What is the best way to enter into the high-potential Far East market? The answer is pretty straightforward: registering a business in a top jurisdiction. Whether your business is well established or a startup, you will not need to do a lot of research to identify the best offshore jurisdiction. The answer is Hong Kong! In this post, we will tell you about the main steps you need to set up a business in Hong Kong.
Why Hong Kong?
As an investor, identifying a good business location is an essential determinant of the success that you can achieve. Hong Kong beats its peers both in Asia and globally too because of its strategic location in Asia. Here are other benefits of incorporating your business in Hong Kong.
- The Hong Kong administration is very supportive.
- The jurisdiction has a very straightforward tax regime.
- Hong Kong serves as the gateway to Mainland China business ecosystem
- The process of registering a business is easy and fast.
Steps to Follow when Setting Up a Company in Hong Kong
Now that you know the benefits of taking your business to Hong Kong, it is time to get down and register it. The process of registering a company in Hong Kong is guided by the Companies Ordinance, which defines the documents that you need and the process to follow. So, here are the main steps to follow:
- Select a business name to use in Hong Kong and avoid picking a name that has already been taken by another enterprise.
- Select the right business legal structure. The commonest structure is a limited liability company. Other types of business structures that you can pick include branch office and partnerships.
- Get a company secretary and address. According to the Companies Ordinance, your business will require a resident company secretary to serve as the main bridge between the business and the government. The secretary will also be the custodian of the business legal documents.
- Prepare all the documents and submit them to the company registry. To incorporate your company in Hong Kong, you need to have all the documents outlined in the Companies Ordinance, and submit them to the company registry. Some of these documents include the articles of association, memorandum of understanding, and copies of shareholders’ passports. Once you have submitted the documents, it is simply a matter of waiting for about 14 days to get the certificate of incorporation.
Open a Bank Account and Start Operating
Once you are through with company incorporation, the next step is opening a bank account. A bank account is crucial because it allows you to get paid, pay bills, and simplify bookkeeping.
Note that while it is possible to register a company in absentia, you will need to book a flight to Hong Kong to open a corporate bank account. Now, your business is ready to get started!
When you decide to open a business in Hong Kong, the most important thing is following the process described in the Companies Ordinance. Remember that if you find the process complicated, it advisable to look for an agency with experts to hold your hands, especially during the early years of establishment.