Opening a Business in Hong Kong
Overview: Starting a company in Hong Kong isn’t very complicated or time-consuming at all. Anyone keen on starting a business in Hong Kong can do so in less than two months. Furthermore, the business-friendly government has made running a small business accessible enough so much so that the territory has garnered one of the best rankings for the ‘top ranking’ global brands. To better explain, this article briefly looks into the benefits of company formation in Hong Kong.
Why are more people starting a business in Hong Kong? In simple terms, it is because the territory offers a conducive environment for doing business, including reasonable rates, a stable economy, low taxation, and legal frameworks favouring entrepreneurs. Therefore, more international companies are choosing to open their doors in Hong Kong. Opening an office in Hong Kong does not just guarantee success – it also ensures easy access to local resources and excellent customer service.
However, getting setup with an office in Hong Kong does not mean you don’t have to worry about starting a business in Hong Kong. And given the fact that Hong Kong now enjoys the highest growth rate per annum of any Chinese region, more people want to set up businesses. And when you look at the current scenario, starting a business in Hong Kong now is even easier than before. So here is a quick checklist for getting started in Hong Kong:
Choose a location – Choosing the right place is one of the most important things to consider when setting up an office in Hong Kong. A good option is to get started near the major transport hubs like Kowloon and Victoria Park. The proximity makes it easy for your representatives to connect with people quickly and meet potential customers. If you are in Hong Kong, your best bet would be to get started near the principal trade centres so that you can cut down on your commute time.
Choose a registration procedure – Getting registered with the Companies Registry is essential as it signifies that your company is legitimate. You can choose from the S corporations, partnership, limited liability partnership (LLP), and the general business name registration. For a start-up, it is best to start with the latter, which is easier and less costly. However, to be on the safe side, it is advisable to choose a registration procedure approved by the PRC.
Get a legal representative – Be sure to get a local attorney to help you with your business registration in Hong Kong. The attorney should have experience in personal injury cases as well as immutable laws. He must also be familiar with the local rules in Hong Kong for company registration. To begin with, you will need a business representative office to handle your application and other related matters, such as appointments with the Registry and deleting documents. Your representative office should be located near the Registry at their address.
Set up a branch office – If you cannot find a suitable business registration option, you can establish a full-fledged branch office in Hong Kong. You can open a branch office by selecting one of several options available. For example, you can choose either a general business office or a limited company. The difference between the two is that the Limited Company allows you to manage your business affairs as an individual, while the parent company administers the General business office. Therefore, it is a good option if you want more independence.
Open a bank account – Another essential step for starting a business in Hong Kong is to open a bank account. If you cannot open a bank account from anywhere globally, make sure to apply for a bank account in Hong Kong. Hong Kong banks offer better interest rates, and the deposit and withdrawal facilities allow for speedy transactions.