Many people ask when thinking about starting a company in Hong Kong is whether it is a good idea. After all, Hong Kong is one of the fastest-growing company formations globally, with over half a million new company registrations every year. The rules and regulations governing business in Hong Kong are comparatively more straightforward than anywhere else in the world. For instance, there are no separate business licensing agencies that have to be registered and no taxation on company formation. Furthermore, there are also no personal income tax duties when forming a company in Hong Kong.
How to start a company in Hong Kong? All you need to do to establish a business in Hong Kong is to comply with the local laws and the requirement for a business license that is more accessible than anywhere else in the world. Your chosen company will then submit its registration number to the Secretary’s office for registering its company. From there, it should take just three months to get its official license and its trade name registered with the China Exchange. The benefits of company formation in Hong Kong are that it’s easy to establish a company with just one visit to the office. Also, it has meagre costs compared to other countries in the world.
When looking into how to start a company in Hong Kong, you need to be aware that there are two types of businesses in the city with tax status and those that don’t. Both types have different tax responsibilities and different tax rates. Therefore, it is essential to get all the necessary information before proceeding with the formation of your company. It includes the accountant’s services and any other professional services which will be required.
There are some significant differences between the two types of company formation. A CPA is the professional who prepares the annual return, which will be submitted to the taxation authorities for the company’s official registration. They have to keep records of all transactions involving the company and ensure that they meet all the tax requirements. All necessary payments are to be made on time. It also pays to consult an accountant or business adviser before submitting the annual return.
Forming a partnership is much simpler than a corporation since partners have different rights and obligations when dealing with the business. They also share in the tax liability of the company. You must have valid tax reasons before putting together a partnership. Your business plan should also be carefully prepared to help the authorities with registering your company.
Once you have decided on the nature of your business, you have to register it with the Local Companies Registry (L CRA). Your business name should be the initial word or phrase in your title, while the address should be the colon or square bracket followed by the word company. The name of your company should not be the same as that of any existing company. If you want to avoid conflict with other existing companies, it is advisable to change the name to something that does not create a conflict.
How to start a company in Hong Kong can also be learned from your accountant, who can advise you on the various options available to you. He will give you a complete list of all the formalities required to start the company and then assist you in completing them. A business license is mandatory to operate a business in Hong Kong. You can apply for the business license online by completing the application form provided by the local office of the Companies Registry. The L CRA will provide you with all the assistance you need to obtain your business registration.
If you want to know how to start a company in Hong Kong using the services of a lawyer, the local office of the Public Trustee will help you. This legal service will assist you with the requirements needed to register a company and register it at the correct location. The PTR is free of charge and can be easily found on the office’s website.