How to incorporate in Hong Kong is a question that has plagued both local and foreign entrepreneurs for decades. There are two key benefits of company formation in Hong Kong, that must be understood to ensure success. These include the ability to set up a company in one of the world’s most rapidly growing financial hubs, and the enormous opportunities in the highly regulated and tightly controlled economic environment of Hong Kong. Both these factors, plus the simple convenience of doing business in this attractive city, have earned Hong Kong the reputation as one of the easiest ways to incorporate a business.
How to incorporate in Hong Kong? Of course, the main advantage of incorporating in Hong Kong is that it provides the best opportunity for those looking to open a new business. There are no other areas where business owners can enjoy so many tax benefits at the same stage of development. Business owners can save the value of their investment using several policies like stamp duty and business rates, which are only applicable to them and to companies they run. There are numerous other benefits, including access to the Hong Kong stock exchange and exemption from import and export duties on goods imported into the country.
The second key advantage of company formation in Hong Kong is that it provides a streamlined process for businesses wishing to open a city branch. The reason behind this is that the local procedures are straightforward to follow. Most of the documentation required can be completed online, making the entire procedure far more convenient than those in any other location in the world.
Another of the key benefits of company formation in Hong Kong is that it provides unlimited access to the global business market. Companies can establish offices in any part of the world they choose, providing them with an endless supply of potential clients and customers. There are no limits as to the locations in which a company can operate. Besides, there are no restrictions placed upon the number of employees employed by a company. All in all, the benefits of company formation in Hong Kong are beautiful to companies looking to expand their operations in the region.
Companies also gain access to a range of benefits through how to incorporate in Hong Kong. For example, they are not required to hold annual general meetings each year, nor are they legally obligated to provide annual reports to shareholders. Neither are they obliged to appoint a CEO and a Board of Directors. In addition to this, they are not required to issue stock shares and are not liable to pay capital gains tax.
However, before a company can establish a permanent address, it must apply for a business registration form. Once a company registration form has been submitted to the Office of the Secretary of State, the office will carry out the necessary procedure for the lodging of the company’s name in the public registers of Hong Kong. The company registration process usually takes between two to four weeks, depending on the number of applicants.
After completing all the formalities, a company registration form will be provided to the Secretary of State’s Office. Once the company registration form has been submitted, a copy of the document will be faxed to the Secretary of Naturalization office. The company will be granted its permanent address. Once the address has been verified, the new company can commence trading.
The other option on how to incorporate in Hong Kong is for a limited liability company. If you choose this option, your company name will not be publicly listed in the Companies House or the Hong Kong Stock Exchange books. Instead, you will be considered an animated Liability Companyand can manage and run your business under a ‘Powers of Attorney ‘from an authorized agent. All the usual procedures must be followed in this case, including paying the prescribed administrative fees. However, this option’s advantages are that your company name will not be exposed to public registries and have a more personal identity.