Guidelines for foreigners to start a business in Hong Kong

Why Hong Kong is the popular destination for business?

Before we go into the guidelines for foreigners to start a business in Hong Kong, let us investigate the rationale of foreigners starting a business in Hong Kong. The main reasons Hong Kong is the popular destination for business are as follow:

1. As a regional headquarter/ holding company
   Hong Kong has a growing population and well-developed infrastructure making it a preferred location. Besides, the country boasts of skilled labor with a literacy rate of 96% where most employees are multilingual with 94% computer literacy as of 2020. When a foreigner starts a business in Hong Kong, there will not be any communication barries. They can start they business right after the company is incorporated.
2. Tax Havens
   Hong Kong is a popular tax haven destination. It offers one of the most affordable corporate tax rate (16%) to business owners among the countries in Asia. Companies can also extract funds from regional subsidiaries that include dividends, management fees, and royalties paid business.
3. Gateway to Mainland China
   The other benefit of incorporating a company in Hong Kong is the location. . Hong Kong businesses can easily expand and access the 450 million customers across China. Some of the connection infrastructures that include air, rail, and road links provide excellent connection services.
4. Gateway to Asia
   Besides China, Hong Kong is also the gateway to Asia. Apart from China, Hong Kong also trades with India, Australia, Japan, and the ASEAN countries. By establishing a business in Hong Kong, there are a lot of potential in one’s business.
   Hong Kong is one of the countries that boast of the ease of doing business globally especially to foreigners. Besides, the government of Hong Kong has always been at the forefront to help startups obtain relevant financing to help them start and operate their businesses. On top of the above merits, it thus a better experience to incorporate and run a business in Hong Kong.
   Nonetheless, for you to start and operate a business in Hong Kong, you will be required to register your company with the Companies Registry. The Companies Registry is responsible for all the application process whether it is a local limited company or a non-Hong Kong company that had already been registered outside Hong Kong.

Requirements for incorporating a company in Hong Kong.

The following are some of the minimum requirements for the incorporation process;

• At least one designated representative
• An individual director
• A minimum of one to a maximum of 50 shareholders.
• A company secretary who must be a Hong Kong resident
• No minimum share capital is required.

Once you have and avail of all these required documents, the application process will be taking a reasonably shorter time. The registration process in Hong Kong takes between 5 to 7 days if you avail all the requirements in time.

Steps to register a company

The steps to incorporating a company in Hong Kong include;

1. Apply for a business name and obtain a certificate of incorporation
   The initial step is to choose a name for your company. The 2 types of company in Hong Kong include:
   • A company limited by shares
   • A company limited by guarantee
     Your chosen company name must be in agreement with the Registration of Company names for Hong Kong. Additionally, the name of the company must not have been used by another company that is already incorporated in Hong Kong and the name must also not infringe the intellectual property rights of a third party.
2. Prepare necessary documents for the Hong Kong Company Set Up.
   You will then be required to have the following;
   • An official copy of the Articles of Association.
   • The company’s registered address.
   • A brief description of the business activities.
   • Official passport copies, details of shareholders, company secretary, and directors of the company.
   • Liability of the company members and the number of shares taken by the subscribers.
3. Submit Companies Registry Application
   The required application forms can either be submitted electronically or in hard copy. You will also have to apply together with the registration fees and if the application is unsuccessful then a refund may be made. Besides, certificate registration fees are equally applicable.
   The incorporation process of a company in Hong Kong is that simple and what is even more amazing is that firms are willing to help you with the entire process to ensure success and timely incorporation and Paul Hype Page is such a trusted firm.

What next after incorporation?

Incorporation is an essential step to the successful starting of a business in Hong Kong. However, there are numerous activities that you will have to undertake after the incorporation process. You will have to be registered with the Business Registration Office of the IRD department. The business is mandated to display its business registration certificate at its premises.

Business Licensing

The other thing that you will require before officially starting your operations is the licenses for your business. You might need particular government licenses depending on the business that

you are undertaking or the industry within which your business lies. Others include business permits, certificates, and necessary approvals to start your business operations in Hong Kong.

After you have successfully obtained your certificate of incorporation and licensing, you can then concentrate on hiring the employees for your business. This might be another challenging task but not when you choose to do it with Paul Hype Page services.

Summary

In summary, if you are looking forward to having your business incorporated in Hong Kong as a foreigner, it will be for your benefit if you have someone who understands the dynamics and the process well. This will not only help you in saving time for the registration process but will also allow you to have successful incorporation. Paul hype page is a professional consultation service provider that will help you on the journey of starting a business in Hong Kong.

Finally, you will now only have to run the business and ensure that you fill all your taxes as required by the IRD (Inland Revenue Department).

Some of the reasons that you need to consider having your business incorporated in Hong Kong with PHP help include;

• We will provide you additional information like; government requirements, licensing requirements,
• We will also help you understand the corporate tax as well as help you in the tax filing process once your company starts operating.
• The hiring of employees might be tedious and if you do not understand the labor laws you might find yourself on the wrong side of the law. Therefore, incorporating your company through our services will help solve these problems.
• Paul Hype Page will also help you to solve a wide range of activities that are required like corporate bank accounts, virtual office, employment, and resident visas among other essential services that are required when starting a business.