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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.
Hong Kong is globally recognized as a business hub having ranked 3rd out of 190 countries on 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.
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 what is obtainable 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 will be beneficial if your objective for relocating is to reduce your company’s tax burden.
With less tax, you can maximize profit for business growth.
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 citizens nor residents of Hong Kong.
It is also easy to repatriate profit from Hong Kong as there is no foreign exchange control in Hong Kong.
Hong Kong also boasts of world-class infrastructure including an efficient transportation system as well as 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 as well as minimal importation and exportation barriers.
Hong Kong is strategically located in the heart of Asia with easy access to mainland China and the rest of Asia.
This makes it a suitable location if your objective for moving your company is to penetrate the Asian market, access a wider market, or cheaper production costs.
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.
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, the potentials, and the necessary resources needed to survive in the new location.
A relocation plan helps you to make provision 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.
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 that you need to 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.
Relocating a company is a capital-intensive project.
Therefore, you need to come up with a budget that caters to the basics.
In coming up with a budget, you should consider your company’s real estate needs.
Determining your real estate needs will help narrow down your decisions as to the type of property to opt for, the possible locations for such properties, and the choice of buying or renting such property.
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.
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.
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, your suppliers, your customers, and shareholders. It is important that they are fully carried along from the start of the relocation process till its conclusion. Regular or new communication channels that allow for maximum clarity can be employed in this respect.
To ensure a smooth relocation, you need to hire or create a relocation team that will oversee the relocation to Hong Kong.
It is advisable to appoint a manager or some other person who will 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.
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.
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’re not violating 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.
To conduct business in Hong Kong, your company needs to be registered with the Hong Kong Companies Registry within one month of relocation.
Luckily, company registration in Hong Kong is an easy and straightforward process.
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.
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 your business operates in and the nature of your business.
Thus you should find out if your company needs a business license and obtain the necessary license before commencing operations.
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 steps that come after including accounting, visas, and legal tips.
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