Do you know how much it costs to set up and run a limited company in Hong Kong?
If you’re thinking about setting up a Hong Kong limited company, then you’d be surprised to learn that incorporating a new company can cost not more than HK$6,500. We’ll take a look at how the costs to incorporate a company can vary according to the formation service you use, along with any additional running costs that may come up.
Cost of Forming a Hong Kong Company
Many feel that the cost of forming a company has to be pretty high, but this is not the case at all. Even though running a company takes more administration and the director of a company has more responsibilities than a self-employed person, running a company isn’t as financially or time-consuming for many people.
#1 Set Up a Company Directly with the Companies Registry
The cheapest way to set up a Hong Kong company is using the Companies Registry, the registrar for companies in Hong Kong. Incorporating directly through the Registry is possible, but it is no-frills. You need to give them a Hong Kong registered address and the details of the company’s company secretary, a position that needs to be filled by either a Hong Kong resident or a Hong Kong company. If you need extra support or services, you need to consider using a registration agent or getting advice from an accountant.
#2 Set Up a Company Using an Intermediary
You can also set up a company using an intermediary that sets the company up for you. They’re called formations agents or registration agents, and many firms offer this service in Hong Kong. They charge between HK$6,500 and HK$30,000, while some charge even more.
Corporate Hub Hong Kong has an in-house company formation service you can use to set up a company. We offer options such as providing a Hong Kong address and a company secretary, opening a Hong Kong bank account, and a mail forwarding and scanning service. You can also buy a shelf company in this manner. If you do not have a Hong Kong company secretary and a Hong Kong address, it costs HK$6,500 to set up a company, which all government fees are included.
Ongoing Costs of Running a Hong Kong Company
Outside of the minimal costs of incorporating a company, some other things can incur a fee when running a Hong Kong company.
#1 Company Secretary and Hong Kong Address
A Hong Kong company must have a Hong Kong company secretary and a Hong Kong address. The company secretary will typically act as the designated representative of the company’s significant controllers’ register. Corporate Hub Hong Kong has an in-house company secretary and address service you can use to fulfill these legal obligations at the annual cost of HK$2,500. We do not charge extra to act as the designated representative.
#2 Companies Registry
Every company needs to submit its annual return (NAR1) on the anniversary date of its incorporation. This gives the Companies Registry and the general public a glimpse of what each company is all about. This form includes the details of the company, its directors and shareholders. Usually, the company secretary will help you file it. The NAR1 government fee is waived if you submit the NAR1 on time from 1 Oct 2020 to 30 Sep 2022. We do not charge extra to submit the NAR1 form.
If you submit the annual return late, then the NAR1 government fee goes up to HK$3,480. Every responsible person in the company is also liable to prosecution if you take too long to submit the form. You can see why just hiring a professional to take care of the forms for you is a better option than ignoring them and potentially paying higher fees.
If you are changing your company’s name, the Companies Registry will charge you a fee too.
#3 Business Registration
The business registration certificate needs to be renewed annually before it expires. The business registration fee for 2021-22 is HK$250. Renewing the Business Registration late can incur a penalty of HK$300 and taking too long can also lead to legal troubles and even more fines. Usually, the company secretary will help you renew it if you use its address services. Except for the government fee of HK$250, we do not charge extra to renew your company’s business registration.
We offer a range of packages for renewal services you can choose from. Our standard company renewal fee in 2021 is HK$2,750, including the company secretary and registered address service for one year (HK$2,500), 2021 NAR1 filing fee (HK$0) and 2021-22 business registration fee (HK$250).
#4 Accounting
You’ll need to have your company’s management accounts ready before sending them to the auditor. You can do the accounting work on your own if you have sufficient accounting knowledge and time. Alternatively, you can outsource the accounting work to Corporate Hub Hong Kong or other accountants. Typically, they will provide you with the income statement, the balance sheet and the general ledger after the accounting work is finished.
#5 Audits and Tax Returns
During the first week of April, the IRD issues Employer’s Returns (BIR56A) to companies. The information you need to put on these returns is the salaries of your employees for the year. The forms need to be completed within a month of receiving them. Failing to complete them on time will incur a penalty.
Hong Kong limited companies are also required to have their financial statements audited every accounting year. You will receive your first profits tax return (BIR51) 18 months after incorporation and your annual profits tax return in May every year. Filling out this profits tax return is a requirement, and it will be based on the figures from your audited financial statements. Find more here. Submitting these forms late will incur a penalty of HK$1,200+. Further delay will lead to higher penalties and potentially court proceedings.
The cost of auditing and filing the tax return depends mainly upon the company’s business industry, the company’s turnover, and the number of transactions. Our price for the audit and profits tax filing work is highly competitive. We do not offer packages because a tailor-made quote depending on your company’s actual situation is always more competitive. The audit and tax filing fee of a company with only a handful of transactions should not be the same as a company with thousands of transactions when their turnover is the same.
Corporate Hub Straightforward Pricing (2021 Updated)
The following is a summary of our costs of forming and running a Hong Kong company (applicable to a company with a simple shareholding structure, i.e., not more than two individual shareholders).
| One-off costs of setting up a Hong Kong company (including company secretary and Hong Kong address service for 1 year *) |
HK$6,500 |
| Ongoing costs of running a Hong Kong company | |
| – Company secretary and Hong Kong address service for 1 year * | HK$2,500 |
| – 2021 NAR1 annual return filing fee ** | HK$0 |
| – 2021-22 Business registration fee *** | HK$250 |
| – Accounting, audit and tax filing fee | Depends |
* We do not charge extra to act as the designated representative of the company’s significant controllers’ register.
** We do not charge extra to file the company’s NAR1 annual return.
*** Except for the government fee of HK$250, we do not charge extra to renew the company’s business registration.
AUTHOR
WINSON KWOK
Winson Kwok is the co-founder of Corporate Hub. He has a background in entrepreneurship, economics, and business development. He has extensive experience in helping entrepreneurs develop their business and, at the same time, avoid common pitfalls. His personal goal is to bring significant values to entrepreneurs and startups around the world.
I want to form a company in Honking and open a current account. Please let me know the process and charges. I live in Bangalore, India.
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Give me snd all detail I want open office in Hong Kong
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i am a foreign student in china i want to open a virtual company in hongkong that i can control while being in china please can you help me with some advice on how to proceed
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Would like to know the costs associated with opening a company and a bank account in HK for a foreigner.
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If I setup an LLC in hong kong, what will be the setup costs (without using and with using an intermediary like corporate hub) and what will be the annual costs for first year in hong kong dollars? I am a foreigner. thanks
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dear sir I am from India
I want to open a company in hk pvt ltd
like to operate from India
need a adress to revive small parcells and maintain them
what would be the charges for complete one year
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Would like to know the costs associated with opening a company and a bank account in HK for a indian
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I want to open a small cafe that sells just basic tea coffee and bread but I want to sell flower as well. I want it to be half flower shop half cafe type. What would the procedure be like, thinking of partnership company.
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Hi, Please send me the services and fee that required to open a company in hong kong, our nature of business is real estate.
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Hi,
I would like to set up a company in Hong Kong. I already have company in UAE, in Free Zone. My core business is import/export IT and electronic equipment to different countries. I’d like to know which company type is better for my business, requirements for this kind of company, the cost for incorporation with a bank account opening. And what kind of tax should pay this type company
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I want to open llc in Hong Kong with a bank account how can i open llc and how much it will cost to me ?
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Hi there, thanks for the great information. I am in the Process of selecting different registration Agents / Formation Agents for incorporating an offshore virtual company. Would really appreciate any tips on what services I will perhaps not need. Obviously, Accounting, business address & secretary are essential.
– Are there any services usually suggested by the Agents that are not needed?
– What would you say would be the MOST important services that will provide sustainable peace of mind?
– Would also be very interested in your services and prices for my situation.
Thank you and looking forward to hearing from you.
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Hello, i would like to set up a company in HK for export and import to other countries. What are the requirements and procedures for setting it up? And what is the setup costs (without using and with using an intermediary like corporate hub. Thanks!
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I want to open a cafe in Kowloon City distract? What do I need to do?
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Please provide me all costs to open a bank account and LLC in hongkong. Also, do tell me if I have to visit personally every year?
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We want to get registered to obtain a company prefix from GS1 for selling our products on Amazon. Please could you provide information and fees regarding to this formation?
Thanks
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I am a startup entrepreneur from India, and we do business with HK & Chinese Manufacturers. Want to open a Hong Kong entity. What will be the cost of doing so? (incl. bank account)
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I want to form a offshore company hong kong and British virgin islands. I also want to open a corporate account. Please let me know the process and charges. I live in Malaysia
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We are a Korean company desires to set up a wholly owned subsidiary in HK. How much costs and what would be required procedure to take to achieve that end along with documents to be prepared?
Upon incorporating the subsidiary in HK, what would be the procedure to open an account in HK to which all revenues to be deposited?
Are there any restrictions imposed upon a foreign invested subsidiary to receive foreign earned revenue from international trades to the account and repatriate to the mother company as a dividends?
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Hello,
We want to open HK company owned by our EU company?
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I am resident of sri lanka and wanted to open a pte ltd company
let me know the charges and to open bank account what will minimum charges .
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I am a hk citizen want to open a start up/ small business in hong kong. Its just me and maybe some interns/part time at the beginning.
How much would it cost and whats the procedure ?
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Hello!
I’m from Morocco and I want to create a trading company in HKG. What’s the procedure and costs of a LLC? What are the annual fees (Taxes, status fees, …)
Thank you
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Hi may I know the cost for setting up an office in Hong Kong
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Hi, I am Hafizal from Malaysia. I would like to set up a Company Pte Ltd in Hong Kong. May I know the cost for :-
1) Set up HK Company including government fee & business registration certificate (One-off).
2) Company Secretary fee (per year).
3) Registration office address (per year).
4) Opening current bank account (per year).
5) Audit fee
6) Tax filling fee
Thanks
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hi I want to start my own small business in hongkong ..need a support
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