Ever since the signing of the Specially Administrative Region of Hong Kong Agreement back in 1997, Hong Kong has proven itself as the perfect place for doing business all around the world. Not only is Hong Kong the world’s freest economy, but it boasts a business-friendly legal system and a fully convertible currency, among many other advantages.
If you’re looking to do business in the fast-growing Asian economy, you might want to consider listing your company in Hong Kong. Doing so requires setting up a Hong Kong company.
Sounds complicated? It doesn’t have to be. In this article, we take a look at the process of establishing a Hong Kong company.
Select the Appropriate Company Type
Depending on the type of business, entrepreneurs should consider the partnership, private company, or public company type. If the company is planning to do business within the region, a limited or private liability company will be perfect.
If the company is open to the public and the operations are global, a public company is the best choice. It is important to consider the advantages and disadvantages of each type before forming the company.
Choose a Company Name
In order to avoid legal complications when opening a company in Hong Kong, the name must not be similar to existing companies in the area or violate existing trademark rights. The name needs to comply with local company registration rules. This includes requirements related to avoiding words or terms whose use is restricted or prohibited.
After settling on the company name, you should check the availability of the same in the online company registry. You may need to reserve the same through the Companies Registry so that it is not taken by any other organization.
Choose A Registered Address
A business’s registered address will be the business’s official correspondence address. It needs to be accessible to the public and should not be a residential address.
Once settled on an address, the company should ensure that all documents are complete and correct in order to have the address registered. Once an address is registered, business owners can begin to set up the operational elements of the company.
Apply for Business Licenses and Permits
You will need to contact the Companies Registry and make sure that your company can register its Hong Kong business name. Then you must obtain a Business Registration Certificate from the Inland Revenue Department.
You then need to apply for local permits and licenses. The most common licenses required are:
- fire service licenses
- construction permits
- health permits
- environmental impact assessments
Depending on the nature of your business, you may also need to obtain special licenses for specific industries, such as food, pharmaceuticals, or medical supplies.
Open a Corporate Bank Account
Opening a corporate bank account allows the company to transact with partners locally and internationally. Once the corporate bank account is established, the company must then complete the annual return with the Inland Revenue Department.
This requires the financial records of the company such as the income statements, balance sheets, and other related documents. The company must also register for a Business Registration Certificate and select an auditor to audit the accounts.
Establish a Hong Kong Company With the Proper Guidance
Establishing a Hong Kong company can be a complex process. Make sure you have the right guidance going through the process. You should also have a comprehensive understanding of their laws and regulations.
With the help of professionals, you can start your business in Hong Kong. Contact a professional team today and let to help you get your dream business off the ground!
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