Company incorporation in Hong Kong is a relatively simple procedure. Nevertheless, there are some specific advantages that the company incorporation in Hong Kong can provide to its owners, especially to those who have yet to establish their businesses in the local stock market. One of the key benefits of company incorporation in Hong Kong is that it can help a company gain a foothold in the Chinese market. Company incorporation in Hong Kong has been the preferred choice of many international corporations for the past few decades. This trend is likely to continue in the future.
As compared to other business registration options available in other countries, company incorporation HKoffers several significant advantages. Companies incorporated in Hong Kong using a ‘double register’ method allow for the effective management and accounting of its transactions and finances. Transfer of the shares could also be restricted by law to members of the company only. These features make company incorporation in Hong Kong an attractive option for companies looking to increase their profits in Asia’s fast-growing financial hub.
Along with company incorporation in Hong Kong, a company can benefit from the same legal perks as those available in other parts of China. It includes exemption from customs duties and taxes on purchases and sales by its offices in Hong Kong. Moreover, there is an exemption from stamp duty for the importation of non-personal items such as stationery. Import and export of goods are also free. Besides, there are no restrictions on the ownership of foreign trade assets, and there are restrictions on the transfer of equity into foreign-owned companies.
Another significant advantage of company incorporation in Hong Kong is that it can facilitate its trademark registration. As part of its corporate identity, the company must include its registered office in the city. This office may then be duly registered in the office of the registrar of companies in the country. All these factors help in ensuring a smooth channel of business throughout the Chinese territory.
There are three essential features of company incorporation in Hong Kong that make it a preferred choice of businesses in the region. The first and most important feature is that it offers a company veil.The reason for this is the absence of direct taxation between the company and the government. The company enjoys all the privileges of being a private entity without any obligations to the state. Consequently, it can enjoy protection from the law and enjoy the same advantages available to companies having a direct contact line with the state.
The second vital feature of company incorporation in Hong Kong is simplified procedures during the company’s registration. All companies must file the appropriate forms by the statutory offices, notably the Companies Registry. These forms are then processed through the Commercial Registry and the Land Registry, before being submitted to the Companies Registry for the company formation. This streamlined process of registration helps in making the registration procedure simple for the companies.
The third essential feature of company formation in Hong Kong that should be considered is the availability of various financial support options. Financial support is provided by the company formation service provider in multiple forms, including bank loans, lease options, shares, and local partnership—besides, other forms of financial support, such as borrowing money from family members and friends.
It can be said that the company incorporation in Hong Kong is a simple process. However, care must be taken in choosing the company formation service providing company. The best companies in this regard offer all these services. Before selecting one, it is essential to examine the services they provide. Moreover, one should ensure that the company’s incorporation in Hong Kong has a license to operate. The company formation Hong Kong provides all the necessary documents in their possession.