The Basic Requirements of Setting Up a Business in Hong Kong
China’s rapidly growing economic hub has given rise to a new “endurance”, or global business hub; rapid economic development in China has been closely associated with the boom in the number of expatriates heading to Hong Kong. There has been a marked surge in the number of multinational corporations establishing offices in Hong Kong.
Hong Kong incorporation is an optimal option for many entrepreneurs and people to establish a private company limited by shares and a corporation. Hong Kong-based private companies enjoy a suite of advantages, including the most attractive tax system and a free hand in doing business. It is primarily because Hong Kong has developed its taxation system based on the principle of “one unit of ownership, one person managing it”. This principle has created a scenario where company directors do not need to pay income tax or national insurance to the government.
One of the significant advantages of incorporating in Hong Kong is that it allows easy access to its capital. It is a crucial advantage for any businessman who is looking for an easy source of funding. Most people would not be able to access the necessary financing in the absence of a good business plan. And this is what the Hong Kong company formation law provides the businessmen with – a clear legal structure that would facilitate easy access to capital. It would allow a business to carry out significant purchases and engage in substantial mergers and acquisitions.
Another advantage of incorporation in Hong Kong is that it simplifies the process of company registration. Forming a business in Hong Kong is relatively easy, and company registration does not take much time. There is also no need for a bank account since the only required information is the company’s name and contact details. The only document that is required to be furnished is the application form for company registration.
The entire procedure of incorporating a business in Hong Kong can be completed within three working days if there are no delays in processing the application form. If there are any delays in the application’s processing, then the company may not open its doors for trading. It is because all the essential paperwork must be submitted beforehand to ensure the smooth flow of trade. When a company is incorporated in Hong Kong, the law is required to get a business registration office. The company formation office plays a significant role in ensuring that all the procedures are carried out in an organized manner. Thus, the business registration office can provide valuable service to the company and ensure it remains under the law.
Besides a business registration office, the company must also get an appointment made with a registered office. This appointment is made at either the place of business or the location of the registered office. After getting all the necessary documents and meeting the appointed authority, the company can now proceed with the incorporation application. This whole process usually takes about three months from the submission of the incorporation application. It is a short time because it can be complicated by the high number of applicants who wish to become shareholders.
After completing the procedures of incorporating the company, the next step is for the company to obtain a hard copy of the ‘Pre-Certification’ and the ‘Registered Office Document’. These hard copies of documents are essential as they will be needed to apply for the company’s insurance policy in case it is established. Moreover, the company must also get a printed register withits name and shareholders’ record. It must also obtain a copy of the latest edition of the business agreement to show that the company has been established. The documents listed above are just a few of the requirements that a company must have before proceeding with the Hong Kong incorporation process.
Hong Kong incorporation