Having a tough time setting up a limited company in Hong Kong? Don’t know what to consider when starting your business in Hong Kong? No worries, you have landed in the right place. We have gathered some important points that can be of great help to you. If you’re completely new to setting up a company, you should consider availing Hong Kong company formation services to get things done with utmost professionalism and accuracy. Here’s what you need to consider:
Choose your company name
This is one of the most important things you should give your special attention. You can select your company’s name either in English or Chinese, depending on your preferences. However, you need to be cautious when choosing a name, as you can’t use a name that’s already registered. Whatever name you select for your business, make sure it doesn’t match other businesses already registered in Hong Kong.
Legal structure for you company
Determine the right legal structure for your business based on your company’s requirements and needs. There’s no point in choosing a structure that doesn’t match your business. You can also consult with experts if you don’t know much about it. You can choose from the following business structures:
Limited company
Branch office
Sole proprietorship & partnerships
Company limited by shares
Company limited by guarantee
Hong Kong Taxes
You’d be happy to know that Hong Kong has the lowest tax in the world. There’s no profit tax for companies doing their business outside of Chinese special administrative region. Moreover, there’re a number of deductions from which your company will be able to benefit. The current profit tax imposed on businesses operating in Hong Kong is 8.25-percent on the first $2 million (Hong Kong Dollar) of profits, and 16.5-percent on everything afterwards, and there’s no capital gain tax.
Ryan Myers is a business blog author and writer. He graduated from the University of California, Berkeley in 2009 with a degree in Political Science. His favorite topics to write about are blogging for small businesses and becoming an entrepreneur.
