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There are many good reasons to consider a Hong Kong business setup. However, there are a lot of things involved in setting up a Hong Kong business, also. Here are some tips to help make the process a bit easier.
Deciding on the Right Type of Business
You will need to know ahead of time, exactly what type of Hong Kong business that you wish to setup. Many foreign businesses will choose a subsidiary type of company as it gives them a great deal of protection over something like a branch office. However, this will depend on the type of business that you wish to conduct. There is also the option of opening a representative office. However, this will give limited options, as far as sales and marketing.
In some cases, it may be difficult to reach a final decision. It may be best to employ firms that specialize in assisting with company registrations and setups. This can simplify things and make the process go much faster, also.
A good firm will also assist with corporate bank accounts. They are familiar with the banking services and can advise you on the right type of accounts and exactly what to do.
Licensing Requirements
You will need to see if the setup of your Hong Kong business requires any special licenses or permits. Most financial services will require a license and it is best to check at the time of your registration. Of course if you hire a firm to assist you, they will be aware of any additional things that you need.
Private Companies
Most individuals may wish to setup a Hong Kong business as a private company. However, it is best to know the options. The private business will be able to limit its liability. It will also be able to obtain private funding only, and it is known as a company that is limited by shares.
A private company is restricted on how it can offer shares for sale. It cannot offer them openly to the public. These companies are also limited to fifty total members and this includes staff and employees.
Shareholders benefit from investing in private companies by limiting their liability to the value of their holdings. If the company goes out of business, shareholders are not liable for debts and concerns of the entire company.
When you setup a Hong Kong business, you must have at least one stock shareholder in your company. This is absolutely essential to start a private company, although that shareholder does not have to be a Hong Kong resident.
Summary
When setting up a Hong Kong business, it is important to know which type of company will work best for you. Most individuals prefer to start a private limited company, whereas foreign companies prefer to go with a subsidiary company. Private companies are the most common types of businesses that are setup in Hong Kong. They offer liability protection and can only be funded through private sources. A private company may not sell stock openly to the public. Most individuals and foreign companies hire professional firms to help them register their business entity in Hong Kong. This makes the process easier, quicker, and smoother. Find More Important Information About Hong Kong Company Formation Issues
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