Hong Kong holds a record for being the world’s freest economy for the past 20 years and is the best selection for young entrepreneurs. It is the world is leading city in business and banking services. It has so many advantages with one being ranked above the UK, USA, and Japan being the more transparent state across the world.
Significantly, company formation in HK in Hong Kong is pocket friendly and easier. A foreign entrepreneur is able to own 100% of his or her business in Hong Kong. He has the benefits of being a sole director and bondholder. In addition, through Hong Kong, he or she can establish his or her business in China and other Asian states.
Below are guidelines concerning processes, timing and fees for establishing a business in Hong Kong?
What Types Of Companies Are There In Hong Kong?
Foreign entrepreneurs are only allowed to establish one type of business and that is, Limited company, although, there are other options to choose from if you had already established a business in another place.
This is the most known company in Hong Kong. It is officially legalized in Hong Kong and as a businessperson, you will be able to experience the benefits of tax just as the resident business persons do. You will also be able to participate in free trade agreement with China.
You are allowed to open a branch office in Hong Kong if your business organization has been registered elsewhere. Although the company branch at Hong Kong thrives on its own, it does not depend on the main company and has some restrictions.
This office comes with many limitations if you establish it in Hong Kong. It does not take part in activities that generates profits. Therefore, you may not carry out your business in Hong Kong. It is only beneficial if you have plans of establishing an office that does not participate in sales as part of your organization. It may be an office to harbor your teammates or just for agency.
How Long Does It Take To Open A HK Business?
It really works well when you opt to go for company formation in HK online. All you have to do is to arrange all of your registration files systematically and you are approved. The whole process takes less than one hour inclusive of obtaining Certificate of Incorporation and Business Registration Certificate.
Moreover, if you send you files through mail, you are issued your Certificate of Incorporation and Business Registration Certificate in Four days.
What About A Bank Account?
Opening a bank account is a gateway to starting your business in Hong Kong. This way you can get started in investing in your business. For personal bank accounts, the process of opening a bank account is detailed and brief though a lot of paperwork is involved.
How To Open A Company In Hong Kong Without Living Or Even Go There
If you do not live in Hong Kong, you only have the permission to open a Limited Company unlike the past years whereby you were permitted to have a Sole Trader Company without being a citizen. You can travel to Hong Kong and establish the Limited company although it is a requirement by the government that you have an office and a secretary stationed in Hong Kong.
There are varieties of organizations that can provide office and secretariat services therefore, you do not require an office structure or a secretary who does the job on full-time. These services are given to you for 5-6,000 HKD annually. The cost is low because one person just runs a few companies. For an office, one compartment of offices in a certain agency can act as registered office address for other business organizations.
It is important to also know that you can work on your Limited company formation in HK without going to Hong Kong. Online and paper registration are allowed. You can contact agency you would love to do business with through phone or mail. You may send all your files by mail and do the payment transactions through credit card, PayPal or Bank transfer. You will be in receipt of your final documents at the comfort of your residence. Then you will finally send the original signed copies through any international courier services like DHL.
How To Choose An Honest Agency And Avoid Scammers
There are many agencies claiming that they can assist you to open and manage your company in Hong Kong through Google search. Some are faulty while others are truthful. Be careful enough not to be a victim of a fraud agency. Do enough research on these agencies because so many of them operate on areas of uncertainty?
These scammers may be agents of a real agency. Even if they will not abduct your money, they tend to take a certain amount of your fee and slow the whole transaction. They may as well claim to offer services that they do not have and then give you a costly contradictory service. They are deemed cheaper than the actual truthful agencies. They do so for their own reasons.
An example is that, if you inquire from them if it is permitted to open a Sole Trader Company in Hong Kong, they will gladly accept that it is permitted. A sole trader Company is less expensive compared to a Limited Company.