Are you planning to start a trading company in Hong Kong? As one of Asia’s top business hubs, Hong Kong offers several benefits for trading companies such as low tax rates, free trade policies, and developed infrastructure.
In this article, we will provide you with the key information you need to start a trading company in Hong Kong.
Types of Trading Companies in Hong Kong
Trade Companies
Trade companies in Hong Kong are the intermediaries. These companies facilitate the trade of goods between the producers and the customers.
They buy products from the manufacturers, add their markup, and then sell these products to customers in Hong Kong or abroad.
Manufacturing Companies
These are the companies that produce and sell their products in Hong Kong. Manufacturing companies have their factories in Hong Kong or abroad and they take care of everything from sourcing raw materials to selling finished goods.
Consulting Companies
Consulting companies in Hong Kong offer advice to businesses that want to buy or sell goods in Hong Kong. They understand the market conditions well and help their clients choose the right products and strategies for trading.
These companies are especially useful for relatively new or growing trading companies that lack expertise.
Process for Starting a Trading Company in Hong Kong
1. Register Your Trading Company in Hong Kong
To start a trading company, the first step is to register your company in Hong Kong with the Companies Registry.
There are three types of companies you can register for the purpose;
- Sole proprietorship
- Partnership
- Limited liability company
However, a limited company is the most common form of company for trading in Hong Kong. It has a separate legal entity and reduces the risk of liability for owners.
Here are the key requirements to register a limited company in Hong Kong:
- A unique company name
- At least one director and one shareholder (can be a company)
- Company secretary who must be a resident of Hong Kong (can be provided by Emerhub)
- Physical business address
- Share capital (no minimum amount)
Emerhub offers comprehensive services including checking for the business name availability and providing you with the corporate secretary and a physical business address if you don’t have any.
2. Licences and Permits
Once your company is registered, the next step is to obtain the necessary license and permits from the relevant department. The exact type of license you will need depends on the goods you want to import/export.
The following table outlines the import/export licenses and the respective departments based on the most common trade activities in Hong Kong.
| License Type | Related Department |
| Import/Export License for Dutiable Goods | Customs and Excise Department |
| Import/Export License for Pharmaceuticals, Medicines, and Dangerous Drugs | Department of Health – Pharmaceuticals Import/Export Control Unit |
| Import License for Frozen or Chilled Meat and Poultry | Food and Environmental Hygiene Department – Import Registration Office |
| Import/Export License for Endangered Species | Agriculture, Fisheries and Conservation Department – Endangered Species Protection Division |
| Import/Export License for Strategic Commodities | Trade and Industry Department – Strategic Trade Controls Branch |
| Import License for Radioactive Substances and Irradiating Apparatus | Department of Health |
| Import/Export License for Rough Diamonds | Trade and Industry Department |
3. Import/Export Clearance
Import/export clearances are the official documents that allow the movement of goods across borders. To get a clearance, Customs and Excise Department inspects the cargo and relevant documents.
The following are the required documents for import/export clearance in Hong Kong:
- Manifests
- Bill of lading, airway bill, invoice, or other supporting documents
- Import/export license
- The removal permit in case of dutiable goods
4. Import/Export Declarations
As per Hong Kong import and export regulations, companies must file import/export declarations to the Census and Statistics Department of Hong Kong within 14 days of importing or exporting goods.
The declaration form contains information related to goods such as the description, quantity, value of the goods, origin, destination, and how the goods are being transported. It is required for all types of goods unless the goods are exempted by the law.
The import and export declarations must be submitted electronically within the specified time. Late submissions may result in fines and penalties.
How Long Does It Take to Set Up a Trading Company in Hong Kong?
The time it takes to set up a trading company in Hong Kong is fast but depends on several factors including the types of goods the company wants to import or export and how you submit the application.
Our experts can help you gather all the necessary documents and make this process simpler for you. The online application submission process is fast and can be done within an hour with the right documents. However, if you send the documents via email, the process can take a few days.
Start Your Trading Company in Hong Kong With Emerhub
If you want to set up your trading company in Hong Kong, Emerhub’s experienced experts can assist you with the process. We will assess your business needs to determine the most suitable company and license type. Moreover, if you need a corporate secretary or a physical business address in Hong Kong, Emerhub can take care of that for you.
For a more tailored consultation, fill in the contact form below.
