Hong Kong enjoys a low cost of living, making it a desirable location for businesses looking to expand their operation globally. The city is ranked among the top twenty economies globally, making it an ideal place for new ventures. Hong Kong’s legal system also offers pro-business favourable access to the UK and other EEC countries. Besides, several free trade agreements with other countries like India, China, and South Korea to allow the entry of foreign direct investment and free trade.
Starting a business in Hong Kong can be one of the most attractive business opportunities that any entrepreneur can explore today. This vibrant economic hub in China is home to more than 6.3 million people, offering a wide range of jobs in the service sector including finance and banking, information technology, pharmaceuticals, education, retail, and manufacturing. It also boasts of an increasingly high foreign direct investment (FDI) in the local market, leading to the local industry’s rapid development. It means that the workforce in Hong Kong is highly educated and highly skilled.
Moreover, Hong Kong enjoys an attractive business registration system that is conducive to small businesses. Business owners need not register their company in the Chinese mainland or the Hong Kong Special Administrative Region (HAR). Instead, they should register their company under the business name they choose in whichever region they prefer. Moreover, they have the option of selecting a tax system they like. They can avail of the standard rate of tax or apply for a special rate. It means that entrepreneurs do not need to look for exceptional tax accountants when setting up a Hong Kong business.
Business owners need not be resident in the corporate city to set up a business in Hong Kong. A company can operate either from its premises or from an address of the registered office. If the company operates from its premises, it needs to have a registered office. A registered office serves as the company’s headquarters where all official documents are filed. On the other hand, if the company operates from an address other than the registered office, it may not be granted a patent. Therefore, entrepreneurs who plan to set up a company in Hong Kong should file their articles of association and its original corporate document at the Companies Registry of Hong Kong before commencing operations.
Companies without a registered office can have their names approved by the Office of the Secretary of State upon application submitted by them together with their prescribed annual fee. It is referred to as a business registration certificate, or a company limited liability. Once the application is accepted, the company secretary shall send a letter of confirmation to the applicant. On receipt of this letter, the company secretary shall transfer its registration to the Secretary of State’s Office. The company limited liability will now become a fully functional business entity in Hong Kong.
To ensure that starting a business in Hong Kong are carried out smoothly by keeping track of its contacts, entrepreneurs need to appoint the right people to work for them. Selecting the wrong person to the post of a company secretary can result in undesirable events. Therefore, one must consider the experience of the person to whom he is entrusting the post. Appointing someone with pro-business expertise can minimize the likelihood of business-related issues and save time and resources.
Opening a registered office is another advantage for business entrepreneurs planning to establish their venture in Hong Kong. This office is an essential element of the legal system where all the transactions between a company and its clients will occur. Without a registered office, it would be difficult for the company to undertake commercial registration processes. Another advantage of having a registered office is that it gives the company an official address. This address may be used for sending out correspondences to customers and other related official matters. It can also be kept in touch with local authorities for any official business matters.
Aside from these significant advantages, there are also other perks for entrepreneurs planning to establish their venture in Hong Kong. One of these perks is that the laws of Hong Kong are more pro-business than other Chinese cities. It means that the tax rate that the company must pay is lower than the taxes that companies in China must pay. And even if the company must pay corporate taxes, the quality is still much lower than those produced by businesses in China. It is one reason why starting a business in Hong Kong is a relatively easy task for aspiring entrepreneurs.