Hong Kong is one of the most liberal economies in the world. Opening a company is fast, simple and economical. The physical presence of the investor is not needed for a setup company in Hong Kong. The investor is required to hire a registered agent and have a registered business address. The annual fee for the office is comparatively low which makes company formation in Hong Kong very cost-effective.
Hong Kong is the gateway to mainland China but it should be clear that having a company in Hong Kong does not qualify you to have a Chinese visa.
Benefits of company formation in Hong Kong
Formation of a company in Hong Kong in beneficial from the following perspective:
- It is one of the most broadminded economies in the world. Company formation is quick, simple, and cost-effective.
- Hong Kong is a primary monetary centre and, registering a company here authorizes the investor to open a multi-currency corporate bank account at any recognized bank.
- The taxation system is simple, with no VAT.
- 100% foreign ownership is permitted.
- Hong Kong is the gateway to China for the western countries to do business.
- It is a developed economy with a highly sophisticated business infrastructure.
- The law and order situation is very good in Hong Kong and corruption is least.
Why choose Hong Kong for Foreign Investments
These factors make Hong Kong an ideal terminus to set up a business:
- A Supportive Government
- Premier Business Hub in Asia
- Low, Simple and Competitive Tax System
- Multicultural Talent Pool
- Business-friendly Environment
- Vibrant City-Living
- State of the art Infrastructure
Types of Business Entities in Hong Kong
Different types of companies are available for different types of business activities. The entrepreneur can choose according to his requirements.
- Limited Liability Company
- Branch Office of Local or Foreign Company
- Representative office
- Partnership firm
- Sole proprietorship
Commercial Activities Allowed in Hong Kong
Several business activities options are available to the investor in Hong Kong. The entrepreneur can select any commercial activity from the list
- Business & Professional Services
- Consumer Products
- Creative Industries
- Financial Services
- Information & Communications Technology
- Innovation & Technology
- Tourism & Hospitality
- Transport & Industrial
Steps involved in Company Formation
Here are the procedures that are necessary to set up a company in Hong Kong:
- Choose a type of company: the choice is based on capital involved, activity to be undertaken and many more factors.
- Company name: the name of the company is its identity but should not be identical to any other company. A name checkup should be performed to see whether the name is unique.
- Open a bank account: a company registered in Hong Kong should open a corporate bank account in the company’s name.
- Company documents: the memorandum of Association and Article of Association is mandatory to be drafted by the company secretary.
- Application for registration: the applicant can apply for registration.
- Inland Revenue Department registration: any company in Hong Kong needs to register itself with the Inland Revenue Department for tax purposes.
Role of a Company Formation Consultant
CredentOne DMCC is a company formation consultant and can assist with the company registration procedure and Business Setup formalities in Hong Kong. We provide you all the details about the benefits and steps of registration. CredentOne DMCC offers customized service according to the business activities in which the investor is interested.
Contact us and get your business established in Hong Kong.