In setting up a company in hong kong, it is uneasy starting this plan without even any knowledge of doing so. To start fresh, you need to know the rules for setting up a new business in Hong Kong. Although there are many similarities in setting up a new company in some countries, there will be a few differences that you need to understand.
Steps in setting up a new business
There are steps to follow when setting up a business in HK; these are:
- Determine the business name
- Choose a legal structure of a business
- Register the company
- Incorporate business entity
- Open a business account
- Get a permit and license
- Hong Kong tax
- Pensions and insurance requirements
- Yearly filing requirements
- Access resources and funds
Once you have completed all these steps, you are ready to tax compliance services.
Types of companies in Hong Kong
Opening a business is not just a question for Chinese or Hong Kongers. There are also foreigners asking if they can set up a business in the country or not. Since HK is a global leader in banking and business, a lot of foreigners are enticed to start up a company in the country. Is the Hong Kong government permitting foreigners to set up a new business or not?
Below are the three types of companies in Hong Kong:
- Limited company. The Hong Kong government is closing a foreign businesses and restricting one business type called a Limited company. If you already have a business, there are some other choices. What is a Limited company? A Limited company is the most common type of business in HK.
It is incorporated in HK; you will enjoy all the same tax benefits as resident entrepreneurs do; it includes the free trade agreement with China.
- Branch office. In this type of business, it is registered somewhere else. You are free to open up a branch office in HK. It is a type of office that is not independent of the parent company and comes with a unique set of limitations.
- Representative office. It is a type of business that is the most narrow way to establish a presence in Hong Kong. The representative offices can’t be incorporated into any profit-making activities. It means that you can’t make or sell goods and services in Hong Kong. If you plan for a non-sales-based branch of a business, then this type of office is best for you.
If you are new in Hong Kong and plan to set up a business, this content can be the best guideline for you.