The benefits of company formation in Hong Kong are numerous, and they cannot all be listed in this article. However, the benefits of company formation in Hong Kong can be briefly mentioned to offer an insight into the advantages that could be had by deciding to establish a company in Hong Kong. Companies are said to be found in Hong Kong when a document is signed by authorized signatories that provide basic information about its nature and intentions, including what it hopes to achieve in the future. It is known as the Memorandum and Articles of Association, and the document must be lodged with the Companies Registry at the Commercial Registration Office at the Central Government Building.
Providing full legal responsibility for a company requires strict legal duty owed by the company, and start up business Hong Kong is thought of as one of the most highly secure establishments that entrepreneurs may undertake. Also, providing full responsibility for a company means that entrepreneurs should pay taxes promptly and incur other tax authority obligations. All these responsibilities are known as ‘residents’ of the company, meaning that taxation is passed directly onto the company’s proprietors in the form of income tax. If the company does not have sufficient funds to meet these obligations, it may become bankrupt. There are many other benefits of company formation in Hong Kong that must be examined closely because these carry a direct bearing on a company’s ability to remain solvent and prosperous.
Company formation in Hong Kong allows easy access to local and international markets. For example, a Hong Kong company that intends to provide IT services to the public through its websites could be easily set up through a company registration service. The company would pay just a small fee to register itself and after that could go about its business freely advertising its services to the public. As more people visit the company’s website and become customers, the company would have grown, and market value could hire more employees to expand into new markets. It would, in turn, mean more profits and expansion opportunities.
The most popular types of companies in Hong Kong are those that deal with foreign clients. A company registration service can be used by any company that wishes to market its products or services to foreign customers. Registration itself does not take very long to do. Foreign clients will give a business address and some contact information to the service provider and business registration would be complete within a few business days. Some companies offer assistance in company registration, including translation of documents and help during company registration, giving the convenience of doing business in Hong Kong further.
There are several reasons why companies wish to incorporate in Hong Kong. The most common cause is to protect their intellectual property rights in China, which could mean paying high costs to obtain protection for the company’s requests. Secondly, registering a Hong Kong company allows companies to access the Chinese market, as the Chinese market is much larger than the American or European markets. Finally, Hong Kong registration opens the entrepreneur’s need to enter other markets, gaining an international presence and market exposure, proving very profitable.
A company registered in Hong Kong has the option of having its registration process completed in two ways. The standard registration method is done by going through the local procedures, including application forms, payment, and inspection of the premises. Another registration method is for the company to be listed in the stock exchange, which is a more complicated process. However, both approaches are still simple and can be completed within a few days or weeks.
It is unnecessary to hire an accountant to create a business plan for your start-up business in Hong Kong. The business plan is simply a document that explains in general terms how your company will be organized, how it will earn a profit, and how it will be marketed. This plan can be used to inspire investors and lenders. Besides, when you are applying for funding from banks and other Hong Kong sources, you must attach a complete business plan to your application for that loan, which should be secured to your business registration.
Lastly, it is essential to bear in mind that even after completing all the legal formalities and business registration processes in Hong Kong, your business is still open to the public. It means that even if you have registered your company, it is essential to market your business to the public regularly. It will ensure that your company is always available to take on new clients and do business with new people. The best way to market your business is to get the word out about your company to your existing clients and potential investors.