If you wish to establish a new business in Hong Kong, you should opt for a company registration service. Company registration is one of the most important steps towards starting a new business in Hong Kong. Company registration in Hong Kong is required by law to run a business legally. Companies that are registered in the appropriate form with the Chinese government are allowed to do business in the territory of China. Many companies that set up their own business in Hong Kong find it convenient to use a company registration service offered by professional law firms. The following benefits of company registration in Hong Kong can make this task much more accessible.
Firstly, the Hong Kong company registration service will provide you with a low tax rate. The low tax rate in Hong Kong is one of the best reasons for using a company registration service offered by a tax firm. Most countries have high corporate tax rates, especially on large businesses. Using a Hong Kong company registration service, you will be able to enjoy a low tax rate, which means more cash for your business.
Using a bank account is also essential for a business to operate in Hong Kong. A company needs a bank account to meet all its financial obligations. You may want to set up an additional account called the personal account. The personal account will be used only for some personal expenses incurred by your employees and yourself. To minimize penalties and taxation, you should use a Hong Kong company registration service that can help you open a bank account for your business.
An essential requirement for starting a business in Hong Kong is a valid business address. You should get a business address from the Companies Registry or the Office of the Secretary of State. You can contact the Companies Registry by phone or fax, or by visiting their website. You can also register a new company by mail, but the procedure is time-consuming and expensive.
Another essential ingredient for running a successful business in Hong Kong is hiring a qualified registered agent. A registration agent is responsible for many functions that include registering the company, maintaining registration records, and processing the documents. There are many benefits of hiring a registered agent. Hiring a registered agent is one of the best options for obtaining business registration in Hong Kong. Here are some of the many benefits of hiring a registered agent:
Companies can establish a business in Hong Kong by using the country’s free trade zone system. Companies must register in the particular trade zones of China before they can operate freely within the Chinese territory. If a company operates legitimately in China, it will not have to register in the particular trade zones. However, if the company is illicit or illegal, it must note in the China commercial free trade zones.
Many international companies are attracted to the free trade zones in China because of the comparatively low cost of setting up operations there. Many Chinese companies have managed to attract many foreign investors through the help of this Chinese legal system. The introduction of the China company formation system by the government has made it easier for foreign companies to conduct their businesses in China under a simple business formation package. Besides, the China company formation system has improved the efficiency of the Chinese legal system by streamlining the legal procedures for foreign companies wishing to establish a business in China.
Foreign direct investors in China do not have to register in the Chinese territory as they are not permitted to interfere with the activities of the Chinese company. They are also not allowed to interfere with the management of the business. However, if a company is established in China and wishes to incorporate it in Hong Kong, it must establish an office in the Chinese territory.