Are you looking at getting your business going in Hong Kong? Due to the importance of Hong Kong as a financial centre, lot of foreign businesses are interested in running a business or enterprise there. If you’re serious about it you’ve come to the right place, because this short guide covers a lot of the important parts of what you need to know. Just be aware of the time and effort that you will be required to put in for the success of your business and you’ll be fine.
What kind of visa will you get?
There are visa options available to you if you are looking to establish a company or if you want to join an existing business – but no matter what situation you find yourself in, you will need a sponsor. As such, it’s important that you have a business network up and running before you try to start a business in Hong Kong. A key part of this will be understanding Chinese business customs and culture – and knowing a bit of Mandarin wouldn’t hurt either.
There are also visas available if you want to enter as an international investor, or as a self-employed person. You can be your own boss over there, which means that you don’t need to prove that you’re filling a niche which local entrepreneurs or businesses can’t fill. In order to get a visa like this you do need to make a substantial contribution to the local economy. Make sure that you have a good education and professional qualifications if deciding to go for the investor or self-employed visa options.
What will you name your company?
Part of having a business in Hong Kong is knowing what to name it. Recognition value is important, and with the huge number of businesses operating in Hong Kong the name of your choice may already be taken! Be sure to consider this early on in the piece to ensure yourself the best chance at getting what you want.
What kind of business will you operate?
As with any other country, you need to work out what kind of legal entity you will be operating under. For this, you have the following options available to you:
Limited company: Most people who set up a business in Hong Kong choose this. SMEs are often set up as private LLCs. All you need is a name, at least one director, shareholders, a secretary, a physical address in Hong Kong (don’t have one? A Virtual Office will solve this for you) and some capital.
Branch, subsidiary, or representative office: A foreign company can create a branch in Hong Kong but the main company will be responsible for the debts and liabilities. If you want to avoid this, opt for a subsidiary. A representative office is the best option for market research.
Partnership: If you’re looking to start a partnership it is a business owned and run by at least two people. You will be fully liable for the company and your partner’s actions. Consider this as an option only if you have complete trust in the actions of your partner.
How prepared are you?
When you’ve got the above figured out and you know what you’re going to be doing to start up your company you need to make sure that you have prepared for the expansion sufficiently. Do your market research, look into the various legal and professional implications of expanding into Hong Kong and work out whether it’s right for you.
Your success in Hong Kong is going to depend on how dedicated you are to thriving there, and how much work you’re prepared to do to get results. Good luck with your business growth, and enjoy the ride.
This is a sponsored guest post