Today, every investor is racing to Hong Kong, and it is easy to see why: it is a paradise for companies that target to grow rapidly and become multinationals. For about 20 years, the Hong Kong administration has used the bulk of its efforts in making the jurisdiction the ultimate place for business. This is why almost every large business you know of today, from MacDonald’s to Barclays, is likely to have some presence in Hong Kong.
Hong Kong has also signed multiple bilateral trade agreements with both Asia-Pacific countries and others outside the block. This means that you can exploit these agreements to rapidly grow your company into a multinational. To enjoy these benefits, plus a lot more, you should take the first step of registering a company in Hong Kong. As you prepare to open a company in Hong Kong, here are the three most important things to think about.
Important Facts about Hong Kong
Hong Kong is a highly developed jurisdiction, ranking 4th on the United Nations Human Development Index. The country also boasts of the largest number of skyscrapers on the planet. Other facts that you need to know are:
- Hong Kong has a population of 7.5 million (2019 estimation).
- The Gross Domestic Product (GDP) of Hong Kong is USD472.395 billion (2021 estimates).
- Hong Kong is one of the most important trading and financial centers on the globe.
- Hong Kong is the 10th largest global exporter, with most of the products coming from China.
- The Hong Kong economy is capitalistic, characterized by free trade and low taxation.
- The Hong Kong dollar is the 8th most traded currency on the globe.
These numbers indicate a jurisdiction that is ready for faster growth and success. So, you should not be left behind as others move with speed to incorporate companies there.
Important Things to Think about Before Registering a Company in Hong Kong
Company registration in Hong Kong is guided by the Companies Ordinance, which defines the steps to be followed and key requirements. Therefore, it pays to look at the Companies Ordinance carefully. Other things to think about include:
The Target Market
If you are worried about the shrinking market share for your business back home, it is important to think about what Hong Kong has to offer. Well, Hong Kong has a sizable population of about 7.5 million, but this is not all. Because of its strategic location, most countries in Asia-Pacific are only a short distance away. This means that you are sure of enjoying a population of more than 4.7 billion people in Asia-Pacific after registering your company in Hong Kong. This might be all that you need to transform the company into a profitable multinational.
Your Long Term Plans for Growth
Although you are about to make the first move, registering a company in Hong Kong, your mind must be very clear about the long-term goal. So, do you want to only expand your company to Hong Kong or beyond? If you are in the export business, your plan might be to grow sales by more than 50% in the first year and over 200% in the subsequent one.
How to Register a Company in Hong Kong
As we indicated already, the process of company incorporation in Hong Kong is outlined in the Companies Ordinance, but trying to do it on your own is never easy. In many instances, people get stuck midway or incur a lot of costs that could have been used to push forward the company agenda after registration.
The best way to register your company in Hong Kong is through an agency of experts like GuideMeHongKong.Com. A professional firm can help you to understand the process well, serve as your company secretary, and cut down the cost by a huge margin. Even after company incorporation, the selected agency can also help with other executive functions, such as payroll management, accounting, and filing tax returns.
This post has highlighted the most important things that you need to think about when opening a company in Hong Kong. Working with the best agency for company registration makes the entire process easy, fast and enjoyable. You do not even have to fly to Hong Kong!
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