Let us go through the tips below before going through the complete process of Hong Kong company incorporation.
Tip 1: Before starting your new business in Hong Kong, you should know that you are required to enroll your employees (aged between 18-65) in the Mandatory Provident Fund scheme (i.e. MPF). This is the pensions and insurance requirements that is stated under the companies ordinance for employees compensation and guarantees. This is the legal and proper policy to cover all the employees who are hired under your company.
Tip 2: The MPF scheme would have to include all employees who are working part-time or full-time.
Tip 3: Hong Kong has a territorial tax regime which is completely separated from Mainland China.
Tip 4: Hong Kong always has been one of the regions with the lowest tax in Asia, and perhaps in the world.
Tip 5: As a Hong Kong company, you will get no profit tax enforced on your company when the business is conducted outside of the region of Hong Kong.
Tip 6: The profits tax rate is 8.25% on the first HK$2 million of profits for those companies in HK that are actually having operations in Hong Kong. The profits tax rate becomes 16.5% after the first HK$2 million.
Tip 7: There is no capital gains tax.
Tip 8: A tax return is required to be filed to the Inland Revenue Department (IRD) each year. It has to go together with audited accounts.
Tip 9: The actual requirements for filing an annual report varies. It depends on the type of business structure. For example, your company may be registered as a non-Hong Kong Company, or a local limited Company in HK.
Tip 10: You must apply and obtain any permits and licenses that are specific to your business to legally operate in HK. There are many different types of permits and licenses. Some may be applicable to the nature of your business, product, or service.
Tip 11: An organization such as HKTDC may have funds and/or resources that can be granted to local SMEs.
Tip 12: Your business needs a company name. The name can be a in Chinese, or English, but cannot contain both English and Chinese. You must not register a company name that is previously used.
Tip 13: A legal structure of a company in HK may be anyone of these: Sole proprietorship, partnership, limited company, company limited by guarantee, company limited by shares, and branch office.
