The benefits of company formation in Hong Kong are many. Companies can increase their operational efficiency by reducing the costs incurred from complying with local laws, obtaining licenses, and marketing products and services. Also, having a local office allows easier administration, including anti-money laundering and corporate restructuring laws. The company secretary and director can also make better decisions on how to run the business. Company registration in Hong Kong provides several advantages for foreign entrepreneurs.
How to incorporate in Hong Kong? Most importantly, establishing a business in Hong Kong is very beneficial to the parent company’s employees and the owners. A lot of paperwork and procedures are involved in international company formation. It is because the local laws are more complicated than those in any other part of the world. On the other hand, the paperwork and procedures in Hong Kong are simple, making it easy for the expatriate company to hire the right professionals for the task.
Moreover, Hong Kong laws are favourable to foreigners who want to incorporate their business in the city. They enjoy several significant tax benefits. They are even granted an instant tax identification number (TIN) upon registration of the company. Companies need not pay income tax until their profit is made. Besides, foreigners have a more extended period of five years of residence provided they follow the rules on paying taxes.
For these reasons, many companies choose to establish an office in Hong Kong. However, conducting business in this area requires the presence of the correct documents. Formalizing a company can be a complicated process, mainly if it involves changes in ownership. Companies usually hire a lawyer or a certified public accountant to help them register the business. These experts can help them obtain the appropriate legal documents and conduct the needed procedures.
One of the first things that a company formation expert will do is review the foreign company’s papers. They ensure that all the necessary paperwork is in order, including the Articles of Association, Memorandum, and Articles of Association. They will also check its corporate governance statute, its penal laws, its rules on borrowing, and its banking laws. If a company needs to change its name, it also must submit the application forms to the Registry of Companies.
The business owner should then decide how he wants to incorporate the company. He can either register it as a corporation or as a sole proprietorship. When deciding on the latter option, the new company cannot be controlled by anyone, except its registered agent. Besides, no foreigners can have shares in the company. However, when a foreign company incorporates in Hong Kong, it must appoint a local partner.
Once a businessman has decided to incorporate in Hong Kong, he must contact a company formation expert. By hiring one of these professionals, you can save a lot of time and money to go into other important business matters. You can discuss the basics of incorporating in Hong Kong, and the company formation process. An expert can also provide tips on incorporating in different countries, depending on your location.
Business owners looking for an easier way of incorporating in Hong Kong can opt to use an offshore business registration company’s services. These companies help business owners to register their businesses in Hong Kong under the most professional mode possible. An excellent offshore registration company can provide valuable information about the formalities required in every country. Moreover, it will help save time and money for business owners because it takes care of everything, from drafting the necessary application to incorporating the company and finally, registering it appropriately.