If you want a business environment that suits your needs, Hong Kong is an excellent place for startup businesses. You’ll find a low corporate tax rate, low business overhead costs, a workforce of highly-skilled employees, and a beautiful Asian city.
You’ll have full access to business services and intellectual property protection. Continue reading to know the steps in setting up a company in Hong Kong.
Decide on the Company Structure
The company structure that you decide upon will be fundamental to setting up a company in Hong Kong. The most common types of business structures are:
- Private Limited Company
- Public Limited Company
- Sole Proprietorship
Consider factors such as personal liability, profitability, ease of registration, and ownership control when making your decision. The most common form is a limited company. It is simpler for foreign companies, as they can choose from a range of corporate incubation services.
Setup Your Company Details
You need to prepare the following details:
- Name of the Company
- Business Activity Description
- Registered Address
- Director’s Details
- Details of Shareholders
It is best to read the guidelines for choosing a company name for the registration of a business name. Your company’s registered address is where government departments will send correspondence. It is usual practice to use your company secretary’s address as the registration address.
Appoint a Company Secretary in Hong Kong
The company secretary is responsible for filing certain documents and forms with the Hong Kong Companies Registry. The company secretary will also help to ensure that the company complies with the laws of Hong Kong.
He or she will also provide advice on a range of issues. The company secretary must be a resident of Hong Kong and a member of a professional body.
Prepare the Required Documents
Businesses must provide a valid Hong Kong identity card to register the business with the Company Registry. All business information must be registered with the Companies Registry.
Articles of Association must be drafted and filed at the Companies Registry. Make sure to check other permits and licenses required for your business. Lastly, businesses must acquire company incorporation and a business registration certificate from the Companies Registry.
Open a Bank Account
Before setting up the account, entrepreneurs should define the purpose of the account and the currency that will be used. Once a bank is chosen, entrepreneurs should have their company documents on hand along with the necessary identification documents. Entrepreneurs should confirm the fees applicable to the account and other services offered by the bank.
Comply With Tax and Regulatory Requirements
Businesses must register for Profits Tax with the Inland Revenue Department (IRD) in order to obtain a Hong Kong Business Registration Certificate. The company must also register as an employer with the Employees’ Retraining Board before hiring employees or offering contractual work.
Companies must comply with all reporting requirements for the different Hong Kong taxes they are liable for. Don’t hesitate to seek more information about tax audits from professionals.
Setting up a Company in Hong Kong Made Easy
Setting up a company in Hong Kong is relatively easy to do. Investigate thoroughly, taking into consideration all of the steps in this article.
Take effective and prudent steps to make the process easier and more efficient. Consult professional consultants to ensure you are fully compliant with the rules and regulations of Hong Kong company formation.
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Sharon Howe is a creative person with diverse talents. She writes engaging articles for WonderWorldSpace.com, where she works as a content writer. Writing allows Sharon to inform and captivate readers. Additionally, Sharon pursues music as a hobby, which allows her to showcase her artistic abilities in another creative area.