Starting Business in Hong Kong — Entrepreneurs Guide

Being the world’s freest economy for the last two decades, Hong Kong is an excellent choice for setting up many entrepreneurs’ businesses. It has a minimum level of restrictions and bureaucracy which adds to the number of benefits one gets when incorporating a company.

The number of people influenced by Hong Kong is increasing day by day. More and more people are fascinated by an attractive business environment and an ambitious tax regime. There are business people who desire to know how to start a company in Hong Kong. Hong Kong is one of the leading financial hubs and the most competitive economies in the Asia-Pacific region. Moreover, it ranks 6th in the World Economic Forum’s Competitiveness Index.

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Because of the straightforward and easy incorporation process, people can register their Hong Kong Business easily and run the business within 24 hours. The main reason behind the rapid growth of Hong Kong is its jurisdiction. The Hong Kong government has provided approximately HKD 5 billion to the Technology and Innovation Fund to promote venture capital flow to startups.

Starting a company in Hong Kong is possibly more accessible than in many other cities everywhere in the world. Though, foreigners wanting to start operations in Hong Kong might face some challenges while setting up their business venture. But, these hurdles are nothing compared to what you have to face in other countries. Following the adequate procedure step by step, you can start your business in Hong Kong.

Are you ready to make your mark as an entrepreneur in the Hong Kong startup market? Excellent! The first step is establishing your company. Given below are some steps to take to establish a new company in Hong Kong.

Determine your company name

Next and the most common step in setting up a new business in Hong Kong is to select a name for your Hong Kong company. The name of the company can be in Chinese, English, or both. It would help if you were careful while choosing a name because you cannot use a name for your business entity that anyone has already used or used in the past. You can check the availability of names online that will also help you familiarise yourself with all the guidelines for registering a Hong Kong Company.

Register your company

You have to register your business with the Companies Registry in order to run a business in Hong Kong. More and more entrepreneurs choose to register their companies as limited companies in Hong Kong because of the numerous advantages it has to offer. Limited companies are separate legal entities and offer protection of personal assets from business risks. Moreover, compared to other business entities, transferring ownership and raising funds or capital for limited companies is more straightforward.

Incorporate your business entity

Opening a company in Hong Kong is relatively simple, but you have to submit these forms before incorporating your company. The documents are:

• A copy of the identification documents of the directors and shareholders.
• Address proof.
• Signed Incorporation form by the authorizing partners.

Open a corporate account

The most relevant thing you have to do is gain access to financial services to begin funding your ventures. The process for preparing a personal bank account is relatively straightforward. However, you will need to train more paperwork and documents to present to the bank as a business owner. Following are some of the papers that you need before heading to a traditional bank.

• Many of Hong Kong’s banks require the registered address of the company. They also demand the contact information of the business and its owners.
• The company’s incorporation documents.
• A true certified copy of the identification documents of the company.
• Proof of business like audited financial statements or business plans.
• Traits of final beneficial owners for company’s nominee shareholders/stockholders.
• A certified true copy of the company’s Business Registration Certificate.

Get permits and licenses

It would help if you protect your business legally; licenses can boost credibility and permit you to utilize citywide funding. Furthermore, in case your business has staff or sells taxable products or services, you also want to register with the taxing authorities.

The next step is to receive any permits and licenses your specific business entity may require. There are different types of permits and licenses that might refer to your business. Examine the government websites and online license services. These will help you learn which permits and licenses best suit your business entity.

Do the annual maintenance filings

In order to sustain the active status and stop unexpected fine from the Government, a Hong Kong company must oblige to the ongoing compliance, which includes:

• Annual renewal of the Business Registration Certificate: Applying for the renewal one month before the expiry date.
• Annual General Meeting (AGM): Holding the meeting within 18 months from the set-up date and no later than 15 months for each subsequent time.
• Annual return with the CR: Filing with the CR within 42 days from the incorporation anniversary.
• Annual tax return with the IRD: Filing a profits tax return and audited accounts in the 18th month from the formation date, then periodically every 12 months.
• Employer’s return with IRD: Filing each associated form in a specified prescribed period.

Access resources and funds

Being a financial hub for many entrepreneurs, Hong Kong also gives grants to small businesses. In case you are looking for funds and resources for your startup in Hong Kong. Mentioned below are some resources available in the Hong Kong market that will assist you in providing funds for your business entity.

1. Startup programs like HKTDC allow various services to startups, from operational management to sales promotions.
2. To establish a new business to expand an existing startup, entrepreneurs can meet with InvestHK, a government organization that helps foreign entrepreneurs set up in Hong Kong.

The attractive tax regime and the world-class financial market, and the integrity of Hong Kong company formation make this country one of the largest business centers for startups and businesses of all sizes. Now that you are aware of forming a company in Hong Kong, it is time that you give wings to your dreams.

Looking to start your business in Hong Kong? Register your new Hong Kong company online! Visit: https://startupregistry.hk/ or https://startupr.hk/