The current Hong Kong Government is taking steps to streamline the process for business incorporation in Hong Kong and improve business registration for the general public. The current Hong Kong Business Formation Statute was amended to improve the standard of Hong Kong’s business environment as one of the most efficient systems for business establishment and the formation and setting up a new business in Hong Kong as an international company as well as an essential global trade industry. The amendment aimed to make Hong Kong the most business-friendly location, with low tax rates, friendly labour laws, and a highly developed legal system. With this purpose, the lawmakers have set up a new law, the Business Registration Ordinance, which will apply to businesses in Hong Kong.
Under the existing current law, an entrepreneur can only register a new business if they are also an authorized director of the business and have not been convicted of any criminal offence. Moreover, the current law also has a complicated procedure involving the registration and subsequent review by the Director of Revenue to determine the legality of the business. The revision of the Business Registration Ordinance will make it easier for entrepreneurs to register a new business, and for them to be able to conduct their business effectively and legally. Moreover, the revised Ordinance also promises to simplify business registration for the general public.
One of the most noticeable changes in the Ordinance is that it introduces a simplified system to facilitate the registration of a new business, with simplified terms that include the names of the parties involved in the transaction and include the name of the legal entity for a new business. The new simplified system will allow the entrepreneur to quickly find the appropriate information and the necessary forms in a short period. Moreover, the simplified terms and procedures will also facilitate the establishment of new business and will also help the entrepreneur with their paperwork.
Another change in the Business Registration Ordinance is that it will also require the businessman to disclose all personal information of himself and his family members to avoid discrimination among individuals. It is also stipulated that the business registration be kept confidential.
How to open a company in HK? The business registration under the new Ordinance will also include the submission of a full-fledged business plan, which will clearly outline the activities to be conducted by the new business. If the Government approves the plan, then the entrepreneur can then register the business under the business designation of the name of his choice. After he registers the business under the name of his choice, he can now operate and carry on the business as his business enterprise. Still, he must comply with specific laws and regulations of his chosen business organization or association.
The Business Formation Ordinance is expected to help entrepreneurs in the process of business registration in Hong Kong because the proposed amendments are more transparent and more comfortable to follow compared to the previous version of business formation. Furthermore, the new system will also allow the businessman to get advice from a professional attorney who can guide him in making the right decisions. It is especially important since the business entrepreneur will have to deal with his clients and investors in the future.
The business establishment and formation in Hong Kong, like any other country, has its own set of rules and regulations; therefore, one should be aware of these rules before starting a business. These rules may vary from one country to another. The rules on business formation, however, are almost universal because no country is the same, and one must follow those rules to protect their assets and to be able to establish an active business. A well-established business in Hong Kong also ensures that the entrepreneur will be able to access capital, credit, a source of income, and other resources for the growth and development of the business enterprise.