Some investors think of Hong Kong as the gateway to mainland China. While others see the domestic HK market as an attractive one. Hong Kong has its own business rules and regulations. Much like any country it is still blending with Chinese ways. Any foreign entrepreneur who wishes to set up a company in Hong Kong would need the help of an international law firm. One with hands-on experience setting up companies for foreigners.
Company formation options
Any foreigner who wants to form a company in Hong Kong should find a leading law firm. That deals with HK business registration and has a good working relationship with the local government. They have connections and can source any business service locally. You will need bookkeeping and accounting services. Plus foreign workers will need work permits and all these things can be handled by a single law firm.
Here are the business registration choices:
- Representative Office: The RO is ideal for a foreign company that wishes to carry out extensive market research; a non-trading entity, has no minimum share capital, and you are limited in your business activities. It takes 2-3 working days to complete the registration process, when you connect with the right law firm, they have the experience to offer the right advice when you need it.
- PLC: A private limited company is a trading entity that can be set up in one day. One director and at least one shareholder are required; your lawyer will give you a list of documents and banking instructions. If you are looking to trade as soon as you can, this is the registration for you; completely unrestricted and you are compliant with local laws. The lawyer can connect you with many local business services, while also introducing you to local partners.
- FBO: Foreign branch office – If you run an established company in your home country, you may prefer to open a branch office, which allows you to carry out market research. A trading entity means you can set up retail outlets; we recommend talking to a good lawyer about the many options when entering the HK markets. Here is a great blog about branding, which we recommend you read.
The importance of compliance
While you might be very familiar with your home country’s laws regarding commerce. HK is very different; make mistakes and it will likely cost you money. There is a process in place and a local law firm is part of the network and with their assistance, you will always comply with local laws.
Essential business services
Of course, you will need local secretarial services. Not to mention bookkeeping and accountancy, all of which the lawyer can locate. Digital tech allows for work to be remotely done and sent via the web and whatever your needs. There are local providers at affordable rates.
Free Zoom call
The international law firm has offices all over the world, including HK. And they are happy to have an informal Zoom meeting to discuss your requirements. This can lead to a proper consultation and the expert can lay out all the options. And the registration process can get underway.
Hiring local employees
If you are going to set up a large operation in Hong Kong you need to hire a local workforce. Your lawyer can put you in touch with a leading HK recruitment agency. While payroll and employer responsibilities can be outsourced to local 3rd party providers. Payroll can be integrated with your existing system to run seamlessly. And everything is handled remotely while you are kept informed at all times.
The Hong Kong government offers information for foreign investors who wish to register a business and a local law firm can facilitate the registration process. Once you are in the hands of a leading law firm with offices around the world, the path to setting up in HK will be smooth. Start with a Google search then arrange a free Zoom call to discuss the options and your goals. A plan can be created and within a short period, you will have a business in Hong Kong.