Hong Kong is a haven for companies who want to take their business to the next level. Most countries have laws and restrictions that can hinder the growth of your business. These rules and regulations are put in place to discourage anyone from opening a business and saturating the market. It is very expensive to run a business in countries like the US and UK due to the high taxation and complicated laws.
Hong Kong is one of the few countries with low tax rates and a simple business registration process. Today we will teach you how you can set up your business in Hong Kong without issue.
People have different reasons for opening a business in Hong Kong. Some want to open a new business in the city and take advantage of the government incentives for residents. Others want to open a branch of an existing business.
If you are looking for a fresh start in the city, you should contact a company formation agent and set up a Limited (LLC) company. Since your company will be launched directly in Hong Kong you will be able to enjoy the complete Hong Kong business experience like low tax rates and trade agreements with China.
You can also set up a branch of your existing business. The branch will fall under its parent company and may have certain limitations over the LLC option. Alternatively, you can also launch a representative office in the city.
A representative office cannot take part in any business where they may make a profit. This is the best option if you want to set up a support center or a management point.
You may not always be able to get the name of your choice for your company. If you already have a name in mind be sure to check the name on the Hong Kong company search site to ensure it is not already registered.
You must also make sure the name is not offensive to anyone and does not infringe on another person’s rights.
You will need to prepare some documents before you can open a business in Hong Kong.
1. Make sure your US passport is not expired as you may need it to obtain the ownership of your new company.
2. Make sure you have your company’s Articles of Association document which highlights the company’s constitution and responsibilities.
3. Lastly, you will also need to fill out a Notice to the Business Registration Office and an NNC1 form which you can find online.
Setting up a business in Hong Kong is a pretty straightforward process. The cost of running the business drops down tremendously as compared to the US. Furthermore, you will receive support from the Hong Kong government which has flexible laws for new businesses.
Many agents also allow you to have a Hong Kong bank account to go with your business. This is a great opportunity to set your roots in the financial center of China.