional paper form) or  24 hours via eIncoporation (“eRegistry”).

Q2

How many shareholders should there be in a Hong Kong private limited company?

At least one.  There is no nationality restriction and residency requirement.

Q3

How many directors should there be in a Hong Kong private limited company?

At least one. There is no nationality restriction and residency requirement, but a director must have attained the age of 18 years and is not an undischarged bankrupt.

Q4

How much authorised share capital do I need?

The standard authorised capital of our package is set at HK$10,000 divided into 10,000 shares of HK$1 each. The minimum issued share capital is HK$1. If you like to have a simple capital structure for your business, this is it.

You can also choose to have an authorised share capital exceeding HK$10,000.  You only need to pay an additional capital duty at the rate of HK$1 per HK$1,000 of the additional authorised capital.

Q5

What items/documents are required for setting up a Hong Kong company?

(1) proposed company name(s);

(2) registered office address;

(3) identity proof and address proof (such as utility bills not more than three months old) of the shareholder(s), and number of shares he/she likes to subscribe.

(4) identity proof and address proof (such as utility bills not more than three months old) of the director(s)

Q6

What is a company secretary?

Under the Companies Ordinance, every company must have a secretary, or joint secretaries in rare cases. The sole director of a private company cannot be appointed also as the secretary of the company.

The secretary must be a Hong Kong resident or a body corporate having its registered office or place of business in Hong Kong.

We will act as our incorporation clients’ company secretary free of charge for the first year and, if they are satisfied with our services, will charge an annual service fee from the second year onward.

Q7

What will I get?

You will get:

Q8

What should I do after the company is set up?

You are advised to open at least one bank account as soon as your company is set up. Most of the banks take 1-3 weeks to have the company accounts set up and cheque books printed.

We will provide you with 2 sets of documents (incl. “certified true copies” of the statutory forms filed with the Companies Registry and Certificates of Incorporation and Business Registration Certificate) for opening of bank accounts.  We will arrange an appointment for you as well.

If assistance is required, we can arrange our staff to attend the bank meeting with you for an additional service fee.

Useful links:

HSBC’s BusinessVantage Account

HSBC’s Business Direct Account (a “lite version” of BusinessVantage)

Hang Seng Bank’s IBS Account

Notes: HSBC requires an initial minimum deposit of HK$10,000.

Q9

When do we need to pay tax, and how do we fulfill our tax obligation?

A Hong Kong limited company will receive its first Profits Tax Return from the Inland Revenue Department (“IRD”) in around the eighteenth month from its incorporation.

However, you are encouraged to have your company’s accounting records prepared and finalized much earlier than the Profits Tax Return is to be issued because you should allow some time to have the accounts audited by a practising accounting firm.  Hong Kong companies are required to submit audited accounts with their Profits Tax Returns.

The IRD will usually issue a tax demand note a few weeks upon receipt of the Profits Tax Return.

To ease your compliance burden, we will act as your tax representatives free of charge for the first year and, if you are satisfied with our services, we will charge a small fee from the second year onwards.

Q10

 What are shelf companies?

Shelf companies are companies already set up but have never been used.

All the formalities of buying these shelf companies can be done swiftly within 1-2 working days.

If the company name is not your prime concern and/or you want to use a company to enter into contractual agreements (e.g. signing of tenancy agreements) quickly, then “shelf company” is a good choice.

Here is a list of “Hong Kong shelf companies” for your reference. Most of these shelf companies sell fast, so clients are advised to choose at least three companies and let us know their priority of preference.  You are suggested to choose those set up in the recent 1-2 months; Otherwise you will end up having to pay the renewal fee earlier than necessary.

Q11

 I want to set up a company in Hong Kong, what should I do now?

Please fill in and return this questionnaire to us, by fax (852) 2781 0816 or by email, with copies of identity proof and residential address proof of the shareholders and directors.

If you are not sure about certain items, just leave them blank and we will take care of them and advise you accordingly.

We will do the Name Check free of charge. Name Check results are usually available within an hour.

Here is a flow diagram illustrating the whole procedure for your reference.

Feel free to call us for an appointment.

Q12

 I want to buy a shelf company, what should I do now?

Please choose 3 companies from this list and let us know your priority by email or by fax (852) 2 781 0816.  You can also call us for immediate assistance.

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