Hong Kong is widely acknowledged for having one of the most liberal economies in the entire world and that’s precisely why if you want to set up a new business, Hong Kong is probably the best place to do it. Before you get started though, here are a few things that you should know in advance.
You Will Need to Opt for a Limited Company
Hong Kong encourages foreigners to build limited companies and have full ownership of the business and, as a result, their responsibilities and liabilities are only proportional to the investments which they have made in the business there. This is an advantage as limited businesses are treated the same as any local business, so they enjoy all the tax benefits and the license to trade with China without duties. On the other hand, if you are only trying to open a branch of a business that is already established somewhere else, there will be a lot of limitations on your business. This is also the reason why Hong Kong is more suited to SMEs than large enterprises.
Business Financing in Hong Kong
Whether you are looking for start-up money to set up your new business or just some invoice financing to get you through to the next month or quarter, there’s no lack of finance options for small and medium businesses in Hong Kong. As you can imagine, with the government being so open and encouraging towards starting new businesses in the region, business financing is a booming trade in Hong Kong.
The Registration and Incorporation Process is Very Simple
The registration and incorporation process in Hong Kong is one of the simplest and fastest in the world. You can submit your NNC1 Form for the incorporation online, via the government’s 24-hour E-registry service. The requirements include filling and submitting a notifying form (Form IRBR1) to the Business Registration Office and a copy of the business’s Articles of Association. The registration application is a joint step here, along with the incorporation process, but you will need to pay the necessary registration fees and the Levy to the Protection of Wages on Insolvency Fund.
You Will Get Superfast Approval!
An online registration is likely to get approved in an hour or less, as long as everything is in order from your end, which is nothing short of amazing! You will have your online version of the Certificate of Incorporation, along with the Business Registration Certificate at the same time as well.
The fact that a foreigner can have full ownership of his/her businesses in the region and can take advantage of the free trade agreement with China, makes Hong Kong a perfect gateway for those that are eying up the East-Asian market. Once you have managed to build a strong presence in Hong Kong, getting further into the east becomes a lot easier because by then, you will have the reputation, connections, and market understanding of the region to take the next evolutionary steps.