Starting up a new Hong Kong company is one of the most challenging things you can do. You’re being pulled in all directions and there are a thousand little things that all demand your attention. This is something that is inevitable and every business owner must deal with. With some careful planning and preparation though, you can get off to the right foot and keep things under control. Here are five things to consider before setting up a company.
#1 Look for a Good Business Partner
Business is much easier when you don’t go at it alone. Having the right person/people on your side can make all the difference. A good business partner is someone that you trust and who complements you and your skills. Find someone who shares your ambitions and vision and has skills that you don’t. Of course, you can also go into business on your own. You don’t definitely need a business partner. Just make sure you know what you are getting in for.
#2 Make Sure You are Confident in the New Business
Are you confident that your business will succeed? If not, then what are you even doing? You need to know that you can succeed and you have the skills to succeed in your chosen profession and industry. Do you have the character and social stance to succeed? Do people know you and trust you to deliver a quality service? Being connected and having a good network helps tremendously when it comes to starting a business with a feeling of confidence.
#3 Make Sure You Get All the Proper Licenses
It’s not enough to just decide that you want to run a business. There are several licenses and legal obligations to take care of. What licenses you need depends on the business you want to run. For example, you will need a restaurant license to run a restaurant, or a school license to run a school. At the very least you need a Business Registration license. Think about what kind of business you want to run, and make sure that you have the necessary legal permission to do so.
#4 Think About the Company Structure
You should decide on a structure and layout for the company ahead of time. For example, you should think about how the shareholding structure will break down if you plan on offering shares. Who will be the majority shareholder? Will it be you? How will your share amount compare to your partners? Will you get 70% while they get 30%? Who will be the company director? What about the company secretary? Remember that a shareholder is someone who owns a stake in the company while a director is someone who runs the company.
#5 Think about the Business Location
Where will your business be located? Do you need a physical location? There’s no need to rent out a physical office if you don’t need one – such as if you run a software company. If you do need a physical location, then consider consulting with property agents to find the best location for your business. They are in the business of property, after all.
There’s a lot that goes into starting up and running a business. You can avoid a lot of headaches and potential pitfalls by considering the above areas before starting a Hong Kong company. Consider the structure, location, and legality of your business and ask yourself if you need a business partner or not.