What is a foreign company registration in Hong Kong? Foreign company registration in Hong Kong is an extension of the parent company and is among the most popular business structures for foreign investors. As the following have attested, Hong Kong company registration has many benefits:
It is an entirely self-contained entity. In simple terms,foreign company registration in Hong Kong follows the same procedures as foreign company registration in any other country. It must be licensed by the Office of the Superintendent of Corporations (OWSC. Officers must comply with the Companies Act’s minimum requirements the rules and regulations of the Securities and Registration Office of Hong Kong (SROH). Apart from these basic requirements, there are several compliance requirements that foreign companies in Hong Kong must fulfil to become active participants in the multi-cultural society and enjoy the rights set out in the Memorandum and Articles of Association.
There are five key advantages of having a foreign company in Hong Kong. First, the company enjoys tax benefits. According to the Basic Certificate of Registration (PCR) of the Hong Kong SAR, all foreign companies pay the corporate income tax in Hong Kong. This tax includes the double taxation agreement and the agreement between the parent company and the Distributor. The aim of incorporating is to avail of the tax benefits. Besides, it ensures that the company is listed on the stock exchange, a prerequisite for trading.
Another advantage of company registration in Hong Kong is that it provides easy access to its resources, including information technology systems and personnel. The company representative office or the secretary will take care of all technical issues. The companies will have a permanent representative office in Hong Kong and will continue to pay the appropriate taxes. The company registration process does not affect employee rights, and they can continue to work in harmony with their employer.
Foreign companies must provide the appropriate documents to the Hong Kong branch office. Foreign companies should send a copy of the Articles of Association, corporate seals, book and document register, bank statements, payslip, passport, and related papers. These documents will be required for the review of the registration. Once these documents are received, the company will receive a certificate of appointment from the Secretary of State’s Office. The company has the right to carry on business as usual under the Parent Company Agreement until it receives the certificate of appointment from the Secretary of State.
Companies must comply with all local rules and regulations when conducting business in Hong Kong. All employees of the parent company need to be registered as directors of the company. The requirements for business registration in Hong Kong for foreign companies are different from that of the parent company. In the case of a corporation, all directors of the corporation need to be registered as shareholders. Businesses that are not covered by the parent company’s agreement need to open an account in the business name. This procedure aims to ensure that the company and its directors are considered separate entities from the parent company.
An additional requirement for foreign company registration in Hong Kong is submitting the necessary financial documents such as annual income tax returns, bank account statements, etc. It will facilitate the review of the business’s performance and enable the government to monitor its continued compliance with the law. The bank account is an essential element in foreign company registration in Hong Kong. The bank account needs to prove that the company makes purchases under your account and pays taxes regularly.
Failure to submit all the required documents within the stipulated time may result in the process being frozen until all the necessary documents are submitted. Suppose the company cannot comply with the government’s requirements for company registration in Hong Kong. In that case, it may be required to register as a foreign company under the Companies’ Registration Scheme (CRS). When the CRS is applied, the company must provide the prescribed documentation to become a foreign company. You can find more information on the Companies’ Registration Scheme son the Government of Hong Kong website.