Hong Kong is an excellent choice for new businesses and entrepreneurs to establish a business and is the world’s freest economy. Hong Kong-dominant businesses are free to do business anywhere in the world and enjoy a whole package of benefits, such as the highly competitive low-rate tax system. A new company can start up and operate for a few hundred pounds, or even less, through a ‘hand in hand’ arrangement with an existing partner. It provides a good option for new entrepreneurs who do not have a considerable investment to risk. However, it is essential to remember that there are costs involved in setting up a Hong Kong business.
How to set up a company in Hong Kong? The simple tax system of Hong Kong attracts large numbers of foreign investors. A major attraction of investing in Hong Kong is its location on China’s harbour,where there is unrestricted access to mainland China markets. The fact that the city’s establishment is advantageous for international investments and allows easy access to the vital Chinese markets attractsmany foreign investment companies to expand their Hong Kong business. Thus, there are numerous benefits to company registration in Hong Kong. These include the following:
Companies are businesses when they register at the Companies Registry under the Companies Act 1985 of Hong Kong. A company can do business either individually or as a limited company, with limited liability. Limited company businesses have to pay taxes on their income and assets. However, under the Companies Act, all companies’ income and assets are exempt from taxation unless otherwise agreed.
When you decide to register a business at the Office of the Secretary of State, you will have to provide the Companies Registry with its directors and shareholders’ names and other relevant information. You will also have to submit copies of Memorandum & Articles of Association and Schedule of Registration of Business. These documents are then processed by the Office of the Secretary of State. The Companies Registry will prepare the necessary documents for your business name’s lodging at the Bank of China Branch Office in the location, as mentioned above. Once these documents are received, you will receive a document called the “Certificates of Registration of Company” confirming that the company name and address have been approved and that your company is now legally recognized as a valid business.
A Company will receive a tax report from the Secretary of State’s Office at the end of every year. If any member of the corporation gets a lump sum payment from the company, they must notify the office within a month of the date of payment.
The company will also have to obtain a business registration certificate if it intends to conduct any international trade. All the corporation’s records need to be updated and accurate. A business registration certificate is issued by the office and can be renewed annually. It is one of the fastest and straightforward on how to Hong Kong company Hong Kong.
Another option on how to set up a company in Hong Kong is to open a bank account. To operate a business without having a corporate bank account, the Companies Registry can help you apply for a business registration certificate. If you already have a bank account and wish to incorporate your company, you can use the Companies Registry for a business registration certificate. The application for a business registration certificate can take a few days to several weeks, depending on its requirements and the jurisdiction you are incorporating.
Other options on setting up a company in Hong Kong include applying for the company registration of a limited liability partnership or a nominee director’s certificate. Other companies also offer advice on setting up a company in Hong Kong by providing incorporation documents. These companies can provide the necessary information and assistance on how to incorporate a company. These companies also ensure that the incorporation documents are submitted to the statutory authorities and comply with Chinese law rules and regulations.
How to set up a company in Hong Kong