Setting Up a Limited Company in Hong Kong

Are you looking to set up Hong Kong Limited Company? Well, the truth is that this will be one of the most challenging business ventures you can undertake. One of these is the incorporation process, and here is how it should go.
Once you have both IBC and Trade Register numbers, you will then need to find a partner willing to invest capital in the business for offshore company formation Hong Kong, preferably from an Asian country. You will have to look for a business person who has considerable experience in running businesses in Asia, as this will help you get a lot of practical experience before setting up your business in Hong Kong.
To begin with, you must understand the basic rules of the Hong Kong business before you ever attempt to get your business set up. These rules include the nature of the industry, the regulations and rules of conduct that you must abide by, and the taxation regime. All these have to be understood before you even attempt to get started.
Next, you will need to decide whether you want to form a domestic or foreign business. You might decide that you want to establish a domestic business and then choose a name and a few partners from Hong Kong who can help you run the business. It is perhaps a more attractive option than trying to set up a foreign company. However, it will also be a slightly more complicated process, especially if you do not have enough contacts in the Chinese business community in Hong Kong.
When setting up a Hong Kong limited company, there are two main options for incorporation. First, you can get an International Business Company (IBC) number from the Hong Kong International Business Bureau (HIB). You will need to be aware that IBCs are not recognized as the official registration number for a company in Hong Kong.
Second, you can get your IBC number from the Hong Kong Trade Register. The Trade Register is maintained by the Hong Kong Exchange and covers all companies registered with it. It would help if you got your International Business Company registered with the Trade Register to ensure that your company becomes legally registered in Hong Kong and is subject to all of the rules that govern Hong Kong businesses.
Once you have established your company, you will need to get a certificate of registration and a letter from the Trade and Enterprise Department stating that your limited company is registered correctly. If you were to try to get registered through the Trade and Enterprise Department without this letter, you could have serious difficulties later on.
To become a registered Hong Kong limited company, you will have to meet all the requirements imposed by the Trade and Enterprise Department to become a registered company in Hong Kong. You should be able to provide copies of the relevant papers and certificates at all times to prove that you are a registered company. You will also have to pay specific fees, such as tax and other administrative costs, and a small percentage of capital to the Trade and Enterprise Department.
Once you have been given a certificate of registration and are ready to set up your business in Hong Kong, the next step is to find a partner who will be willing to fund your venture and sign an agreement with you that you will both pay the trade office in advance. This arrangement is called an exclusive partnership, and you will not have to share any of your profits if you want to earn more money.

This entry was posted in Blog. Bookmark the permalink.