Many are the times when people ask; what is the best place to run a business offshore? In the west registering a business and operating it is an uphill task. Even when you manage to register the company, your operations are greatly curtailed by restrictive regimes, punitive tax systems, and unstable banking system.
Top investors, academicians, and corporates are in agreement about one thing for both new and veteran investors; Hong Kong is a paradise for investors. Well, why Hong Kong? Because it operates as a special administrative region of China, the administration has installed great policies that support business growth and success. Besides, the tax regime in Hong Kong is favourable at only 16.5% for domestic businesses. If your business is making most of the profits overseas, you can even qualify for 0% tax. To take advantage of this stable economy and financial system, you have to register a company.
Here is an account on how to register a company in HK in easy steps.
The process begins with gathering all the required documents before presenting them to the registry. Make sure to think about your business idea, review the market, and gather all the required resources. This will be crucial especially in remunerating staff, catering for start-ups, and meeting initial costs. The main documents that you will require to have the company registered include;
- Copies of shareholders’
- Company office address
- Address and contacts of a Hong Kong Resident secretary
- Article of Association
- Minutes authorizing formation of the company
- The name ideas for the new company
Step Two: Get a company secretary and correspondence office
This step is considered very critical in the registration process because of communication once the business commences operations. Hong Kong, like other metropolitan areas, has a diversity of both physical and virtual offices. If you will not be taking a lot of time in Hong Kong and want to save on costs, it is advisable to consider sharing the office and secretary services. In all case, a high-quality company secretary services in Hong-Kong is a must for your company.
Shared facilities allow you to have a secretary to do all secretarial work, reply all inquiries, use dedicated office, office lounge, and other facilities. You can cut cost by over 70% by sharing an office as opposed to renting one on your own.
Step three: Search for company name and submit the documents to the registry
Once all the documents are ready, go to the registry database to check whether your name suggestion has already been taken. The registry is free, and you can check from anywhere all over the world. Getting a name that is unique to your brand will help to build trust in your products and accelerate the process of growth. Present all the documents together with the search results to the registry for the process to begin. It will take about two weeks before the process is complete and certificate of incorporation released. However, you will not be able to commence until you open a bank account.
Step Four: Open a bank account for the business
This is the last step that will open the doors to start operating in Hong Kong. When you register a new business, you will not have any difficulty opening a bank account. All that you require is presenting the certificate of incorporation, passport of shareholders, and proof of residence for directors. The bank may also demand additional info to complete the registration process. Remember that you have to present these documents in person to the bank of choice. For those who decide to buy companies that have already been registered, there is a high risk of stalling and even failing when it comes to opening the bank account.
Using an Agency to register a company
If you find it difficult to come all the way to Hong Kong to register the business, you can do it using an agency. All that will be required is providing the necessary documents, paying requisite fee, and waiting for the certificate. It will take less than two weeks to register the company with an agency. The agency can even organize for an office, secretary, and operations for a full year.
