How to Start a Business in Hong Kong in 2023?

Although Hong Kong’s business registration procedure is relatively straightforward, it can take some time. You’ve set up your firm and are now prepared to manage and expand it. Meeting duties and taking advantage of opportunities are two aspects of doing business in Hong Kong. We have put together this helpful manual with detailed instructions to fully understand what to do when starting a business in Hong Kong.

How to start a business in Hong Kong in 2023?

To start business in Hong Kong, you must first keep track of all financial transactions for seven years.

Why?

Just in case your business is the subject of a tax audit by the Hong Kong (IRD).

You risk a fine of up to HKD 100,000 if you refuse to produce corporate records when asked to do so.

Don’t believe that you are merely doing this to appease the IRD. Additionally, it will immediately help your company:

• Put together precise earnings tax returns.
• Improve your company’s ability to plan and make decisions financially.
• Present a professional image; having transparent financials helps you deal with your bank and investors more easily.
• More effectively identify theft and losses in your business.
• Reduce compliance costs by forgoing the penalties and interest penalty fee

Reduce the cost of an audit by saving money on additional spending time by a Hong Kong chartered accountant if the required papers are easily accessible. Don’t confuse keeping records with hoarding them.

The following business records should be kept digitally and arranged into categories:

• Management accounts and financial statements
• Documentation, such as financial records, agreements, invoices, receipts, payroll, and other pertinent papers, is required to verify the entries in the books of account.
• Keep a record of your company’s assets and liabilities.
• Yes, you can save the original paper copy, but it takes up a lot of space in one of the world’s largest.

How to register a business bank account with multiple currencies in Hong Kong?

The Task Force on Financial Action includes Hong Kong as a member. As a result, all Hong Kong banks must adhere to a set of rules in line with global risk management standards. Therefore, to abide by anti-money laundering rules, every bank must gather specific documentation before recognizing you as a customer.

Practically speaking, to create a business bank account in Hong Kong. The following documents (all in English) are required to be shown as proof of business if you are a new entrepreneur (that is, you have never owned a business before):

• Personal letter of reference from a bank.
• Contract for previous or current employment.
• Business card from an earlier or current company.
• Working certification from the former employer.
• Professional qualification in the relevant field.
• Personal statement

On the other side, if you already have a business, you must present the following records as evidence of your business (in English):

• Company incorporation certificate.
• Certificate of Business Registration.
• Company card
• Most recent annual tax return submitted.
• Copies of contracts (between buyers and sellers), sales orders, sales confirmations, and other documents are included in the trading history.

Additionally, if you don’t have any prior experience, your agency should assist you in writing a business strategy. As per my experience, the marketable strategy doesn’t have to be overly complex. Still, it does have to provide your company with a direction (what administrations you expect to offer, in which nations you plan to work, etc.)

It would be best if you visited the bank’s Hong Kong branch to open an account. There isn’t another way to look at it. However, your agency will offer you an advising and pre-screening service for a small price (1,000 HKD, already paid as part of the incorporation package charge). It will make an appointment with the bank you want to utilize on your behalf. An agency representative will go with you to the bank, if the bank permits it, and check on the account opening status. It shouldn’t take more than an hour to conduct the in-person interview.

Visa Application to Start a Business in Hong Kong

Hong Kong has a great deal to offer its investors, so the time it takes to establish a firm is worthwhile. The fast-expanding economy of Hong Kong and the numerous alluring government initiatives will improve your company’s financial picture.

You might desire to comprehend the Hong Kong market before spreading your wings there. By opening a business in Hong Kong as a foreign open a representative office here, you might also want to develop business relationships for supply and sales and hone your Chinese language abilities.

Despite your best efforts, you still need to exercise patience because it takes time for any company to grow into an empire. A comprehensive business plan is required.

You must submit a visa application to make investments or look for work in Hong Kong. You must fill out an application for a visa and meet educational and professional competence requirements to be eligible to request a visa. No criminal past or unfavorable police records should exist for you.

To online starting a company in Hong Kong. The application form is accessible online and can be downloaded from the Immigration service using the code (ID 999A).

The following is a list of the paperwork needed to apply for a visa:

1. Copies of passport photos
2. A photocopied passport
3. Evidence of your academic and professional credentials
4. Your two-year business strategy
5. Facts about your company’s history

How to apply for a small business grant from the government in Hong Kong?

The government of Hong Kong provides small and medium firms with several grants and funding initiatives in addition to low taxes and a very effective system (SMEs).

Here are a few instances:

• Your company can receive financial assistance from the SME Export Promotion Fund (EMF) to market itself outside of Hong Kong;
• Your business can obtain a loan with the support of the SME Loan Guarantee Scheme (SGS);
• The Innovation and Technology Fund (ITF) works to support technologically advanced businesses;
• NGOs and other organizations that aim to combat social exclusion, poverty, and related concerns can access resources through the Social Entrepreneurship and Innovation Development Fund (SIE Fund);
• The Patent Filing Grant enables local businesses and individuals to register patents to safeguard their intellectual property.

FAQs

Can I create a bank account without traveling to Hong Kong?

You will need to schedule a personal visit with the bank if you choose to create a business account with a bank in Hong Kong. You might not need to travel to Hong Kong physically if you use an offshore bank account instead.

Can the organization assisting me in starting a business also manage its auditing and accounting processes?

Depending on the organization, the one I suggest below may help take care of the accounting and audits for your business, as you’ll also starting a small business in Hong Kong.

Is it necessary for me to live in Hong Kong to start and run a business?

No, in Hong Kong, that is not at all necessary.

To live in Hong Kong, you’ll starting a business in Hong Kong as an expat and need to have your employer apply for a business or “investor” visa in your favor. You should be aware that to obtain the visa, you will need to demonstrate how your company will benefit Hong Kong. Whether through employing locals, paying taxes, innovating, etc. Don’t bet on getting a visa if you solely run a side business.

CONCLUSION

Before beginning your eCommerce firm, ensure you comprehend how to do business in Hong Kong, how to register a business in Hong Kong, and how to create a company in Hong Kong. Do you have concerns about the setup and incorporation of your business? Feel free to contact us, and we will be pleased to assist you.