Strategically located in the heart of the Far East, Hong Kong has won the tag of the “business paradise” that no entrepreneur wants to miss. For years, World Bank has ranked Hong Kong at the top of the Ease of Doing Business Reports, meaning that it gives your enterprise the best opportunity to succeed.
Another awesome thing about Hong Kong is its effective response to disasters. Since March 2020, when Covid-19 broke out in Wuhan, China, Hong Kong’s efforts to prevent the spread of infections and deaths have been remarkable. Globally, the pandemic has soared with infections hitting 12 million and deaths surpassing 500,000 by early July 2020.
To take advantage of this high-potential jurisdiction, you need to make the first step, which is incorporating your business in Hong Kong. In this post, we will answer the common questions that people have about doing business in Hong Kong.
Is it Legal to Open an Offshore Business in Hong Kong?
It is legal to open a business in an offshore jurisdiction. Today, millions of businesses are being opened across the world, and it is okay. To be specific about Hong Kong, you will realize that bulk of the companies in the jurisdiction are indeed foreign-owned. Hong Kong Companies Ordinance provides a clear guideline on what foreigners need to open and run businesses in Hong-Kong.
The Hong Kong administration, is, particularly focused on encouraging investors to come to the island, but why? The answer is that the island’s administration has adopted a business-oriented model since it lacks land for agriculture or minerals to explore. So, if you are thinking of opening a business in Hong Kong, know that it is legal, and you are so much welcome.
Is Opening a Company in Hong Kong Complicated?
Opening a company in Hong Kong is pretty straightforward. The process of registering a company in the jurisdiction is outlined in the Hong Kong Companies Ordinance that defines the documents you need to prepare and submit to the registry. To make the process even simpler, you should consider working with an agency.
A company incorporation agency is a firm or registered entity that is allowed by the Companies Ordinance to help people register companies. With an agency, you are assisted in preparing most of the documents, submitting them to the registry, and completing the process faster. And now unto the good bit – you do not have to fly Hong Kong to register your company!
Why Do I Need a Company Secretary when Registering a Company?
It is true you need to have a company secretary when registering a company in Hong Kong. A company secretary is one of the main requirements outlined in the Hong Kong’s Companies Ordinance. Note that this is a senior position, as opposed to a junior clerical officer, where the holder is the custodian of the company’s legal documents.
The company secretary also serves as the link between the company and the government. This means that if any department of the government wants to check something, such as your company’s compliance with different legal statutes, the person who will be reached for answers is the company secretary. So, when selecting a good company secretary, it is important to go for the most qualified and experienced person.
What is the Secret of Making My Company Successful in Hong Kong?
When you open a company in Hong Kong, the secret to success is the strategy you adopt. So, make sure to study the market well, focusing on understanding the targeted audience and competitors well. One way of achieving this is to work with experts who have already helped other enterprises become successful because they can tell you which strategies work and those that do not.
If you contract a good agency, you can achieve so much and grow your company into the multinational of your dreams faster. Indeed, you even get more because the agency can also serve as your company secretary, the Hong Kong address, and assist you with early entry into this high-potential market.