Your business in Hong Kong
You have made your decision: Hong Kong is the place you are choosing to access the Chinese market! But before you get started, we have listed the important points to consider before setting up in Hong Kong.
Doing business in Hong Kong or outside the island?
If you are considering setting up your business in Hong Kong, you will need to define the scope of your activities. You should know that taxation will differ between a company registered in Hong Kong whose activities take place on the Hong Kong market and a company whose activities take place strictly abroad (outside Hong Kong).
Taxation in Hong Kong
If you choose the local market, your company will be subject to tax in Hong Kong. If the company's profit is
less than HKD 2 million, the corporate tax rate is 8.25%. Above that, it is 16.5%.
More information here.
If you carry out activities exclusively outside Hong Kong, your company will not be subject to tax and will therefore have zero taxation in Hong Kong.
Many companies targeting the Asian market (outside Hong Kong) choose to set up a company in Hong Kong to benefit from zero taxation. Indeed, the island is ideally located at the gateway to China and in the center of Asia. It is therefore very easy to do business with mainland China, Japan, South Korea, Taiwan and India.
Reduce your costs with a co-working space in Hong Kong
A small budget to get started in Hong Kong
If you want to set up and test your business in Hong Kong and have limited resources, co-working spaces are an affordable solution worth considering. Co-working allows you to reduce your costs while your company develops and begins to generate enough revenue to rent your own private office in Hong Kong.
What is a co-working space
Co-working in Hong Kong is, by definition, a workspace shared with other companies.
The main advantage of this type of office is, first and foremost, the cost - considerably lower than that of a private office in Hong Kong, but that is not all. These co-working spaces are also equipped with furniture and other equipment.
The advantage of working from a co-working space is the opportunity to develop a professional network with the other companies based there. It is an excellent way to meet other entrepreneurs and exchange ideas about the economic and commercial environment in Hong Kong.
There are around thirty co-working spaces in Hong Kong.
Recruitment process in Hong Kong
In addition to a private office, do you want to hire employees for your business in Hong Kong? This is entirely possible but not easy. It is a lengthy and costly process.
Low unemployment in Hong Kong
The unemployment rate in Hong Kong is very low, which makes recruiting new employees difficult. The best candidates are in high demand and do not remain on the market for long, which is why your offer must be attractive enough to compete with other companies in Hong Kong.
Furthermore, average salaries in Hong Kong are high, and it is difficult for start-ups in Hong Kong to match the salaries offered by multinationals, particularly banks in Hong Kong.
Real estate in Hong Kong
Finding accommodation in Hong Kong is one of the biggest disadvantages when considering the island as a place to set up your business and live. Hong Kong's real estate market ranks among the most expensive in the world.
High GDP per capita
You might wonder why Hong Kong is so expensive. This can be explained by the island's limited area; the only option would be to expand into the sea, since the city itself is saturated. But that is not the only reason: the island is densely populated and GDP per capita is high, resulting in property prices above the average.
Competition in Hong Kong
A market full of promise, Asia offers genuine opportunities for entrepreneurs starting their business in Hong Kong.
Many people think that Hong Kong is the ideal place to launch a business, but this overlooks the competition you will have to prepare for in order to stand out from other companies in Hong Kong.
Furthermore, if your company's business model is not stable, you will have difficulty remaining viable. It is very important to carefully structure your project and consider the most suitable financial arrangements for you and your company.
Although there is genuine competition in Hong Kong, Hong Kong remains a market with substantial consumer spending, which ultimately should not prevent you from setting up in Hong Kong.
Our firm, based in Hong Kong since 1998, supports and advises you on setting up in Hong Kong.
A French-speaking service provider in Hong Kong
If you still wish to set up your company in Hong Kong, you will need a good service provider to support you and facilitate your establishment in Hong Kong.
Our firm, founded in 1998, helps many entrepreneurs set up their companies in Hong Kong every year. In addition, we can act as your
Company Secretary - mandatory for every company established in Hong Kong. We represent your company before the Hong Kong authorities; the Company Secretary's duties are established by law. The Company Secretary primarily handles the legal monitoring of your company (tax and social security filings, administrative procedures relating to the transfer of shares, changes to the company's name, appointment of a director, etc.). However, the company secretary has no access to the company's bank account and is in no way a director (the company's "manager").
Our close-knit team consists of legal and accounting professionals who are at your service to ensure the success of your business activities in Hong Kong and throughout the world.
Contact us at +971 52 820 0964 or send us an email:
support@merritt.group
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