How to Set Up a New Company as a Non-Resident
How to Set Up a New Company as a Non-Resident
It seems that it is more difficult for foreigners to open a business in a foreign country than for local ones: an unfamiliar place, ignorance of the laws, bureaucracy. In reality, a foreign citizen can register a business within a few days if he follows the law and follows the registration procedure. In this article, we will talk about what documents are needed and what sequence of actions when registering a business using the example of Hong Kong (substitute your country), as well as what difficulties a foreign citizen may face when starting a business.
Requirements for opening a company in Hong Kong
You can register a company through a specialized agency or own. Hong Kong formation services companies will help you to do this in a relatively simple way, but the registration methods will depend on your ultimate task: register a company in Hong Kong or obtain the status of an offshore company. If you do not have a temporary residence permit, registration of a company in Hong Kong is not possible as a sole proprietor. Without it, you can only open a limited liability company. Also, you will need a separate corporate account that you must open in one of the banks in Hong Kong - this requires the personal presence of the company's head. Also, the Hong Kong government needs your company to have an office and company secretary in that country.
Fortunately, you do not need to move to Hong Kong or rent an office and hire a special secretary. Many agencies provide this service for 5-6 thousand HKD. It is cheap because the same person is the secretary for many companies. The same goes for the office: one office is used as the legal address for many companies.
What is the cost of registering a company in Hong Kong?
Hong Kong is a liberal economy governed by English law. Therefore, opening a company here is easy, fast, and cheap. The cost of registering a company is HKD 1,730, and a business registration certificate is HKD 2,250. The registered capital here is also one of the lowest in the world - HKD 10,000.
Obtaining the status of an offshore company
In Hong Kong, the taxation system is simple and well thought out. The Hong Kong government grants the status of an offshore company without applying double taxation. So, if the company director does not live in Hong Kong, you can apply for the status of an "offshore company." In this case, the company will pay taxes only on profits earned in Hong Kong, excluding taxes on profits earned in another country. In general, even if you are a non-resident, double taxation will not be a problem for you in Hong Kong. An alternative could be a shell company which means you will not conduct active business operations there.
How to register a company in Hong Kong correctly
Provide copies of the memorandum of association or similar documents, indicate the company's name, its legal address, data on shareholders, directors and secretary, authorized capital at the time of registration. Non-residents are required to copy their passports and residence address. All documents must be translated into English and notarized.
Approve the title. Since this is a Hong Kong company registration, the names must be in English [transliteration for non-English names] or Chinese, be sure to include Limited or a Chinese equivalent at the end of the name. You cannot combine Latin letters and hieroglyphs, use non-English or non-Chinese languages, use offensive, clearly toxic, and copyright-infringing names.
Confirm registration with the Registrar of Companies. Two weeks after registration, additional documents or notices must be submitted, if any, requested from the Registrar of Companies.
Opening an account in a Hong Kong bank. To open a bank account, you will need to go to a bank branch in Hong Kong. For ~ 1,000 HKD - the amount that is already included in the registration package fee, your agency will provide you with advice, a preliminary check, and schedule an interview on your behalf at the bank you want to become a client of.
Registration with the tax office and obtaining a certificate in the relevant departments - Inland Revenue Department and Business Registration Certificate. This must be done within a month from the date of registration.
Obtaining a license if your company is engaged in activities requiring Hong Kong licenses. Most spheres do not require special permits, apart from tourism, catering, financial services, import, or export.
Let's summarize
Foreign citizens and stateless persons can conduct business in a foreign country. They have the same rights and responsibilities as local citizens. Non-residents have the right to open current accounts in authorized banks, although for individuals this is not required. Startups can open accounts in national and foreign currencies.
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