Our Services - Setting up a Company


Types of Company recognised in Hong Kong
The most common types of registrations are listed below together with key features of each.

A Limited Liability Company

• Liability of owners are limited.
• The company is treated as a separate person which can enter into transactions and will continue to exist in the same form even when owners change.
• The minimum number of directors required is now 1 only.
• The minimum number of shareholders required is now 1 only.
• Expenses incurred in the business can be more easily deductible against Profits Tax than an individual who attempts to deduct expenses against Salaries Tax.
• An annual statutory audit is required.

A Sole Proprietorship

• Liability is unlimited.
• For businesses where the liability of the owner is unlikely to be at risk.
• Where there are no other persons who need to have a share of the profits.
• Costs can be saved; no statutory requirement for an annual audit, a company secretary or the preparation of an annual return.
• There is no separation between the business and the individual who is the sole proprietor therefore salary can not be paid to the sole proprietor.

A Partnership

• Liability is unlimited.
• Ideal where there are a number of partners who wish to share the revenue and risk of loss is unlikely.
• Without formal prior arrangements the partnership will cease if any partners leave the partnership.
• It is normal practice to execute a formal partnership aggreement to detail such terms as the share of the profits.
• There are certain tax restrictions on the deductibility of salaries.

Registering an Overseas Company in Hong Kong

• Not strictly setting up a new entity but rather registering the overseas company so that it may carry on business in Hong Kong
• A local statutory audit is not required, if the overseas company requires a statutory audit in its country of incorporation then this must be submitted to the Hong Kong Government annually
• Liabilities would not be limited to the branch but would also expose the Overseas Company

A Representative Office

• A limited presence in Hong Kong can be achieved by setting up a representative office.
• The Representative Office will not be able to enter into contracts nor will it be able to derive revenue.
• A statutory audit is not required.