Important notes when setting up a Hong Kong company:

(1) Company name
1. The company name must be unique
2. The company name must not contain certain restrictive words
3. The company name can be in English or Chinese, or you can register an English and a Chinese name at the same time.

(2) Share capital
1. The minimum requirement for issued share capital is HK$1.
2. No maximum limit on issued share capital
3. Each stock only bears limited liability for the capital invested in it.
4. The issuance of share capital is not equivalent to the minimum deposit requirement for opening a bank account.

(3) Private company shareholders and directors
1. The minimum number of shareholders is one and the maximum number is 50.
2. At least one individual director must be at least 18 years old,
3. Shareholders and directors can be companies
4. Shareholders and directors can be the same person or company
5. Shareholders and directors may be individuals of any nationality or residence

(4) Company Secretary
1. The company must appoint a company secretary
2. The company secretary must be a person ordinarily resident in Hong Kong, a Hong Kong licensed accounting professional, a Hong Kong licensed legal practitioner, or a "Trust or Company Service Provider Licence“
3. If the shareholders and directors are not the same person, one of them may be appointed as the company secretary
4. If the only director is the same person, a third party needs to be appointed as the company secretary
5. The position of company secretary cannot be concurrently held by the sole director of the company

(5) Registered office
1. The company needs to have a registered office address in Hong Kong
2. The company’s registered office address in Hong Kong is the company’s legal address for receiving notices and letters, and may be different from the business address.

(6) Register of significant controllers
Starting from March 1, 2018, companies incorporated in Hong Kong must:
1. Take reasonable steps to identify the significant controllers of his company
2. Notify the significant controller and obtain the necessary information from that person
3. Record information about its significant controllers in the "Significant Controller Register" and keep the data updated
4. Maintain a “Significant Controller Register” at the company’s registered office or elsewhere in Hong Kong, and
5. Allow law enforcement officers to inspect the “Significant Controller Register”

Failure to comply with the obligation to keep a Significant Controller Register is a criminal offence. The company and each of its responsible officers may be subject to fine of HK$25,000 each.

(7) Designated representative
Starting from March 1, 2018, companies incorporated in Hong Kong must:
1. Designate at least one person as the "designated representative" of the company to provide relevant assistance to law enforcement officials in relation to the company's "Significant Controller Register"
2. Appoint any of the following types of persons to serve as the company’s “designated representatives”:
(a) a shareholder, director or employee of the company and must be a natural person resident in Hong Kong, or
(b) A Hong Kong licensed accounting professional, a Hong Kong licensed legal professional or a "Trust or Company Service Provider Licence“

(8) Continued compliance with regulations
1. The company must comply with the legal obligations under the Companies Ordinance and continue to submit annual returns and specified forms within the prescribed time limit.

(9) Taxation
1. Profits generated in Hong Kong are subject to profits tax. Only profits generated in or derived from Hong Kong will be subject to profits tax (corporate income tax)
2. If the profits come from outside Hong Kong, they may be regarded as offshore sources and not taxed in Hong Kong.
3. The company makes no profits and does not need to pay taxes.
4. Starting from April 1, 2018, the profits tax rate for the first 2 million profits of a limited company will be reduced to 8.25%, and subsequent profits will continue to be taxed at 16.5%
5. In Hong Kong, many company expenditure items are tax deductible