Hong-Kong holds the record of the freest world economy. With its minimum bureaucracies and restrictions, Hong Kong has become the ultimate financial hub and the perfect jurisdiction for setting up a company. For an entrepreneur, setting up a company in Hong Kong is the first step to taking it global. Simply put, registering a company in Hong Kong gives it wings to fly. In this post, we take a closer look at how to set up a company in Hong-Kong.
Choose the Right Company Name
The process of setting up a company is defined by the Hong Kong Companies Ordinance. The first step is determining the name of your company. This step is aimed at avoiding conflict of interest that can arise if you take a name that has already been taken by another business. So, you need to start by running a name search to ensure your company name is unique.
Select the Preferred Legal Structure
Armed with the right business name, the next step is selecting the preferred structure. Some of the top options include sole proprietorships, partnerships, and a branch office. But the best of all is the limited liability company, which limits your liability to the shares you hold in the company. This implies that in case of risk such as bankruptcy, no one can come after your assets to recover company money.
Register Your Company
In Hong-Kong, the Companies Registry is responsible for incorporation of companies. Here are the things that you need to submit to the registry.
- Company name
- Registered address
- Description of business activities
- Details of the company secretary, directors, and shareholders
- Liability of shareholders and directors
- The share capital
Open a Bank Account
When setting up a company in Hong Kong, one MUST have things is a bank account. It is crucial because it allows you to get paid for services and make payments for supplies or expenses. Further, opening a company bank account will help to make filing taxes every year easy.
Get Relevant Permits and Licenses
To set up a company in Hong-Kong, getting the certificate of incorporation is only the first step. Depending on the nature of your business, it is important to ensure you have the right licenses and permits. For example, if your company is in the catering, telecoms, or medicine, among other areas, you need to get the right licenses. Further, you need to register the business with the Inland Revenue Department within 30 days of commencing operations.
Why You Should Work with an Agency
While the Hong Kong administration has put remarkable effort to simplify the process of setting up businesses in its jurisdiction, it is important to appreciate that the process of documentation is still lengthy. For many people, preparing the documents, running the name search, and flying to Hong-Kong is lengthy and expensive. But these logistics should not falter your resolve of taking a business to Hong-Kong. The solution is working with a company registration agency. So why an agency?
- It helps you to register the company faster
- You get to register your company without flying to Hong-Kong
- The agency can serve as your company address and company secretary
- You get crucial support needed during startup to accelerate company growth
Hong-Kong is an investors’ paradise, so do not be left behind. Identify a good agency to act as your right hand when navigating the early days of your company operations in Hong-Kong. You can never go wrong with Hong Kong!