Why set up a business in Hong Kong - Abroad Production

Why set up a business in Hong Kong
Landing on this island is like entering a game of enlarged reality in which you are the hero. A kind of « world city » that seems to be built for one purpose: do business!

 

Ideally located, Hong Kong is a real hub in the region and a strategic entry into China, positioned as the Asian capital of High Tech and concentrating many talents. With British heritage, the island is now part of China but it has its government and its own personality.

 

Advertisements and technologies are omnipresent, even in the subway you can hear a voice that keeps repeating « please walk and stop looking at your smartphones, please wal… », bills look like Monopoly bills, skyscrapers have nothing to envy of NYC, city meets mountains and beaches to please everyone, lights show every evening, Asian gardens, street markets, luxury junks on the river,…

 

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A true paradise for entrepreneurs, travelers, photographers, hikers,… ! But is there a price to pay for this heaven?

 

It was in this effervescent atmosphere, balanced between East and West, tradition and ambition that Abroad production ltd. was born in June 2014.

 

My personal experience:

 

So, for a few days I played to become the happy CEO of my own company. You get the dice with disconcerting ease and the rules are simple. I encourage any freelancers or digital nomads to go even just for the city itself and we will not hide the fact it’s also very beneficial.

 

I SET UP THE COMPANY AND BUSINESS ACCOUNT IN 4 DAYS !

 

It took me a layover between Tokyo and Paris and it was done.

The incorporation can be done remotely but you have to be there just to open a business bank account and it costs less than $ 1,500 to set up a limited company.

 

The only imperative is to have a « secretary » and an address but there are companies that offer this service. I recommend www.startupr.com Tomas is the best !

 

Important point: it is not required to reside in Hong Kong to set up a company or to do business.

 

It’s a perfect solution if you work remotely as a digital nomad, offering outsourcing services or managing projects abroad which was the case for A.P. It will be more difficult if you want to open a restaurant for example.

 

The main advantages of an offshore company in Hong Kong:

 

– No taxes or fees for offshore companies

– Tax onshore is also low (less than 17% of profits)

– No minimum capital requirements

– No VAT or Professional or employer tax

– No inheritance tax on shares held by non-residents

– Only one person is needed for the formation of the company

– One of the biggest financial and transportation center in the world

– Opening and closing fast society, easy and inexpensive

– Simplicity of the legal system and the banking system

– Guaranteed anonymity of shareholders and directors

– The best reputation and image in the offshore and international companies

 

And yes it’s legal and not considered as a tax heaven! It’s rated as one of the best place in the world to have your start up as long as you don’t have tax issues in your country!

 

For the story :

 

I arrived on a Sunday after an unplanned Asia tour, spotted wifi in the airport (travelers’ habits) to send emails to 3 registry companies I had short listed and set up a meeting for the next Monday in 5 minutes.

 

The first company offered me to do it for less than one week for 1500 CAN$, the other one was 1300 CAN$ but with a 3 weeks process and I had a plane to catch.

I also had a good feeling with the first person I met who was also an expat and passionate about entrepreneurship. It took me one afternoon to decide. I then jumped on a cable car and did a short hike to see the great Buddha.

 

On Tuesday I had a lunch, in a French creperie (that reminded me of my homeland), entered the company name, worked in the co-working office of my new « secretary » and I paid the incorporation fee of course. I can give you details if you need it.

 

On Wednesday, I went to an office which was full of boxes with papers of incorporated companies, that awkward moment when you feel so small and a Chinese worker came to me and said « Congratulations for Abroad Production creation, Happy work and success as a CEO Miss Marie » and in that moment, I thought about Mark Z. business card : « I’m CEO, b**** » but I didn’t say it, don’t worry !

It just seems crazy when I think about it 1 month earlier I was wearing flip flops and sarwel in Burma and now I was with heels and a corporate dress, the transition from backpacker to freelancer!

 

Thursday was the Big day, I had a meeting in HSBC central, my advisor told me to prepare a file with all small business descriptions, invoices, logos,… but actually the banker I met didn’t ask much and gave me a credit card and a small gadget for activating it. That awkward moment when you feel like you are in a James Bond movie. I also set a personal account and I can manage all transactions on the internet. Interesting fact: Feng shui masters have designed this huge bank building overlooking the sea symbol of wealth and back to the mountains for protection.

 

I had the chance to be hosted all week by a friend from London I met in Singapore a few months before who now lives in HK. She gave me a tour of temples, restaurants, boats and roof tops. I enjoyed it so much that I want to go back with a working holiday visa before I turn 31.

Now that I have my business here, it gives me some excuses and I think it’s a perfect place to network and develop the apps Linker and Triper for the Chinese market.

 

Conclusion:

 

The island offers many opportunities for entrepreneurs and the government regularly develops support programs such as « startmeup »

 

Maintaining a tradition of free Enterprise, favorable taxation, administrative, technical or legal obstacles almost nonexistent, high infrastructure provisions, Hong Kong is politically and economically stable (for now !)

 

French are the second largest expatriate community: in some areas, such as Central, it is not uncommon to hear French in the street. The Chamber of Commerce, which operates under a private status, is very influential and many French found networks of entrepreneurs as « The Entrepreneurs Network ‘

 

According to the annual survey conducted by Invest Hong Kong, the number of regional headquarters of foreign companies is increasing. The vitality of the creative process of companies is an indicator of the economic system, but also the ease of starting a business. The economic growth rate for 2013 was 5%.

 

Hong Kong is a hub of Asian trade, from which 50% of exports of French firms are re-exported. Special Administrative Region of Hong Kong (HKSAR) is the largest business center in Asia, offering commercial, financial and legal point and is an indispensable financial and geopolitical position for you to consider and build on the future with confidence.

 

However, starting there is not without its problems: the price of real estate is very high, particularly for offices, mastering Chinese is essential to build business relationships in the long term and local investors are scattered and quite nervous about the start-up of the web. That’s why I have started developing Abroad Production ltd. Offshore for now.

 

Don’t hesitate to contact me if you need more details and if you make the choice to set up your business in HK, I’m sure it will be a good one!

 

« Happy work and success » to you!

 

Digital nomadly yours,

Marie Braud

 

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