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Hong Kong has been great place to set up an eCommerce business long before the demand for online shopping increased due to the pandemic.

E-Commerce sales in Hong Kong are expected to grow at an annual growth rate of 8.3% between 2021 and 2024. 

The Hong Kong e-Commerce market has been rapidly growing in the past five years and is expected to grow even more.

This growth is attributable to the favourable economic environment and advanced technological infrastructure, increasing consumer confidence in online transactions. 

This article outlines the many reasons Hong Kong is a great palace for e-Commerce businesses and why the business-friendly environment in Hong Kong makes such businesses thrive.

What is an e-Commerce Business?

E-commerce businesses are those that operate completely online.

The business model operates by trading goods online through the internet.

There is no physical store that customers can visit, so there is a huge focus on digital marketing to gain an edge over your competitors.

You can sell almost anything through an e-Commerce business, such as books, clothes, groceries, furniture or even provide professional services such as legal and accountancy advice.

Through e-Commerce, business owners no longer have to worry about the costs of maintaining a physical store and simply focus on managing orders and shipping the products to the customer. 

1. Leading eCommerce Market & Business Growth Potential

Hong Kong has a thriving online market where the market volume for eCommerce businesses stands at nearly US 11 million by 2025.

This highlights the level of potential growth in eCommerce businesses in Hong Kong. Compared to other countries, Hong Kong is one of the best markets to run an eCommerce business.

Moreover, if you open up an e-Commerce business in Hong Kong, there is significant potential for your business to rapidly grow as you are not just limited to trading in Hong Kong.

You can easily carry out your business activities in Mainland China and beyond.

This is a huge opportunity to grow your business as China currently represents almost X% of the entire global eCommerce market.

2. Technology Driven / Advanced Technology Infrastructure 

Hong Kong is one of the world’s leading digital cities where computers, smartphones, and internet usage are consistently higher than anywhere else in the world.

Hong Kong has been facing a rapid increase in internet usage as nearly 5.9 million people aged ten and above had smartphones in 2019.

Alongside personal use of technology, businesses are also heavily dependent on technology.

nother government study highlighted that nearly 38% of companies in Hong Kong had their websites. 

As most businesses and consumers are familiar with technology and use the internet to complete their day to day activities, they are more reliant on doing things online, especially shopping.

This can be by ordering groceries, clothing, office equipment, school supplies and home furniture.

This increased demand and reliance on using technology provides a great market for e-Commerce businesses.

3. Favourable Tax System

If you are running an offshore eCommerce business, Hong Kong is the best option for you as you can relieve a huge financial burden in terms of taxes.

Being a highly popular low-tax jurisdiction, Hong Kong has been interesting for many entrepreneurs looking to set up an eCommerce company.

Incorporating your eCommerce as a company in Hong Kong will allow you to benefit from the following tax requirements:

• Corporate income tax of only 8.25% for the first HKD 2 million
• No capital gains tax
• No tax on dividends
• No sales tax or value-added tax
• No tax on any profits derived from outside Hong Kong

According to the international tax standard set by the Organisation for Economic Co-operation and Development, Hong Kong is a ‘’white list’ country.

All white list countries have implemented the internationally agreed tax standard, which ensures transparency and security when running your eCommerce business.

4. Innovative Digital Banking

Hong Kong is one of the world’s financial hubs, has more than 70 of the world’s leading international banks present in the country.

Moreover, Hong Kong banks can easily approve applications relating to e-Commerce businesses.

While you can always open a local bank account, there are more convenient alternative fintech platforms in Hong Kong which you can use as a business bank account.

Consumers are also increasingly opting for more innovative digital banking means when shopping online such as paying through digital wallets and mobile banking applications.

Merchant Solutions highlights that more and more consumers prefer to shop on their mobile phones due to the ease that comes with online banking.

This trend is expected to grow, and e-Commerce businesses that take advantage of this and offer digital wallets that their customers use will gain popularity and continue to grow.

This is a huge benefit as it is expected that nearly one-third of all e-Commerce purchases in Hong Kong will be digital wallet transactions within the next five years.

Hong Kong is a country that is already taking the lead with digital banking and offering innovative alternative banking solutions which increase the demand and preference for online transactions and purchasing from e-Commerce businesses.

5. Strong Logistic Infrastructure

Hong Kong has a strong logistic infrastructure set up to meet the increasing demand for online transactions.

The surge in e-Commerce businesses can only be successful if logistics support such businesses.

Hong Kong can meet such demands as it currently ranks high in the World Bank’s global ranking of logistics capabilities and quality.

Moreover, Hong Kong has a well-developed transportation system and infrastructure, ensuring that shipments can be easily made when orders are made from an e-Commerce business.

These seamless supply chains have allowed Hong Kong to develop a great reputation within the eCommerce industry.

6. Easy Company Formation

The process of incorporating a company for your e-Commerce business in Hong Kong is extremely simple, easy and affordable.

All you need to do is gather the necessary documents and make an online application.

As long as you complete your application correctly, you should be able to incorporate your company in no time!

7. Easy Investment Opportunities 

Due to Hong Kong’s strong business reputation due to its transparent regulations and tax system, investors are more confident to invest in e-Commerce businesses incorporated within the country.

Having easy access to such investment opportunities is a major reason why e-Commerce businesses thrive in Hong Kong.

Funding your business, especially in its early stages, is one of the hardest struggles for businesses.

Hong Kong provides a great business-friendly environment that gives investors the confidence that they will get a return on their investment.

Final Words

Hong Kong has a great international reputation for carrying out business activities or even starting a business from scratch.

There is huge potential for online business models to thrive in Hong Kong, which is why you should take advantage of the benefits outlined in this article and start setting up your e-Commerce business.

Looking to open an e-commerce business in Hong Kong?

Register your company today with Air Corporate and we’ll get you approved in under 48 hours.

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As one of the world’s largest financial hubs, Hong Kong provides a great environment to start an eCommerce business.

The number of eCommerce start-ups is rapidly rising in Hong Kong alongside customer online shopping usage.

The market volume is expected to increase to $12,879 million by 2025.

If you are interested in registering an eCommerce business in Hong Kong, this article outlines everything you need to know to get started!

What is an eCommerce business?

An eCommerce business is a business model where companies and individuals can buy and sell their goods and services online.

There is no need to have a physical store as all your products and services can be bought and sold through your computer, phone or tablet.

There are three different types of eCommerce businesses.

Business to Business (B2B)

A Business to Business eCommerce business is one where goods and services are being sold from one business to another.

All transactions are carried out online between the business, making operations more efficient for popular B2B sellers such as manufacturers, distributors, and wholesalers.

Business to Consumer (B2C)

Another popular type of eCommerce is a Business to Consumer business.

It has become extremely easy and convenient for businesses to reach their target consumer base online through successful marketing and online campaigns.

Moreover, consumers are also fond of this model as they can easily make purchases from the comfort of their homes.

Consumer to Consumer (C2C)

Lastly, a Consumer to Consumer business is a business model where third party companies such as Vinted or Depop enable consumers to sell products to other consumers without any other business participating in the transaction process.

You would be engaging in C2C business activity if you sold a new shirt that you forgot to return online or sold home furniture that was not in use anymore on Facebook Marketplace.

The Step By Step Guide

The general process of setting up an eCommerce business in Hong Kong involves the following steps:

• Incorporating a company
• Open a virtual business account
• Open a business bank account
• Checking whether you need a business licence
• Learning about the eCommerce market
• Selecting a marketplace
• Organise bookkeeping and company maintenance

Step 1: Incorporate a Company

The first step to incorporate a company is to choose a business structure.

The most popular business structure in Hong Kong is sole proprietorships, limited liability companies and partnerships.

You need to understand each business structure so you can make the right decision for your eCommerce business. 

Sole Proprietorship

A sole proprietorship is an unincorporated business entity where only one individual is the owner who pays income tax on all profits earned from the business.

It is one of the easiest types of businesses to establish due to the limited government regulation and the advantage of being your own boss.

Limited Liability Company

A limited liability company is a separate legal entity with limited liability for its owners if the business is ever in debt or needs to be wound up.

Since you are not personally held liable, it is fairly easy to raise capital and transfer ownership when necessary.

Here, you would need to have at least one shareholder and one director based in Hong Kong alongside a local company secretary.

Partnership

A partnership is a business structure where two or more people arrange to run a business, manage its operations.

In this business model, all partners are entitled to a share in the profit and are liable for any losses.

All profits are divided between the partners, with each partner paying tax on their respective share.

Once you have chosen your desired company structure, the next step is to decide on a name for your business and incorporate it as a company.

Keep in mind that the name you choose for your online store does not have to be the same as the legal name of your business when you incorporate it.

After choosing your business structure and deciding on a name, all you have to do is complete the company incorporation application and submit the required documents to the Companies Registry of Hong Kong. 

If you want a more in-depth insight into incorporating a company in Hong Kong, you can read our article on company registration here.

Step 2: Open a Virtual Business Account

Once your company has been incorporated, you have to think about how your eCommerce business will make and receive payments.

Opening a traditional business banking account is quite complex and may take a few months, which is why you should opt for a virtual business account.

There are many benefits of using a virtual business account which includes waiting less time to receive payments and make international transactions.

Step 3: Open a Business Account

To open a business bank account, you will need almost the same documents used to register your company as well as the certificate of incorporation, a registered business address, a copy of your business registration certificate, a business plan and your shareholder information.

Moreover, there are also many alternatives to opening a traditional bank account, especially for eCommerce businesses.

Multiple licenced money service operators also offer banking services specifically tailored for eCommerce businesses.

Step 4: Check If You Need a Business Licence

Depending on the nature of the business and the type of goods and services you offer, you will need to apply for a business licence before engaging in any business activity.

This is an extremely important step as operating without a business licence is illegal and could severely damage your business and its reputation.

Take a look at our article here to learn more about whether you need a business licence and how to obtain one here.

Step 5: Learn about the eCommerce Market.

Once you have successfully incorporated your company, opened a business bank account and obtained the necessary business licence, it is time to learn more about the eCommerce market before getting set up on a marketplace.

This is your chance to thoroughly research and understand the various online platforms available to you, their key features and services offered before making a decision.

Most eCommerce businesses operate through platforms like Shopify or BigCommerce.

Such marketplaces have multiple features which eCommerce businesses benefit from, such as inventory management and advanced reporting tools for accounting purposes.

You need to carefully research each marketplace and decide which one you will benefit the most from.

You could also run your own warehouse and directly ship orders to your customers.

However, this model has disadvantages as you will face a higher workload and be under a financial burden.

Another option is dropshipping, where you don’t store the products yourself, and the supplier is responsible for shipping orders to customers.

Here, you don’t have to worry about shipping and can direct all your attention towards marketing and building your website and brand.

Step 6: Selecting a Marketplace

After thoroughly researching the eCommerce market, you need to select a marketplace of your choice and get set up there.

This will depend on your eCommerce target audience and distribution strategy.

Once you have the basics sorted out, you need to apply to become a seller on the marketplace you have selected.

During the application process, be prepared to provide your business registration number and your business account number to authenticate your business.

Step 7: Arranging for Company Maintenance

Similar to traditional companies, an eCommerce business is also subject to annual compliance requirements.

These include filing profit tax returns after the first 18 months of business and filing an employer’s return of remuneration and pensions with the Inland Revenue Department of Hong Kong.

To meet such requirements, your eCommerce business must maintain business records regularly to ensure the business is compliant and avoid any confusion.

Final Words

Setting up an eCommerce store in Hong Kong is an easy process that only requires a few simple steps.

However, you need to ensure that you have the right documents and have complied with the necessary regulatory requirements.

Need help registering your business?

Register with Air Corporate today and you’ll get approved in under 48 hours.

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When you start a new business, getting your brand secured should be one of your primary goals.

You don’t want anyone else to ride on the success of a brand that you want to build with a lot of effort.

And one of the easy ways to do this is through trademark registration. 

A trademark is a sign that distinguishes your goods or services from those provided by your competitors.

They are a form of intellectual property protection.

The tick sign of Nike or the name Coco Chanel is nothing but their trademark that makes these brands so memorable for the audience.

A word, phrase, symbol, design, or a combination of these associated with your business is your trademark.

When you register your trademark, it prevents others from copying it or misusing it.

In other words, registration provides you with legal ownership of the trademark. 

This article tells you everything you need to know about trademark registration in Hong Kong:

Why register your trademark in Hong Kong?

When your trademark is not registered, it doesn’t get any protection under the Trade Marks Ordinance (Cap.559).

While you may still take actions under common law for passing off, you will have to establish your goodwill and how the misuse has caused financial losses. 

So till you register the trademark, it is harder to prove that you are the owner of the mark.

Before you register your trademark

Every trademark application should fulfill a few criteria before the registration application is processed.

Here are a few important ones:

• Is the trademark distinctive? For a logo, word, or picture to be registered as a trademark, it should be distinct from the crowd. Commonly used words that are in no way associated with your business cannot be considered distinctive. As a result, such words cannot be registered as a trademark.
•  Is it a description of your goods and services?  You cannot register something as a trademark if it simply describes the goods and services or shows the quality, purpose. For instance: QUALITY HANDBAGS cannot be registered as a trademark.
• Is it a well-known term in your line of business? If the proposed trademark is a well-known term or representation in your line of business, you cannot register it. For example, ‘V8’ for vehicle engines cannot be registered as a trademark. 
• Has someone else already registered or applied to register the same or similar trademark for the same or similar goods and services? If someone else has applied for registration or has already obtained registration for the same or similar trademark, your registration application will be rejected. Trademark law experts always recommend conducting a search of the trademark registry to check whether the proposed trademark has already been registered or if someone has applied for registration. Such searches can be performed on esearch.ipd.gov.hk.

Additionally, the Hong Kong Government doesn’t allow an applicant to use certain words as part of the trademark. These include:

• Boogie
• Power Bank
• CompactFlash
• iPod
• Caterpillar
• Karaoke
• Jacuzzi
• Blu-ray
• Popsicle
• Bluetooth
• Macbook

Trademark Registration Process

Applications for registering a trademark should be filed with the Intellectual Property Department of the Government of the Hong Kong SAR.

It can be filed online by visiting the Trade Marks Registry office.

Bear in mind that only such trademarks can be registered which are being used by a person or a company or are about to be used in the near future.

Here’s what you need to submit:

1. Duly filled Trade Mark Form T2
2. Personal details of the applicant
3. Specification of the trademark you wish to register
4. A clear image of the trademark you wish to register
5. Claims, if any, for priority consideration of your application.

Once the Registrar receives the application, the examiner will review the application for any deficiencies and identify if any information is missing.

In case of any deficiency, you will be asked to provide relevant information.

However, you cannot make any major changes to the application at this stage.

The next stage is search and examination.

Once the deficiency check is completed, and the application is in order, the examiner will search the trademark records to see if the same or similar trademark has already been registered or applied for by another trader for the same or similar class goods and services.

The examiner will also check if your application satisfies the registration requirements under the Trade Marks Ordinance. 

If the registration requirements are not satisfied, the examiner will raise an objection, and you will have six months to overcome the objection, which can be extended by another three months.

The examiner will indicate the steps you can take to overcome the objection to proceeding with registration.

Some of these options include:

1. Filing an amendment to the application to remove the goods or services affected by the objection
2. Providing evidence that your trademark has a distinctive character 
3. Filing an amendment to the representation of the mark
4. Filing a consent from the owner of the earlier registered mark or application which prevents your mark from being registered

You can also file a hearing request to present all the evidence for and against the trademark wait for the hearing officer’s decision.

• If the Registry considered objections and overrules it or there were no objections to the application, then your trademark is accepted for registration. The Registry then publishes it in the Hong Kong Intellectual Property Journal. 
• Anyone can view your trademark in the journal and file an opposition within  3-month from the date of publication. If that happens, you can either withdraw your application or respond to the opposition. If you respond, you will need to present evidence before the Registry and wait for the hearing officer’s decision. 
• If no opposition is filed and the three-month period expires, the Registrar of Trade Marks enters the details of your trademark into the trademarks register and issues a certificate of registration. The notice is also published in the Hong Kong Intellectual Property Journal, but your rights as the trademark owner go back to the date of filing the application for registration. The registration is valid for ten years, and you will need to keep renewing it every ten years.

Cost of trademark registration in Hong Kong

If your application has no deficiencies or no objections/oppositions, the entire procedure can be completed within six months.

In other cases, it can take up to 12 months.

The application fee and application form provided to the Intellectual Property Department of the Government of the Hong Kong SAR is HK$1,300.

For each additional trademark class in the application, an additional  HK$650 is payable.

Class in a trademark application refers to the types of services and goods for which you want to obtain a trademark.

Is international trademark registration possible in Hong Kong?

Trademark laws are unique to every country and there is no system to grant an international trademark.

 If you want your trademark to be protected in Mainland China or Macau, you’ll need to file for it separately in such countries. 

Are you ready to set up your business in Hong Kong and get your trademark registered?

Registering a trademark in Hong Kong can be a long drawn process and you might get overwhelmed with all the paperwork.

It is always advisable to get a qualified trademark lawyer on board who can help you navigate through these issues. 

If you want to start your business in Hong Kong, but don’t know where to begin, Air Corporate is here to help.

Right from taking care of incorporation, registering your business, and providing you a virtual office address —  we are here to sort it all out.

So contact us right away and let your dreams of doing business in Hong Kong come true!

Ready to trademark your ideas and IP in Hong Kong?

Register your business in Hong Kong with Air Corporate today and you’ll get professional advice and administrative help when applying for trademarks and copywrites.

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Remote businesses have been thriving long before the start of working from home due to the pandemic.

The reason behind their popularity is that they allow business owners to have a better work-life balance, cut their operational costs, generate more profit, and most importantly, allow them to work comfortably in their own environment.

If you are thinking of starting a remote business, this article is for you!

What is a Remote Business?

Before delving into a remote business, we first need to understand what remote working is and how it works.

Remote working is working from home, away from the employer, and outside the office.

In situations where people remotely work, they don’t have to commute to their jobs or sit in an office building all day waiting for the clock to strike five and leave.

There is no central workplace where the employee is located.

Most of the time, remote working means working from home. 

This style of working has developed and become more common since the advent of the internet.

Technological advancements throughout the years have also opened a much bigger network for remote businesses.

In today’s world, we conduct most of our meetings online, over the phone through calls and text messages or emails, allowing employees to work efficiently from their positions, even if it is from their couch.

With the pandemic’s last longing effects, remote businesses are increasingly popular and, in some cases, the best option. 

Presently many individuals in society are getting on board with the idea of remote businesses.

This growing interest is because working from home allows people to live a much more comfortable life due to a personal and familiar work environment.

They tend to have a better work-life balance, and they do not have to spend their income on any travel costs.

Although you are working from home and might not have access to the resources an office environment provides, there are thousands of different types of remote businesses and remote business ideas doing extremely well.

These remote businesses include: 

• Blogging
• Content Writing
• Online Tutoring
• Social Media Management & Affiliate Marketing
• Home-Based Catering.
• Translation Services
• Personal Shopping
• Subscription Box Services
• Dropshipping
• Website Design & App Development

Blogging 

One job that has proven very popular over the years is blogging. Social platforms such as Instagram, Facebook, TikTok have grown and developed substantially over the past few years.

The tools and skills for content creation are much easier to handle by groups of all ages.

The blogging world is providing opportunities for many creators to work from anywhere and anytime.

Whether you are on a trip to Greece or visiting your favorite restaurant in London, individuals can now explore videography, photography and create a blog that acts as an informational website on the internet. 

Creators make videos from anywhere and post online, receiving views, likes, and followers, enabling their social media accounts to grow and reach a wider audience.

Therefore, blogging through social media can be a strong source of income when the website or account grows.

Sponsors reach out to social media bloggers and pay them for their content.

Some companies promote their products and services through popular social media bloggers, including skin care items, cooking utensils, travel packages, home decor, and clothing.

Through blogging, the general public is connected to big brands through social media blogs run by bloggers from either the comfort of their home or anywhere else in the world.

The bigger your following is and the more people you can reach through your content, the more brands and companies will want to work for you and the higher your income will be.

Content Writing

Content writing is a great idea for a remote business.

If you love to read, write, and research topics, this is an excellent way to make money while working from home.

Multiple companies hire remote writers to write for their company blogs so that the products and services they offer reach a wider audience and so they can generate more business.

Companies use such specialized content as promotional and informative material on their websites, social media platforms, and blogs.

You can apply directly for remote writing jobs on multiple job boards or create your own website, develop a writing portfolio and reach out to companies yourself! 

This is a great remote business idea because there is absolutely no additional cost to run this business.

Of course, you can invest in training or certification to develop your skillset, but it costs absolutely nothing to write an article and send it off to a company.

Another benefit is that you can write and do all your research from home while you sit on your bed with a hot cup of coffee.

You do not have to commute to work at all.

Instead, you can hold meetings over a video conference and email your work once you are through.

Online Tutoring 

Over the past two years, online teaching has taken over in light of Covid-19.

Online tutoring has become very popular as it allows one-on-one teaching and can be done over video conferencing apps such as zoom.

Many individuals find it easier to carry out the teaching online, especially when the student is living thousands of miles away.

For instance, giving online Spanish classes from Spain to someone in the United Kingdom eliminates geographical constraints and provides a larger client base.

It gets rid of commuting and transportation costs, provides a private learning environment and more flexible hours to work.

The resources as well that one would require as an online tutor are minimalistic.

Additionally, many people have started offering fitness and cooking classes online due to the social distancing requirements in their respective countries.

This has become extremely popular as your only cost will be camera equipment, and you do not need to worry about renting a studio or a gym to record your videos.

You can simply conduct a class from your home, garden, or park.

Home-Based Catering 

A passion for food is one that many share today.

Preparing food at home and selling it to customers is increasingly popular.

Cooking in your kitchen sounds less pressuring, and taking orders based on your timetable sounds amazing too.

The catering business has shifted from restaurants to homes.

Thousands of individuals who have a passion for food, cooking, baking, or are and out chefs can take advantage of working from home and catering for events or parties.

This creates a considerable financial avenue.

Again, you do not have to rent a kitchen and can easily work on your terms and create the perfect working environment for yourself.

You could also offer a pick-up service as well for small-scale events so that you reduce your transport/delivery costs.

Social Media Management & Affiliate Marketing 

Social media is a key part of every business marketing and growth strategy.

Keeping up to date with trends and posting eye-catching content that racks up views, likes and followers is crucial to a company’s business as it contributes to branding and reaches a target audience.

Therefore, the role of Social Media Managers has become extremely important in recent times.

Companies are interested in employing Social Media Managers to oversee their public interactions, provide a positive brand image and analyze customer engagement data.

As the role is extremely social media-heavy, most Social Media Managers work remotely either as an employee of a company or as their own business, offering services to multiple clients.

Social media management can be done anywhere and anytime as long as you are a creative person with a good internet connection and a laptop.

Translating

If you are bilingual or fluent in two or more languages, you can easily start a business as a translator.

The world is becoming even more globally connected with companies opening offices in different countries and representing clients from completely different parts of the world.

Here is where translation services are extremely important.

Translators and interpreters are needed across various sectors, including professional services, foreign relations, education, to name a few.

All you need is your laptop and a good internet connection to attend meetings and translate in real-time or send back documents after translating them.

Your only cost there might be some training or certification as it sometimes helps in getting clients.

However, this is only a one-off payment and an investment in your business.

Personal Shopping

A personal shopper is someone who is paid to help another buy new products.

This assistance can be offered in person by accompanying them to shop or by shopping on their behalf.

Personal shoppers are responsible for recommending products to their clients and then purchasing the ones their clients like.

Therefore, personal shoppers need to understand their clients and recent trends, products, and services that their clients might be interested in.

While personal shoppers can be employed at department stores and boutiques, some work from home and work as independent contractors and have started their businesses.

Most personal shoppers charge hourly rates for their assistance to customers.

If you are affiliated with a business that sells certain products, you can earn a commission for any specific items you help sell.

Being a personal shopper does not require going to work at all, as you can simply carry out all your market research and communications with your client from the comfort of your home.

Subscription Boxes

A subscription box service is a recurring delivery of niche products through product distribution and marketing.

Suppose you plan on offering a subscription box service.

In that case, you can build a stable financial model with a recurring monthly revenue depending on how many customers you have.

The subscription box can range from any theme, including stationery, crafts, toys, beauty products, books, and even funky socks!

All you have to do is create a website and develop a marketing strategy for your service, select and order what items you want to include, package them into a box, start taking orders and send them off.

There’s no need to have an office space, and depending on how many customers you have and how your business grows, you can easily use your room to pack or any other free space at home.

Dropshipping 

If you are looking to open an online store, dropshipping could be an extremely easy and efficient way for you to do so!

Dropshipping is a business model where you can sell products from third-party suppliers or wholesalers online.

The biggest advantage is that you do not need to worry about storage, warehousing, or managing any inventory or customer orders as it is all done by the supplier.

The main job of a drop shipper is to advertise and create an eye-catching and easy-to-use website that attracts customers. 

You can start your dropshipping business by first picking a niche in line with your interests and consumer demands.

Next, try and calculate the potential margins you can earn based on your target audience.

After that, you will have to figure out your branding to stay competitive and set yourself apart from other drop shippers.

Lastly, you will have to name your store and set up the website.

Website Design & App Development

App development is becoming an extremely popular and profitable remote business to start for tech-savvy and innovative entrepreneurs.

If you are an experienced coder and can develop an innovative and unique app, you can start making money as an app developer.

The same goes for website designers and developers, especially in today’s social climate.

Most customers prefer online shopping instead of going over to the physical store, which is why it is crucial for you to have an attractive and easy-to-use website that has a strong online presence and can engage customers.

Registration of a Remote Business

Remote businesses are becoming the new normal with companies cutting back on their office space and focusing more on hybrid working.

Not only are remote business an attractive option for owners as save money in terms of operational costs but they also work for employees as it improves their work-life balance.

There’s no better time to start a business as technology has also made it much easier to communicate with teams and manage workflow.

But that now means that you should start considering which jurisdiction is best for a remote business.

Some jurisdictions are very friendly to remote businesses by also being a remote process of opening a business.

Hong Kong provides many benefits to companies even if they are not located in Hong Kong.

Register your remote business with Air Corporate today and get approved in under 48 hours.

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Currently, retail investors are allowed to purchase and trade cryptocurrency in Hong Kong.

However, cryptocurrency is considered a virtual commodity and not legal tender. 

Because of this label, there is still a lot of grey area when it comes to the crypto market in Hong Kong.

Despite this, the comprehensive rules that have governed cryptocurrency in the area are beginning to change. 

Currently, these are the rules and regulations regarding the use of cryptocurrency in Hong Kong. 

• No Capital Gains Tax on cryptocurrency
• Mining regulations will revolve around the data centers they’re mined in
• When it comes to transactions for crypto-exchanges, the SFC (Securities and Futures Commission) 
• AML (Anti-Money Laundering) and CFT (Counter-Financing of Terrorism) laws apply to every person and business in Hong Kong, regardless of the activity

Can I Legally Buy Crypto in Hong Kong?

In Hong Kong, crypto-enthusiasts and investors can purchase cryptocurrency through crypto-ATMs, exchange platforms, and individual holders.

However, things may not be this way for much longer. 

The SFC is ushering in a new authority around crypto exchanges and their availability to retail traders.

If this change takes place, retail crypto traders will be unable to purchase their favorite digital currencies on exchanges or through crypto-ATMs.

Do I Have to Pay Taxes on Crypto in Hong Kong?

In many places, in regards to profits on trades and investments, countries have what’s called a Capital Gains Tax.

This tax makes it mandatory for investors to pay taxes on financial investments they sell if they net a profit.

However, there is no Capital Gains Tax in Hong Kong. 

However, individuals who trade frequently are still subject to tax payments.

If an individual or business profits from crypto-trading on a regular basis in Hong Kong, this is considered income. 

Income tax in Hong Kong can be as high as 17%.

The Inland Revenue Department of Hong Kong (IRD) is tasked with collecting taxes from cryptocurrency in the area. 

Regulations for Cryptocurrency Exchanges

If the new regime takes over in February, big changes are on the horizon for Hong Kong cryptocurrency exchanges.

Any exchange operating in Hong Kong must apply for a special license with the SFC. 

In an unprecedented rule change, exchanges will only accept accredited professional investors with more than 8 million HKD as investors.

Before this proposed rule change, only exchanges that sold Security Tokens had to apply for a special license. 

Cryptocurrency AML/CFT Laws, Rules, and Regulations

There are strict sets of rules that exist around cryptocurrency when it comes to anti-money laundering and funding terrorism in Hong Kong.

Hong Kong is a FATF (Financial Action Task Force) member and follows the world’s watchdog compliance recommendations regarding cryptocurrency. 

Under AML/CFT regulations, all individuals and businesses are obligated to report any suspicious or illegal activities to proper authorities in conjunction with FATF recommendations.

Activities such as drug trafficking, organized crime, and crimes pertaining to the United Nations Ordinance are taken very seriously. 

Cryptocurrency exchanges and any other entity that passes funds through Hong Kong’s jurisdiction hold a legal responsibility to report these activities to AML/CFT authorities.

Failure to submit SARs (Suspicious Activity Reports) can result in a three-month jail sentence and a fine of over 50,000 HKD. 

Rules and Regulations for Mining Crypto in Hong Kong

When cryptocurrency is mined, new blocks are created on the blockchain.

This process also includes verifying various transactions and collecting “block-rewards” of cryptocurrencies.

These block rewards are what make crypto-mining a profitable activity. 

Land in Hong Kong is extremely limited, and there are several land-use rights regarding running data centers.

Unless the operation is very small-scale, anyone interested in running a cryptocurrency mining operation should keep these rules and regulations in mind. 

• The building involved in the operation must comply with the Buildings Energy Efficiency Ordinance. 
• These data centers will be monitored and supervised by the Office of the Government Chief Information Officer. 

Reporting Requirements for Crypto in Hong Kong

One of the most positive aspects of cryptocurrency regulations in Hong Kong is that transactions of certain amounts don’t have to be reported.

Regardless of the size of the transaction, there is no requirement to report to any governing body or authority. 

However, profits generated through cryptocurrency trading and sales are subject to income tax laws and regulations.

Declarations in tax returns are mandatory in Hong Kong and can be subject to up to 17% taxation.

It’s not quite a dystopian society yet for Cryptominers, but it’s clear the government in Hong Kong is bringing in Crypto under tighter constraints.

Takeaways

With Hong Kong’s government and other regulatory bodies embracing the promotion of fintech and other cutting-edge financial technology, one would assume the future looks bright for cryptocurrency in the region.

However, there are uncertainties because of the new restrictions and laws looming for Hong Kong in February. 

For a country seeking to push the benefits and commodities of cryptocurrency, it almost seems like Hong Kong’s strategies will prove to be counterproductive.

While the government does seem proactive in its attempts to promote the positives in fintech and crypto, placing such strict regulations on digital currencies could make it difficult for the majority of citizens to take advantage of their use. 

For the time being, citizens of Hong Kong are still able to enjoy the use of cryptocurrency freely.

If the proposed changes take effect, they won’t do so until February of 2022.

Only time will tell if the Hong Kong government’s attitude and approach towards cryptocurrency will pay off or have a damaging effect because of the restrictiveness.

Are you a business that’s looking to deal with cryptocurrency?

In Hong Kong, you’ll need a license to do just that.

Open your business in Hong Kong with Air Corporate and we’ll help you get the right licenses for your business.

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