If you are considering of starting a business in Hong Kong, you are making a very right choice. Being a Business and Banking Worldwide Center, Hong Kong is a variety of opportunities.
Opening up business in Hong Kong is fairly easy and not expensive. As a foreigner, you are given the unique opportunity to own and operate a 100% business in Hong Kong, and you can act as both the sole director and shareholder. As a matter of fact, Hong Kong is not only an excellent choice for the market expansion in China but also in other Asian countries as well.Carry on reading this article to know more about the steps, time frame and costs of launching a business in Hong Kong. You may also try the ease of Aspire for conducting bustling transaction of payment to and from Hong Kong.
Overview
What Company Types Available in Hong Kong?
Opening a foreign business in Hong Kong is generally restricted to one business type: Limited company. On the contrary, if you already run a business in another location, you have two other possible ways.
Limited Company
A limited company, also known as a private limited company, is the most popular business entity in Hong Kong. As it is registered in Hong Kong, you will be eligible for the same tax benefits as local business owners enjoy through the free trade with China.
Branch Office
If your company is already registered somewhere else, you can set up a branch office in Hong Kong. Unlike an independent office, this kind of office is tied to its parent company and has its own limits.
Representative Office
A representative office is the lowest level of physical presence that a foreign company can set up. In addition, the representative offices are unable to engage in any profit-making activities, which means you may not make or sell products or services in Hong Kong.
This kind of office will be perfect if you are planning to start your office based on non-sales business branches like support or marketing.
How Do I Choose My Business Name?
Before registering a company in Hong Kong, you must choose a name and make sure that that name is not already claimed by another entity. On the Companies Registry website, you are able to search and verify the full list of company names registered in Hong Kong.
How to Start My Business in Hong Kong?
The procedure for initiating a business in Hong Kong is relatively straightforward, as detailed below:
Apply for incorporation online through Hong Kong’s 24-hour Companies E-registry
To incorporate a company in Hong Kong, you will require the following:
- NNC1 form or Incorporation form
- Form IRBR1 Notice to the Business Registration Office
- A duplicate of your company’s Articles of Association.
Apply for business registration
When submitting your incorporation application, you’ll simultaneously apply for business registration.
For this phase, you’ll require:
- The payment of your business registration fee – Generally amounting to HK$2000 for one year or HK$5200 for three years
- Contribution to the Protection of Wages on Insolvency Fund – HK$250 for one year or HK$750 for three years
Duration it take to open a HK business
If you are looking for the best way to set up a company in Hong Kong online, you have landed on the right page. Providing that your documentation is all in place and you get an approval, the process can be wrapped up within an hour. This involves the Certificate of Incorporation and Business Registration Certificate, which you have to get.
Upon the submission of your documents, your Certificate of Incorporation and Business Registration Certificate are normally issued within four days.
Traditional Bank Account Opening
One of the first things you will need to do to get your business started in Hong Kong is to open a bank account in the city so that you will be able to fund your new business.
The procedure is generally simple for personal bank accounts, while the business bank account requires some few documents. A better option to these solutions, a Wise Business account, could save you time and money. Sign up Aspire Account with EMGC.
The Aspire Business account. Empowering businesses without borders..
Traditional bank accounts are limited to one country and currency and are therefore problematic and costly for international transactions. While traditional banks offer multi-currency accounts, they usually come with higher costs and complexities, unlike the Wise Business account. In addition, traditional banks can limit the number of supported currencies and the simplicity of cross-border transactions.
AspireApp is not a bank; rather, it is a Money Services Business (MSB) provider and a clever substitute for banks. The Aspire Business account is suitable for international business and allows for easy sending, holding, and managing of business funds in 30+ currencies. To receive overseas payments as a local you can obtain the details of major currency account for a one-off fee. Money can also be sent to over 130 countries. All that in one account. Most important is that the rates are 3x cheaper than banks.
Sign Up Aspire Multi-Currency Business Account with EMGC for FREE
You can now transfer, receive and manage your money around the world, without insane fees or exchange rates. A small, reasonable fee of when your funds are transferred between currencies.
You can convert USD to Hong Kong dollars at the mid-market rate, and manage, spend from your Aspire Multi-Currency Business Account. Contact EMGC today to get a FREE sign-up (use referral code: EMGC) for the Aspire Multi-Currency Business Account, along with a special offer for Hong Kong company incorporation services.
