The benefits of a Hong Kong limited company registration are many, and it is for these same reasons that a lot of people prefer it. For starters, you will be able to use a system known to have a lower cost of registration fees than other methods. You will also be able to avail of certain benefits such as VAT rebates for income taxes incurred in the domestic business. It can bring down your taxable income substantially, which will then translate into higher profits. Plus, you will also enjoy certain privileges such as exemption from income tax, corporation tax, land rent, retained earnings, import duties, corporate expenses, and tax filing responsibilities when you become a fully functional business.
Your business can also enjoy the benefits of a Registered Office, which will enable your business to have an address in Hong Kong for Hong Kong limited company registration. You will also be able to apply for tax reductions to save you a good deal of money. All these things would only augment the value of your business.
The benefits of a Hong Kong limited company registration are not just limited to your business, though. In addition to all the above, you will also enjoy several other benefits. First, you will run your business from a very flexible office space located at a very convenient location. It is because the government has allotted most offices in Hong Kong the sole purpose of running businesses.
Moreover, you will also be able to avail of various benefits under the provision of a Limited Liability Company. These include exemption from Income and Corporate Taxes. You will also enjoy the advantage of entering business transactions without having to worry about incurring any loan. In addition to this, you will also be able to open a Bank Account. However, before you can do all these things, you will first need to get a business Registration Certificate. Once you do get a Business Registration Certificate, you will then start up your limited company.
After you get a business Registration Certificate, it will be your responsibility to contact a Companies Office. The Companies Office will be where all your business dealings will take place. Apart from business transactions, the Companies Office will also be where you will maintain all your company records. It means that once you get a Limited Company Registration, you will have to keep track of all the documents, the annual reports, and the accounts.
After getting a Business Registration Certificate and a Companies Office, it is then time for you to register your business. However, your business will not be registered until all these documents have been completed. You should note that writing your business is a very lengthy process. It usually takes between one and fourteen months for a company to be registered in Hong Kong.
Once your business is registered, you can then get a Limited Liability Company (LLC). A Limited Liability Company is a legal entity, just like your personal life. The only difference is that your business does not have its employees. You are still responsible for all the liabilities that your company incurs.
One of the most important things about a Limited Liability Company is that you are not considered an individual, but rather, a business. As a result, you will not be able to run as freely as you would if you had your business. In addition to this, your limited company will lose its tax benefits under the Personal Corporation scheme. However, should you wish to continue to run your business under this set-up, you will be required to register your company as a Limited Liability Company. As mentioned previously, writing your business for Limited Company Registration in Hong Kong is a lengthy and strenuous process.