What Hong Kong offers to businesses in 2020?
According to the World Bank Report of Doing business in 2019 Hong Kong is ranked as the 3rd country for ease of doing business. Hong Kong is distinguished for successful implementation of legal measures to improve business environment. Thanks to its effective policies Hong Kong is well-favored for its low tax rates, no taxes on dividends on offshore income. That said, Hong Kong is an ideal location for non-resident companies, those that do not have any physical presence in the country and those that operate overseas.
However, Hong Kong is an ideal location for startups who wish to be physically present there. This country is the hub of a stable economy, excellent business environment, top-class labour skill, beneficial tax system as well as open market. It is the gateway to China and other countries in the world. No wonder there are more than 700,000 startups incorporated and managed in Hong Kong. Many clients choose Hong Kong for starting business in such sectors as IT, e-commerce, professional and management services, education and e-learning, healthcare, data analysis, etc.
What is the best legal form of company formation in Hong Kong?
Many businessmen who want to trade and offer online services/products choose limited liability companies. As of these days this form is the most popular one in Hong Kong. Strategically, this form creates some insurance that the company’s liability is limited to the share capital of each member.
What is the procedure for company formation in Hong Kong?
Similar to other jurisdictions, it is possible to register a company online by yourself or hire a company that will do this job for you.
Before you file an application and other documents for registration, it is important to choose a company name. A company name can be in English, traditional Chinese or both.
Online search is the most effective way for the purpose of checking whether a desired name is available. When you are sure that a name is available, you should submit an online application with the e-Registry. Upon successful registration, the applicant is granted a certificate of incorporation and a business registration certificate.
Look no further if time and cost of company formation are essential for you. It takes just 1-2 days to register a company in Hong Kong with the minimum costs compared to other jurisdictions.
Many clients wonder why an agent is needed for company formation in Hong Kong, provided that it is not that hard to incorporate a company on your own. You should consider hiring an agent if you need your company incorporated quickly and without delays. Experienced agents know how to do it. On top of that, Hong Kong, like many other jurisdictions, requires you to have a registered address as well as a company secretary. If you don’t have both of these, then you most probably need to hire an agent.
Ecompany.ltd is among those professional and highly experienced companies that assist their clients with all paperwork and numerous issues that usually have business owners. We also help our clients with annual maintenance of companies in Hong Kong.
Another advantage is that you can use our website as a tool for company name search. We maintain an online tool for company name search in various jurisdictions.
What can you advise on bank account openings for companies registered in Hong Kong?
Many of our clients struggle with opening a bank account for their companies in Hong Kong. Mostly it is connected to new strict requirements on KYC and AML checks. This requires the bank to closely monitor all documents. In many cases applicants are required to provide banks with additional documents. The new Hong Kong rules on KYC and AML checks result in HK banks giving preference to Hong Kong and Chinese residents. Foreign residents, even if they own companies incorporated in Hong Kong, face the necessity to collect a lot of documents. Other banks give preference to clients that already have credit history and can deposit more than 100,000 usd.
For this reason, you should consider opening a bank account in another jurisdiction with banks in which you are or were a client. Alternatively, you can hire an agent or company that will help you with all paperwork and refer you to a specific bank.
Another option is to consider a payment institution for opening an online account. This is an excellent alternative to traditional banking. With an online merchant account you get your account within a few hours. In most cases you don’t need to translate your documents and deliver them by post. You just need to upload your ID documents and come through a verification procedure.