If you ask investors about the strategies they used to grow their brands abroad, registering a company offshore is likely to be a common answer. As we are going to see shortly, a good offshore jurisdiction can serve as a springboard to thrust your company into a successful multinational. It is because of this consideration that top brands, such as Apple and Dell manufacture their products offshore. Now, you also have the opportunity to take your business to the next level by incorporating a company in Hong Kong.
This post is a step-by-step guide to company formation in Hong Kong. It also highlights the common mistakes to avoid when going offshore and the benefits of working with an agency of experts.
Important Economic Numbers about Hong Kong
- Hong Kong’s nominal GDP is USD 366.9 billion (2021 estimates).
- The population of Hong Kong is 7.69 million people (2021 estimates).
- The World Bank ranked Hong Kong third on the Ease of Doing Business report in 2020.
- Hong Kong Foreign Direct Investment (FDI) flow in 2021 was USD 119.2 billion.
- The main industries in Hong Kong are tourism, textiles, banking, clothing, shipping, and electronics.
- The main shipping partners for Hong Kong are Mainland China, the United States, Singapore, Japan, and South Korea.
Mistakes to Avoid when Incorporating a Company in Hong Kong
One of the mistakes that people make when registering companies in Hong Kong is assuming that the market is easy and smooth sailing. You should anticipate stiff competition from other local and international companies. Therefore, make sure to study them well and craft good strategies for success. Here are other mistakes that you should avoid:
- Trying to register a company without the assistance of a professional.
- Failing to invest in market research when incorporating a company in Hong Kong.
- Selecting the wrong investment vehicle. The best option is using a limited liability company because you are only liable to the extent of your shareholding.
- Starting a company without ample capital. Consider looking for funds to support the business for at least 12 months or until it becomes self-sustaining.
- Expecting that the strategies employed back at home will automatically work in Hong Kong.
The Process of Company Incorporation in Hong Kong
Now that you know the mistakes to avoid, it is time to get your company registered in Hong Kong. Here are the main steps that you need to follow:
- Select your right company structure and pick the preferred name.
- Appoint a company secretary. He/she must be a Hong Kong resident.
- Select the company address. This should be the company’s headquarters or where the government agencies, such as the Inland Revenue Department (IRD) can get all the documents for inspection.
- Prepare all the documents for company incorporation. These include the articles of association, company name, copies of passports of shareholders, and details of the company secretary.
- Fill up the company’s registration forms, and return them to the Company’s Registry for incorporation. Ensure to also pay the required fees.
- Open a bank account.
- Get additional permits and licenses, where necessary.
- Apply for Business Registration Certificate (BRC).
Although so simplified, the process of company incorporation in Hong Kong is never easy for foreigners. From the long list of required documents to cost, it can be too much for many investors. The best route to follow is working with an agency of experts. GMHK, one of the leading agencies for company registration, works with experts in company registration and are ready to assist you in completing the process fast and professionally.
Visit GMHK now for assistance with company incorporation, as well as other executive functions, such as accounting, filing tax returns, immigration, and business advisory.