Hong Kong is a very attractive destination for any businessman to set up his enterprise. There are several reasons for this. Hong Kong is strategically placed in such a way that it is accessible from China and the other markets of South Asia. This allows goods and services to be marketed and sold in a greater geography. Also, allows the business to hire good talent from a wider pool of resources outside Hong Kong.
This has resulted in a wide variety of businesses coming to Hong Kong. The government is also actively engaged in providing a conducive business environment for the entrepreneurs, including putting in place an easy process for company registration Hong Kong.
Let us take the example of a sole proprietorship concern to understand how simple the registration process is.
A sole proprietorship is a business concern usually run by an individual without a corporatized structure. The proprietor himself is liable for all the liabilities of the company, and his personal assets are considered to be part of the assets of his firm. The advantage is that he is not answerable to any board of directors. Nor does he have anyone to share his profits with.
The registration process begins with the selection of a name for the business. The name could be in English or Chinese or have both English and Chinese names. Its name should not carry any appendages like ‘Limited’ or ‘Private Limited’. The name should also not have any linkages to any Government body. And like in any country of the world, the chosen name should not infringe on the trademark or business name of any other enterprise.
Sole Proprietorship Business Ideas
This name would then need to be submitted for registration of the sole proprietorship hk at the Business Registration Office of the department of Inland Revenue. If the sole proprietor is a resident of Hong Kong. Then, The HK identity card would need to be submitted along with the application. But for outsiders, a copy of passport and identity proof would be needed.
The application form duly filled would be submitted along with these documents. If there is no objection from the department or anyone else to the chosen name. If the documents are otherwise in order, then the business registration certificate would be handed over within one working day.
After the registration is completed, there are some more formalities to be completed. The first thing to be done is to get a business license. In case the sole proprietorship is a restaurant, educational institute, travel agency, financial services provider or is in the business of exports and imports.
Additionally, a bank account needs to be opened for the firm (sole proprietorship) either by visiting any of their branches or by making an application online.
These are the simple steps to get a sole proprietorship registered in Hong Kong. Once the business starts to function. The other compliance activities need to be carried on as usual. Like filing tax returns on time, intimating the department of any changes in the firm’s details, timely renewal of business registration certificate etc.