Company Formation in Hong Kong – An Overview
Forming a company in Hong Kong can be an advantage for your business as the laws in this region are less complicated. It means that many entrepreneurs have decided to open their businesses in this area of the world. The number of companies has risen sharply over the years, giving you an excellent opportunity to cash in on the market.
The first step is to find a business structure that suits you for forming a company in Hong Kong. There are two types of company structures – limited and general. The little company allows you to own only a specific part of the business. You will still need to hire staff and run the office. You will also need to file taxes and manage the day-to-day operations of the company.
As you can see, there are a lot of benefits of company formation in Hong Kong. It is not as difficult as it may seem. The process of incorporating a business in Hong Kong is straightforward. You do not even need to hire a lawyer or any professional to help you out. Once the process is completed, you will set up your own office and manage your business efficiently.
Forming a company in Hong Kong does not take too much time. You will not need to wait for too long as it only takes a couple of weeks. If you plan on expanding your business, you can apply to extend the time given by the Registration Office. They will provide you with an application form and instructions on how to go about starting your business.
Another benefit of company formation in Hong Kong is that you will be allowed to import or export goods from any country. With this, you will have more opportunities to expand your business. The laws of taxation are elementary to understand. All you need to do is read the document carefully and follow the stipulated procedures. Of course, you need to pay for any service charges incurred when you file the paperwork. However, you will be getting all of this under the guise of being an “imported item”.
Lastly, you will need no capital when you open your company. When you are looking to start your own business, you might need a certain amount of money to start up. However, when you register a company in Hong Kong, you will not be required to pay any taxes. It makes the whole process even more attractive. It is because you will not need to pay any registration fees or anything when you open your company.
Of course, there are several disadvantages when you are using this particular method for company formation in Hong Kong. The main disadvantage is that you are limited to the use of the name of your company. You are not able to use anything other than the name. You are also limited to the use of the logo designed by you and your company’s staff. You will also be limited to a fixed number of employees for the company.
In addition to these disadvantages, you will need to pay the services of a professional lawyer for the formation company. Since you are not a Hong Kong resident, you will still be required to hire a local businessperson to help you register your company. It can be pretty expensive considering that you will need to pay a large amount of money for the services of these professionals. In addition to this, you will also need to provide them with several updates regarding your business. It can be considered as an additional service that they will charge you.
forming a company in Hong Kong