everything about Hong Kong

Everything you need to know about Hong Kong before starting your business 

Your business in Hong Kong

Your decision is made, you have chosen Hong Kong to access the Chinese market! But before you get started we have listed the important points to consider before setting up your business in Hong Kong.

Do you want to do business in Hong Kong or outside the island?

If you plan to set up your company in Hong Kong, you will have to geographically delimit your activity. It is important to know that the taxation will be different between a company registered in Hong Kong with an activity done in the Hong Kong market and a company whose activity will be done strictly abroad (outside Hong Kong).

     Taxation in Hong Kong

If you choose the local market then your company will be subject to a tax in Hong Kong. If the company’s profit is less than HKD 2 million, the corporate tax is 8.25%. Above that, it is 16.5%. More information here.

Otherwise, your company will not be subject to tax and will therefore have zero taxation in Hong Kong.

Many companies whose target is the Asian market (outside Hong Kong) choose to create a company in Hong Kong to benefit from zero taxation. Indeed, the island is ideally located at the doors of China and in the center of Asia. It is then very easy to do business with mainland China, Japan, South Korea, Taiwan or India.

 

Reduce your costs with a co-working space in Hong Kong

     Small budget to start in Hong Kong

If you want to set up and test your business in Hong Kong and you have a small budget, then co-working spaces are an economical solution to consider. Co-working space allows you to reduce your costs, while your business grows and starts to generate enough income to take your own private office in Hong Kong.

               What is a co-working space?

Co-working space in Hong Kong is, by definition, a workspace shared with other companies.

The main advantage of this type of office is first of all the cost – largely reduced compared to a private office in Hong Kong, but not only. These types of co-working spaces are also equipped with furniture and other facilities.

The advantage of working from a co-working space is the possibility to develop a professional network with other companies present. It is a great way to meet other entrepreneurs and exchange on the economic and business life in Hong Kong.

In all, there are about thirty co-working spaces in Hong Kong.

Recruitment process in Hong Kong

In addition to a private office you want to hire employees for your business in Hong Kong? This is quite possible but not easy. It is a heavy and expensive procedure.

     Low unemployment in Hong Kong

The unemployment rate in Hong Kong is very low, which makes the recruitment of new employees complicated. The best profiles are in high demand and do not stay long on the market, so your offer must be attractive enough to compete with the rest of the companies in Hong Kong.

Moreover, the average salary in Hong Kong is high and it is difficult for start-ups in Hong Kong to match the salaries offered by multinationals and especially banks in Hong Kong.

Real estate in Hong Kong

Housing in Hong Kong is one of the biggest drawbacks when considering the island as a place to set up a business and live. The real estate market in Hong Kong is among the most expensive in the world.

     High GDP per capita

One might ask why Hong Kong is so expensive. This is explained by the limited surface of the island, the only option would be to expand on the sea since the city itself is saturated. But not only that, the island is very populated and the GDP per capita is high, hence the higher than average property prices.

The competition in Hong Kong

Market full of promises, Asia offers real opportunities to entrepreneurs to launch their business in Hong Kong.

Many people think that Hong Kong is the ideal place to start a business, but this is without taking into account the competition that you will have to prepare yourself for in order to stand out from other companies in Hong Kong.

Moreover, if the business model of your company is not stable, you will have difficulties to remain viable. It is very important to have your project well thought out and to think about the most appropriate financial arrangements for you and your business.

Although there is a real competition in Hong Kong, it remains that Hong Kong is a market with large consumers which in fine should not be an obstacle to your installation in Hong Kong.

Our company, based in Hong Kong since 1998, will assist you and advise you in your establishment in Hong Kong.

     A service provider in Hong Kong

If you still want to create your company in Hong Kong, you will need a good provider to accompany you and facilitate your installation in Hong Kong.

Our firm, created in 1998, accompanies each year many entrepreneurs to create their company in Hong Kong. Moreover, we have the capacity to be your Company Secretary – mandatory for every company established in Hong Kong. We represent your company before the Hong Kong authorities, the missions of the Company Secretary are fixed by the law. The company secretary is mainly involved in the legal follow-up of your company (tax and social security declarations, administrative procedures related to the transfer of shares, change of company 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 of the company.

Our team is composed of legal and accounting professionals who are at your service to ensure the success of your business activities in Hong Kong and in the rest of the world.

Contact us at +971 52 820 0964 or send us an email: support@merritt.group

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