Free HK Company Formation

 We recently received a request for information on forming a Hong Kong company. The client informs us that he discovered a Hong Kong corporate service provider (the provider) on Google search that is offering free company formation services as part of a Christmas promotional campaign.

After some online chatting with this service provider, the client is still perplexed as to how some people can make such an enticing offer while our company must charge him to provide "the same" service, so he requests a comparison of those services.

Based on what the client told us and what we saw on their website, we determined how they could reduce the cost of Hong Kong incorporation service to zero (our thoughts are also included.)

Free Company Formation?

The offer, like almost all marketing campaigns, has a quota and will not last indefinitely. You must still pay government fees, which total HK$3970 for "incorporation fee" and "business registration fee and levy." This fee includes a one-time setup fee as well as a one-year certificate.

Service for remote incorporation?

Because of advancements in information technology, the Hong Kong Companies Registry (CR) has launched a web portal for registered users to fill out and submit incorporation forms online, as well as an online company search, allowing you to incorporate your Hong Kong company from anywhere.

The entire company formation service is available remotely, and registration can be completed in a single business day. It saves us a lot of time and money in terms of filing documents and waiting for approval.

We believe that all providers have used all CR online portals because "one-day incorporation" and "remote company formation" have been the industry standard.

Remember that unless otherwise specified, you must pay the postal fee for all documents.

Is there no physical office address?

The provider's office address is not displayed on their website. In the industry, this is an unusual practice.

A company address is more than just the requirement that any Hong Kong company register a local postal address as the Registered Office Address for public records and government letters collection purposes, regardless of whether it is a residential or commercial address.

To Register Company in Hong Kong at a low cost, you can use registration service providers' correspondence address service, in which you share the local address with another company.

In general, you would prefer to rent your provider's office address as your company's Registered Office Address because it not only gives your people outside a sense of establishment. You are also assured that all inbound letters are delivered to a commercial location with dedicated receptionists.

If you want dedicated landline phone numbers with receptionists for your company address, you can buy virtual office service from providers. The rented receptionists can not only take phone calls but also receive letters and parcels on your behalf. The contract for virtual office service is flexible; typically, the contract term begins at 6 months, and recurring monthly payments are available.

With such services, any company can have a presence in Hong Kong without incurring the fixed cost of an office premise.

We recommend that this provider consider including their company address on their website; if they do not already have one, they can use the correspondence address and virtual office service.