As a record-holder for the world’s freest economy in the last two decades, and with a minimum level of restrictions and bureaucracy, Hong Kong is an excellent choice for setting up a company for many entrepreneurs. According to government statistics, the number of registered companies totalled 1,407,743 in Hong Kong by the end of June 2018.

As a top financial hub for many entrepreneurs, Hong Kong is one of the most competitive economies in the Asia-Pacific region and ranks 6th in the World Economic Forum’s Competitiveness Index. Hong Kong is also governed by a reputable, regulated international jurisdiction where business is booming.

The Hong Kong government has contributed approximately HKD 5 billion to the Technology and Innovation Fund in order to encourage venture capital flow to startups. Setting up a company in Hong Kong is perhaps easier than in many other cities throughout the world. However, foreigners wanting to start operations in Hong Kong should not underestimate the challenges they may encounter while setting up their business venture.

So, are you ready to make your mark as an entrepreneur in the Hong Kong startup market? Great! The first step is setting up your company. Below are some steps to take in order to establish a new company in Hong Kong.

Determine your company name
The first and foremost step in setting up a new company in Hong Kong is to select a name for your company. The name can be in Chinese, English or both. You need to be careful while selecting a name because you cannot use a name for your business entity that anyone is already using or has used in the past. You can conduct an online session at Startupr. This will help you familiarise yourself with all the guidelines for the registration of a Hong Kong Company.

Choose a legal structure for your business
By now, the market analysis and research for your startup is finished. The next step is determining the legal structure for your business before registering your company. Determine the structure for your startup based on your company’s needs and requirements. The structure of the company affects everything from how you do your business to how you file taxes for your business entity. If you are looking for the best business structure of a company, you can consider the below business structures:

Branch Office
Sole proprietorship and partnerships
Limited company
Company limited by guarantee
Company limited by shares
Register your company
To set up a new business in Hong Kong, you will need to register your business with the Companies Registry. The Companies Registry is responsible for the incorporation of your company.

Most entrepreneurs choose to register and incorporate their companies as a limited company in Hong Kong because of the numerous advantages associated with it. Limited companies are a separate legal entity and offer protection of personal assets from business risks. Moreover, compared to other business entities the process for transferring ownership and raising funds or capital for limited companies is more straightforward.