Hong Kong has emerged as a global financial centre, and the country boasts of an advanced economy. The country’s economic progress is underpinned by strong growth in business activities and commercial revenues. With such developments, many entrepreneurs are exploring the various aspects of setting up an enterprise in Hong Kong. The following sections of this article will guide you on how to set up a company in Hong Kong:
How to set up a company in Hong Kong? Ease of establishment: Hong Kong authorities permit foreigners to take full ownership of the Hong Kong-based companies. Tax advantage: Open-minded market: Hong Kong also accepts most global business categories. Therefore, entrepreneurs can choose from numerous business ventures in Hong Kong without any difficulty. Also, they do not have to comply with local rules and regulations regarding licensing and taxes.
Primary benefits: The high economic development level and comparatively low cost of living attract large domestic and foreign investors. This influx of capital has helped the local economy flourish. In turn, the profits of business entities have been maximized due to the high rate of profitability. Thus, entrepreneurs are looking forward to establishing an entity to earn good profits in Hong Kong.
Opening a Company: To start a business in Hong Kong, you need to open a local company. A company is an individual or a partnership that is established to carry out business activities. Once the company is found, it needs to register its name and set up an appropriate corporate bank account. It is essential to have the services of an accountant to help you in accomplishing all these tasks.
Choosing a Private Company Limited by shares: In an English-speaking country like Hong Kong, a private company’s formation by placing the words ‘limited liability company’ in the title is an easy process. However, you need to follow the local laws for registering the company. One of the most critical aspects of registration is that the company’s director is considered the person who owns the company. Thus, a person called the representative Office’s also appointed to serve as the company secretary. The company must have at least one representative Office in different localities.
Business permits and other requirements: Before starting a business in Hong Kong, you need to obtain a business permit. For this purpose, you need to visit the Secretary of State’s Office and register your company. After this, you need to submit your application to the local customs and commerce department to process your Chinese company registration. Once your application is approved, you should pay a nominal fee and deposit the money in your bank account. Your company registration will then be completed.
Managing your affairs: A company registration in Hong Kong is straightforward because the company secretary officer is the only two people who have the authority to make any changes in the company’s ownership and control. You can manage your company through your designated company secretary, and you can also hire your staff and get them trained. You are also permitted to hire other professionals to assist you in managing your business. For instance, you can hire an accountant or a solicitor to handle the bookkeeping and accounting tasks.
The above mentioned are just the primary benefits of company incorporation in Hong Kong. There are a lot more benefits waiting for you. By further expanding your knowledge of setting up a Hong Kong company, you can start to exploit these benefits. In addition to that, the process of company formation in Hong Kong is straightforward, and it is also very inexpensive. All you must do is take your time and study company incorporation procedures in Hong Kong before making any final decisions.