Setting up a company in Hong Kong: what are the drawbacks?
There are many reasons to set up a company in Hong Kong. But before you get started, you may still be wondering: are there any drawbacks?
We are not going to lie to you at Société HK: yes, there are drawbacks. But at the same time, perfect situations do not really exist in the business world. Discover all our explanations.
Drawbacks to know about
If you decide to start a business in Hong Kong, be aware that there are a few constraints:
Keeping accounting records
At first, you will be required to keep accounting records. However, nowadays, when deciding to launch a legal and successful company, it is impossible not to keep accounting records.
At least one individual director
When setting up the company in Hong Kong, you must appoint the company’s directors. At least one director must be an individual. However, this person is not required to reside in Hong Kong.
More complex bank account opening
Opening a bank account has become quite complex in Hong Kong in recent years. You will need to provide numerous documents proving that you work with Asia. Furthermore, if your company has links to certain countries (the Maghreb, Vietnam, etc.), it is almost impossible to obtain approval to open a bank account with a local bank. However, regardless of your company's situation, we will have a solution to offer so that you can open a business bank account (for example, through a fintech).
In-person appointment for a local bank
To open an account with a local bank, an in-person appointment in Hong Kong is required. But look on the bright side: take advantage of this appointment to visit Hong Kong and meet with your clients and suppliers.
Starting a company in Hong Kong: Is it really worth it?
Without a doubt, yes, setting up a company in Hong Kong is worth it:
Tax, legal, and banking benefits
Tax, legal, and banking benefits are a major advantage for entrepreneurs worldwide.
No territory has only advantages.
Even if there are constraints, you must understand that this is always the case: you will have difficulty finding a country that can host your company and offers nothing but advantages.
Solutions based on the difficulties encountered
Whatever difficulties you encounter, there will always be a solution, especially if you choose to get support from Société HK. Let’s take an example: will it be difficult for you to open a bank account in Hong Kong because you do not meet all the criteria? Rest assured: we can recommend a bank outside Hong Kong that may accept your application.
Would you like to learn more? Would you like assistance with setting up your company in Hong Kong? Contact Société HK without delay.