How to Relocate a Company to Hong Kong

Relocating your company can be a game-changer if you're seeking to expand your business.

You can reach a larger market and establish a stronger global presence.

You may also discover that there's a ready market for your products or services in your new location. 

Despite these perks, relocating a company can be quite daunting if you do not know the necessary procedures you must take.

If you're interested in relocating your company to Hong Kong, this article provides a detailed guide on this.

Why Should You Relocate Your Company to Hong Kong?

Hong Kong continues to be globally recognized as a business hub, having ranked 3rd out of 190 countries in the 2020 World Bank's Ease of Doing Business Report.

However, out of over 10,000 cities in the world, you need to have a solid reason to relocate your company to Hong Kong.

 Luckily, we've provided some specific reasons why you should consider relocating your company to Hong Kong below.

Low Corporate Tax Burden

Hong Kong is known for the simplicity and attractiveness of its corporate tax regime.

The taxes applicable to companies in Hong Kong are few, and the tax rates are lower than those in most countries.

For instance,  capital gains tax, value-added tax, sales tax, and withholding tax aren't applicable to companies in Hong Kong.

Tax computation is also straightforward, which makes compliance relatively easy.

Thus, moving your company to Hong Kong can be financially beneficial, especially if your company's current financial situation could be improved by a lower tax burden.

With less tax, you can maximize profit for business growth. 

Attractive Public Healthcare System

Hong Kong boasts a well-established public healthcare system that provides subsidized medical care for permanent Hong Kongers, including expats.

This can be a significant benefit for your employees, offering them access to quality medical care at affordable costs.

Plus, this can contribute to a happier and healthier workforce, potentially leading to increased productivity and lower absenteeism.

It's important to note that there might be waiting times for non-emergency procedures in the public system.

While public services offer benefits, private insurance can help offset additional medical expenses and potentially provide access to a wider range of specialists or shorter waiting times.

Due to the potential limitations of the public system, many expats opt for private health insurance coverage.

Investor Friendly Policies 

 Unlike most cities, Hong Kong promotes a free economy and trade, which makes it investor-friendly.

It is easy to establish businesses across different sectors in Hong Kong as there are few restrictions. 

There are also no legislative bottlenecks that can hinder a foreign company from setting up and thriving freely in Hong Kong.

A foreign company can be set up with foreign directors who are neither Hong Kong residents nor citizens. 

It is also easy to repatriate profit from Hong Kong, as there is no foreign exchange control there.

Good Infrastructure

Hong Kong also boasts world-class infrastructure, including an efficient transportation system and impressive internet speed.

Thus, it is an ideal location for running your business if your relocation objective is better infrastructure. 

Investors also enjoy full access to top-notch banking services in Hong Kong, and there are minimal importation and exportation barriers. 

Strategic Location

Hong Kong is strategically located in the heart of Asia, with easy access to mainland China and the rest of the region.

This makes it a suitable location if your objective for moving your company is to penetrate the Asian market, access a wider market, or lower production costs. 

Tips for Relocating Your Company to Hong Kong

If you've decided that Hong Kong is the ideal destination for your company, then you need to do so in a manner that will not disrupt your business productivity.

Here are some tips to help you relocate easily.

Create a Business Relocation Plan

Just like a business plan, a business relocation plan provides a detailed roadmap on how your company intends to achieve its objectives in a new location.

It gives an overview of the risks, potentials, and resources needed to survive in the new location.  

A relocation plan helps you prepare for all foreseeable circumstances. Key elements of a relocation plan are budgeting, a timeline, and communication.

You need a business relocation plan to ensure a smooth transition from your current location to Hong Kong.

You can hire an expert to create one for your company. 

Consult the Right Professionals

Relocating a company is a risky move, but you can minimize the risks involved by consulting professionals.

Lawyers, accountants, financial advisers, immigration experts, property consultants, tax consultants, marketers, and business developers are some of the key professionals you should consult. 

They will be in the best position to advise you on the financial, legal, tax, and business implications of relocating your company to Hong Kong. 

Come Up With a Budget

Relocating a company is a capital-intensive project.

Therefore, you need to come up with a budget that caters to the basics. 

When coming up with a budget, you should consider your company's real estate needs.

Determining your real estate needs will help you narrow down your decisions about the type of property to buy or rent, the possible locations for such properties, and the choice of buying or renting.

Your budget should also make provision for incidental costs such as insurance, utilities, maintenance, and renovation.

Your relocation budget should also make provision for the cost of hiring professionals that you'll engage to facilitate the relocation.

Adequate provision should also be made in your budget for unforeseen and miscellaneous expenses.

This helps to ensure that you stay prepared and that your relocation plans aren't derailed by financial incapacity.

Come Up With a Timeline

Setting a timeline for your company's relocation to Hong Kong is another important aspect of a relocation plan.

A timeline ensures that your company's relocation process is organized. It helps with setting priorities and giving direction.

It also ensures efficiency in the persons and processes involved in relocating your company to Hong Kong.

Specifically, a timeline for your company's relocation should incorporate a schedule of tasks or subtasks to be completed.

Such tasks could include creating an inventory, purchasing new furniture or equipment, advertising your new address, etc.

The timeline should also incorporate a date by which the listed or scheduled tasks are to be completed, as well as the persons that will be responsible for carrying them out. 

With this in place, it will be easier to relocate your company to Hong Kong.

However, you should be prepared for delays, lapses, and setbacks that may occur. 

Inform Your Company's Stakeholders

The decision to relocate your company is not one that can be made alone, especially if your company is not a private limited company or a small company with few employees.

Thus, you must inform your company's stakeholders about the decision to relocate to Hong Kong and ensure that adequate communication channels exist between you, your company, and the stakeholders. 

Such stakeholders are your employees, suppliers, customers, and shareholders. It is important that they are fully involved from the start of the relocation process until its conclusion. In this respect, regular or new communication channels that allow for maximum clarity can be employed.

Create a Relocation Team

To ensure a smooth relocation, you need to hire or create a relocation team to oversee the move to Hong Kong.

It is advisable to appoint a manager or someone else to oversee the implementation of your company's relocation plan. 

You can also engage the services of corporate movers who specialize in international relocations.

Their expertise and experience will certainly make the process of relocating your company to Hong Kong a smoother affair.

Consider Staggered Relocation

 In relocating your company to Hong Kong you should also consider the possibility of a staggered move that is, running your company's business out of your old location as well as the new location for a brief period.

 This staggered operation will allow for a smoother transition into your new location and will help ensure that your company's workflow is not significantly affected.

Get Office Space In Hong Kong

If your company is not a digital company, you need to secure an office space in Hong Kong to make relocating easier.

Depending on your budget, you may decide to purchase a property or rent for a couple of years. 

When picking an office space, you should consider so many factors like proximity to key resources and accessibility.

You should also consider the environment.

Ensure that your office is located in a business-friendly environment and that you do not violate the Hong Kong town planning guidelines and standards by setting up an office in that environment.

It is advisable to hire a licensed property consultant to find a suitable office space for your company in Hong Kong. Having a local office address can also simplify the process of opening a corporate bank account.

Register Your Company With the Hong Kong Companies Registry 

To conduct business in Hong Kong, your company must register with the Hong Kong Companies Registry within one month of relocation.

Luckily, company registration in Hong Kong is an easy and straightforward process. You will need to submit various documents to relevant authorities, including:

• A completed company registration form
• Your company's Articles of Association and Memorandum
• Proof of your company's business address in Hong Kong
• Hong Kong ID cards or passports of the company directors and shareholders

You may register your company in a new name or maintain your company's current name.

In both instances, your company's name must not infringe on any existing intellectual property rights.

Obtain the Relevant Business License For Your Company 

Apart from registering your company, you may need to obtain a Hong Kong business license(s) for your company before you can conduct your business in Hong Kong.

The type of business license that you need depends on the industry in which your business operates and the nature of your business. 

Thus, you should find out if your company needs a business license and obtain it before commencing operations. 

Conclusion

Relocating your company can be quite challenging, and your business can suffer setbacks and have its operations halted if you do not follow the right procedure. 

If you follow the above steps, relocating your company from anywhere to Hong Kong will be a stress-free and enjoyable process.

Ready to relocate to Hong Kong? First, register your new Hong Kong business with Air Corporate so you can get the best consultation for the next steps, including accounting, valid visa requirements, and legal tips.