Today, if you check some of the most successful companies out there, they have one common characteristic, their crucial growth phases were mapped in offshore markets. Investors explore offshore jurisdictions to take advantage of lower tax regimes, well-developed infrastructure, and supportive administrations. One jurisdiction that fits that description is Hong Kong.
Hong Kong has a business-driven economy, which means that its administration goes out of its way to ensure that every business that opens there becomes successful. Its tax regime is also straightforward, and it is even possible to operate tax-free when your transactions are done from Hong Kong. To take advantage of this high potential jurisdiction, you need to start with company incorporation. Here are the three methods of registering your company in Hong Kong.
Buying a Shelf Company
This method involves buying an already registered company and following the process of changing the details such as the shareholders and bank account. While this method might sound simple, it is not. Often, the process gets stuck midway, and you are likely to be left with a shell of a company that cannot transact.
The last step of opening a bank account is particularly difficult, with most banks declining the request to open bank accounts for such shelf companies. So, even if you are in a hurry to have your business started, a shelf company is likely to end in great disappointments.
Register a Company on Your Own
Because the process of registering a company is properly outlined in the Hong Kong Companies Ordinance, it is possible to follow it and register a company on your own. Indeed, it is pretty simple; get a name, prepare all the documents, and take them to the companies’ registry in Hong Kong.
Even with the simplification, the process of preparing the documents is still a challenge for most people. Particularly, people find preparing articles of association, memorandum of understanding, and business structure challenging. Even if you get the documents, there are several other hurdles still on the way, including:
- You need to conduct a name search for your company in Hong Kong.
- Look for an office in Hong Kong.
- Look for a resident Company Secretary.
- Fly to Hong Kong to file the documents with the companies’ registry.
While the first option is too risky, and the second one is still complicated, you can take a sigh of relief because there is one last option that does not involve flying to Hong Kong.
Use an Agency to Register a Company in Hong Kong
According to the Hong Kong Companies Ordinance, people who want to register companies in Hong Kong are allowed to use agencies on their behalf. The good thing about agencies is that they are run by experts who have a lot of experience in company registration. Look at the key benefits of registering a company using an agency in Hong Kong.
- The agency can help you to prepare documents professionally.
- The process of company incorporation is completed faster.
- The agency can serve as the company secretary and registered office.
- You do not have to travel to Hong Kong for business registration.
- An agency will be there to help you during startup.
If you are planning to expand your business to Hong Kong, do not be tempted to buy a shelf company because it is likely to end up in disappointments, such as legal battles. The best option is registering a company using an agency, which makes the process professional, fast, and convenient.