Starting up a small business in Hong Kong is not that difficult at all. Anyone interested to start a small business in Hong Kong can do it within just two months. Besides, the current pro-business government has made running a small business highly user-friendly so far that the territory has been ranked among the top rankings for the corporate tax credit
Starting a business in Hong Kong requires you to prepare a thorough business plan. The plan should assess your business goals and what your company will do to achieve them. It includes statistical data, such as the average revenue or sales per month over the past three years. You must also have projected income and profits. It is a good idea to talk with a qualified accountant to help you prepare your business plan.
Several significant benefits attract foreign investors to Hong Kong. The low tax system makes the country attractive to many foreign investors. The legal system here is exceptionally efficient; people here speak English well, and the workforce is highly educated and trained in professional areas. These are some of the significant reasons many business owners choose to establish a Hong Kong company.
Now, let us discuss how the entire process of Starting a business in Hong Kong goes. First, an entrepreneur submits the Articles of Association for a company. Then, after approval, company registration can proceed. Next, a company secretary presents the completed Articles of Association to the Registrar of Companies. The Registrar will then issue the company certificate, and the company name and address.
Thirdly, when it comes to bank accounts, foreigners usually need to open two separate bank accounts: one in the company’s name and another in the individual proprietor’s name. The bank account numbers should match up with the personal account of the entrepreneur. In most cases, entrepreneurs prefer not to reveal their details online, fearing that their data will be stolen by those who may want to access their bank accounts. Hence, they tend to open two separate bank accounts.
After establishing a company, entrepreneurs are now ready to set up their business address. For this, they can either use their company’s original address or the one they have been using as their company address. When starting a business in Hong Kong, entrepreneurs use their actual address, and later change their company address when selling products online. This way, the company registration number does not have to be changed, even if it changes its address.
Now that we have covered the entire process of starting a business in Hong Kong, we can return to the details of how to open an account. Before you go about this, make sure that you have a nominee account in your local bank not to have to deal with multiple bank accounts. After you have settled on the type of company you would like to set up, check with your local bank about opening an NRI bank account. Many banks in Hong Kong offer such services to foreigners. Most of them have offshore branches so that their customers can extend their bank accounts without worrying about their Chinese nationality.
The government has also taken several necessary steps to attract more foreign investment. Hence, most venture capitalists are looking for opportunities that offer them a chance to earn huge profits. These investors prefer to invest in an entity that is not under the Chinese authorities’ scanner because they know that no government regulation will prevent them from earning their profit. Also, the Hong Kong business entrepreneur does not have to be concerned about the tax regime. He must comply with the government’s tax regulations, and he is in the clear.