Hong Kong is one of the rapidly growing cosmopolitan cities in the world. This growth is varied and has various impacts on the companies’ business activities in Hong Kong. Therefore, the Companies Registry (HKC) has had to keep pace with these developments. Several advantages of Hong Kong company formation have resulted from this need.
Hong Kong company establishment involves several advantages that cannot be ignored. First, it is an ideal choice for those who wish to establish a business entity without being worried about various jurisdictions’ legal requirements. Moreover, the Companies Registry (HKC) offered several attractive features in Hong Kong, rendering it an important business model for the affiliate marketer. These include the following:
Taxation. Hong Kong company establishment does not require you to pay income or corporate taxes on its profits. Consequently, your business expenses are tax-deductible. Additionally, the Managing Director and other board members are protected by Hong Kong law from personal liability to the tax authorities on company-related activities. Also, many corporate statutes, including the Corporate Manslaughter and Corporate code Laws, protect employees and others from negligence in their duty of care, protect directors and other corporate personnel from personal liability in such instances.
Immigration rules. The Companies Registry takes care of procedures and documentation related to the registration of a Hong Kong company. Therefore, you do not need to worry about the same. However, if you are a foreign national who wishes to establish a business as a foreigner in Hong Kong, you will still be required to comply with the immigration rules of Hong Kong. The basic requirements are that you must prove that you are a permanent resident of Hong Kong by providing your identity documents, including your passport.
Taxpayer identification. Hong Kong companies are generally listed in the Secretary of State’s Office and are expected to be registered there. Only the Central Management Department can register a company and only after this department grants its approval, will the company be able to trade publicly. The directors of a corporation must be Chinese citizens or individuals who have permanent residency in China. The Central Management Department is also responsible for approving its annual budget and deciding its yearly profit and loss account.
Business payroll. You must register a company with the SICRC. SICRC is the Registry of Companies for Hong Kong and is responsible for publishing a register of company names, with each character having a serial number.
Taxpayer Identification Number. A TIN is issued to a company when it applies for trade registration. It acts like a password for all its accounts and transactions and is needed to transact business. When a company completes its annual audit process and is approved to open a business, it must apply for a Trade Registered Identification Number from the Registry of Companies for Hong Kong.
As a start-up entrepreneur, you need to be very careful in choosing your Hong Kong company setup. Suppose you are planning to establish a profitable affiliate marketing business in Hong Kong. In that case, you should consider these five essential factors: the legal company name, the statutory register of companies for Hong Kong, the company’s TIN, its business license, and the company’s profits. By keeping these factors in mind, you will be able to establish a right company name, register a company, process payments, and pay your employees, while enjoying the benefits of living in a tax-free economy.