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Start A Hong Kong Company And Benefit From It
If Hong Kong is today one of the most vibrant financial centers in the world it is because of the benefits it offers to people how to set up their companies here. Hong Kong is one of the most favorite business destinations for companies from all over the world. This is possibly the reason why many Singapore businesses want to start their operations in Hong Kong.
The country has seen many multinational corporations set up their operations. Being close to China is one of the attractions for most companies to come and start offices here. Most rating agencies give Hong Kong a very high rating when it comes to ease of doing business. The government in Hong Kong gives active support to private businesses being set up here by foreign investors.
The Benefits of Setting up a Hong Kong Company
The ease of setting up a company with a system that is not corrupt is probably the first attraction for any company to set up its branch in Singapore. The country also boasts high efficiency when it comes to business as well as economy. The country also offers the opportunity to companies from the West to have an entry into the Asian market. There is an independent legal system which is very essential for private businesses.
Location is another big reason for setting up an offshore company in Hong Kong for many Singapore companies. The proximity to one of the largest economies in the world China is reason enough to be attracted to this country. Most Chinese companies set up their offices in Hong Kong for expanding their business into Asia. This helps to foster excellent trade relations between Singapore companies and Chinese organizations. The infrastructure in the country is highly developed with transportation and telecommunication at their best. The country has excellent connectivity with most nations of the world.
How To Set Up Business In Hong Kong
Setting up a business is a very simple process and good agencies from Singapore have their offices here to help the companies. There are different company types that you can set up in Hong Kong and these agencies will help you with selecting the right one that will suit your business. This is very important for the future of your company. The selection will be based on many factors like the size of the business, capital investment, the workforce that is needed and the requirements of the business.
Foreign companies can start either a limited company, branch office, subsidiary company or a representative office. While the branch office and subsidiary companies can indulge in commercial activities, the representative office is opened for the sole purpose of exploring the possibilities of business in Hong Kong. The subsidiary company is responsible for its debts and liabilities while the parent company has to take care of these for the branch offices.
Why Set Up A Private Limited Company?
The freedom offered by a private limited company in doing business and acquiring property is what attracts most investors to set up their Hong Kong Company. It is a separate legal entity and thus can independently enter into agreements with other entities in the country. The liabilities and debts of the company will not affect the parent company or the shareholders' assets in any way. A private limited company facilitates the easier raising of funds for development.
With a private limited company, it is easy to transfer shares. Once the company is set up in Hong Kong, the shares can change hands without affecting the business of the company. The transfer of shares from one person to another or a company will not affect the working of the company. This enables the company to get funds very easily by selling the shares.
Further, the company can be fully or in parts be sold to other people without affecting its operations. The government of Hong Kong offers excellent tax benefits to private limited companies which helps the companies to put back money into it for expansion.
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