A private limited company (limited by shares) is the most common type of company for conducting business and trade in Hong Kong. As a standalone legal entity, it may acquire assets, enter contracts, go into debt, make legal agreements, etc. all in the name of the company.
Such an entity has a share capital which is divided into a number of shares of certain value each. These shares are held by shareholders who are entitled to a share in the profits of the company and receive a dividend corresponding to their respective percentage of shareholding in the company. In case of a loss, the shareholders will lose their investment in the shares of the company. By its constitution, a private limited company must limit the number of shareholders to 50 (not including employees and former employees), restrict the right to transfer its shares, and prevent any invitation to the public to subscribe for any shares or debentures. A private limited company is required to have at least one natural person as a director. There is no legal maximum for the number of directors, which can be individuals or corporations of any nationality, domicile and residence. A sole shareholder can be a director of the company.
Submitting the forms through Hong Kong’s 24-hour Companies E-registry
Applying for a work permit is very common and simple in Hong Kong for most nationalities. It is a requirement that a foreign individual needs to have the relevant work permit in order to work in Hong Kong. (only if applicable)
There are various types of permits and licenses that might apply to your business depending upon the nature of your services and products
A current profit tax rate that is applied to all businesses operating in Hong Kong is 8.25% on the first HKD2 million of profits and 16.5% thereafter and no capital gains tax. It is mandatory that the company files its taxes based on the applicable tax rates for every financial year.
You need to be aware of the deadlines administered by the Companies Registry. You will need to adhere during the annual filing of your business entity as below:
The requirements for filing an annual report varies with the type of business structure, whether you are a Registered Non-Hong Kong Company or a Local Limited Company in Hong Kong