Hong Kong is a perfect place to start a business. The country has been recorded as one of the world’s best economy, it is one of the countries that has the least corruption rates and a global banking and business leader. Therefore, it is a great choice for opening your business in Hong Kong. In addition, starting a business in Hong Kong is easy and low cost. Moreover, your office in Hong Kong can serve as the gateway for doing business with other Asian countries. Here is a few things you need to know about starting your business in HK.
1. Types of companies
The first thing you must consider before you start a business is that what type of companies are allowed to register in Hong Kong.
Hong Kong-incorporated Subsidiary Company
A foreign company in Hong Kong can setup “limited liability” type of company. Nevertheless, limited is the most common type of company in Hong Kong. Because it is incorporated in HK, it provides same tax benefits to the foreigners as well. Moreover, foreign companies can also enjoy free trade with China agreement.
Branch Office of a Foreign Company
The other type is the “branch office” where the parent company is registered in some other countries and you can open a branch for the parent company in Hong Kong. As a result, the office will not be independent of the parent company and there will be a set of restrictions that it has to follow.
The representative office is the most restricted type to have a presence in HK as it cannot be engaged in any profit-making activities. It means you cannot sell or make goods and services, it is best for those who seek for a non-sales branch of the company.
2. Choosing the name
Before you start a business, you have to choose the name for your company while ensuring that it is available legally. By searching the “Hong Kong Company Registry” online you will be able to find the registered name of all the businesses in Hong Kong.
3. The process to start a business in Hong Kong
The below steps are a general guide to start a business in Hong Kong:
1. Submitting an application for the purpose of incorporation online with the help of HK 24-hour company’s electronic registry. For this you will have to follow these steps:
- You will need the NNC1 form or incorporation form.
- Form IRB1 or a notice is given to the Business Registration Office.
- The company you are setting up, its Article of Association’s copy.
2. Applying to the business registration
Applying for business registration is a part of the application for the incorporation. You will need these things for that:
- The fee for business registration which is approximately HK$2,000 for one year or around HK$5200 for three years.
- HK$250 for one year of levy to the protection of wages which are on insolvency fund or HK$750 for three years.
4. Time required for registration
Registration online to setup your Hong Kong Company is easy, all you need is to get the required documentsready for approval. You can also easily get the documents in an hour, for example, the Certificate of Incorporation or Business Registration Certificate. Mailing the documents will lengthen the process and it may take 4 days to issue your certificates.
5. Bank account
Before you start your business, you will need a bank account in order to get started in Hong Kong. Though the personal bank account can be opened by an easy process, however, opening a business bank account will require more paperwork. Cross border accounts are perfect for this purpose that you can use throughout the world.
There are some extra requirements of Hong Kong visa that gives you entry to the establishment of your business. Your business has to make a reasonable amount of contribution to the economy. In order for the application to be successful, you must have a good education as well as professional qualifications. Also, you should not have any police record in which you are indulged in. You will need a sponsor in order to have a work visa in HK, the sponsor can be individual or a company of at least 18 years of age, he must be a Hong Kong resident as well as have an acquaintance with you.
The application form can be downloaded online from the Immigration Department or get it from the Chinese mission. You will also need some documents for the visa application, that includes, a recent passport-sized photograph, a proof of your work experience and academic qualifications, a copy of the passport, business registration’s copy, the business plan of two-years, business activities or background information. All these details will help you in getting your application submitted and proofing you an authentic person.