Hong Kong has long been a haven for businesses. It has a free and open economy and encourages entrepreneurs, which means many people who live in countries with a lot of red tape are attracted to Hong Kong when they set up a business. But what should newbies to Hong Kong do if they want to set up a company? Here’s some things you need to know before you begin.
You can get help with company formations
While starting a business in Hong Kong seems pretty simple on paper, you should consider getting professional help and advice from experts in the area. They can help you with company registration in Hong Kong, ensuring that the business that you set up is legal and compliant, and that you don’t encounter issues down the line.
Limited companies are the most common option
If you’re a foreigner, then you are likely restricted to opening a limited company, but this is not a bad thing. You get excellent tax benefits by owning a business in Hong Kong, and there are trade agreements in China that allow you to trade freely with a growing market. Many businesses also open branches in Hong Kong, although this has a few more limitations.
Hong Kong has expensive living costs
If you are thinking of starting a business in Hong Kong, you need to consider the cost of living because:
- You’ll need to buy or rent a place to live, and Hong Kong is the most expensive city in the world for property
- Commercial property is also expensive so you need to take that into account
- If you employ people in Hong Kong, salaries will need to reflect the high cost of living
- The lower tax rate makes up for these extra costs somewhat, and is one of the lowest in the world
If you decide to start a business in Hong Kong, it’s important to be prepared for the costs associated with living there. However, because prices are high, this could potentially benefit you, as it could mean higher profits. The lower taxes can also help you balance your budget.
The market is growing
As China’s economy and middle class grows, Hong Kong usually follows behind it, so moving your business here can be a sensible decision. If you’re considering Hong Kong as a location, do some research into the current market so you have all the up to date information you need and can make the right decisions.
Hong Kong is becoming an increasingly popular place to start a business. This is for many reasons, such as the already well-established business and finance sector, down to the low taxes and international feel of the place. If you want to start a business in Hong Kong, it’s important to get advice before you proceed, from people who know the market well. From company formations to taxes, hiring experts means you aren’t alone and can ensure everything is kept legal and legit, so you don’t encounter any problems down the line.