If you want to open a new business in Hong Kong before dipping your toes into mainland China’s market, you should probably understand the differences between operating your business in Hong Kong and operating in large cities on the mainland like Shanghai or Beijing. Basically, even though Hong Kong and mainland China are one country, when it comes to business, they have two different systems. Before you open up shop, learn more about the pros and cons of a Hong Kong company, which is also known as a Hong Kong private limited company or Hong Kong limited company (Ltd.).
Hong Kong is an excellent location choice for new business owners because the city has a business-friendly tax and legal system and a healthy economy. In most cases, the process of starting a business is simple and only requires minimal paperwork. This prevents some of the more common delays that occur when starting a business in mainland China such as meeting the requirement that all document signatures match exactly and the need to apply for approval before conducting new types of business transactions.
Opening your business in Hong Kong before expanding to mainland China gives you access to the Hong Kong marketplace, which is known for being stable and robust. In fact, Hong Kong has been known as the world’s freest economy for more than 20 years.
There are also a number of government programmes and private sector businesses in Hong Kong devoted to helping your company succeed. For example, The Hong Kong Productivity Council promotes efficient methods that business owners can use to increase productivity. Multiple government funding options are also available for small-to-medium-size businesses.
Hong Kong companies aren’t recognized entities in mainland China. This means you can’t hire Chinese nationals outside of the city to work for your company. But it doesn’t make hiring employees for your business difficult. The Hong Kong government’s website offers tips for finding qualified employees, and also has an online forum where you can post current job openings, making it easy for qualified applicants to apply.
For new business owners, starting and operating a business in Hong Kong is a great choice. The entire process can be completed in one-to-two weeks, and the city’s healthy economy makes fast growth and expansion possible.