Does this sound familiar to you?
You have just opened your Hong Kong company only to find out that you need to pay yet more fees in the future that you had no idea were coming. Unfortunately, this happens to so many business owners. It may be in some organisations' interests not to let you know precisely what you need to pay out for Hong Kong company registry, but don't worry. Our blog will clear this up for you.
Our blog is going to dispel some of the illusions around setting up and running a Hong Kong company by showing you exactly which services will require you to spend money either before or during operating the company.
This way, you won't get any nasty surprises along the way when starting a business in Hong Kong in 2021.
Major Fees of Running Your Hong Kong Company
Firstly, let's understand which elements of Hong Kong company setup will cost money, regardless of if they're before, or after the company is operating.
1. Hong Kong Company Registry Cost
This process takes place before your company is operative, of course. The necessary information will be filed to set up your company, a Hong Kong bank account will be opened, and the documentation will be issued in order for you to start trading.
Outsourcing your company setup is wise, as it offers you the peace of mind that experts in the field are handling your case in a professional and clear manner. Hongda are experts in Hong Kong company registration and will get your Hong Kong company up and running in 2 weeks time, with the minimum of hassle for you.
2. Accounting
It may be that you can handle your company's accounting in-house yourself. In this case this is free of charge, aside from your time of course.
However, were you to outsource accounting, or hire an accountant to handle the books, they would be responsible for keeping the books, preparing profit/loss and balance sheet reports, and reporting to management.
A problem may be that any accountant hired by you has a great deal of responsibility, whereas outsourcing is better value but you need to know that the agency will perform very well.
3. Annual Accounts Audit & Tax Returns
As a Hong Kong company, you must have your accounts audited annually by a qualified CPA. The CPA will audit your finances, work out your tax, and complete your profit tax return. The cost of auditing and filing your tax return depends mainly upon the industry of your business, the turnover and the number of transactions.
This cannot be done in house, and so the main issue facing companies is that you are paying the right person who will do an excellent job.
Total Cost of Registering and Maintaining a Company in Hong Kong
Beyond a single setup cost for the company, and the annual audit cost, you may not need to pay anything else unless you decide to outsource accounting too (or hire an accountant). By knowing this and being prepared, you hold the aces and can head off any potential costs.
Hongda Business Services' expert HK business team can handle the setup and running of your company as follows:
| Service | Cost |
| Hong Kong company formation cost | CN¥6,800 |
| Annual tax return cost | CN¥4,000 |
| Company notarization cost | CN¥8,000 |
| Annual audit cost | CN¥6,000+, dependent on turnover |
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Register Your New Hong Kong Company With Hongda
Do you know how to start a business in Hong Kong? Can you spare the time to run around to different offices? Can you afford to make a small mistake and have the application rejected?
Exactly.
You're busy running your business, and don't need the stress of trying to cope with a complicated and unfamiliar situation.
This is why outsourcing to a local expert like Hongda will save you a lot of time, money, and worry intially and moving forward when your HK accounting being compliant is critical to your company's health and security!
We've got your back, and will report to you in plain English exactly what is happening from the get-go.
Now you know what you may need to pay for when opening a Hong Kong company and so there is no need to be confused or fooled by any of the vague information floating around out there!
Let us know if you have any questions and we'll be happy to reply, so leave them in the comments section below for us to answer!
