Company formation in Hong Kong is an easy and quick procedure, this is the main reason why many investors may find that setting up a new business will take less than a month and sometimes just takes a day. There is no secret that Hong Kong is now one of the most popular places to do business in the entire world. This is because of its low cost of living, which make the market place very competitive, as well as a tax-free status, which attract large numbers of investors.
When starting a business in Hong Kong, it is essential to obtain the necessary licenses before doing so. These licenses come in two forms; either for local registration or for trading or corporate registration. The latter is often referred to as special permits, these special permits do not carry any legal weight, but are certainly important to ensure that you do not end up with a law firm fighting your corner on your behalf due to having failed to pay tax on the funds from the special permits. This system of taxation on the stock market in Hong Kong has attracted a number of companies from foreign countries, who are now setting up base in the country. In addition to the low cost of living, another major reason why Hong Kong has become such a popular destination for business is that it has a relatively free economy which is based on free trade and open capital markets.
Before doing so, it is advisable to have all the relevant registration and licensing forms completed and ready to hand, so that once the representative of your company approaches a financial institution for funding, they can complete the necessary registrations quickly and efficiently. If you are considering setting up a Limited Liability partnership, for instance, it is worth ensuring that the partners have sufficient funds available to shoulder the financial liabilities should the business fail. Forming a corporation is also an effective method of securing the necessary permits, as many of these require no additional paperwork. However, if you choose to form a partnership, it is worthwhile finding out how the formation process will affect your joint income tax return. Sometimes, registering a business as an individual will result in better taxation implications for both the individual and the company.
There are several common business forms that are commonly used in Hong Kong, including the company formation and the limited liability company formation. These are among the most popular methods used by local businesses, and they are easy to complete. There are a variety of business forms available, from simple ones such as a payable order, deposit and stock transfer, to the complex multi-level structure that sets up the nominee director and company secretary, among others. If you are looking to set up a new business in Hong Kong, or expand your existing one, the simplest option would be to simply follow the instructions contained within the forms provided by the lender. Most banks will offer some sort of guidance on the best options, with specific criteria depending on the nature of the loans being offered.
Forming a limited company in Hong Kong, as with any other country, requires you to supply the necessary documents and meet other registration requirements. In fact, it is common for individuals to try to avoid these requirements in the hope of saving time and money. The truth is that if you try to save time and avoid paperwork when forming a limited company in Hong Kong, you may end up paying more in the long run, as companies are able to charge higher rates of registration fees in order to protect their ownership rights. Furthermore, the amount of time you have to spend filling out the forms and filing them will vary according to the type of company you set up.
When you are ready to open your new business in Hong Kong, you will be required to provide the Companies Administration office with all the appropriate documents. These include your Articles of Association, a list of your shareholders and other relevant documents that must be submitted to the office. These documents will ensure that your registration with the Hong Kong SIN is correct and that you are protected from any liabilities that may arise as a result of your conduct of business in the future. Once these documents are submitted, all you need to do is wait for the processing to finish.