The Reasons To Register Your Business When Operating Out Of Hong Kong

Any business owner in your country of origin will tell you setting up a business can be incredibly difficult, so you can imagine how hard it is going to be operating a profitable enterprise in a country other than your own. If you are seriously thinking of setting up some kind of business presence in Hong Kong then you should know that there is a lot of bureaucracy and red tape to adhere to. It’s almost impossible to hit the ground running if you don’t understand the ins and outs of the whole system and so this is why it makes perfect sense that you would want to reach out to a third-party provider that is already there and understands everything.

When you apply for business registration in Hong Kong, there is lots of paperwork that needs to be filled in and lots of rules that need to be followed and so you can’t be expected to know how everything operates from the very beginning. This is why it makes sense to hand over all of the responsibility for the registration to your third-party provider and let them get on with everything until completion. If you’re thinking to yourself that you don’t need to register your business then the following are some of the reasons why you really should.

• For business banking – Clearly, you’re going to need a business bank account in order to be able to pay your suppliers and for customers to be able to pay you as well. No business can operate properly in Hong Kong without a business bank account and the banks will require a business registration number from you before they will even entertain the thought of bringing you on as a new customer.
• For borrowing money – If your business turns out to be as successful as you thought then it’s likely that you want to expand further and in order for that to happen, you’re going to need the necessary finance and so this is when you turn to the various lending institutions for their assistance. If your business is registered properly then it makes the whole process so much more straightforward. Your third-party provider will ensure that you get a business registration certificate and this will allow you to borrow money when you need it the most.
• For submission of your taxes – Every business must pay taxes in Hong Kong so that they are contributing to government funds which in turn will be spent on essential infrastructure. It’s likely that you will be taking on new members of staff and so there are various taxes that need to be withheld from their salaries as well. You can then submit your taxes on time and in full which means that the auditor will not be paying a visit.

Hopefully, these three reasons have convinced you that business registration is something that you need to do from the very beginning. It’s important to protect your new business always.

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