Hong Kong has a highly active economy and is becoming an incubator for start-ups. As such, it’s increasingly easy to set up a HK limited company in Hong Kong. One of the most beautiful tourist destinations, Hong Kong is also a shopper’s paradise. For reasons like this, Hong Kong is a great place to start a business and incorporate private limited companies. Today, many investors dream of going into business in Hong Kong. But it isn’t as easy as it sounds to start a Hong Kong business. Question is how do you start a business in Hong Kong? Hong Kong contains a lot of competition; if your business plan is to work, it has got to be good. The advantage of starting a business here is that it is the 5th highest ranked ecosystem in the world, its GDP is high as well. FastLane Group provides complete services on how to start a business in Hong Kong, all from the ease and comfort of your home.
Hong Kong is located between zones of Asia which makes it a perfect country in preparing trade and setting up Hong Kong limited company. The significance of market access to the largest populated country in China cannot be overemphasized. The existence of these low tax cells, safe investment environment with a stable and sound economic political, the active government efforts to attract private capital flow into this region all continue to be factors which encourage investors from around the world to establish offices here.
Setting up a business in Hong Kong is simplified. Start a business without traveling here. How?
In fact, you can be your own boss. By using our professional private limited company registration services, we will set up your business and Hong Kong limited company for you as soon as possible. There are many agencies willing to provide consultancy services for starting a business, but what you need to look out for is that how much support and guidance can the said agency extend beyond Hong Kong so that your Hong Kong business will expand further in this region. We have our services in every continent, and the joy of being able to get things done for our client without them having to travel anywhere are reasons we enjoy this line of work. Isn’t that amazing? Apart from payroll, recruitment and completing all the registration processes (including opening a bank account, applying for a tax number and setting up of a local registered office), our experts can handle everything without you having to send someone over to Hong Kong.
Compelling Reasons to Start a Business in Hong Kong
Many foreign enterprises, such as Facebook, Google, Apple, Amazon and PepsiCo are all investing heavily in Hong Kong. Why? Here are some reasons:
- Less tax burdens
- Reduced business risk
- Business-friendly environment
If any of these reasons appeal to you, then there are compelling reasons to start up a business going on in Hong Kong. In the initial stages, most foreign investors have been catalysts of the economic growth in Hong Kong. Therefore, the government has launched special plans for them and international businessmen are being accepted at a very high standard.
To get your wings to span to Hong Kong, it is a great idea to invest herein. Indeed, one modern star is making an entire company that knows how to go into space from the ground up, but you can do just as much in terms of significance for yourself by setting up a new company in Hong Kong from scratch.
Economic Growth of Hong Kong
Hong Kong’s vibrant economy is the prime reason for launching a business in Hong Kong. This country’s economic freedom is ranked first both regionally and worldwide. This freedom is contributed by:
- Economic policies
- Transparent legal laws
- Hong Kong’s open market
- Regulatory system efficiency
- Property rights protection
Opportunity to Invest in a Wide Range of Sectors
Compared with other countries, it is easier to start a business in Hong Kong. The business registration process is affordable and with a simple process, so it is economical to incorporate a company in Hong Kong as long as you have a concrete business plan. Therefore, over the years there have been many start-ups in Hong Kong which have helped its economy. The growing sectors of Hong Kong are:
- Information & Technology
- Financial Technology
- Professional services
- Data analysis
- Education and learning
Attractive Government Policies and Initiatives
Regions where governmental support is strong, are hot prospects for foreign investors on the lookout to launch new businesses. Hong Kong also allows foreign investors to own up to 100 % of any enterprise and also permits them to assume the position of director, top management position or chairman. The Hong Kong government has launched InvestHK, a department that offers complimentary investment promotion and services to foreign companies.
Geographical Location of Hong Kong
Located within Central Asia, Hong Kong provides the business with excellent trade-off offerings, most especially mainland China. The major factor is the strategic geographical position of Hong Kong. While some investors may already have access to certain retail products, expanding their business to encompass a wider market perspective will naturally prompt them to explore this specific region further.
Excellent Banking Facilities
Hong Kong’s banking sector shines for its global connectivity, robust regulation by the HKMA, and a diverse range of options from local to international banks. Technological strides deliver efficient digital services, complementing its role as a financial services hub. The stable economy fosters trust while innovative payment systems like FPS and RTGS ensure swift and secure transactions. Strong infrastructure and support for fintech further elevate Hong Kong’s status, creating a pinnacle of banking excellence.
Less Burden of Taxes
Hong Kong has a low corporate tax rate, compared with other countries. Hong Kong currently implements 16.5% profit tax, 15% for property tax, 15% of salaried taxes. The Hong Kong government has attracted its stakeholders and encouraged businesses to relocate there with its low tax rate.
Special Initiatives From Government
To attract foreign investment the government has had to begin special programs. The government has gone out of its way to lend a helping hand because they know that the amount put into the Hong Kong market is directly related to the economy of Hong Kong.
Hong Kong’s government offers a variety of funding, including loans, incubator programs and market funds to attract foreigners.
Easy Selling of Corporate Shares
By selling the shares, cash that flows into the business can easily be converted into further investment. Selling the shares of a corporate body is a relatively simple procedure in Hong Kong. Unlike many countries, it’s definitely not a very complicated business here. Therefore, the Hong Kong firms are able to easily make use of their money by selling off shares in its business and thus generating assets for their operations.
Talented Labour Force
In addition to its high educational level and versatility, Hong Kong is also the home of a talent pool with sound values. Hong Kong welcomes professionals from abroad for employment, and its immigration rules actively allow professional expats (with their wives and families) to settle permanently in Hong Kong.
With infrastructure at the world’s standards for railways, logistics, airports and telecoms. This is an important point to notice when starting a business in foreign territory. Hong Kong’s airport is a modern, well-developed facility. It has good connections to all the major international services. Hong Kong’s railway stations are very well developed which makes it an excellent medium for getting from one spot to another. The deep-sea port of Hong Kong was built in a way that it has become the best common carrier method in Hong Kong.
Some other reasons are foreign investors want to learn about China’s economy including understanding of China’s infrastructure and government policies. For instance, Hong Kong has never been a disappointment to their investors by failing in its role as an investor-friendly business environment.
Selecting the Right Business Structure
Choosing the appropriate business structure involves considering several factors when launching a business. These factors encompass your target market, chosen product or service, niche, marketing approaches, business location, and more. Failing to establish these fundamentals initially could hinder your business from flourishing and achieving your envisioned objectives.
However, if you’ve solidified these aspects, it could be the moment to take charge and steer your business towards growth.
Our team will determine the ideal business structure based on:
- Business size
- Capital investment
- Number of employees
- Business needs.
How to start a business in Hong Kong? Some common business structures of Hong Kong are:
1. Limited Company
It is invariably established by small and medium-sized enterprises. If you want to establish a limited liability company, at least one director and one shareholder are required. No specific capital amount is necessary to start this entity.
2. Branch Office
The parent company sets up a branch office. All the activities of the branch office are decided upon by headquarters. The debts and liabilities of the branch office are obligations to the parent company.
3. Subsidiary Office
One complies similarly to a branch office, except it is liable for its own debt and liability.
4. Representative Office
If you plan to expand your operations in Hong Kong, a representative office is an ideal way to test the waters before moving on. A representative office cannot engage in any income generating activities.
5. Sole Proprietorship
This type of business is suited to small-scale operations and has a sole owner. The owner is solely responsible for and liable to creditors for all debts incurred and can also enjoy the profits after having paid income taxes.
A partnership firm is formed when two parties come together under an agreement to do business in which the persons involved pool their property. There are two types of partnership firms:
General Partnership: The owner is responsible for the entirety of the company, and even a partner’s action.
Limited partnership: It is best for investing in situations where you only are responsible for your contribution but cannot have any control over the activities of the business. It is formed between the main partner and the limited partner.
How to Start a Business in Hong Kong
In Hong Kong the business registration procedure isn’t difficult, but it can be demanding for time. Taking advantage of our consultancy services can save you quite a bit of time and trouble in setting up, so your business can be underway in Hong Kong sooner. Our team will cut down on time because we are well experienced in thorough name searches and applications does not overlap with one that is already registered, working out and completing the application (properly; otherwise it might be rejected), advice on setting up a bank account as required by local financial procedures etc.
How to start a business in Hong Kong? The steps of business registration are:
Step 1: Select a Company’s Name
Before a company goes into business in Hong Kong then, its name must be unique. The name which you select must be unique. It is possible that another company already has the same name as yours in Hong Kong, so do check on this point! If your chosen name is already taken, our team will help you find something unique.
Step 2: Register the Company
FastLane Group can advise on the business entity that suits your need and provide any required information for form filing completion. This reduces the workload and increases the smooth application.
Step 3: Open a Local Bank Account
After you have registered your business with the Inland Revenue Department, you must open a local bank account. Hong Kong ranks top10 in the world in banking and provides a multi-currency facility to you. We will guide to help you in opening a bank account that suits your needs.
Step 4: Register a Local Business Address
You must have a local business address to receive the newsletter and this becomes your company’s mailing address.
Step 5: Hire Employees
Setting up any company in Hong Kong needs people. Whatever your business needs, you must hire local staff. The number of employees that you require will depend on the specific business requirements of your company. If you are new in Hong Kong, finding a job is hard work. You may feel uncertain where to begin, and whether you are hiring the right people with the right skill set.
Thus, FastLane Group provides assistance. By issuing job openings, we will recruit the employees you need.
Step 6: File Taxes
After your company begins operations, you must pay taxes to the government and submit an annual financial report. You can engage an auditor and tax agent who could assist you in filing your returns, streamline the entire business structure and thus save costs.
Visa Application to Start a Business in Hong Kong
In business opportunities abound for investors, and the time spent getting started in Hong Kong is more than repaid. Leveraging Hong Kong’s booming economy and government incentives, your company stands to benefit to a great extent.
Understanding the market in Hong Kong must come before entering that city. Setting up business contacts, improving language standards and opening a liaison office are all wise moves. Still, patience is required; a good business does not come about overnight: it requires a full-scale business plan.
No need to worry. Our team is experienced and provides comprehensive accountancy, taxation and consultancy services which give you the guidance you need for local operations.
Whether it’s for investing or taking up employment, one must fill in the application form and possess the educational and professional requirements. They cannot have a criminal past of any kind or even a bad record with the police.
The application form can be downloaded from (ID 999A) on the Immigration department’s website.
Following are the documentation required for obtaining a visa:
- Passport photograph copy
- Copy of your ID
- Documentation of your educational and professional qualifications
- A two-year business plan
- Background information about your business
Have an Intact Business Plan to Start a Business in Hong Kong
How to start a business in Hong Kong without having a business plan. Whether your innovative idea is excellent or not, as long as you lack a concrete action plan.
A business plan must have complete details about the business such as:
- Business goals – primary and secondary
- Marketing plans
- Budget plans
- There are strong reasons for your business to be a big hit in Hong Kong
- Information on the company who will help you achieve business goals.
Business plans should not be long-winded descriptions, but just a guide to how you can establish business in Hong Kong. It is possible to modify this business plan at later stages, depending on the development of the company.
How Can FastLane Group Help You to Start a Business in Hong Kong?
Chances are if you’re looking at this article, you have come here with intentions of opening up a business in Hong Kong. Our nation, as an economically liberal cosmopolitan geographic center, attracts startups and investors from around the world who demand various forms of business for themselves in bunches. Through in-depth interaction with you, we are better able to get an inkling of your business targets, investment capabilities and hyperfield, as well as helping us choose the most suitable form for it to bring great profits.
Teams of experts with command over different fields like accountancy, taxation, business registration and recruitment work together to accompany you on your passage. FastLane Group, with more than ten years’ experience in all this, has vast networks and can simplify the formalities of doing business.
We lead you through the business registration process in Hong Kong and help you organize discussions in your home country. We offer services worth noting in that by making global trips less of a necessity, we reduce the need for clients to waste money traveling around unnecessarily just to set up business in foreign countries. Do not worry about how to start a business in Hong Kong.
To help our customers save time and effort, during the entire process of purchasing a property, not only do we open an account at a local bank on their behalf, you don’t even have to turn up in person. Standing by you every step of the way, we are committed to providing services and turning your dream of ‘Going Hong Kong’ into reality.