Starting a business in Hong Kong is not as hard as you think and it can be done straightforwardly by following the steps below:
#1 Choose the Right Form of Business
The most typical types of businesses in Hong Kong include sole proprietorship, limited company or parent company’s branch office. You can choose the business type that you find suitable for your needs.
- Representative, Subsidiary or Branch Offices – Foreign companies may establish a branch in Hong Kong. But, the primary company will be responsible for all the liabilities and debts of the branch office in Hong Kong. If you don’t want this, you may choose to set up a subsidiary, which is considered as a separate legal entity. Representative offices are also a good option for market research.
- Limited Companies – Majority of individuals who have their own businesses in Hong Kong consider a private limited liability company. Small and medium-sized enterprises are frequently set up as private limited companies. What you need is a name, some directors, a company secretary, 1-50 shareholders, some capital, and an address in Hong Kong.
- Partnerships – As its name implies, partnerships are a business run and owned by at least 2 people.
- Sole Proprietorships – These are perfect for small-scale businesses in Hong Kong with one owner. However, in comparison to the limited company, the owner is liable for his or her business with every personal asset.
#2 Pick a Business Name
Picking the name for your business in Hong Kong is as vital as deciding on the legal entity. You may browse Hong Kong Companies Registry to know whether your chosen company name is taken or not. Once you’ve made your choice, it’s time to get the company name registered!
#3 Incorporate and Register Your Business
You can start your business in Hong Kong with any amount of capital. Basically, there’s no minimum amount of capital required. But, a business should have at least one shareholder. If you are setting up a limited company, you need at least one director as well as a company secretary. It is not a requirement for the shareholders and the directors to be residents of Hong Kong.
Once you’ve followed those steps above, the next thing you are recommended to do is to open a bank account and choose the right location for your business. You can choose any area in Hong Kong. Regardless of your business needs, as long as it fits your requirements, you have the freedom to choose which location is best suited for your business as Hong Kong is a very safe city.
Starting a business in Hong Kong is not really complicated. By keeping in mind some simple steps mentioned above, you can guarantee that you will always stay on the right track of success. Just make sure to combine it with dedication and determination to meet all your goals.