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©2019 by R&B Corporate Services Ltd.   License number TC006200

Q&A

Common questions asked

Company Incorporation

Question:

What are the fees for registering a Hong Kong Limited Company?


Answer:

Incorporation of a Hong Kong Limited Company that has a share capital has an application fee of HK$ 1,720 and business registration fee of HK$ 250 (for the fiscal year 2019). Therefore, the total fee charge is HK$1970 ONLY.

 

We will not charge you any additional cost and we are also offering you first year’s company secretarial service and business registered address.

 

Question:

What will I get after the Hong Kong limited company incorporation is completed?

Answer:

R&B will provide the below documents to you in soft copy by email and available to download on our web portal:

  • Memorandum & Articles

  • Business Registration Certificate

  • Certificate of Incorporation

  • Statutory Book

  • Significant Controllers Register


Additional Services:

  • HK$300 for Signature chop and Round chop

  • HK$800 for Green Box, Signature chop and Round chop, with all documents above in hard copy.

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Question:

What is a green box?

Answer:

Green Box is a collective term of materials you will have after a Hong Kong company is formed, including:

  • Memorandum & Articles;

  • Common seal (stainless steel);

  • Signature chop;

  • Round chop;

  • Share Certificate book;

  • Statutory Book;

  • Certificate of Incorporation;

  • Business Registration Certificate;

  • Copies of document filed to Company Registry.

​Greenbox is not mandatory now as soft copies are also valid.

 

 

Question:

Are there any requirement for what regulations apply to the nominal capital and number of members of a for Hong Kong Limited company?

 

Answer:

There is no minimum nominal capital for a Hong Kong limited company.

  • The usual minimum initial issued/ paid-up capital is HK$ 1.00 equivalent to one share;

  • Limited companies established in Hong Kong must have at least one founder member holding at least one share and one director;

  • A single shareholder can also be the company director;

  • A separate company secretary must be appointed who is either an individual, usually resident in Hong Kong or a corporation that is based in Hong Kong. 

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Question:

How should I set the initial share capital for Hong Kong Limited Company?

 

Answer:

If you are sole owner of the company and have no intention to issue shares to others, you can set the initial capital at HK$1.

 

If you do have or planned to have shareholders to join the company, we recommend you set it at HK$1,000.

                      

Question:

Can non-Hong Kong residents incorporate a limited company in Hong Kong?

Answer:

Yes, non-Hong Kong residents can set up incorporate a local limited company in Hong Kong. However, the company will need to be registered at a local and, physical Hong Kong address for registration and appoint a Company Secretary. The appointed Company Secretary must be an individual, who is usually a Hong Kong resident in Hong Kong or a corporation that is based in Hong Kong.  

 

R&B as a Licensed Trust or Company Service Provider in Hong Kong (TC006200), we are capable to offer one-stop corporate and business services can help with this process. Our legal and accounting experts will assist you to set up your help clients set up and develop Hong Kong limited companies and ensure it is in compliance with all relevant rules and regulations while complying with all legal requirements. 

 

​​​Question:

Can a limited company established in Hong Kong have a registered office that is outside Hong Kong?

 

Answer:

No. All limited companies established in Hong Kong must have a local, and physical address in Hong Kong. It is not possible to use a PO Box. 

 

 

Question:

Can non-Hong Kong residents be appointed as a director and secretary of a Hong Kong limited company?

 

Answer:

Yes, non-Hong Kong the non-residents may be appointed as directors of a Hong Kong limited company. However, if the company secretary is an individual, who should be an ordinarily usually resident in Hong Kong or a corporation that is based in Hong Kong. ; if a body corporate, its registered office or place of business should be in Hong Kong.

 

Every private Hong Kong limited company must have at least one director and one secretary. If a company has only one director, the director shall not act as the company secretary of the company.

 

Management and renewal

 

Question:

According to the 'Companies Ordinance' of Hong Kong, when are registered companies required to submit annual returns?

 

Answer:

Local private companies with an annual share capital must submit an annual return each calendar year within 42 days of the anniversary of incorporation (other than the year of incorporation). Other local companies must submit an annual return within 42 days of the company's annual general meeting or within 42 days of a certified copy of the accounts being laid before the company annual general meeting.

 

For Non-Hong Kong companies that have business registration in Hong Kong, they are required under the "Companies Ordinance" Article XI of the date registered, to submit an annual return within 42 days after each anniversary. 

 

Question:

What is the difference between deregistration, striking-off, and liquidation?

 

Answer:

These are three ways to dissolve an existing company.

Deregistration is a simple, inexpensive and speedy process to dissolve defunct private companies. Applicants file for deregistration by submitting the specified form (Form DR1).

 

Striking off is initiated by the Registrar of Companies to remove defunct companies from the register.

 

The liquidation process is monitored and managed by an appointed liquidator. It includes settlement of accounts, realizing and disposing of company assets and dividend payment to creditors (if possible). After all procedures are completed the company is dissolved. 

 

 

Taxation

 

Question:

What taxes do expatriates pay in Hong Kong?

 

Answer:

Hong Kong has a simple and low system of taxation. Tax income is generated from salaries, property and profits only. Capital gains, gifts, inheritance, and social security are not taxed in Hong Kong. There is no value added (VAT) or Goods & Services Tax (GST).

 

Individuals pay tax on salaries at a progress rate between 2% and 17% depending on income. Tax reporting is done annually on the specific tax return issued by the Inland Revenue Department. Tax payments are made as lump sums, usually in two payments. R&B provide an expert tax consultancy service to individuals and corporations to plan a tax strategy and comply with all Hong Kong legislation rules and regulations.  

 

Question:

What is the current Hong Kong profit tax rate?


Answer:

The normal profit tax rate for assessment year 2018/2019 and onwards is:


Corporations: 16.5% (8.25% on first assessable profits of HK$2,000,000)

Unincorporated businesses: 15% (7.5% on first assessable profits of HK$2,000,000)


A concessionary tax rate at 50% of the normal profits rate is applied to trading profits and interest income received or derived from Qualifying Debt Instruments (“QDI”)  issued in Hong Kong, and to the offshore business of professional reinsurance companies. However, the exemption will not apply if at the time during which the interest income and trading profits is/are so received or accrued when the person is an associate of the issue of the QDI.

 

Question:

What are the penalties for failing to pay tax on time?

 

Answer:

Under the Inland Revenue Ordinance, Section 71 (1), in accordance with the provisions of the Inland Revenue Ordinance to levy taxes tax should be paid on or before the specified date in the notice. If this is not done it is deemed that there has been a delay in tax payment.

 

If taxpayers have not met the date specified for the first provisional payment the second tax instalment is considered due immediately if the notice of assessment is not paid within the specified time the Inland Revenue Department may take immediate action to recover the tax in full. The Commissioner of Inland Revenue, under the Inland Revenue Ordinance (Chapter 112) Section XII allows the department to take immediate legal action to recover the outstanding taxes. This includes a 5% surcharge levied to third parties issued a notice of tax recovery and legal actions.

 

 

Others

 

Question:

Where is R&B located?

Answer:

R&B office is in L2, 3/F, Kaiser Estate Phase 2, 51 Man Yue Street, Hung Hom, Hong Kong.

Since we have a fully automated web portal and online customer service team, you may easily access our service without visiting us physically.
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Question:

Is there any guarantee success for bank account opening?

Answer:

Unfortunately we cannot guarantee the success of the bank account opening since the banks will be judging the application based on factors like industry, purpose of the bank account and background of the applicants etc.

 
R&B will be running a pre-submission check based on our understanding of the banks’ requirements and make recommendations to improve your success rate.

 

​Question:

What payment method do you accept?

 

Answer:

We accept bank transfer, cheque, Stripe and Payme. Please contact us for more details.

 

Question:

My company name has been registered in Hong Kong. Can I use the company name as a trademark? Is the name automatically protected against trademark infringement?

 

Answer:

In Hong Kong, limited company registration and trademark registration are separated, different laws are managed and regulated by different government departments. The Companies Registry is responsible for the registration of local companies and outside companies incorporated with an established place of business in Hong Kong.

 

The Intellectual Property Department Trade Marks Registry (chi/trademarks.htm) is responsible for trademark registration. If your company name is listed in the Companies Registry this does not mean that you automatically have the right to exclusively use the company name as a trademark for promoting or trading in goods and services.

 

You must make a separate application to the Trade Marks Registry, in order to obtain legal protection under the "Trade Marks Ordinance,"