Hong Kong which is autonomous territory in the southeastern China is one of world’s busiest financial centers that has attracted a very large number of global giants to invest in this land of opportunities and reach tremendous heights. It is true that Hong Kong is one of world’s most favorable markets for starting a business and this is evident by the World Bank reports that rated Hong Kong as the 6th easiest country in the world in which to start a business. However, an entrepreneur shouldn’t simply disregard the many procedures they must go through and requirements they must meet before they commence operations in this country. Continue reading this article to learn some important facts about starting a business in this financial hub of Asia so that you can make a more informed business decision.
This is a crucial step when establishing an enterprise in pretty much all parts of the world including Hong Kong. Once a set of potential names well suited for the organization has been identifies, the next step would be to look it up on the company registry of the territory to check if they are available or whether they’ve already been taken by an existing company. You can also check whether a suitable domain address is available so that you can make you online presence as soon as the operations commence without any last-minute hassle.
Business registration certificate
The Hong Kong company registration process requires a new company to register itself first with the Business Registration Office which will then direct you to the Inland Revenue Department. This must be done within the first month after a company’s establishment.
The process requires the settlement of 76 which is about HK$2,600 (these values may be subjected to change), a fee charged for a period of one-year certificate with the inclusion of levy.
As one of the busiest corporate hubs in the whole of Asia, Hong Kong has adopted a territorial taxation system whereby it imposes taxes only on the income that is earned by organizations within in the boundaries of the country. This is an extremely beneficial system especially for the multinational corporations who operates in several other countries. Currently, a profit tax rate of 17.5% is applied on the businesses and this provides a great opportunity even for the startup companies to grow faster.
The government of Hong Kong is greatly supportive to the local businesses and they provide a wide range of incentives to both the well-established corporate giants and also to the small-time startups. Following the end of the British rule in the country they have gained access to the enormous and promising market of China and the government provides opportunities to reap the maximum benefit off this luxury through the easement of cross-boundary trade activities.