Company Incorporation in Hong Kong | INS Global
Countries / Hong Kong / Company Incorporation in Hong Kong

Company Incorporation in Hong Kong

Establish a Foreign Entity

INS Global offers industry-leading consulting services to help companies establish themselves in new markets worldwide.
We help companies make the most of the Hong Kong market by providing unmatched local expertise and a diverse range of options for creating a legal entity in Hong Kong.

Company Incorporation in Hong Kong - Summary

Our consultant first arranges to meet with you to discuss your needs and get to know more about you as a company. By taking the time to understand your company culture values, we can match you with professionals that align with you on every level.

Your INS Global consultant will be by your side throughout the process, offering all of our services through a single point of contact to increase efficiency.

According to your specifications, we map the perfect candidate(s) for you. We then utilize our well-developed networks and resources to screen and select the best talent available in your target market.

When a suitable shortlist of candidates is ready, we can organize interviews for you, providing coaching on local best practices throughout the process.

When you’ve chosen the perfect candidates, we continue to offer support and guidance. We can work with you to help form a job offer and contract to satisfy all parties involved and ensure regulatory compliance.

Even after a candidate has accepted your offer and signed the contract, INS Global can offer a range of further services to boost efficiency and HR productivity long-term like PEO solutions, payroll outsourcing,  and tax and contractor management.
 

How Company Incorporation with INS Can Benefit You

Employee Onboarding

Make the most of INS Global’s extensive offline and online networks and recruitment services to bring the best available employees to you, whatever kind of company structure you build in Hong Kong

Quick Delivery

Work seamlessly and quickly with INS Global’s Hong Kong market experts team to get the most accurate insights and advice available

Local Expertise

With the help of INS Global, you can make the most of over 15 years of experience in the Hong Kong market while staying up to date on new best practices and changing requirements

Reduced Time and Cost

Setting up a legal presence in Hong Kong can be a burdensome process, fraught with potential risks and errors. INS Global will guide you through these difficulties and consult on all possible issues

Assured Legal Compliance

INS Global’s expert legal knowledge will allow you to be confident of the safety of your employees and your business at every step of the way

Single Point of Contact

Avoid confusing or conflicting information, and deal with a single expert partner who will understand and handle your unique requirements

The Types of Entities Available in Hong Kong

There are several different options for companies wishing to establish themselves with a separate legal entity. INS Global can guide you throughout the creation of any of the following:

Sole Proprietorship

The simplest way to set up a company in Hong Kong is by registering a sole proprietorship with the IRDBRO (Inland Revenue Department’s Business Registration Office) and receiving a Business Registration Certificate.

However, this type of business lacks some of the crucial elements available to other incorporated entities.

People who register this type of company will be solely responsible for any actions taken at the behest of the company.

These business entities are taxed at 15% on profits and must file an annual tax return with the IRD (Inland Revenue Department).

To register this type of company, you will need a fully filled-in incorporation form, a copy of a Hong Kong identity for Hong Kong residents, or a passport copy for any non-Hong Kong residents.

Limited Partnership

The only structure available for business owners who don’t plan to reside in Hong Kong is the Limited Partnership.

It is usually a good option for foreigners looking to expand without relocating their permanent residence to Hong Kong.

Setting up your business under this structure requires registering with the Companies Registry.

For this type of company, you will need incorporation documents for all partners and a copy of a valid business registration certificate if the owner of the Limited Partnership owns another legal entity.

Private Limited Liability Company

Owners of small to medium-sized businesses that want to begin operations in Hong Kong will find the incorporation of limited liability companies much more straightforward.

The ease of registration and the fact that this structure generally reduces the risk associated with future business complications are two reasons people may choose to incorporate under this structure.

Additionally, a private limited liability company will receive tax benefits available to any company incorporated in Hong Kong.

Businesses under this agreement can also benefit from the free trade agreement between Mainland China and Hong Kong.

Branch Office

Foreign companies may use their name to register at the Hong Kong Companies Registry to establish a branch office inside the country.

For a company name to be registered in this way, it must not already be in use within Hong Kong.

The Companies Registry requires that the branch office appoint at least one Hong Kong resident to authorize and accept legal liability for the actions taking place under the direction of the branch office.

testimonial from Manuel Ramos

Testimonial

Manuel Ramos

TERAO ASIA

Managing Director

We think INS Global is a good solution about starting in a market like China. Understanding the market doesn’t mean you need to set up a company immediately. 

5/5

Which is Best for Your Business, a Local Entity or PEO?

Deciding on the optimal way to enter the Hong Kong market requires understanding the options available and considering the best fit for each of your specific needs.
No one answer will be perfect for every business.
Setting up a local entity allows:
  • Full control of and legal liability for every aspect of your business (Sole Proprietorship)
  • Local access to Hong Kong expertise and organization (Limited Partnership)
  • A quick and straightforward way to gauge market potential (Branch Office)
Partnering with INS Global as your local Hong Kong PEO will provide:
  • The best available local expertise and experience without any of the complications of establishing a separate legal entity in Hong Kong
  • A single point of contact that can manage every aspect of HR outsourcing, including invoicing, recruitment, and payroll
  • On-call, professional solutions for every complication while you focus on the best possible market entry into Hong Kong

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FAQs

No, it is necessary to use a local entity abroad to comply with each country labor law.

Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.

The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.

Liabilities may vary from country to country and include all the staff management responsibilities: labor contract issues, payroll management, and tax compliance, social security management, expenses claim declaration, hiring and termination
procedures, etc.

In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.