Many entrepreneurs are attracted to invest or start a business in Hong Kong because of its free economy. In addition, the excellent infrastructure, modern software, and technology, along with the fair legal system, has made the region a perfect place for investors and entrepreneurs. Similarly, the easy availability and full range support of reputable and trustworthy Hong Kong corporate service providers have made it easy for business people to start or own a Hong Kong company.

3E Accounting Limited is a Hong Kong secretarial company that provides you with world-class Hong Kong secretarial services. They guide you right from the start of your business to its entire existence.

Here, we look into the major process that is required to register and start a business in Hong Kong:

Select The Business Structure

There are several business entities in Hong Kong. These include partnership, sole proprietorship, a company limited by shares, and a company limited by guarantees. All of these business entities have their pros and cons. Therefore, first, you need to know about the business structure in Hong Kong and select the right fit as per your needs.

Name Of The Company

It’s one of the major tasks. You need to follow some guidelines while selecting the names for the company in Hong Kong. You should select the names that are free from copyright, trademark, and patent issues.

Collect The Documents

Documents are mandatory to register a company in Hong Kong. There are some documents you need to submit to the company registry for the registration. These comprise business incorporation documents, copies of articles of association of the company, and notice to the company registration office.

Obtaining The Permits & License

There are some major licenses and permits you need to obtain to start a business in Hong Kong. You can get help from 3E Accounting Limited, the corporate service provider in Hong Kong to get business licenses and permits. You can also check on government websites or online registration services.

Tax System In Hong Kong

The taxes are relatively lower in Hong Kong. The business activities that are governed outside the country do not charge any taxes. Similarly, there are various allowances and deductions in taxes which decreases the amount of tax to be paid. The tax on profits is low to 8.25% for companies that gain profit up to HK$2 million and for those companies with profits above 16.5%, the profit tax rate is 16.5%. It’s relatively lower than that of other countries in the globe. Moreover, the country doesn’t levy a tax on capital gains.

Insurance & Pensions Requirements

You need to register your employees in the mandatory provident fund in Hong Kong before you start the business. It ensures the compliance of your company with the act of employee compensation. Furthermore, it assures that your company has a proper policy that regards both part-time and full-time employees. The staff working in the company must be aged between 18-65 years.

Annual Filing Necessities

There are laws concerning the annual filing of your business. You need to comply with these laws and submit the annual filing record to the company registry within a specific time. You need to file an annual return each year along with the audit reports and tax returns in the Inland Revenue Department.

These are the major processes you need to follow while registering the business in Hong Kong.