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Admiralty, a part of the Central and Western District of Hong Kong, has a thriving business scene that includes multinational corporations and small to medium-sized enterprises. The law governing new business formation in Admiralty, and Hong Kong in general, is comprehensive, structured, and supportive. Hong Kong's authorities have painstakingly set up laws and regulations to facilitate easy setting up of new businesses while ensuring accountability and fair practices. This is carried out via the Companies Ordinance (Cap. 622), which is primarily responsible for regulating business incorporation and operation.
Embarking upon the process of forming a new business in Admiralty, Hong Kong necessitates a working knowledge of local regulations and bylaws. This is because it often involves steps like creating a business plan, choosing a business structure, registering a company name, understanding tax requirements, and obtaining necessary licenses and permits. To navigate this complex process and ensure that your business fully complies with all legal requirements, the expertise of a legal professional is indispensable. An experienced lawyer can advise you on potential legal pitfalls and provide valuable guidance on how to protect your business interests within the constraints of the law.
The Companies Ordinance forms the cornerstone of business formation law in Hong Kong. The law mandates that all companies must be registered with the Companies Registry. New businesses require a business proposal, a suitable company name, at least one shareholder and one director (who can be the same person), and a company secretary who is a Hong Kong resident or a corporate body with a registered office in Hong Kong. The statutory corporate tax rate is 16.5% and Hong Kong operates under a territorial taxation principle, meaning only locally-sourced profits are taxable.
The first step is normally to come up with a business plan, which should cover everything from the business structure and product development to market research, and more. You would then need to choose an appropriate company name and ensure it is not already in use.
Typically, setting up a new business in Hong Kong can take anywhere from one to two weeks once all the necessary documents have been collated and submitted.
Not necessarily. It's also possible to create a registered branch of an overseas company. It’s advisable to seek legal advice to understand the pros and cons of each method.
Hong Kong companies are expected to file an Annual Return with the Companies Registry and a Profit Tax Return with the Inland Revenue Department each year.
Businesses that do not comply with local laws risk fines, penalties, imprisonment, and could potentially be de-registered or struck off the Companies Register.
The Hong Kong Companies Registry and the Business Registration Office are key resources for anyone looking to form a new business. Additionally, InvestHK, a government agency, offers free advice and services to support foreign companies starting or expanding operations in Hong Kong.
If you need legal assistance for new business formation in Admiralty, Hong Kong, consider consulting with a local legal professional. They will be able to provide personalised advice based on your specific business needs and circumstances, ensuring that your new business starts off on a solid legal footing.
