Best tips on expanding a company in Hong Kong

images (1)Most people who go to Hong Kong to set up companies usually start with smaller business so that they have very little to lose. After taking all the safety measures, it becomes necessary to expand the business at a later stage of the company’s life. However, in order to do this you have to ensure that you follow the right steps so that you do so with assured success. This is where the http://www.investhk.gov.hk/index.html comes in very useful. They make sure strategy which you use to expand your business is most effective hence making their services very useful.

They are in a position to take advantage of business network opportunities so that they increase the client base of a company. This is very important because if you intend on expanding a company you should be also be able to find the market that will pay for the additional services which you offer. In Hong Kong, you can find the ready market thanks to the huge population that stay in the city. The good this is that they also have a high purchasing power hence in a position to pay for what you offer.

The expansion will also require increased work force therefore you have to find the people with the required skills. By relying on the services of http://www.investhk.gov.hk/index.html, you can rest assured that you will find the right people for the job within the required time. With the huge population, you will be sure to get people who are more than qualifies for the job hence making it even more beneficial for the business. This is possible mainly due to the good training facilities and the high education system in city.

Since the expansion will require funding, you will be able to get sound advice on the best ways to use so that you get grants and benefit from most of the business initiatives. This will come in very useful since the expansion required quite a lot of funds that most people might not be in a position to afford it. This therefore will reduce the pressure that people have whenever financing the expansion is concerned. You should also know that the expansion will only come about when you connect with other businesses whose services you can rely on so that you expand your own. With this company, you can stay assured that this will be made easy since they have a list of most businesses that would be more than willing to make deals with your business. Generally, expansion is made easy with this company and most people have been able to benefit quite a lot from it.

What makes Hong Kong the best location for a business

HongKong2In order for a business to succeed, the location where it exists in will play a huge role. There are a couple of factors that the location determines. For instance, the infrastructure that will make the services of the business much more efficient will depend on the areas where the business exists. If it is placed in an area where there is an already established network the services will be offered within the shortest time durations therefore increasing the profit margins. This is one thing that this location is able to make sure you benefit from.

The other thing that you should consider when you pick the location to place a business is the market. The services you offer should have ready market so that you keep the business running. In Hong Kong, you are able to benefit from the huge population that would be willing to pay for the services which you offer. In any case, you will have more demand judging from the fact that it is a city located in the world’s most populated country. With this you can rest assured that the business will always keep running therefore more profits for you.

The huge population not only provides ready market but labour too. This comes in handy since the huge demand of people will mean that they agree to lower rates as compared to that which you would have incurred while hiring services from outside. You are also certain of getting the required number no matter the size of labour force you might need. In most cases, people have taken advantage of this and are doing very well with their businesses within the city. The people offering the labour services are skilled therefore you are guaranteed quality services.

The accessibility of the location you pick is another thing which you have to consider. For instance, you should establish the business in an area where is accessible to other cities that you might have to visit so that you make other deals. The good thing is that with Hong Kong you are assured ease of movement since it is centrally located therefore the best location people can settle for if they also intend on carrying out business transaction deals with other countries in the continent. Generally, Hong Kong is a place that most businesses would thrive in since the location has all the factors that make the environment healthy for business operations.

Hong Kong – best place for starting Energy and Renewables Company

imagesOne thing which the Chinese government is well known is support for green initiatives. This comes about mainly because they value the environment and strive to give people the best environment to come up with better ways of producing energy. To do this it engages in methods such as the provisions of tax incentives and incubator schemes.

The consumers in the city are known to be receptive to new ideas and are keen to tackle environmental issues. Here are some of the opportunities which you can invest in and expect huge returns in the city:

1.  Low emissions public transport

If you set up a business that is geared towards the reducing the emissions of public transport then you are likely to see huge returns on your investment. This is so because the city has a huge population which also has a high purchasing power. This means that most of them already own vehicles hence the pollution levels are higher. Giving them an option which they can use and emit less while moving is something which they would be willing to accept.

2.       Waste treatment and recycling

The huge population in the city means that they produce quite a lot of wastes therefore making it a challenge to the people who treat and recycle the wastes. If you can set up a company which will provide services that treat the wastes or even recycle them then you are likely to find many people willing to pay for the services. This will help reduce the pollution levels in the country and given the fact that the government considers the government as a top priority, you are sure to get started within a very short time.

3.       Electric vehicles

This is another option that can help reduce the pollution levels that are caused by motor vehicles. With the electrical designs, pollution levels will be reduced and what is even better is that the energy which it relies on is renewable hence making it an attractive option. All you have to do is find the right people to work with and follow the right steps in setting up a company. You would be surprised at the number of people who would be willing to pay for your services.

4.       Low emission building strategies and urban planning

The huge population in the city requires the services of people who are able to come up with better urban planning techniques. This is important so that people move with ease. It is only through this that the huge population will be more productive. The buildings that are designed also have to emit lower levels of pollutants so that the environment is taken care of. These are therefore services which people would be willing to pay for and the government also likely to be very supportive.

Establish your Financial Services firm in Hong Kong

 

Hong Kong is the most favourable location for international firms aiming to enter the Mainland China market. Similarly, it is the perfect gateway for Chinese firms with an ambition to cater to the global market. The free flow of information, efficient regulatory and legal administration and world-class financial infrastructure makes it the ideal location for financial services firm and professional talent with rich financial expertise. Additionally, the favourable tax policies, corruption-free legal system and a business friendly environment has helped Hong Kong in being the most trusted location for asset management, banking & investment, capital formation among other financial services.

According to the annual Financial Development Report published by World Economic Forum in 2012, Hong Kong has secured a better ranking than most developed economies like United States and the United Kingdom. In fact, Hong Kong secured the first rank for a second year in a row. The consistent growth and strong position of Hong Kong was achieved through several achievements in the non-financial services sector such as IPO and insurance activities.

One of the main building blocks of Hong Kong’s industrial stronghold, the financial services sector currently employs over 226,400 professionals, which is about 6.2 per cent of Hong Kong’s overall workforce. Moreover, 70 of the world’s best 100 banks have established a branch office in Hong Kong, which makes the city one of the busiest and important banking hub across the world.

Another emerging chapter in the success story of Hong Kong’s financial services industry is the burgeoning renminbu (RMB) business. In a few years, Hong Kong has established itself as the most competitive platform for all organizations running an offshore RMB venture. The trade settlement for RMB that was handled by banks operating out of Hong Kong was RMB 2,633 billion Yuan, which is about 90 per cent of the total amount of the external trade settled during the same period by banks in Mainland China. This statistics is testimony to the fact that Hong Kong has emerged as a major hub for RMB trade settlement. Currently, Hong Kong serves local as well as foreign banking entities with an offshore RMB business in Hong Kong.

Hong Kong provides a complete range of RMB banking activities. This includes settlement of trade and financing, and the city currently has the largest amount of offshore renminbu liquidity – thus making Hong Kong the international hub for RMB dim-sum bonds with an issuance amounting to a total of RMB 237 billion in 2012.

Dreaming of Starting a Business in Hong Kong?

The city of Hong Kong enjoys political stability and excellent infrastructure. The city remains a an important financial center in Asia and its free port is beckoning several entrepreneurs to start their businesses in Hong Kong.  If you are considering doing the same thing, we have a brief guide which can help you greatly.

Some may say that starting a business in Hong Kong can be quite difficult but it is very much possible. The benefits which you can get will make all your efforts worth it. The government in Hong Kong is more than willing to assist investors in realizing their dreams of having their very own business in the city.

Visa for Self-Employment

Those who wish to start their very own business in Hong Kong or join a company needs a Hong Kong visa. This visa allows them to be their own boss and there is also no need to prove that the company will be able to fill a niche in the city which local residents cannot. However, residents of Cuba, Nepal, Laos, Vietnam, North Korea, Albania, Afghanistan and Mainland China are not included in this visa.

As with other work visas, you need a sponsor to start your own business in Hong Kong and sponsors can be companies or individuals. Sponsors need to be a resident of the city; at least 18 years if age and well acquainted with the person who is applying for the visa. An applicant needs professional qualifications and a good education to apply.

Documents Needed to Support Visa Application

  • Detailed 2-year business plan
  • Copy of passport
  • Recent passport photograph
  • Copy of business registration
  • Background information on business activities
  • Proof of academic qualifications
  • Proof of professional experience

Choosing your Business Name

It is important that you choose your business name wisely. Investors can search the Hong Kong Company Registry to find out if their business name of choice is already taken. One of the things which must be taken into account when deciding on your business name is the recognition value. After choosing a business name, it has to be approved.

Business Entities in Hong Kong

There are various types of legal entities and they are:

  • Partnership – is a business which is owned and run by at least two people.
  • Subsidiary – considered a separate legal entity in Hong Kong but is unable to make legally binding deals.
  • Limited company – has no requirement for capital and most often chosen by small and medium enterprises.
  • Sole proprietorship – best for small businesses and has one owner.

 

Some Facts About Bvi Company Register

BVI (British Virgin Island) company register is an essential part of any business, which comes with the intention to form a company in the British Virgin islands. This is one very special company incorporation act, which also comes with a set of rules and regulations. British Virgin Islands are now becoming more popular business place and it is also known as one very prominent offshore financial center. As per the rules and regulation of this act, companies are restricted by a considerable amount of corporate benefit. The size of the company and its business volume is also defined by BVI company register law, as well.

According to this company incorporation act, the company must stay limited within some certain number or amount of shares. Again, there must have some guarantee on the authorized share capital, as well. There are some unlimited companies, who are also willing to register as per the rules and regulations of the BVI Company register. As like as some other company incorporation act, BVI Company register also makes it compulsory to have a registered agent, and there is no exception of this rule. The primary responsibilities of this corporate agent are to appoint and assign the first director and those agents are also responsible for incorporating the company.

It is not possible to form a company according to the BVI company register act without having a physical address. That address must also need to be registered. There is a flexibility that, the company can change its registered address at any given time, with proper notification to the responsible authority in a timely manner.  The article of association and the memorandum of the company must also be registered by the registered agent, as well. After fulfilling all these primary requirements, the company will get a unique registration number and also enlisted as one of the registered company.

A company may have more than one director, but the first director of the company must be appointed within a time-frame of six months, once it is registered. The company is also obliged to come up with a proper annual audit report, which is a must as per the rule of the BVI company registration act. Conducting the AGM (Annual General Meeting) is another compulsory part of this registration process, and the company must come up with a set of required documents along with the annual audit report in the AGM.

Setting Up Company in Hong Kong: A Great Way for Your Business Expansion

With a thriving economy and great infrastructure, Hong Kong is definitely a great place if you seek to expand your business in Asia. Essentially, there a lot of great things about setting up company in Hong Kong.

However, prior to getting into the matter, it is first important to know the requisites in setting up company in Hong Kong. Basically, for offshore companies, it is important to seek first the approval of the company as the primary requirement. After which, an Incorporation Form will be filled up and submitted to the authorized agency, then a copy of the passport and proof of residence and other documents of the directors and shareholders, then Certificate of Incorporation of Parent Company (for corporate directors and shareholders) as well as the registration and the nominal capital fee.

Now, what are really the benefits or great things about expanding your business in Hong Kong? Below are some of them.

  1. Setting up company in Hong Kong can provide you as an entrepreneur a good means to open a market in China. Since Hong Kong is an island part of China, getting into China’s market can be easy. We all know that China is one, if not the best and most thriving economy in Asia and with that, your business can as well thrive when you get the chance to connect with the Chinese market.
  2. Considering the fact that Hong Kong is one of the prime financial and commercial hubs in Asia, when you invest for an expansion in Hong Kong, you can be guaranteed of a secured banking in this said place. Hong Kong has almost all the top international banks and having a corporate account in any of these will create a good image for your company.
  3. One great reason why HK is home to many offshore companies is that they can get benefit from legal tax exemption. This is because Hong Kong implements a territorial source principle of taxation. This means that all profits generated outside of Hong Kong is TAX free.
  4. Also,setting up company in Hong Kong can offer entrepreneurs low operational costs. And since HK is under the British law, you can guarantee a democratic and fair treatment of your business in HK.

With these aforementioned things, it’s not so surprising why many people had gone to set up an offshore company in Hong Kong. If you want to be among the globally recognized businessmen in the Asian region, then setting up a company in HK would make a great decision.

 

WHY ESTABLISH YOUR BUSINESS IN HONGKONG?

Business minded person at all times sets the location as an integral part of triumphant business establishment. They consider the statutory requirements, the needs of the people residing in a particular place, government interventions, tax rate, economy and many others.
Some countries can expose you to a flexible environment wherein your operations are not so limited by the existing regulations. However, the success of one’s business is assessed in depth with its ability to generate sales, for example, and to meet the needs of their perspective customers. On the other hand, situating your company in some countries could render you the most feasible ad profitable results but exposes you so much to the payment of large taxes.
Enumerated below are the reasons why it would be wiser to choose Hong Kong whenever you are in the crossroads of deciding where to place your business:
• Corporation in Hong Kong is relatively easier and cheaper. Compared to other countries, choosing Hong Kong to be your base exposes you to lesser expenses and helps you save more time because of ease and efficiency of process.
• Zero percent Hong Kong corporate tax rate applies for transactions outside Hong Kong.
• Account more expenses of the company. Some countries follow strictly the accounting entity concept. Therefore you cannot account simple expenses you have done for your company such a transportation expense you have incurred in doing business matters, the expenses you have incurred when dealing with the client and even the house you have rented to perform business operations better.
• Hong Kong has a well established name for banking and business.
• Globalization and more competitive advantage against other existing corporations.
It is, indeed, favorable to you company to be based in Hong Kong because of the advantages set forth. However, after the establishment, the major challenge would be the attainment of acceptance of your business of people residing or staying in Hong Kong. The following are the essential matters to be inculcated in your mind whenever you are dealing with them for business purposes:
• Business culture. A little research and reading of some articles about this could help you.
• Meeting and greeting. Proper ways of introducing yourself and your company should be observed. Yes, Chinese people ‘bow’ when meeting or greeting other people. As a non-Hong Kong national, you may not do the same for a simple handshake would do.
• Entertaining them. Different people are found with different culture and values. Some things may be pleasing for you and in their point of view, it might be unaccepted. Having knowledge about this could help you much in doing business in Hong Kong.

 

How to Open a Bank Account for Hong Kong Companies?

Hong Kong is a world-renowned financial center, its sound financial system and banking institutions and services throughout every street, which optimize the business environment and bring a lot of convenience and opportunities for enterprises at the same time. Many investors go to Hong Kong to invest and to open an account, but each bank has its own requirements and procedures for account opening, and requires different information. Corporate directors and shareholders often go repeatedly back and forth between the corporate and banking because of unfamiliar or incomplete information. Conpak CPA is based in Hong Kong, established good relations of cooperation with the international banks in Hong Kong, we have services of Hong Kong bank account opening, enabling our customers to open an account with cost savings and shorten time.

Why open an account in Hong Kong?

There are many benefits of opening a bank account in Hong Kong. First, Hong Kong has no foreign exchange controls, but there are advanced foreign exchange settlement system and improved financial infrastructure, the funds can be freely allocated; second, the currency can be changed freely in Hong Kong, which is facilitate in the international trade settlement of payment; third, Hong Kong is exempt from tax on interest, the real return on deposits is higher; fourth, it is simple to operate for the Hong Kong bank account, and can open online bank for transactions; fifth, Hong Kong’s financial position is excellent, the applicable legal framework is accordance with the Basel standards, which is benefit for investor financing.

The ways of account opening

At present, the ways of Hong Kong bank account opening include face-to-face account opening, video account opening and witness account opening (QI account opening). Among them, face-to-face account opening refers to shareholders and directors of the company going to the Hong Kong bank for account opening, it can be finished on that day under normal. Video account opening refers to the shareholders and directors of the company to visit the Mainland Branches of Hong Kong banks at the appointed time, open the account with the witness of the staff. It normally takes about 15 working days. So far, Conpak has the attestation qualifications for Citibank, HSBC and Hang Seng Bank. The QI account opening refers to the company’s shareholders and directors visit the Conpak office in Shenzhen or Shanghai for account opening under the witness. It is only 10 working days from QI account opening, which is facilitated in cross-border transactions with customers.

Process and information on account opening

The process of Hong Kong bank account opening is very simple, generally including submitting the application, approving the account number, sending a check book, sending online banking password, confirming the online banking password to start, the service of the first online banking logs in, sending or receiving ATM card and password and other details. Of course, the premise of successful account opening is   the applicant must provide the necessary information, such as:

• Original proof of identity of shareholders and directors

• Original certificate of Business registration

• Original certificate of corporate registration

• Original Articles of Association of the Company

• Company seal

• Statutory register documents

• Directors proof of address

• Proof of business (orders, purchase and sales invoices, contracts, bills of lading, etc.)

• Documents of account opening signed by accountants

At the same time, Conpak remind investors that a company can set up multiple bank accounts in Hong Kong, but all accounts are required to apply for the establishment of the company. After opening the account, investors need to well preserve the bank monthly statement, water bill and other various expenses bills, in order to prepare for inspection or later required.

Top Benefits of Hong Kong Company Registration

The overseas offshore company registrations will be still alive in 2013. With the Hong Kong local bank refused BVI and Cayman companies to provide bank account services, more and more investors are beginning to register a Hong Kong company.

According to the data released by the Registrar of Companies in Hong Kong, as of the end of 2012, the total number of Hong Kong local companies in the register of companies reached 1,044,600, compared with 955,400 in 2011; growth rate is more than 9% (http://www.cr.gov .hk/en/publications/press20130113.htm).

Therefore, what is the force in the flock to attract overseas investment to Hong Kong?

1. The Global Freest Economy

On January 10 of 2013, the Heritage Foundation and the Wall Street Journal issued “Index of Economic Freedom” report, Hong Kong named Global Freest Economy in the first place with 89.3 points for 19 consecutive years. There is very free flow and out of people, goods and capital in Hong Kong. At present, Hong Kong has signed visa-free agreements with more than 100 countries, and visa-free exchange travel plans with the Pearl River Delta will come too. In logistics, there are developed land, sea and air transports in Hong Kong, and implemented zero-tariff policy on imported goods except tobacco, alcohol, etc. In addition, Hong Kong has no exchange controls, and a variety of foreign currencies can be readily converted to mobilize.

2. World’s Financial Center

There is a sound financial system and well-developed banking sector in Hong Kong, Hong Kong registered company can carry out remittance transactions to the countries of the world, in addition there are more than 200 kinds of financial services can be operated via the Internet and electronic trading services by banks. On this basis, the enterprises can get more credence and credit for financing. Conpak CPA Limited based in Hong Kong, has abundant bank resources and business advantages. Therefore, Conpak can assist the client apply SMEs loans from the Hong Kong government.

3. Low-tax Environment

There are low tax rates and less tax types in Hong Kong, and tax on offshore profits is zero. Therefore, many international institutions achieve a reasonable tax avoidance purpose by using the tax advantages of Hong Kong. The investors of Hong Kong registered company generally only need to pay two types of taxes: one is the disposable registered capital of stamp duty, the tax rate is one of the thousands, this tax is determined by the actual registered capital; another is profiting tax, the tax rate 17.5%, this tax is calculated based on the actual earnings (net profit).

4. Geographical Advantages

Hong Kong has strategic geographical location, which has the frequent economic and trade exchanges with mainland China. Hong Kong has been joined the bridge between mainland China and the world. Many mainland enterprises registered company in Hong Kong as a springboard for overseas expansion; a growing number of overseas companies and financial institutions also set up their headquarters, branches or offices in Hong Kong enter the Chinese mainland market.

5. Freed Choice of Company Name

Hong Kong allows the company name to contain the region and the nature of the industry, such as: China, Beijing, Zhejiang, Hong Kong, United States, France, International, Asian Institute, Press Association, Group Holdings, industry, development, investment, finance, fraternity, science and technology, health care, fund, association and other words, also can register a Chinese company name.

6. Less Restrictive of Operating Range

In addition to the illegal business, Hong Kong Limited Company can carry on any business, such as clothing, furniture, jewelry, electronic technology, financial, pharmaceutical, shipping and transportation, import and export trade, real estate, construction, decoration, information network, tourism, college, culture, publishing, associations, research institutes and other high-tech industries.

7. Low Registered Capital without Verification

There is no maximum registered capital according to the regulations of Hong Kong Government, but requires a minimum of 10,000 Hong Kong dollars. In addition, there is no verification requirements in Hong Kong and unlimited funds in place. Investors will be able to set up a company in Hong Kong without putting funds to banks.

8. Significantly International Status

The international status of Hong Kong is significant. Clothing, toys, culture publishing and other industries have a competitive advantage in the international arena. Many enterprises register companies in Hong Kong to improve the visibility of the brand and its own international status and image.

Improved financial system, free economic system and good business environment, no matter from which of indicators, Hong Kong are the unique charm of the best offshore registration. Conpak CPA (http://www.conpak.com) is based in Hong Kong, to become familiar with the policies and regulations as well as accounting, auditing, company registration, intellectual property and other operational practices. If you need to know more, please contact us and we will give you a more detailed interpretation.