Are you an entrepreneur looking forward to expanding your business abroad? Well, the success you are seeking is only possible if you select the right jurisdiction. Today, most of the multinationals you see in the international headlines for making huge profits have one thing in common: they started or have a presence in Hong Kong.
To become equally successful in the international business arena, the first step should be incorporating your company in Hong Kong. This post brings you three things that can help to make business registration easy and fast in Hong Kong.
Explore the Benefits of Running a Business in Hong Kong
To make the process of registering a company in Hong Kong easy, you need to understand the benefits associated with the target destination. This should be the primary motivation for taking your enterprise there. Here are some of the benefits that you need to know:
- A simplified tax regime: In Hong Kong, companies only pay profit tax of 16.5% which is among the lowest in the globe. For example, companies in Japan pay 31% corporate tax while those in South Korea pay 22%.
- Hong Kong is ranked at the top on ease of doing business index: World Bank and other renowned global institution have ranked Hong Kong at the top on ease of doing business. This means that you will find it easy to establish and grow your business.
- Hong Kong has a very supportive administration: Because Hong Kong is an island with hardly any mineral or land for agriculture, the economy is business driven. This implies that it wants your business to grow and become part of its source of revenue.
Understand the Hong Kong Company Law
Before you can set off registering your enterprise, it is important to understand the underlying law that guides the process as well as company operations. In Hong Kong, company registration and operations are governed by the Hong Kong Companies Ordinance (cap 32). Under the law, here are some crucial takes:
- Your company must have a resident company secretary.
- The company will need a physical office and address.
- You have to get the company’s name, details of shareholders, and directors before registration. You will also need a memorandum of understanding and articles of association.
- Once your company is incorporated, you will need to register it with the Internal Revenue Department (IRD).
Work with a Company Registration Agency
Now that you understand the benefits of registering a company in Hong Kong and the company law, it is time to register your business. Though you can register the company on your own, the process of preparing the required documents such as the memorandum of understanding and articles of association can be complicated. For example, you will need to make several trips to Hong Kong to deposit the documents with the company registry. Instead of following this complex process, why not let the professionals assist you? Use an agency.
- Using an Agency to Register your Company in Hong Kong
Agencies are legal and registered entities in Hong Kong that are allowed to assist with company registration. They help to simplify the process and will be an important asset during the company’s entry and early establishment in Hong Kong. Here are some of the things that make an agency the best way to incorporate a company in Hong Kong.
- The agency helps to prepare all the records that you need to register the company. It will also file the records and ensure your company is registered in record time.
- The agency prepares documents professionally and allows you to focus on getting funds to invest in the enterprise.
- The agency can serve as your business address and secretary to help cut on cost for running ads on newspapers and renting a new office.
- The agency will be crucial to helping your business get started and grow regionally.
The best way to expand your business abroad is by incorporating it offshore in a top jurisdiction such as Hong Kong. By using an agency to register your company, you will have gotten a partner who will anchor your business until it gets wings to fly.