It is no secret that the economic downturn has made many questions about setting up a Hong Kong business. The reality is that setting up a business in Hong Kong is not as difficult as it might appear. Today, there are so many options available to business owners looking to start a venture in the Chinese territory. Here are four key steps on how to set up a business in Hong Kong:
How to set up a business in Hong Kong? Choose your company entity. The formation of a company in Hong Kong is subject to the Chinese government’s regulations and laws, and you, therefore, need to ensure that you are complying with these rules before you open shop. Obtain a business charter.
Form a Limited liability company (LLC). An LLC is a legal entity that can be controlled by its owners. If you want to avail yourself of the benefits of company formation in Hong Kong, you will need to form an LLC.
Get a business license. Opening a new branch in Hong Kong is subject to the licensing procedures under the Control of Trade Ordinance (CTOTA). A good lawyer can help you understand these requirements and help you obtain the necessary licenses. You will enjoy the benefits of company formation in Hong Kong if you are prepared adequately by engaging a good consultant and a bookkeeper.
Obtain a business register. It is a document that keeps track of a particular company’s business activities, including who is doing what, when, and where. It is essential to keep a tab on the money coming in and going out of your firm. In case there are any irregularities, you will have to explain them to the business registry.
Get a business plan. To know how to set up a business in Hong Kong, you need to be aware of the basics of starting up a new venture. It would help if you prepared a thorough business plan that details your goals and objectives. It should include a market analysis as well as an estimate of the revenue that can come in. You must get a license from the court that you are going to use for your trade.
Get a business license. It is compulsory. Next, you need to get a business license number. This number will be displayed on a leaflet that you give to the customers. Thus, you must make sure that you get the right name and address when you provide them with this leaflet.
Get your registration number. The next step you need to take on setting up a business in Hong Kong is getting your registration number. It is essential as this is the number that will be used to track your transactions and to identify your company at the customs and Excise Department at the airport. This registration number will ensure that you abide by the rules set forth by the Hong Kong government. Once all these processes are completed, you are now ready to open your doors.
There are two banks in Hong Kong; it is better to get a separate account for your business. Get a business loan. You may opt to get a loan from the local money market or a credit union, depending on your preferences and capital resources.
Get your business license. After getting your business license, the next step in setting up a business in Hong Kong is getting your trade license. You must apply for this with the local department of commerce. Be careful when you use for this one as it is a process and not an easy one. You must follow the rules and regulations that are set forth by the Hong Kong government. After you get your trade license, you can now submit your application for your trade.
The next step in setting up a business in Hong Kong is getting a registration number. This number is needed if you want to open a company. You must submit your original copy of the registered deed of your business. It is your proof that you have a business. Get a copy of your lease agreement. Make sure that you have a signed contract with your potential client.
The last thing to do on setting up a business in Hong Kong is to get a trade license. Once you get this, your business can already get registered, and your agent will be able to do all the transactions that need to be done. All you must do now is to file your business name, the names of your clients, and the date of your business name. These are the basic things you need to know in setting up a business in Hong Kong. It may take some time to get everything, but this is a very worthwhile investment.