Company in Hong Kong: what business activity?
A limited liability company in Hong Kong can be used in many ways and has three particularly common activities: trading, consulting, and holding.
The choice depends on the nature of the business, where the operations are actually conducted, and the level of presence planned in Hong Kong.
What type of business can you operate with a company in Hong Kong?
A trading company
Among the various possible uses of a company in Hong Kong, trading is the most common activity. Hong Kong is located at the heart of a particularly dynamic economic region: for conducting international trade, it is a strategic choice.
A company based in Hong Kong can invoice individuals and companies regardless of their location. It can also receive goods or services from suppliers located in Asia or anywhere in the world.
Import-export is a strategic activity in Hong Kong. If your goods merely transit through the territory, you will not have to pay taxes in Hong Kong.
A consulting company
Hong Kong is also well suited to consulting and service provision. Many e-commerce companies are based there.
The tax provisions are particularly advantageous for electronic commerce. If the company’s services are carried out outside Hong Kong, the company has no tax to pay.
A holding company
Hong Kong can also accommodate a holding company, that is, a parent company holding interests in other businesses.
However, the rules have become stricter in recent years. If the company plans to have neither premises nor staff in Hong Kong, this structure becomes difficult to recommend.
The concept of economic substance is essential: the company must be able to demonstrate a genuine presence and actual activities consistent with its structure.
A question about the activities that can be launched in Hong Kong?
It is recommended to precisely define the business activity before choosing the company structure. Trading, import-export, consulting, e-commerce, and holding companies are not subject to the same requirements.
The structure must be fully legal, suited to the reality of the business, and compliant with the regulations applicable in Hong Kong.