Companies in Hong Kong are considered legal entities, and therefore, you should know how to set up a Hong Kong company. Forming a business in Hong Kong is equally as important as in any other country. The benefits of Hong Kong company formation are too numerous to list. First, the company can enjoy tax-free status, exemption from paying income tax, and national security registration. Moreover, the company will enjoy a low tax rate and be treated as a domestic business rather than a foreign business. Finally, the company enjoys many occupational and commercial privileges, including exemption from personal income taxes on its income derived from various sources and even from dividends paid to shareholders.
You must remember how to set up a company in HK. There are several issues you must deal with it. One problem is the registration of the name of the company. You must apply for a business license for your company if you wish to market your products in the country. The name of the business should include the name of the company, the word ‘Company’, and the abbreviated form of the trade name.
You must also register the company with the Commercial Registry. It is compulsory. The next step is the payment of the registration fee. You can either pay the fee directly from the company or get its registration number from the Commercial Registry office. You can also get help from the experts at the Registry.
Another critical issue is how to set up a company in Hong Kong is to register the business. Again, you can apply for a business registration number or visit the Secretary of State’s Office to register your company. You must use the abbreviated form of your business name. The register will help you find out about the registration. Once registered, you can run the company.
Another critical issue is how to register a Hong Kong company is the payment for the company registration. You must ensure that the amount you pay should be at least 25 percent of the company’s total amount. You can also choose to register the company with the company tax.
After the registration, you can already carry out the business. You must ensure that you have a copy of your company register and the business license. You can carry out the following activities in your company: trading, banking, public sector sales, non-banking, and insurance sales. If the company is a non-banking and insurance sales company, then you must obtain a business loan from the bank.
Besides, you must submit the annual report to the directors and the shareholders. You also must submit annual audited financial statements to the auditor and the Securities and Exchange Commission. This process will continue until the company is well established. When the company is well established, the audited financial statements and its annual report will be released to the shareholders.
You can also learn how to set up a Hong Kong company from various books available in the market. Most of these books are very useful for beginners who want to establish a business in Hong Kong. However, some readers may not be beneficial for experienced businesspeople because they may not cover the topics you want to discuss. The best source of learning how to set up a company in Hong Kong is the internet.
First, you must decide on the name of your company. You must select a term that describes the nature of the products or services you want to offer. It would help if you chose a name that is easy to remember by the customers. After selecting the name of the company, you must register it with the Companies Registry. You must follow the instructions of the Registry to register your company.
You also must register the name of your company in the Commercial Register. After registering your company, you must open the Accounts Book. After receiving the register documents from the Companies Registry and the Commercial Register, you must open the Accounts Book. Then, you must register the business under the appropriate business number. You must provide the correct business number to the relevant authority when you want to start the business.