If you are looking to expand your business horizons and you have your sights on Hong Kong, you have come to the right place, as this article offers a few important tips that should help you greatly. Although technically part of China, Hong Kong enjoys special privileges that are attractive to the foreign investor and we offer the following advice if you are planning to launch a business in Hong Kong.
Seek Out a Local Law Firm
When looking for company formation in Hong Kong, seek out an established local law firm that has experience in setting up foreign-owned businesses. It is important to be compliant with local laws and regulations and the best way to ensure compliance is to seek out a legal expert. There are 3 main types of business that you can register, which are as follows.
- Representative Office – If, for example, you wish to do some serious market research before you make a commitment, you should choose a Representative Office, or RO, as it is known, which is designed for businesses that wish to research the domestic market. This non-trading entity is not subject to local laws and restrictions and there is no minimum capital requirement.
- Private Limited Company – This trading entity is ideal for the business that is ready to enter the domestic market, which requires at least one shareholder and one director. This type of business facilitates a working visa and is the most popular type of business registration, which must comply with local laws and regulations.
- Foreign Branch Office – This trading entity is unrestricted with business activities and requires one branch manager, while there is no minimum capital investment. Ideal for a multinational company that wishes to establish an office in Hong Kong.
The local law firm can offer you the best advice and they can also facilitate the registration, making sure that everything is in order. If you are looking for top-rated security for your new business premises, click here.
Other Business Registration Options
Aside from the above choices, these are the other business registration options:
- Limited Partnership
- Limited Liability Partnership
- Sole Proprietorship
- Non-Profit Foundation
- Shelf Company
- Offshore Company
Essential Business Services
Once the business registration is completed, you will need essential business services such as bookkeeping and accounting, which your local legal partner can find at local rates. If you require office work, this can also be outsourced to a local 3rd party provider, which is a lot cheaper than directly employing local staff. Click here for further information about setting up a business in Hong Kong from the government website.
The most important thing about setting up a business in a foreign country is compliance and the best way to assure this is to seek out the services of an established local law firm who will guide you through the business registration process.
