Hong Kong has an increasingly dynamic economy and is a crucial hub for both start-ups and establishing commercial Hong Kong private limited company. Hong Kong is undoubtedly one of the most exciting tourist destinations and a shopper’s paradise. Combine that with its fantastic array of retail outlets, cafes, food outlets, entertainment spaces, and nightlife, and you get a lively place that beckons thousands to its sweet shops and bars every day. Other factors such as these make Hong Kong an ideal place to begin a new Hong Kong company and set up a private limited company to store their assets. And it is no wonder that the number of start-ups has risen by almost 20% in Hong Kong alone over the past decade!
However, starting a company in Hong Kong can be easier said than done. Companies need to have the correct business structure, and more importantly, they need to have all the required licenses and registrations to comply with the local laws. Also, foreign investors are not that keen in Hong Kong or in most parts of Asia for that matter, unless they plan on expanding their business in China. Most importantly, there must be a right mix of corporate and personal assets to guard against corporate fraud and conceal tax liabilities. Hence, if you are looking to open a Hong Kong company, you must keep these points in mind.
First, you should open a local bank account. You can apply for a local bank account either at the local bank or at the local currency office. If your company requires you to have a foreign passport, you may be required to have a foreign bank account. Once you are sure of this, you should also get a copy of your credit history, as a copy of your credit history provides you with the right documentation for your application. Opening a local bank account is free of charge and is not difficult to accomplish.
If you wish to run your company through an account at a foreign subsidiary, you should open a foreign company in Hong Kong. You will still need a local bank account, so make sure you apply early to receive an application fee. However, you can always choose to open a business bank account even without a foreign company registration. It means you can use your domestic bank as your offshore bank, providing your company with an offshore banking facility and a Hong Kong legal status. Just make sure that the account has sufficient funds to accommodate your company’s requirements.
Second, you should contact the Hong Kong tax authorities to determine your company’s business requirements. The tax authority has the power to investigate your company’s income and investigate your business transactions. If your company satisfies the tax authority’s business requirement, you will be issued an International Business Number (IBN). You will then be able to transact business internationally using your IBN as your bank account number.
After you have satisfied the tax authority, you should still open a foreign company in Hong Kong. Again, the foreign company formation office may be of assistance to you in this regard. In this regard, the business requirement would include an application form for a multi-currency bank account.
Another requirement for your company would be to file a register of trade. You should follow your bank’s instructions and have your business registration filed at the Commercial Register office in Hong Kong. It is done in the prescribed manner, and the SCORE certified registrar carries out the statutory test on business registration. This service is offered by three foreign companies: Xiami International, Experian, and Equifax. You can contact these companies by email, phone calls, or by visiting their websites. You can also obtain the necessary forms and instructions from the SCORE website.
After getting your business registration certificate, you can then apply for a local office permit. You need to follow the Hong Kong government office’s instructions regarding the submission of the company registration certificate and the request of the company register of trade. Once you are satisfied with these documents, you can now submit your application for a local office permit. The company filing agent will provide you with all the necessary instructions and documents regarding your business permit submission and receipt. Lastly, the last procedure involved in starting a company in Hong Kong is assessing your capital. The total worth of your company will be evaluated based on the income and assets that you have.