A Brief Guide to Forming a Company in Hong Kong

In the past few years, Hong Kong has quickly become one of the most appealing places to register and set up a company for many entrepreneurs.

The main reason for this is due to the fact that Hong Kong has the lesser restrictions for new companies starting out.

Forming a company in Hong Kong is quite a straightforward process, which we will be diving into below in detail.

Setting up a company name

Initially, the first task to set up a new company starts by choosing an appropriate name for the company.

Although there is freedom to choose a name, it is important to make sure that it isn’t already in use.

It’s always recommended to use a trademark checker to see if the business name you came up with already exists. Doing this will prevent you from running into trademark related lawsuits down the line. Always be sure to do your due diligence before creating a name for your business.

Choosing a structure

Choosing the best legal structure for your company is based on its requirements. This plays a significant role in how your company functions.

There are various structures such as Branch Office, Limited Company, and such. It is crucial to choose the one that suits you the best.

Incorporating and registering the company

This is the main task, and it is important to make sure to take your time with this. Rather than getting involved with the technicalities which can be quite daunting, it is much easier and takes much less time to avoid the hassle by taking advantage of Hong Kong company formation services and letting them handle the process from start to finish.

There are a number of services that are involved in the process including document preparation with liberty to choose the package according to your specific requirements. This can make the documentation process a breeze to complete.

Generally, it is advised to opt for companies under the legal structure of limited companies due to the various benefits that they offer such as protection of personal assets.

Although Hong Kong gives a lot of freedom to business owners in working freely, permits and licenses are required which are issued by the official department associated with the task,

As per the regulations, these licenses must be registered within a one-month duration from the time when the company is set up.

Opening the company account

Every company needs a bank account and even though an overseas bank account can be used, it is advised to use an account from a local bank if one wishes to use trusted payment gateway providers such as PayPal.

It is significantly important to choose a bank which works best for you. Regardless of the bank or the country however, the primary opening process remains the same for all banks.

These include application forms, reference letters, proof of business, bank statements and such.

Although the requirements of the bank to set up the account can vary, additional documents can be needed as well. The applicants are advised to keep these things in mind before-hand to avoid any future inconveniences.

Conclusion

This article covers the main areas necessary for setting up a company in Hong Kong. In retrospect, liberty to freely form a company along with appealing tax regime make Hong Kong an ideal country for most entrepreneurs for their startups.