The upgraded forecast for Hong Kong’s economic growth is 6.6%, which is a reflection of prompt spring-back following the disruption caused by the COVID-19 pandemic. This growth rate is very attractive for investors looking forward to forming offshore companies. However, it is not the only reason why companies keep streaming to Hong Kong. The jurisdiction is a global business hub, a strategic junction for access to the entire Far East market, and also boasts of impressive business support.
Whether you target to grow your business into a multinational rapidly or simply want to walk away from the shrinking market back home, Hong Kong has a place for you. But first things first – you need to form a company in Hong Kong. So, what options are there?
Although they might appear several, it is advisable to work with experts when registering a company in Hong Kong. This post will tell you the two methods that you should not attempt because the end results are likely to be disappointments.
Buying a Shelf Company
A shelf company is a type of company registered in Hong Kong to sell to potential buyers at a profit. Think of it like a product on a hypermarket shelf waiting for buyers. This implies that the company was not created with your business idea in mind. For example, it might have a name that does not rhyme well with your brand or market targeting. Buying a shelf company in Hong Kong can be a serious mistake because of the following reasons:
- The company’s design was meant for a different type of business.
- Trying to change the company’s name and other details can be very challenging.
- Opening a bank account in Hong Kong is an uphill task for most shelf companies. Most banks end up declining.
- Most cases end up turning into court battles, which require you to incur additional legal fees.
Registering the Company on Your Own
If you look at the Companies Ordinance of Hong Kong, registering a company might look pretty straightforward. However, the actual implementation is never easy. For example, preparing all the documents required for registration is the simpler part but still challenging for most people. Now, unto the challenging part: you will need to hire a company secretary and get an address. This is never easy because it might require running ads, interviewing dozens of people, and crafting contracts for the selected secretary.
If you think this is all, you are wrong. Once you have prepared all the papers, you will be required to make several flights to Hong Kong to file the papers with the registry. Most people get exhausted midway and start looking for an alternative.
What is the Best Method?
The most convenient method, call it the best, is working with an agency of experts to help with company formation in Hong Kong. These experts have been in the company registration industry for years and are conversant with all the laws and policies for company incorporation. For them, it is not just about helping you to incorporate the company, but getting the enterprise on its feet and firing it to success.
The agency will help to prepare all the documents for registration, serve as your company secretary, business address, and file them on your behalf. Also, there will be no need for you to make a flight to Hong Kong for company registration. They will also come in to assist you to draw the best strategies for entry into the market.
When you make up the mind to form a company in Hong Kong, let an expert be with you from the start. The professionals have seen others enter the market and can easily tell you what works and what does not.