Hong Kong is one of the greatest financial and business hubs in the world. The favorable and competitive business conditions place this great city ahead of all others in the Asia-Pacific region in the last two decades. There is a negligible level of restrictions and bureaucracy, and this makes it easy for small and large businesses to thrive and get ahead of their counterparts in other countries of the world.
To setup HK Company is far easier compared to almost all other cities in the world. This is especially the case if you’ve got a great advisory company to work with. To join the league of entrepreneurs and become a company owner or even a shareholder in Hong Kong, below are the steps you need to follow for a favorable output.
Primary Requirements to Setup HK Company
These are the basic and inevitable requirements you need to put in place towards your dream company.
- Choose Your Company Name
To set up a company anywhere in the world, the first inevitable step is to have your personalized Company Name. The name can be of Chinese or English origin or even anything at all. Your business name has to be a unique and non-existing one.
- Carry Out a market Analysis/Research
For any business to thrive, market research is one of the inevitable steps towards a successful company formation. Market research involves penetration of the existing market in your niche in a zeal to withstand and surpass the market competition. Your market research is categorized into Primary and Secondary market research.
Primary Market research is done with the aid of surveys and questionnaires through which the consumers will be able to supply you with all relevant information you care to know. For secondary market research, it is essential to source for sensitive information about existing businesses. This is easily accessed on the internet and mostly about the strategies, structure, and financial details of competitor companies. This way, you’ll be able to develop your strategy in a way to withstand market competition.
- Adopt a Legal Structure For Your Business
Adopting a legal structure for your business requires you to come up with a structure that fits perfectly for your business needs. This structure will determine your business requirements, traditions, and even tax. The structure to adopt for your business could be any of Sole proprietorship, Partnerships, Limited company, Company limited by guarantee, company limited by shares, or a Branch office.
- Register your Company
Your company registration is another great step in setting up a company in Hong Kong. Company incorporation is taken care of by the Company Registry. Depending on the legal structure adopted for your business, the advantages of each are worth looking out for.
- Incorporate your Business Entity
Opening a company in Hong Kong is a pretty straightforward process. To incorporate your company, you need to have your legal document ready for a speedy process. The legal documents required are Directors’ and Shareholders’ identification documents, Proof of Addresses as well as a signed Incorporation form by the authorizing partners. Through Hong Kong’s 24-hour Companies E-registry, you can submit your incorporating documents from anywhere in the world.
As soon as your business is incorporated, the next thing is to get your business up and running.
Secondary Requirements to Setup Hong Kong Company
Whenever your business incorporation is complete and ready to start, the next thing is to consider other secondary requirements that are as well indispensable for the day to day functioning of your business. These include your Company Bank Account, Tax Permits and Licenses, Pensions and Insurance documents, and many others.
- Opening a Company Bank Account
The most appropriate thing to do at this step is to open a corporate bank account. This is a painless process as much as you have all your legal documents in place.
Some of the documents you may need to have in handy to open a corporate bank account are:
- Business Registration Certificate.
- Company incorporation documents.
- Contact information of the company and shareholders.
- Company Certification.Company Financial Statements.
- ● The registered address of your company.
- Tax Permits and Licenses
Depending on the type of business, there are different permits and licenses you need to get from the government to completely validate the existence of your business. As regards taxes, Hong Kong has one of the lowest tax systems enforced on companies in the whole of Asia. The current profits tax rate levied on businesses operating in Hong Kong is 8.25% on the first HK$2 million of profits, and 16.5% afterward. There is no capital gain tax charged on companies in HongKong, and this is why Hong Kong businesses are thriving without limit.
If you care to have more information in handy towards knowing the steps to set up a Hong Kong Company, you can check this blog . If you need to learn more about the tax system in Hong Kong, you can visit the Government tax page here.
Amila Gamage Wickramarachchi is the founder of this blog which she shares her parenting and lifestyle experiences.She is a Contracts Engineer by profession and recently launched her own Engineering consultancy service Sihela Consultants.(www.sihelaconsultants.com)