Launching of your business in the Hong Kong is a wise decision. This is because the country has few restrictions, and the business environment is competitive yet vibrant. Due to these favorable conditions, it is an ideal place for start-up businesses. Moreover, the process is affordable. The procedure for establishing your business in the country is given below:
1- Work out the legal status of a Company
All of the operations and taxes depend on the company’s legal structure. Hong Kong is the hub for three types of companies, which are present in abundance. These are a partnership, limited company, and sole proprietorship.
Among these three, a limited company is the most common one as it boasts a plethora of advantages. For starters, it is an independent body that protects your assets from potential risks. Secondly, investors can easily have a share of you ever raise funds. However, the final decision should be based on the requirements of the company.
2- Arrange Incorporation Documents
Hong Kong doesn’t require many documents as opposed to other countries. The forms needed are:
- Proof of Address
- A copy of the identification documents given by directors & shareholders
- A form of signed incorporation submitted by the business partners
A fee is required, which is to be submitted with these documents.
3- Registration of your company
The Hong Kong company registration service provides a fast procedure for this task. You can either mail the incorporation documents to the address of Companies Registry, submit them online to Companies E-registry of Hong Kong or physically go to the department of government.
The proof of your incorporation will arrive after 2 to 6 business days. This evidence will include two documents of the business registration certificate and certificate of incorporation. The registration certificate is valid for only a year, whereas the other document will remain valid until your business is active.
4- Access to permits and licenses
All companies require licenses and permits. However, since the economy of Hong Kong is exceptionally liberal, there is a high probability that you won’t be needing them. The country authorizes everyone to deal with all types of businesses.
Even if your company does need licenses and permits, it will only be used to shield the general interest, such as savings. To know if your business needs these forms, you can visit the government website for information.
5- Understand the fiscal regime of Hong Kong
During incorporation, your company’s presence will be directed to the Internal Revenue Department by the hands of the Hong Kong company registration service. This is an instant and automatic process that doesn’t require effort. The Hong Kong fiscal regime offers numerous tax benefits to all types of companies. For example, there is no VAT and capital gains tax. Hong Kong also has a low rate of corporate tax.
These were some of the necessary steps to kickstart a company in Hong Kong. When the company is set, remember to arrange finances, fulfill requirements of insurance, open a corporate bank account, and stick to annual return filing.