Setting up a business in Hong Kong
Business has been the lifeblood of Hong Kong from the very beginning. Ever since its British colonial era, Hong Kong has become a major hub of international trade. The city-state thrived through the next century and a half, becoming a magnet for enterprising businessmen who made Hong Kong a major manufacturing centre.
Hong Kong reintegration with China was another seminal moment in its history with the unique One Country Two Systems arrangement bestowing the status of a Special Administrative Region of the People’s Republic of China, enabling it to become a point of access to the biggest market in the world. This has yet again transformed the character of the Hong Kong economy, making it a primarily services sector economy.
With unparalleled opportunities for entrepreneurs, Hong Kong business means business.
Why You Should Set Up a Hong Kong Company
· Setting up a Hong Kong company not only makes one a global player but also lets one make substantial savings by way of lower costs and taxes. That apart, the business environment in Hong Kong offers a lot of leeway in terms of freedom from government oversight and the right to own property.
· Hong Kong business registration is a very simple process even for foreigners wanting to set up a Hong Kong company as the city welcomes entrepreneurs to give free rein to their spirit of enterprise.
· Hong Kong boasts of excellent infrastructure with world-class air and sea transportation facilities. Its telecommunication network too is state of the art enabling global businesses to communicate seamlessly.
· An excellent legal system that provides a fair, just and equitable business atmosphere to all Hong Kong companies.
· Hong Kong has one of the most liberal economic dispensations anywhere in the world, helping unleash unbounded entrepreneurial energy. With no restrictive tariffs and fees to impede international trade one can grow one’s business to the very acme.
How to Start a Business in Hong Kong
Hong Kong Limited Company
If one wishes to start a brand new business in Hong Kong one will have to register a Hong Kong Limited company. Hong Kong incorporated companies allow fantastic tax benefits that are available to homegrown Hong Kong businesses. This includes free trade access to the mainland China market.
Branch Office
For businesses that are already registered in another country, one can look at opening a Hong Kong branch office. Of course, this kind of a set up will not be able to exist autonomously and will therefore not be able to enjoy the full range of privileges enjoyed by a Hong Kong incorporated company.
Representative Office
This is the kind of office that is not allowed to carry out any buying or selling activity in Hong Kong and usually restricts itself to performing support functions that have nothing to do with direct sales.
The Modus Operandi of Starting a Business in Hong Kong
This is a pretty simple and straight forward process that does not take much time.
· The first step is to submit an application for online incorporation of business via the Companies E Registry. In order to do that one needs to fill up the incorporation form known as the Form NNCI, a notice addressed to the Business Registration Office, also known as Form IRBR1 and a copy of the articles of association of the company in question.
· At the same time, one will have to initiate business registration, which gets triggered by the very process of incorporating one’s business. All that one needs to complete that process is to pay an HK $2000 for a single year and HK $5200 three year business registration fee as well as a single year HK $250 or a three year HK$750 Levy to the Protection of Wages on Insolvency Fund.
This whole process, if done online takes less than an hour. If one uses snail mail to send across the documents, one would obtain one’s Incorporation as well as registration certificates within four days. All that is now left to be done is open a Hong Kong bank account and voila you are in business.
