1. Choosing a company structure
There are a range of corporate structures to meet business needs in Hong Kong:
Representative Offices
To undertake only promotion and liaison work, it is not possible to enter into any transaction which creates a legal obligation.
For the following corporate structures it is necessary to:
i) Incorporate your company at the Companies Registry
ii) Register your company with the Inland Revenue Department
Branch Offices or Parent Companies
A company incorporated outside Hong Kong can establish a branch office in Hong Kong as an extension of the investing company. Unlike a subsidiary, a branch can leverage off the credit rating of the overseas owner.
A Limited Company
A Hong Kong limited company can take advantage of all the tax benefits and concessions available to a fully incorporated business, including the Closer Economic Partnership Arrangement with Mainland China.
2. Opening a company bank account
Companies must be registered and incorporated before applying to open a company bank account. Banks normally require a minimum deposit - HK$2,000 (US$257). The process is straightforward and transparent, but the process and documents may vary by bank.
3. Choosing business premises
Leased Offices
Leases are typically two or three years with an option to renew and a deposit (normally two to three months) is required. Other costs may include:
i) One-off fee to the property agent (normally one month's rent)
ii) Management service charges
iii) Government rates 5% of annual rental value, payable quarterly in advance
Serviced or Virtual Offices
Serviced offices allow short-term leases and provide tenants with a range of secretarial services. Virtual offices provide a mailing address and receptionist to answer company phone calls.
Industrial Buildings
Hong Kong offers three main types of industrial buildings:
i) Flatted factories for general manufacturing processes.
ii) Industrial/office premises comprising floor space
iii) Specialised factories
Specialist Centres (R&D, laboratory, high-tech facilities)
Hong Kong has a number of sites including incubator services for companies involved in science, technology, design and research and development.
4. Obtaining licenses and protecting your intellectual property
Some businesses will require licences or registration to conduct a specific activity. These include: restaurants, travel agencies, employment agencies, banks, fund manager, insurance brokers and lawyers.
Hong Kong is a leader in Asia in the protection and enforcement of intellectual property rights. Stringent laws regulate patents, copyrights, trade marks and registered designs.
5. Understanding your tax status
Hong Kong has a simple business-friendly tax system. There are only three direct taxes: on profits, salaries and property and no sales tax, no withholding tax and no tax on an individual's estate.
6. Understanding visa and employment issues
It is possible to conduct business negotiations and sign contracts while entering Hong Kong on a visitor visa or entry permit.
Every adult (and child aged 11+ years) permitted to stay in Hong Kong more than 180 days must apply for a free Hong Kong Identity Card within 30 days of arrival. By law, this should be carried by the person at all times.
Generally foreign nationals must obtain a visa before coming to Hong Kong to live, work or invest. There are three main ways to obtain a visa and entitlement to stay in Hong Kong for the long-term:
i) Sponsored work visa for employees that have special skills, knowledge or experience not readily available in Hong Kong.
ii) Capital Investment Entrant Scheme (CIES) visa designed for people who make a capital investment of HK$6.5 million (approximately US$835,500).
iii) People with an employment visa or CIES visa can obtain a dependent visa for their spouse and dependent children provided there are sufficient funds and suitable accommodation for them. This also allows the spouse to undertake almost any type of lawful employment in Hong Kong.
|
