Hong Kong Subsidiary Entity Set Up
Hong Kong Entity Set Up
Global expansion into Hong Kong generally means that you need to set up an in-country entity. However, by partnering with us, you create the possibility to bypass this process and utilize our Hong Kong entity. By using our PEO-service we take care of the complicated paperwork.
Expanding into a new country is always an adventure, but we believe this adventure should be exciting instead of just frustrating and time-consuming. Therefore, we have been supporting companies in over a hundred countries with their expansion plans.
How to set up a Hong Kong Subsidiary
- Decide on the company type that suits the nature of your business, your business goals and matches your own capabilities to meet establishment requirements. Common company types include: The Private Limited Company, The Public Limited Company, The Company Limited by Guarantee, a branch office, or a representative office.
- Choose a company name – can be in English (end in Limited), traditional Chinese, or an English and Chinese name (but the combination of English and Chinese characters is prohibited).
- Appoint a company secretary.
- Obtain a business address in Hong Kong.
- Prepare the appropriate registration documents and have them translated to Chinese or English.
- Notarize and legalize the registration documents at a notary’s office.
- Confirm your company name and register your company at the Companies Registry.
- Receive a Certificate of Incorporation.
- Register with the Inland Revenue Department and obtain a Business Registration Certificate, which includes the company’s Tax Identification Number.
- Open a corporate bank account.
- Apply for any additional permits or licenses (if required), within a month of incorporation.
Benefits of setting up a Subsidiary in Hong Kong
Hong Kong is one of the top destinations for subsidiary establishment in the world, so it is easy to see why it is a popular destination for growing a business’ influence. There are also other significant benefits to establishing an entity in Hong Kong:
- Subsidiaries in Hong Kong are taxed the same as any other resident company.
- Subsidiary entities in Hong Kong also benefit from double tax treaties, in which there are significant reductions in tax payments on dividends, interests or royalties paid to the foreign country.
- Hong Kong ranks high at 3rd place in the Ease of Doing Business report by The World Bank (2020).
- Hong Kong boasts robust financial, tourism, logistics, and professional services sectors, as well as high-quality creative, medical and education services.
- Hong Kong entities also benefit from the lowest tax rates in Asia, as well as low workforce costs.
- In 2019, the Heritage Foundation recognized Hong Kong as the freest economy in the world, due to its focus on providing trade and monetary freedom to businesses, as well as integrity and transparency towards its governments.
- The workforce in Hong Kong is also highly trained, flexible, productive, and adaptable to international businesses, with English as the second official language alongside Chinese.