Hong Kong Company Setup Requirement

Private limited companies in Hong Kong need to maintain a local registered address.

Business regulations have continued to be a significant cause of concern for businessmen across Hong Kong. Given the overall ambiguity that exists pertaining to the required steps that should ideally be followed, there are certain compliance requirements that need to be taken care of. The following article covers Hong Kong Company Registration requirements to show the overall processes that a normal company has to go through in order to operate legally in the areas.

Private Limited Company Regulations

• As far as private limited companies in Hong Kong are concerned, it can be seen that they are supposed to maintain a local registered address.
• In the same manner, they are also required to maintain a local resident company secretary, in addition to onboarding at least one director who is a neutral person.
• For purposes of proper declaration, there is a need to have a minimum of one shareholder.
• Furthermore, there is an additional need to have an appointed auditor, who is accredited as per Companies Ordinance.
• The Hong Kong Company requirements therefore, include provisions for inclusion of numerous aspects, which include full disclosure of facts and figures which need to be fully accounted for in order to save companies from possible litigation.

Additionally, there are a couple of notifications that need to be combined and submitted for purposes of reconciliation.

• This includes notifications of the Companies Registry of any changes, Notification of any change in address (if applicable), change of Secretary, shareholding and any other issue that might be of importance to the stakeholders of the company.
• Furthermore, private limited companies in Hong Kong are also supposed to hold a first Annual General Meeting (AGM) within 18 months from the date of their incorporation, Subsequent AGMs must be held every calendar year, at an interval of not more than 15 months.
• In the same manner, the directors are also supposed to table the company’s financial accounts in compliance with Hong Kong’s Financial Reporting Standards (FRS) framework. This should also be followed by a directors’ report in conjunction with the annual accounts.

Private Limited Companies are also instructed to comply with annual accounts filing deadlines, and other company related requirements set out by Hong Kong’s Companies Registry and Tax Authority. There is full clarity present (hyperlink), which guides businesses to take care of their filing and compliance related matters when they are operating in Hong Kong.

Filing of Annual Returns

As far as filing the Annual Returns are concerned, it can be seen that all the private limited companies that are incorporated in Hong Kong under the Companies Ordinance can be required to file an Annual Return.

• This Annual Return is supposed to be signed by a director, company secretary, manager or authorized representative with the Companies Registry.
• As per the rules that have been set out, it can be seen that the Annual Return is supposed to be filed once in every calendar year, within a time frame of 42 days from the date of incorporate.

Therefore, it can be seen that Hong Kong Company Registration requirements are set out in order to provide a possible framework for companies to follow, so that they are able to prove clarity to the shareholders and other potential stakeholders about the internal affairs of the business. In the same manner, it also provides a security blanket for the potential investors, as they know that they company they are investing in is fully regulated, and complies with the Hong Kong Company Act.

For further assistance and professional advice regarding compliance with the Hong Kong Company Registrations, contact us now. We will ensure all your concerns are eliminated and all the requirements are met to avoid any conflicts with the IRD.