Hong Kong is a brilliant choice for setting up a company, a chance for entrepreneurs to explore different businesses opportunities and grow. As a record holder for the world’s freest economy in the last two decades, with minimum restrictions and bureaucracy, Hong Kong is sprouting with different companies in diverse fields. According to the government’s general statistics, the number of companies amounted to 1,407,743 by the end of June 2018.
It is ranked as 6th, by the World Economic Forum’s Competitiveness Index. Hong Kong is one of the most competitive economies in the Asia-Pacific region, also one of the top financial hub for entrepreneurs. For all entrepreneurs looking to do a booming business, here is where you make ends meet.
To encourage venture capital flow when you open business in Hong Kong, the Honk Kong government has contributed approximately HKD 5 billion, which is directed to the Technology and Innovation Fund. Unlike most countries, all over the world, Hong Kong offers a beautiful environment for entrepreneurs, probably the best place to start a business. As for foreigners looking forward to beginning operations in Hong Kong, it’s advisable to keep in mind the challenges you encounter while setting up business ventures. This gives you are broad experience when creating more companies.
The big question is, are you ready to make a mark an entrepreneur in Hong Kong start-up the market?
First, you have to set up your company. We have prepared some steps to lead you in establishing a new company in Hong Kong.
Determine Your Company Name
The first step when creating a new company in Hong Kong is selecting the name of your company. You can choose Chinese, English or both names. However, you need to be careful when selecting a title, mainly because you cannot use a name that has been in use. You can familiarize yourself with all the guidelines for registration of a company in Hong Kong using Startup (an online session).
Choosing a Legal Structure for your business
The startup will provide you with the market analysis; by now, you are familiar with the research. The next step is finding the legal structure for your business. Make sure you do this before registering your company. This will help you know what your company requires.
The structure of your business affects everything from how you do business to how you file taxes for your business entity. For the best business structure for your company, you can consider the following business structures:
- Branch office
- Sole proprietorship and partnerships
- Limited company
- Company limited by guarantee
- Company limited by shares
Register your company
To open business in Hong Kong, you have to register your business with the companies Registry. This is a branch responsible for the incorporation a company.
Most entrepreneurs opt to register their companies as limited, mainly due to the advantages that come with this type of registration. Limited companies are a separate legal entity, offering protection of personal assets from business risks. This type of business also provides transferring ownership and raising funds or capital, which is more straightforward compared to other business entities.
Incorporate your Business Entity
Creating a company in Hong Kong can be a piece of cake, but you require the following forms before incorporating your company.
- A copy of the directors’ and shareholders’ identification documents
- Proof of address
- Signed incorporation form by the authorizing partners
- You also need to pay the application fee, which comes with the papers above. Submit your form online via the Hong Kong’s 24-Hour Companies E-registry or a hardcopy at the government department at Queensway.
The next step is getting your company up and running.
Open a Company Bank Account
To start funding your ventures, you need to open a corporate bank account. Opening a personal bank account is straight forward, but you will need to prepare more paperwork and documents to show to the bank to open a corporate bank account.
Below are some of the documents that you will need to prepare before heading down to open a corporate bank account.
- Most Hong Kong banks demand the registered address to the company as well as the contact information of the company and the owners.
- You need a certification by either a company secretary, public accountant, banker or lawyer.
- The incorporation documents of the company
- An exact certified copy of the company’s Identification documents
- The Proof of business such as audited financial statements or business plan
- Details of ultimate beneficial owners for nominee shareholders of a company
- An exact certified copy of the company’s Business Registration Certificate.
Get Permits and Licenses
All over the world, companies are required to get permits and licenses. Well, this is the same case in Hong Kong. There are different types of permits and licenses you may apply for as you open business in Hong Kong, depending on the nature of your services and products. To determine which permits and licenses suit your business entity, visit the government website and online licenses for more information.