For about two decades, Hong Kong has stood out as an investment paradise, offering investors outstanding opportunities to grow their ventures. It is one of the most liberal jurisdictions globally because of its progressive policies that offer a level playing field for all investors.
To take advantage of this high-potential jurisdiction, the first and most important step is business registration. This post digs deeper into company registration to demonstrate why you should use professional business incorporation services (in Hong Kong).
Hong Kong as an Investment Jurisdiction
Hong Kong, known officially as the Hong Kong Special Administrative Region of China, is an island and a metropolitan area located on the eastern edge of the Pearl River Delta. The jurisdiction has a population of 7.5 million people of different nationalities. Therefore, it is one of the most densely populated areas on the globe.
The jurisdiction uses a capitalist mixed economy service, which is characterized by low taxation and minimal government intervention. With its GDP of US$373 billion, Hong Kong is ranked 35th largest economy in the globe. Other important facts about Hong Kong that make it an excellent offshore destination for foreign companies are:
- The Hong Kong GDP (PPP), according to the 2021 estimates, is $492.3 billion.
- Hong Kong is the 10th largest entity in exports and imports, according to 2017 estimates.
- More than 40% of the cargo handled in Hong Kong is transshipment from China.
- The Hong Kong economy is dominated by the service industry that generates more than 92% of the economic output.
After the disruption of 2020 and part of 2021, which was caused by the COVID-19 pandemic, Hong Kong is fast springing back to normalcy. In the first quarter of 2021, the economy posted an impressive 7.8% economic growth (all about Hong-Kong accounting system).
However, this is not surprising because the Hong Kong administration is always looking for ways to support businesses. This is one of the reasons why you should not be left behind in taking advantage of this high-potential jurisdiction. So, let an expert agency in business incorporation services (in Hong Kong) assist you.
What Does Incorporating a Company Entails?
Incorporating a company in Hong Kong is pretty similar to registering a business back home. However, the process in Hong Kong is guided by the companies’ ordinance. So, what exactly does incorporating a company entails? Here are the main steps involved in company incorporation in Hong Kong.
- Determine your company name. This name has to be unique and written either in English or Chinese, but not both.
- Select the preferred legal structure (the most preferred option is a limited liability company). Other common options include branch office and partnerships.
- Once you have selected the preferred legal structure, prepare the documents outline on the Companies Ordinance. These include a copy of shareholder’s and directors’ identification documents, articles of association, and memorandum of understanding.
Then, all of these documents must be submitted to the registrar of companies for company incorporation.
If you are registering the company on your own, the process can be pretty challenging because it might necessitate making multiple flights. This is another reason why you should consider business incorporation services (in Hong Kong) offered by experts.
The Challenges of Trying to Register a Business in Hong Kong on Your Own
One notable thing about registering companies in Hong Kong is that although the administration has tried so much to simplify the process, it is still challenging. For example, most people find preparing the long list of documents challenging. If you do not have a background in the legal or business-related fields, this could turn out into a major challenge.
Other challenges that you are likely to face for trying to register the company on your own include:
- Hiring a company secretary can be tough. Imagine having to make advertisements on local newspapers and interviewing dozens of candidates.
- Getting an office to serve as your address can be an uphill task. As a new investor, hopping from one skyscraper to another in search of an office can be a tall order.
- The process can be pretty expensive. In addition to the fee for the company registration, you are also likely to incur additional costs for hiring staff and renting space.
- Having to fly all the way to Hong Kong, probably severally during the registration process, is perhaps the most inconveniencing bit. You will also be forced to leave other crucial tasks, such as getting additional capital for the new business. Instead of this inconvenience, why not consider business incorporation services (in Hong Kong)?
Special Benefits of Using Business Incorporation Services (in Hong Kong)
Think of business incorporation services as a professional holding your hand to ensure you complete the task at hand faster and correctly. These experts are dedicated to helping investors register their companies seamlessly. Here is a demonstration of the main benefits to anticipate from working with business incorporation services (in Hong Kong).
Your Documents are Prepared Professionally
When incorporating a company in Hong Kong, you need to appreciate that a large number of applications are declined because they present poorly prepared documents. Even if you have a very good idea, it is crucial to ensure it is presented with professionally prepared papers, and experts can help you to achieve that.
The Registration Process is Completed Faster
The main reason why company incorporation takes longer for people applying on their own is that they are slow in preparing different documents. Instead of letting the logistics gallop most of your precious time, consider working with business registration services. The experts have been helping other investors and will prepare all the documents professionally and submit them to the registry in no time.
The Perfect Way to Cut Down Costs
Instead of incurring a lot of costs searching for a company secretary and office, the selected company registration firm can help. These agencies are allowed to act as company secretaries for firms coming to Hong Kong.
They can also serve as the company address. This is an excellent way to get started in Hong Kong, meaning that you can look for an office later as the business commences operations.
The Experts can Help You Understand what Works and What Does not
The process of registering a company in Hong Kong requires making major decisions along the way. If you make a mistake, it can easily impact the operations of the firm. For example, should you form a partnership or limited liability company in Hong Kong?
No matter what you are considering, whether it is product development or staff employment, business incorporation agencies can help you get it right.
Once the business is finally formed, the selected firm of experts will not walk away. Instead, you will be assisted to get off on a high note so that the venture becomes more profitable. Particularly, the agency you select will be there to assist with executive functions, such as payroll management, filing tax returns, and compliance with different regulations.
This post has demonstrated that Hong Kong is a high-potential investment destination and you should not be left behind as others take advantage of it.
By working with experts in company registration, you are able to craft objectives and follow the right channels to achieve them.
Having been in the Hong Kong market for years, these professionals are all that you need to race ahead of competitors and become profitable. You can never go wrong with experts on your side.