Every business owners want to tap into the China market (of the world’s largest population) and sell their products and services to the people in there. If you are taking your business into the mainland China market, you may want to first incorporate a Hong Kong limited company where it is legally based in Hong Kong (HK). You must figure out and understand the differences between operating your business in Hong Kong and operating in one of the large cities in China such as Shenzhen, Shanghai or Beijing.
At first, many startups and small business owners launch their companies as sole proprietorships. The immediate problem that they would face is the owners and their businesses are essentially considered one and the same entity. Some entrepreneurs would happily consider changing the format of their small businesses to a Limited company and start taking the full range of advantages. The one most notable major advantage is a limited company protects the personal assets of an owner in the case of debts or legal judgments that may be claimed against the business.
Prism Consultancy can provide Hong Kong company registration service as well as all other major services including company bank account opening, company secretary service, registered office address, virtual office service, serviced office rental, employee and investor employment visa applications, and more. This saves tremendous amount of time from the owners, and prevents all the troublesome and complicated paperwork and documents filing. Prism Consultancy also helps companies with accounting, auditing, tax filing, and payroll services which are deemed as the all-in-one or one-stop services.
For new entrepreneurs, starting and operating a business in Hong Kong is usually the right choice. Consider the following:
- Everyone knows that Hong Kong and mainland China are both under one single country. But when it comes to business, they have two very different systems.
- Hong Kong is an international city with healthy economy. This is an important factor to allow the quick growth and possible expansion of your business.
- The location of HK is excellent. It is right next to Shenzhen.
- Hong Kong for long years has been recognized having a business friendly tax and legal system.
- When registering a HK company, the paperwork is much simpler than when setting up a company in mainland China. This approach prevents the common delays that would often happen when starting a business in mainland China. It includes meeting all the requirements where all document signatures must match exactly and where application for approval is required before conducting any new categories of business transactions.
- Opening a business in HK actually gives you access to the Hong Kong market right away. If your products or services do not work well in mainland China, you will have a fallback plan in HK.