In helping entrepreneurs navigate their way towards the most suitable incubators and accelerators, this article provides a list of top 5 incubators/accelerators in Hong Kong in 2024:

• Cyberport
• The Hong Kong Science and Technology Parks Corporation (HKSTP) 
• Brinc 
• HKAI LAB 
• Hong Kong Startup Council 

1. Cyberport

Owned by the Hong Kong SAR Government, Cyberport is one of the driving forces for Hong Kong digital technology development. It offers various programs aimed at cultivating talents, supporting start-ups, and promoting industrial and economic growth.  

Cyberport entrepreneurship programs target entrepreneurs in the industries of Smart Living, FinTech, E-Sports and Digital Entertainment, AI, Big Data, Blockchain, Cyber Security, and Corporate Services at various stages:  

Source: Hong Kong Cyberport Management Company Limited

Cyberport’s Creative Micro Fund offers financial support to creative projects and startups in Hong Kong. It’s tailored for ventures in digital media, entertainment, design, and tech, providing seed capital to fuel innovation and entrepreneurship in these industries.  

The details for other sub-programmes are listed below. 

Cyberport Incubation Programme 

Who is this for?

Early-stage Hong Kong registered digital tech company limited by shares (or in progress of incorporation) and incorporated in Hong Kong less than 7 years upon application deadline.

Programme Benefits  

Up to HK$500,000 (≈ US$64,000) financial assistance including:

• HK$100,000 (≈ US$13,000) Initial Working Capital Grant
• Up to HK$200,000 (≈ US$25,500) grant to be allocated upon completion of Six-monthly Progress Reviews
• Up to HK$200,000 (≈ US$25,500) for Performance-driven 2-Tiered Assessment
• Rent-free working space (only for incubatees who chose to work on-site at Cyberport)
• Free use of Cyberport shared meeting rooms, conference rooms, co-working spaces, and other facilities
• Meetings with entrepreneurs and investors, and networking opportunities 

Application Procedure and Selection Criteria 

After submitting an online application form, the applicants will be screened and selected based on five main criteria, namely:

• Market viability with milestones and contribution to Cyberport’s strategic clusters.
• Quality and competence of the management team.
• Business scalability.
• Functional prototype or product secured by design or to solve a real problem.
• Innovativeness and social impact.

If you are interested in the programme, please refer to Hong Kong Cyberport Management Company Limited – Application process for further application guidelines.  

Cyberport Accelerator Support Programme (CASP) 

Who is this for? 

Cyberport existing or graduated incubatees, or Cyberport Creative Micro Fund (CCMF) grantees as per Hong Kong Cyberport Management Company Limited – FAQ 

Programme Benefits 

The Cyberport Accelerator Support Programme offers a maximum of HK$300,000 (≈ US$38,500) for: 75% subsidy on accelerator programme fees, office rental, marketing and promotion, professional services, travel, and accommodation, as well as 50% subsidy for interns. 

Application Procedure and Selection Criteria 

Applicants shall first submit a CASP online application form. They will then be vetted to ensure all requirements are met before the final selection is announced.

If you are interested in the programme, please refer to Hong Kong Cyberport Management Company Limited – Cyberport Accelerator Support Programme for further application guidelines.  

Overseas/Mainland Market Development Support Scheme (MDSS)

Who is this for?  

Cyberport incubatees, grantees or alumni from the CCMF and/ or CIP. This programme also focuses on HKCMCL incubatees, grantees, or alumni from CIP and CCMF who have not raised equal to or more than US$10M of funding in total on the date of filing a reimbursable claim can also qualify for this Scheme.

Programme Benefits 

A maximum of HK$200,000 (≈ US$25,500) for up to 75% of eligible expenses, which are the following: Market Development Activities for Overseas/Mainland Market, including Delegation mission to Overseas/ Mainland, Marketing exhibition/ conference/ event, Landing service for Overseas/ Mainland market expansion, and online/ offline marketing services for Overseas/ Mainland market expansion.    

Application Procedure and Selection Criteria  

The application criteria are the same as the previous programme. After submitting an online application form, applicants shall carry out the Market Development Activity. They can claim the eligible Market Development Activities after such services incurred and paid and within the financial assistance period by submitting the Expenses and Post-Programme Evaluation Form, together with supporting documents. 

For further detail, please refer to Hong Kong Cyberport Management Company Limited – Overseas/Mainland Market Development Support Scheme (MDSS) 

Cyberport Macro Fund

Who is this for? 

Scalable digital technology companies with operations based in Hong Kong, which also bear one of the following identities: Incubatees or graduates of Cyberport’s other programmes; Cyberport Smart-Space companies; or Cyberport office tenants. 

Investment Amount 

Between HK$1M (≈ US$130,000) to HK$20M (≈ US$2.5M) for Cyberport’s accumulative investment per new investee. Total equity from the CMF shall be less than 20% post investment throughout the life cycle of the digital entrepreneur. 

Application Procedure and Selection Criteria 

Following the online application form submission, applications will be selected based on three main areas, namely:

• Thorough business assessment includes compliance, governance, financial position and business viability.
• Potential return on investment.
• Proven involvement in the Cyberport community.

For further details, please refer to Hong Kong Cyberport Management Company Limited – Cyberport Macro Fund. 

2. The Hong Kong Science and Technology Parks Corporation (HKSTP)

The HKSTP is a government-owned organization established to fuel Hong Kong technology and innovation growth. To date, HKSTP has facilitated the success of 850+ incubation graduates, among which 80% are still in business, and 4 have filed an IPO. The corporation operates programmes that assist startups in reaching their goals, ranging from the earliest stage of entrepreneurship – Ideation, to Incubation, Acceleration, and Elite programmes. 

Ideation 

Who is this for? 

Participants with innovative Technology start-up ideas, supported by R&D and business planning, in the early stage of their entrepreneurial journey.

Programme Benefits

• Seed Funding: Up to HK$100,000 (≈ US$13,000) financial grant
• Coaching: A dedicated account manager to accompany you on your startup journey. 
• Training: Topics include Market Validation, Business Modelling, Pitching, etc.
• Center Facilities: Co-working space access
• Potential to bridging programmes: Prepare for HKSTP incubation programmes admission.

Application Procedure and Selection Criteria            

To apply, applicants shall submit the application via ‘Apply Now’ using the template provided. Shortlisted ones will then undergo the Panel Assessment. If you are interested in the programme, please refer to The Ideation Programme | HKSTP for further guidelines.

Incubation  

Who is this for? 

The HKSTP Incubation Programme is divided into 2 sub-programmes, namely General Incubation and Incu-Bio. The former is for startups of 5 years or less specializing in deep tech research to develop innovative solutions, whereas the latter is for startups of 2 years or less focused on diagnostic, therapeutic, medical device, or other biomedical areas. 

Programme Benefits  

• For General Incubatees, the programme will offer Account Management, Technical Support, Business Support, and Financial Support of up to HK$1.29M (≈ US$166,000) to cover your technology and business development expenses.
• For Incu-Bio Incubatees, the programme will offer Workspace Support, Technology Support, Business Support, and Financial Aid of up to HK$6M (≈ US$770,000). 

Application Procedure and Selection Criteria  

• For General Incubatees, the procedure commences with an Online Application Submission, followed by Due Diligence Meeting and Admission Panel Meeting (10 Mins Presentation + 10 Mins Q&A). For further information, please refer to Incubation Programme | HKSTP. 
• For Incu-Bio Incubatees, they shall submit a business proposal outlining their innovation and technology, business model, team and four-year milestone plan. After providing the required documents to support the application, the applicants will undergo an eligibility check conducted by an assessment panel of independent experts. Please refer to Incu-Bio (hkstp.org) for further guidance.    

Acceleration 

Who is this for?  

Growth-stage company looking to scale globally, engaged in a technology intensive business, such as: Information Technology & Telecommunication; A.I and Robotic; Electronics; Fintech; Biotechnology; Precision Engineering; Green Technology.

Programme Benefits 

Successful applicants will be offered Fundraising Support of Financial Support of up to HK$4.8M (≈ US$615,000) in subsidies, Business Development Support, Professional Services Support, and the opportunity to Accelerate to the Next Stage.  

The programme requires entering the SAFE (Simple Agreement for Future Equity). 

Application Procedure and Selection Criteria  

Once the online application form with all the required supporting documents is submitted, the application will undergo evaluation by the Admission Panel. More information can be found at The Acceleration Programme | HKSTP 

Elite

Who is this for? 

Robust growth potentials who target to further groom the business and eventually become a unicorn.  

Programme Benefits 

The programme provides Financial Support of up to HK$21.5M (≈ US$2.8M), Fundraising Support, Business Development Support, Professional Services Support, and Infrastructure Support. 

The programme requires entering the SAFE (Simple Agreement for Future Equity)

Application Procedure and Selection Criteria  

Applicants shall submit the current company overview presentation through the programme enquiry. Selections will be made based on the applicant’s business plan; financial resources and performance; technology and R&D plan; management capacity and team competencies; and the applicant’s contribution to the ecosystem. 

More information can be found at Elite Programme | Funding | Unicorn | IPO | M&A | Science Park | HKSTP 

3. Brinc 

Brinc is a venture capital and accelerator firm based in Hong Kong with a global footprint. It focuses on entrepreneurs with innovations and approaches that can solve the world’s biggest challenges. Brinc’s acceleration programs are divided into 8 sub-programs, namely Artificial Intelligence, Climate Tech, Gaming, Hardware & IoT, Health, Web3, A4X, and Enterprise SaaS. The first six programs are available for Hong Kong, Singapore, and global startups, while the other two are active in India.

Who are these programmes for? 

Early-stage founders who are operating in an industry directly linked to the specific project they are applying for.

Programme Benefits 

• Participants can attract investments of a maximum US$100,000 (For Decentralized Health and Artificial Intelligence), US$150,000 (For ZK Advancer of Web3 and Health Innovation), and US$200,000 (For Gaming, and Climate Tech). 
• The programs also offer Mentorship, Customized Curriculum, Strong Network Connections, Ongoing Support, and other Perks.  
• The programme requires a token grant of 2% of the company’s total token grant supply, and a US$35,000 program fee. 

Application Procedure and Selection Guidelines 

The application is straightforward. Applicants can choose from a list of accelerator programs and quick apply via apply to Global Venture Accelerator Programs at Brinc. For further information, please refer to Accelerators Programs – Brinc for further guidelines.  

4. HKAI LAB 

HKAI LAB is a platform focused on advancing the frontiers of Artificial Intelligence with innovative technologies and expertise, and empowering startups to develop and commercialize their AI inventions and technologies. Its acceleration program lasts 12 months, with 2 cohorts running annually. The focus is on commercializing AI inventions and technologies developed at the lab. 

Who is this for?  

Early-stage startups with a team, and engaging in research, development, and application of AI. 

Programme Benefits 

The selected companies are eligible to be evaluated by Alibaba Hong Kong Entrepreneurs Fund (AHKEF) and/or SenseTime to get their funding support. However, it is not a guaranteed investment. They can also gain access to: 

• Extensive investor network 
• Proprietary ai technologies 
• Strong advisory, network, and business opportunities 
• Dedicated support and resources 
• Office space

Application Procedure and Selection Criteria 

Applicants shall submit the online application form with the required supporting documents including, but not limited to a business plan; CVs of the founders; and the certificate of incorporation of the company. Following that, the Selection Panel will vet the applicants and invite the shortlisted ones to an interview. Selections will be made based on the applicants’: 

• Depth Of R&D
• Innovation Quotient
• Viability Of Business Plan
• Competence Of the Founding Team

Further information can be found at HKAI Lab Accelerator Program – HKAI LAB (hongkongai.org) 

5. Hong Kong Startup Council 

Hong Kong Startup Council is a platform devoted to ramping up the growth of early-stage and growing startups by connecting them with seasoned industrialists, like-minded innovators, investors, the R&D sector, and the youth. Startups can obtain resources from the STARS Programme, which is a mentorship and partnership-centric programme on a zero-equity basis.

Who is this for?

Since its inauguration, the STARS Programme has hosted 5 cohorts with specific themes, namely: “Internet of Things” (IoT); “Smart Energy and Eco-Home”; Toys and Electronics Industries; Food Technology; PropTech + ESG.  

Programme Benefits 

Selected Startups can expect to receive:  

• SYNERGIES: Accelerate the development of startups and enhance the competitiveness of the Hong Kong industries. 
• TRAINING: Tailored mentorship programme and workshops developed and delivered by industry experts. 
• ANGELS: Opportunities to meet angel investors from valuable networks, specifically business and investor matchings, 
• RESOURCES: Dedicated one-stop platform providing technologies and services  
• SUPPORT: Build your business through expanding plans and go-to-market opportunities  

Application Procedure and Selection Criteria 

Since the featured topics vary from cohort to cohort, interested startups are encouraged to stay updated by regularly checking the programme website (Hong Kong STARTS Programme). 

Disclaimer: Information accurate as of June 7, 2024. This content is for general informational purposes only. Always refer to the official website for the most current and authoritative information. We are not liable for decisions based on this potentially outdated information. The linked website remains the primary and authoritative source for all updates and details. 

The post Top 5 incubators accelerators in Hong Kong  appeared first on MyBusiness in Asia.

This article will provide an overview of the BRN and its significance to Hong Kong’s businesses:

• What is a Business Registration Number (BRN)? 
• Which business requires a BRN? 
• How to obtain a BRN?
• What is the Business Registration Number of my Entity? 
• Where is the BRN used? 
• What are the benefits of having a BRN? 

What is a Business Registration number (BRN)?

In Hong Kong, every registered business entity receives a Business Registration Number (BRN) from the Business Registration Office, which operates under the Inland Revenue Department (IRD). This 8-digit identifier is important in ensuring businesses adhere to local regulations and meet their tax requirements.  

Which business requires a BRN? 

Under the Second Phase of the Unique Business Identifier (UBI) system, effective from 27 December 2023, a Business Registration Number (BRN) is compulsory for most business entities. They include:  

• Limited Partnership Funds (“LPFs”); 
• Companies incorporated or registered under the Companies Ordinance;  
• Open-ended fund companies incorporated or registered under Part IVA of the Securities and Futures Ordinance; 
• Limited partnerships registered under the Limited Partnerships Ordinance; 
• Registered trustees corporations incorporated under the Registered Trustees Incorporation Ordinance; 
• Other entities formed or registered under various Ordinances administered by the Registrar of Companies; 

The Business Registration Number (BRN) replaces the company registration number on certificates issued by the Companies Registry for incorporation, registration changes, and name changes. It must also be included on specified forms and documents submitted to the registry. The BRN will become the primary identifier used to search for and identify companies or entities across various services provided by the Companies Registry. 

How to obtain a BRN?

Obtaining a business registration number in Hong Kong is a straightforward process with several key steps: 

• Register your business with the Hong Kong Companies Registry. 
• After successfully registering your business, the next step is to obtain a Business Registration Certificate from the Inland Revenue Department. This certificate confirms your business registration status and includes details such as your business name, address, and the assigned business registration number.  
• Your business registration number is issued to you along with the Business Registration Certificate by the Inland Revenue Department.  

What is the Business Registration Number of my Entity? 

For companies incorporated/registered on or after 27 December 2023, the BRN is the eight-digit number as the “No.” on the “Certificate of Incorporation” or “Certificate of Registration of Non-Hong Kong Company” issued by the Companies Registry.  

Certificates for companies or entities established prior to the introduction of UBI will not be reissued to replace existing ones. 

Existing companies and entities in Hong Kong registered before 27 December 2023, which do not have a BRN (such as companies exempted from registration) have been assigned a dummy BRN. This dummy BRN is derived from their existing Company Number, CR Number, or Company Registration Number stored in the Registry’s records. This dummy BRN serves as the Unique Business Identifier (UBI) for these entities.  

The public can find the BRN associated with a company/entity using its previous CR No., and vice versa, through the “Quick Search > CR No. / BRN Mapping” tool on the Registry’s e-Services Portal. 

Where is the BRN used?

• The BRN serves as the identifier in communications with government departments and businesses. 
• After the implementation of the UBI, all specified forms and documents filed with the Registry must use the BRN. 
• The Electronic Search Services of the Registry utilizes the BRN as the primary number for searching and identifying companies or entities. 

What are the benefits of having a BRN?

A BRN can be useful for business advancement. With your BRN, you can: 

• Ensure adherence to tax regulations: The BRN serves as a tax identification number, used for filing various tax forms and conducting audits to review a business’s financial records. 
• Optimize operational efficiency: As an identifier, the BRN enables quicker recognition by government departments and other entities, thereby enhancing business operations. It can also allow businesses to streamline such processes as tax compliance, licensing, or permit acquisition. 
• Simplify financial transactions: The BRN is pivotal in facilitating precise and efficient financial transactions as a tax identification number. It can also: act as a routing transit number for banks, thereby ensuring accurate currency transfers; and improving security during transactions.  
• Reduce possible errors: errors caused by the use of different identifiers in identifying the same entity.

In conclusion, the Business Registration Number (BRN) is essential for regulatory compliance and operational efficiency in Hong Kong. It serves as a crucial identifier in dealings with government agencies, financial institutions, and in business transactions. Understanding the use of the BRN is key for businesses aiming to thrive and expand in Hong Kong’s competitive market.

The post Implementation of a New Unique Business Identifier (UBI) for Hong Kong  appeared first on MyBusiness in Asia.

Our comprehensive guide to company incorporation below offers a detailed, step-by-step roadmap on how to set up a company, empowering you to take control and successfully launch your company in Hong Kong.

• Pre-Registration Steps
• Register Your Company In Hong Kong
• Post-Registration Steps
• MBiA’s Hong Kong Preincorporation Checklist

Pre-Registration Steps

Before registering your company in Hong Kong, it is important to undertake four main steps:

1. Propose Your Company Name

When choosing your company name, make sure it adheres to the general requirements and restrictions. Specifically, although the company name can be in either English (must end with “Limited”) or Chinese (must end with “有限公司 “), using a combination of both languages is restricted. The proposed name must be unique, free from any criminal or offensive implications. It is also important to refrain from suggesting any connection to government entities, and from infringing trademarks or brand names.

2. Decide On Key Business Details

Before kickstarting your business, make sure you have readily available information about your business, including the nature of your business activities and its physical location.

3. Choose The Registered Address

An incorporated company in Hong Kong must have a registered office within the jurisdiction. Here are some key considerations for your company’s registered address:

• It must be a physical address situated within Hong Kong, a P.O. Box or virtual office is not eligible.
• The address must be publicly accessible during regular business hours.

4. Decide On Key Personnel And Share Capital Structure

Key Personnel

• Directors: Hong Kong company formation requires a minimum of 1 director. There is no limit on the number of directors, their nationality, or residency, as long as they are above 18. When registering for a company, details regarding the director(s)’ full name, residential address, HKID card and/or passport number must be provided. 
• Shareholder: A registered company must have at least one shareholder. Details regarding the shareholder(s)’ full name and residential address must be provided. Additionally, if the shareholder is a corporate entity, there are also requirements for a business profile outlining the shareholder structure, as well as the authorized representative’s name and ID documents. 
• Company Secretary can be a Hong Kong resident individual or a registered company with the Trust or Company Service Provider. The requirements for detail provision are similar to those for directors.  

Share Capital Structure

Your company constitution will need to include the following share details:

• Class of shares
• Number of shares
• Share capital to be subscribed (and issuing currency)
• The amount to be paid up

Register Your Company In Hong Kong

To register a Hong Kong company, verify if the proposed name is identical or too similar to any name already listed in the index of company names maintained by the Registrar. Submit required documents such as the Hong Kong application form, Articles of Association, and shareholder identification copies. If there are corporate shareholders, directors must sign and submit form NNC1. Upon approval, you will receive a Certificate of Incorporation either online or in person. Finally, obtain a Business Registration Certificate from the Inland Revenue Department. 

Apart from obtaining the business registration certificate, certain businesses are required to hold additional specific licenses for authorized activities in fields such as: banking, insurance, trust company, telecommunications, money service operation, funds operation. 

Post-Registration Steps

Following registration, the next five steps are crucial for your company to fully operate in Hong Kong. 

1. Hold the First Board Meeting 

Depending on its accounting reference period, a company must hold its Annual General Meeting (AGM) each financial year as follows:

For companies with a typical accounting reference period (12 months or less):

• Private companies and companies limited by guarantee: AGM must be held within 9 months after the end of the accounting reference period.
• Other companies: AGM must be held within 6 months after the end of the accounting reference period.

For companies with a first accounting reference period longer than 12 months:

• Private companies and companies limited by guarantee: AGM must be held within 9 months after the first anniversary of incorporation, or 3 months after the end of the accounting reference period, whichever is later.
• Other companies: AGM must be held within 6 months after the first anniversary of incorporation, or 3 months after the end of the accounting reference period, whichever is later.

2. Open A Corporate Bank Account 

Once the business has been registered, funding can be injected with a local Hong Kong bank account. Opening a corporate bank account can be more onerous and complicated than opening an account for an individual. Typically, Hong Kong banks require detailed documents regarding the business, directors, and shareholders. In-person appointments and interviews will be scheduled, even if the online application option might be available on their websites. 

3. Apply For An Employment Visa 

The primary visas used by employers in Hong Kong to hire foreign staff are the General Employment Policy (GEP) and the Admission Scheme for Mainland Talents and Professionals (ASMTP), often referred to as “Employment Visas.” 

To apply for an Employment Visa in Hong Kong, the company must demonstrate its financial stability, business plan, sufficient office space, and other required documents, as well as justify why the applicant is the best fit. The applicant needs a university degree or exceptional technical skills, along with supporting documents like transcripts and employment records. 

4. Notify The Business Registration Office Of Your Company’s Business Nature 

Local limited companies must inform the Business Registration Office in writing within one month from the actual commencement of business.  Details such as the business name, description, nature of business, business address, and the date when the business operations began are typically required. This notification can be submitted either by letter or by completing Form IRBR200. 

5. Appoint Auditors And Accountants For Financial Management 

By appointing auditors and accountants early on, newly incorporated companies in Hong Kong can establish robust financial management practices, maintain compliance with legal requirements, and ensure transparency and trustworthiness in their financial reporting. 

MBiA’s Hong Kong Pre-incorporation Checklist

To assist busy business owners in navigating their pre-incorporation process, we’ve crafted a detailed and concise checklist of step-by-step instructions on how to start a company in Hong Kong. This checklist offers a quick overview of all of the important tasks required for successful business incorporation.

The checklist includes many crucial prerequisites covering foundation steps, corporate and legal representatives, share capital structure, and after-incorporation steps-related documents.

Ensure you are well-acknowledged and fully prepared to meet the requirements. Feel free to contact us for any guidance or support needed regarding incorporation.

Get our Hong Kong’s Pre-incorporation checklist for free!

Let’s dive into our latest blogs to uncover everything you need to know before incorporating a company in Hong Kong!

• Expert Startup Incorporation Services In Hong Kong For Fast And Easy Registration
• All you need to know to create a company in Hong Kong
• Register a business in Hong-Kong
• Is Now the Perfect Time to Invest and Expand Your Business in Hong Kong?
• How to Easily Open a Hong Kong Limited Company from Abroad

The post Incorporating a company in Hong Kong appeared first on MyBusiness in Asia.

Let’s explore the key features of Hong Kong’s tax system in detail below:

• Key features of the Hong Kong tax system
• Taxpayers’ return
• Major types of taxes in Hong Kong
• Conclusion

KEY FEATURES OF THE HONG KONG TAX SYSTEM

1. Territorial Principle: One of the fundamental principles of Hong Kong’s tax system is the territorial basis of taxation. This means that only income or profits sourced from Hong Kong are subject to tax. Income earned outside Hong Kong is not taxable, even if it is remitted to Hong Kong.
2. Low Tax Rates: Hong Kong boasts some of the lowest tax rates in the world. This is a major draw for businesses and individuals alike. The corporate tax rate is capped at 16.5%, while the highest marginal tax rate for individuals is 17%.
3. No Value-Added Tax (VAT): Unlike many other jurisdictions, Hong Kong does not impose VAT, Goods and Services Tax (GST), or sales tax. This simplifies the tax system and reduces the administrative burden on businesses.
4. No Capital Gains Tax: Hong Kong does not tax capital gains. This means that profits from the sale of investments, property, or other capital assets are not subject to tax.
5. No Withholding Tax on Dividends and Interest: There are no withholding taxes on dividends and interest, making Hong Kong an attractive destination for investors seeking to maximize their returns.

TAXPAYERS’ RETURN

Taxpayers are required to submit returns for property tax, salaries tax, or profits tax within a reasonable time, typically one month, as specified by an assessor. Submitting an incorrect return without a reasonable excuse is an offense under the IRO.

MAJOR TYPES OF TAXES IN HONG KONG

Profits Tax

Profits tax is the primary form of corporate tax in Hong Kong. It is levied on the assessable profits of businesses operating in Hong Kong. Profits tax returns must include:

• A certified copy of audited accounts.
• Tax computations with supporting schedules.
• Other documents and information as specified in the accompanying notes and instructions.

Exceptions to submitting audited accounts apply to:

• Companies incorporated outside Hong Kong without audit requirements.
• Dormant companies.
• Companies in liquidation.
• Small companies with gross income below HKD 2,000,000.

The deadlines for filing profits tax returns vary by the year-end accounting date:

• 1 April – 30 November: Due by 2 May (no extension).
• 1 December – 31 December: Due by 15 August (no extension).
• 1 January – 31 March: Due by 15 November, with extensions for loss cases until 31 January of the next year.

The key features of the profits tax include:

• Rate: The standard corporate tax rate is 16.5% on assessable profits. However, a two-tiered profits tax regime was introduced in 2018, where the first HKD 2 million of profits are taxed at a reduced rate of 8.25%, with the remaining profits taxed at the standard rate.
• Deductions and Allowances: Businesses can deduct expenses that are incurred in the production of assessable profits, including salaries, rent, and business expenses. Depreciation allowances are also available for capital assets.
• Loss Carryforward: Businesses can carry forward losses indefinitely to offset future profits, reducing their tax liability in profitable years.

Salaries Tax

Salaries tax is levied on the income of individuals from employment, office, or pension. Specific forms and deadlines for salaries tax returns include:

• Employers’ return of remuneration and pensions: Forms BIR 56A & 56B, due by 2 May (no extension).
• Employer’s return on commencement of employment: Form IR 56E, due three months from the employment start date.
• Employer’s return on cessation of employment: Form IR 56F, due one month before employment ends.
• Employer’s return for an employee leaving Hong Kong: Form IR 56G, due one month before departure.
• Individual tax return: Form BIR60, which individuals must file annually, typically within one month from the date of issue unless an extension is granted.

The key features of salaries tax include:

• Rates: Salaries tax is progressive, with rates ranging from 2% to 17%. The tax is calculated on a sliding scale, with different bands of income being taxed at different rates. The highest marginal rate of 17% applies to income above HKD 200,000.
• Deductions and Allowances: Individuals can claim various deductions and allowances to reduce their taxable income. These include deductions for self-education expenses, charitable donations, and contributions to retirement schemes. Personal allowances are also available for the taxpayer, their spouse, and dependents.

Property Tax

Property tax in Hong Kong is charged on the owner of land or buildings situated in Hong Kong. This tax is applied at the standard rate to the net assessable value of the property as per section 5(1) of the Inland Revenue Ordinance (IRO).
The assessable value is the amount of money or money’s worth payable for the right to use the land or buildings each year. This includes any consideration for services connected to the use of the property. However, expenses incurred by the landlord for managing the property are not deductible for property tax purposes.
Property tax is levied on the owners of properties in Hong Kong, based on the rental income received.
The key return forms and their deadlines related to property tax are as follows:

• Property Tax Return (Form BIR57/BIR58): These forms must be filed by property owners to report rental income received from their properties. The deadline for filing these returns is typically within one month of the date of issue unless an extension is granted.

The key features of property tax include:

• Rate: The standard rate of property tax is 15% on the net assessable value of the property, which is the rental income after deducting a standard allowance for repairs and maintenance.
• Exemptions: Corporations subject to profits tax on rental income can claim an exemption from property tax.

CONCLUSION

As discussed in the previous paragraphs, the Hong Kong tax system stands out for its simplicity, low tax rates, and territorial basis of taxation. These aspects, coupled with the absence of VAT, capital gains tax, and withholding taxes on dividends and interest, make Hong Kong one of the most appealing destinations for businesses and individuals. However, the specificities of tax compliance, incentives, and assessments can pose significant challenges. Seeking professional advisors, such as the experts at MyBusiness Asia, is crucial to effectively navigate and manage your tax obligations. This ensures not only compliance with Hong Kong’s tax regulations but also optimization of your tax position.

Disclaimer: This article is for informational purposes only and does not constitute professional tax advice. Always consult with a qualified tax advisor for specific guidance on your tax situation.

The post Hong Kong Tax System appeared first on MyBusiness in Asia.

In this article, we will provide a simplified summary to help you understand how these measures will impact businesses:

• Introduction
• Bolstering Confidence
  • Strategic Partnerships Enhancing the Small Business Landscape
  • Attracting Global Talent and Business Re-domiciliation
  • Enhancing Liquidity and Financial Assistance for SMEs
  • Accelerating Digital Transformation and Online Expansion
  • Revitalizing Tourism and Sector-Wide Benefits
  • Tax Reductions, Incentives, and Business Support
• Accelerating High-quality Development
  • Investment in Future Growth and Innovation
  • Responding to Changes in Global Trade Dynamics
• Conclusion

Bolstering Confidence

Strategic Partnerships Enhancing the Small Business Landscape

The announcement by the Finance Chief of over ten strategic enterprises partnering with The Office for Attracting Strategic Enterprises (OASES) signifies a major advancement in enriching Hong Kong’s business ecosystem. Anticipated to introduce over HK$40 billion in investments and generate around 13,000 jobs (including 30 companies from the initial batch), this initiative nurtures a dynamic and supportive environment for businesses. It offers SMEs opportunities for new collaborations, broader network access, and the chance to tap into the innovation and market prospects brought by these strategic enterprises to Hong Kong.

Attracting Global Talent and Business Re-domiciliation

The proactive measures of the government have welcomed over 140,000 applicants through talent admission schemes to Hong Kong, with more than 100,000 already establishing their new residence in the city. This significant influx of skilled professionals is crucial for companies in search of expertise and significantly contributes to the vitality of the local economy.

Enhancing Liquidity and Financial Assistance for SMEs

Recognizing the essential role of SMEs, which account for more than 98% of all local businesses, the Hong Kong budget prolongs the application period for the 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme by an additional two years until March 2026. This move, coupled with a HK$10 billion increase to the existing HK$280 billion fund, is intended to facilitate easier access to government-backed loans at preferential rates.

Accelerating Digital Transformation and Online Expansion

The budget emphasizes the importance of digital transformation for SMEs via the Digital Transformation Support Pilot Programme, specifically designed to help SMEs in the retail and food service sectors to integrate digital technologies, with the expectation of aiding over 8,000 businesses. Moreover, the “E-Commerce Easy” program, part of the BUD Fund, seeks to enable firms to enter the Chinese e-commerce market, offering up to HK$1 million in support for each qualifying company.

Revitalizing Tourism and Sector-Wide Benefits

In an effort to rejuvenate the economy and various sectors, the government plans to organize over 80 major events in the first half of 2024, with a commitment of HK$100 million for event promotion over the next three years. Alongside the Tourism Board’s introduction of seasonal festivals and thematic tours, these initiatives are aimed at revitalizing tourism and sparking demand in retail, hospitality, catering, and transport sectors.

Tax Reductions, Incentives, and Business Support

The Hong Kong budget introduces several tax reductions, incentives, and support for businesses for the fiscal years 2023/24 and 2024/25.

For the fiscal year 2023/24, it offers a total, 100% exemption on both salaries tax and personal assessment tax, limited to HK$3,000, which will be reflected in the final tax bill for the 2023/24 assessment year, benefiting approximately 2.06 million taxpayers.

It also proposes a one-time 100% profit tax rebate for 2023-24, capped at HK$3,000, expected to assist around 160,000 businesses. The budget also allows for tax deductions on expenses incurred to reinstate leased commercial premises and makes allowances for industrial buildings and structures effectively claimable by new owners upon ownership changes.

For the fiscal year 2024/25, it plans a rate concession for non-domestic properties for the first quarter, from April to June 2024, with a cap of HK$1,000 per rateable property, which is anticipated to assist about 430,000 non-domestic properties.

Accelerating High-quality Development

Investment in Future Growth and Innovation

The Hong Kong government commits HKD 10 billion to the New Industrialisation Acceleration Scheme (NIAS) to attract high-value-added manufacturing in areas such as biotechnology, artificial intelligence, and green technology. This initiative complements previous investments, such as the Hong Kong Growth Portfolio’s backing of tech firms and startups, focusing on the Strategic Tech Fund for local startups.

The government continues to support startups through incubator programs, accelerator schemes, and access to venture capital. The collaborative efforts of the Hong Kong Science Park, Cyberport, and InvestHK to draw international startups demonstrate the government’s dedication to creating a thriving startup ecosystem. Additionally, sectors expected to experience growth, including green finance, the digital economy, and advanced manufacturing, will receive policy enhancements and financial backing, further enriching the business environment.

Responding to Changes in Global Trade Dynamics

Hong Kong is actively refining its trade and economic strategies to better align with the evolving global trade landscape, emphasizing an uptick in exports to burgeoning markets such as ASEAN and the Middle East. With the globalization of Mainland manufacturing enterprises, Hong Kong is positioning itself as a premier hub for multinational supply chain management, offering extensive professional services. This strategic pivot is supported by the expansion of Hong Kong’s economic and trade network overseas, reinforcing its role in the international business arena. Efforts to encourage Mainland manufacturing firms to set up their global or regional headquarters in Hong Kong highlight the city’s ambition to become a central node for global business activities.

In conclusion, the 2024-25 Hong Kong budget establishes a solid groundwork for business resurgence and economic renewal. Concentrating on SME empowerment, digital transformation, tax incentives, and investments in sectors with high growth potential, the government is dedicated to fostering a business-friendly climate that propels companies towards success and cement Hong Kong’s position as a frontrunner in innovation and economic progress. The strategic efforts to attract worldwide talent and simplify business re-domiciliation further bolster Hong Kong’s competitive advantage, rendering it an appealing choice for both businesses and professionals.

The post Hong Kong Budget 2024: Empowering businesses for new opportunities appeared first on MyBusiness in Asia.

Ranked 5th out of 63 by The International Institute for Management Development (IMD) World Competitive Yearbook 2022, Hong Kong stands tall as a global business powerhouse. Due to its advantageous geographic position, robust economic development, and business-friendly policies, it comes as no surprise that many entrepreneurs opt to establish their startup operations in Hong Kong to broaden their global reach into the Asian market. Besides its enduring commercial benefits, Hong Kong’s well-known entrepreneurial spirit and dynamic environment offer an ideal backdrop for initiating a business venture. 

Why is Hong Kong an exceptional destination for expanding your startup? Let’s delve into the unique circumstances that make now the perfect time to invest and grow your venture in this dynamic market. 

• A supportive government
• Low, simple, and competitive tax#Low system
• Strong network of incubators and accelerators
• Proximity to mainland China and APAC markets
• Diverse and wide-ranging startup and SME ecosystem
• Language
• Conclusion

A supportive government

Embracing its role as a catalyst for progress, the Hong Kong government is committed to fostering growth and innovation across various sectors. Through the initiatives outlined in the Hong Kong Budget 2024, the government aims to drive the city forward to achieve new milestones of success. From strengthening green finance to providing vital support for SMEs and promoting international trade, these initiatives reflect Hong Kong’s commitment to maintaining its position as a leading global hub. 

Innovation and Technology

• In 2024, the Greater Bay Area International Clinical Trial Institute will be established in the Hetao Shenzhen Hong Kong Science and Technology Innovation Co-operation Zone. 
• The New Industrialization Acceleration Scheme will be launched in 2024, offering enterprises up to HK$200 million in matching funds. 
• HK$200 million is allocated to support incubation and acceleration programs for startups in Hetao engaged in life and health technology. 
• HK$3 billion is set aside to launch the Frontier Technology Research Infrastructure Support Scheme. 

Assisting Small and Medium Enterprises

• Extending the application period for 80% and 90% Guarantee Products under the SME Financing Guarantee Scheme until the end of March 2026. 
• Injecting HK$500 million into the BUD Fund alongside the launch of “E-commerce Easy,” offering up to HK$1 million per enterprise for the implementation of e-commerce projects in Mainland China. 
• Launching the Digital Transformation Support Pilot Programme, inviting SMEs in the F&B and retail sectors to choose from ready-to-use solutions starting in early 2024. 

Trade

• Establishing a multinational supply chain management center offering consulting services, trade financing, and corporate training. 
• Investigating the feasibility of creating a trade single window to offer comprehensive services to enterprises. 
• Encouraging Mainland manufacturing enterprises to establish offshore trading management headquarters in Hong Kong. 

Exploring New Markets

• Exploring the possibility of setting up Economic and Trade Offices in Riyadh, Saudi Arabia, and Kuala Lumpur, Malaysia. 
• Planning to host the “Belt and Road Festival” and the “Belt and Road Initiative Tax Administration Cooperation Forum” in 2024. 

Low, simple, and competitive tax system 

In the realm of taxation, Hong Kong stands out as a beacon of simplicity and generosity. With just three direct taxes to contend with, complemented by a wealth of allowances and deductions, navigating the tax landscape becomes a rewarding endeavor.  

The three taxes are: 

• Corporations enjoy a two-tiered profits tax system in Hong Kong, with the first HK$2 million of profits taxed at a rate of 8.25 percent, and profits exceeding that amount taxed at a rate of 16.5 percent. Unincorporated businesses, such as partnerships and sole proprietorships, have corresponding tax rates of 7.5% and 15%. 
• The standard rate for salaries tax stands at 15%. 
• Property tax is set at a flat rate of 15%. 

Here are the taxes that Hong Kong DOES NOT impose: 

• Sales tax or VAT 
• Withholding tax on dividends and interest 
• Capital gains tax 
• Tax on dividends 
• Estate tax 

Strong network of incubators and accelerators 

In the fast-paced environment of entrepreneurship, the early stages often make or break a startup’s success. This is where the support of incubators and accelerators becomes invaluable. For those opting for Hong Kong as the base for their business venture, this is indeed the optimal decision, as the city’s programs stand out not only for their abundance but also for their effectiveness in nurturing innovation and propelling startups toward success. 

How do startups in Hong Kong benefit from Accelerators? 

• Gain mentorship and sponsorship support, receiving valuable guidance, expertise, and knowledge to navigate startup challenges effectively. 
• Connect directly with investors interested in discovering promising startups through accelerator programs, potentially opening doors to funding opportunities. 
• Tap into the wealth of experience and skills accumulated by mentors and accelerator managers, accessing invaluable insights and information to accelerate startup growth. 
• Benefit from the diverse and encouraging environment of Hong Kong’s accelerator programs, which offer flexibility and adaptability, fostering an atmosphere conducive to startup success. 

How do startups in Hong Kong benefit from Incubators?  

• Cultivate relationships and exchange information with professionals and fellow entrepreneurs to foster business growth. A strong network provides valuable connections for both short-term and long-term success. 
• Gain access to essential resources like education, software, and workshops covering various topics such as business fundamentals and funding acquisition. These resources support startup development and growth. 
• Access affordable workspace options, akin to coworking spaces. Ensure they offer essential amenities like centralized printing and conference room access while exploring potential incubators. 

Proximity to mainland China and APAC markets 

Situated strategically in Asia, Hong Kong serves as a gateway for businesses to seize the myriad opportunities available in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and beyond. 

Since the signing of the Mainland and Hong Kong Closer Economic Partnership Agreement (CEPA) in 2003, collaboration between Hong Kong and Mainland China has flourished. This landmark agreement not only simplifies access to the vast mainland market for Hong Kong products and services but also surpasses China’s commitments under the World Trade Organization (WTO). By eliminating tariffs and providing preferential access to certain service sectors, CEPA paves the way for enhanced economic ties between the two regions. 

The unveiling of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) outline in 2019 marks a significant boost to the relationship between Hong Kong and the mainland. With nine bustling cities in Guangdong province alongside Hong Kong and Macao, the GBA emerges as a vibrant economic powerhouse within the Pearl River Delta. Notable cities like Guangzhou and Shenzhen, renowned for their manufacturing and technological prowess, underscore the region’s economic significance. Hong Kong’s seamless integration into the GBA opens doors for both local and international investors to dive into the boundless economic potential of Mainland China. 

Diverse and wide-ranging startup and SME ecosystem 

According to InvestHK’s 2023 Startup Survey, a remarkable surge was witnessed in both the number of startups and employed staff. With 4,257 startups employing 16,453 staff, Hong Kong’s resilience and growth are undeniable. 

Meanwhile, the SME sector continues to play a pivotal role in Hong Kong’s economic rebound, representing 98% of all businesses and employing 44% of the private sector workforce. As the backbone of the economy, SMEs contribute significantly to driving growth and innovation. 

Dive deeper into Hong Kong’s vibrant startup and SME ecosystem with our infographic, offering a comprehensive look at the dynamic landscape and a window of opportunities awaiting entrepreneurs and investors. 

Language  

When contemplating global expansion, language often poses a significant obstacle. It can be challenging to grow your startup in a new country when effective communication with potential investors, partners, or staff is hindered. However, for many foreign startups in Hong Kong, this is not a concern.  

With English, Cantonese, and Mandarin being the three main languages in Hong Kong, entrepreneurs proficient in either English or Cantonese should encounter no hurdles in connecting with potential stakeholders and enhancing their brand presence. 

Conclusion 

As Hong Kong is entering a truly golden age of innovation and technology, the outlook for 2024 is promising. Stepping into this Dragon year, Asia is set to lead the world in GDP, with Hong Kong playing a central role in this development. 

The city offers a supportive environment for ambitious entrepreneurs, with a vibrant ecosystem, clear regulations, and access to a diverse talent pool. As a key player in the global tech scene, Hong Kong presents excellent opportunities for entrepreneurs to turn their ideas into reality and succeed. 

For those with ambitions to grow on a global scale, now is the ideal time to begin this journey with a “Grow Fast Go Beyond” mindset. 

The post Is Now the Perfect Time to Invest and Expand Your Business in Hong Kong? appeared first on MyBusiness in Asia.

According to the Companies Ordinance (CO), a company incorporated in Hong Kong is required, unless exempted, to hold an annual general meeting (“AGM”) within a prescribed timeframe. Additionally, general meetings other than the AGM may be held as necessary.

Change to the Companies Ordinance

However, on January 27, 2023, the Companies Amendment Ordinance 2023 (“Amendment Ordinance”) was gazetted and became effective on April 28, 2023. This Amendment Ordinance now allows companies incorporated in Hong Kong to conduct fully virtual general meetings or adopt a hybrid format.

The purpose of the Amendment Ordinance is to modernize the CO and the Companies (Model Articles) Notice (Cap. 622H) (“Model Articles”) to explicitly address the scenario of Hong Kong companies holding fully virtual general meetings without the need for physical presence, as well as hybrid general meetings.

The newly introduced section 583A of the CO allows companies to hold general meetings in three ways:

1. At a physical venue (referred to as a physical meeting).
2. Through virtual meeting technology (referred to as a fully virtual meeting).
3. In a combination of a physical venue and virtual meeting technology (referred to as a hybrid meeting).

Under section 584 of the amended CO, companies are permitted to hold general meetings at two or more locations using Virtual Meeting Technology. This technology enables members who are not physically present at the same place to listen, speak, and vote during the meeting.

Virtual Meeting Technology is defined as “a technology that allows a person to listen, speak, and vote at a meeting without being physically present.” Therefore, Hong Kong companies now have the flexibility to hold general meetings using Virtual Meeting Technology only, at a physical venue only, or in a hybrid mode, combining both virtual and physical methods.

The cases in which changing the Articles of Association are necessary

If a Hong Kong company’s Articles of Association merely state a place or places for conducting general meetings or specify the physical venue in the notice of a general meeting, there is no need to amend the Articles to hold Virtual Meetings. However, amendments to the Articles of Association are required if they:

1. Explicitly prohibit the holding of a general meeting via Virtual Meeting Technology.
2. Mandate that general meetings be held exclusively at a physical venue.

When deciding on the most appropriate meeting mode, companies must consider convening a valid meeting in compliance with the law and their articles, as well as whether a physical meeting remains the most suitable option or if a fully virtual or hybrid general meeting can enhance member engagement and maximize participation.

In conclusion, the Amendment Ordinance brings a significant change to the CO, enabling Hong Kong companies to embrace the benefits of virtual and hybrid general meetings. This modernization will provide companies with increased flexibility and the opportunity to adapt to evolving business practices while ensuring compliance with the relevant regulations.

If you appreciate our content, you will also appreciate our other articles:

• Trends and View of the Startup Environment in Hong Kong
• Understand how the ONE Pass and how to apply for this special Pass in Singapore.
• Apply for an EP in Singapore and understand the new COMPASS framework.
• Learn everything about the Stamp Duty for shares and calculator in Singapore
• Making Sense of the Dividends Taxation and Regulations in Singapore

The post The New Rules of General Meetings for Hong Kong Companies appeared first on MyBusiness in Asia.

The role of a company secretary in Hong Kong

A company secretary plays a complex, multi-faceted and very important role within a company or organization.

The company secretary is the company’s named representative on legal documents, and it is their responsibility to ensure that the company and its directors operate within the law. It is also their responsibility to maintain company records, such as lists of directors and shareholders, and annual accounts.

The company secretary is mainly responsible for arranging meetings, preparing minutes of meetings of the company, maintaining statutory books, filing statutory returns with the Companies Registry.

It also has the responsibility of ensuring compliance with the statutory and stock exchange requirements, registering share transfers, monitoring changes in relevant legislation and the regulatory environment, and taking appropriate action. To that end, it will be liaising with lawyers and auditors and government bodies.

Who can be company secretary?

In Hong Kong, according to Section 474 of the Companies Ordinance (Cap.622) provides that every company must have a company secretary. There may, however, be joint secretaries. The sole director of a private company cannot be appointed also as the company secretary of the company.

A private company with only one director cannot appoint as company secretary a body corporate the sole director.

The company secretary must be a Hong Kong resident or a body corporate having its registered office or place of business in Hong Kong.

A company secretary should have well knowledge and experienced to ensure the ability to commit the jobs mentioned above.

The roles and responsibilities of company secretaries in Hong Kong have increased substantially and become more complex as demands for better corporate governance have grown.

If you have a good company secretary, it can help you to cut costs associated with acquiring your own office, register the company faster, and enjoy the services of a professional company secretary, and your company will probably achieve a higher valuation.

MyBusiness in Asia’s responsibilities and offering for corporate secretary services

We have extensive experience helping our clients with all aspects of corporate secretarial services in Hong Kong, from company establishment to annual maintenance filings and other filings and coordination with the Hong Kong Companies Registry and Business Registration Office to the deregistration and winding up process.

Below is a list of general secretarial services we provide:

• Acting as name company secretary of the Hong Kong company with MyBusiness in Asia
• Preparing annual returns and corresponding filings with the Companies Registry
• Preparing documents in relation to the annual general meeting
• Keeping and updating statutory books and records
• Preparing documents in relation to share transfers and filings with the Stamp Office for stamping
• Preparing documents and corresponding filings with the Companies Registry in relation to the following:

1. Change of director and/or company secretary
2. Change of registered office address
3. Change of name
4. Share allotment
5. Consolidation or subdivision of share capital

If you appreciate our content, you will also appreciate our other articles:

• Trends and View of the Startup Environment in Hong Kong
• Understand how the ONE Pass and how to apply for this special Pass in Singapore.
• Apply for an EP in Singapore and understand the new COMPASS framework.
• Learn everything about the Stamp Duty for shares and calculator in Singapore
• Making Sense of the Dividends Taxation and Regulations in Singapore

The post How Important is a Company Secretary in Hong Kong? appeared first on MyBusiness in Asia.

At its core, the entrepreneurs visa serves as a bridge between aspiration and accomplishment, offering enterprising minds the opportunity to establish and flourish within foreign markets. One such market that has consistently beckoned entrepreneurs seeking investment opportunities is none other than the vibrant city of Hong Kong.

Nestled at the crossroads of East and West, Hong Kong’s allure as a global business hub and gateway to mainland China is undeniable. Its towering skyscrapers, bustling trade activities, and dynamic culture create an environment ripe for innovation, collaboration, and growth.

As the financial epicenter of Asia, Hong Kong not only provides access to a vast consumer base but also offers an ideal springboard for connecting with markets across the continent and beyond. If you are an entrepreneur seeking to establish your business presence in Hong Kong, you’ve come to the right place.

This article is your comprehensive guide designed to demystify and simplify the intricate process of obtaining and navigating the entrepreneurs visa Hong Kong. We shall be covering everything from the steps required for a successful application to maintaining compliance and renewal. Without further ado, let’s get into the details!

Understanding the Entrepreneurs Visa Hong Kong

At the nucleus of every successful international business venture lies the entrepreneur’s visa – a specialized document that not only grants access to foreign soil but also unlocks a realm of possibilities for innovative minds.

Granted, an entrepreneurs visa Hong Kong is a tailored immigration instrument designed to welcome individuals with an entrepreneurial spirit and drive. This visa category recognizes that the success of Hong Kong’s economy is intricately woven with the success of its entrepreneurs. 

Its key features center around providing a platform for foreign visionaries to establish, operate, and expand businesses within Hong Kong.

To qualify for the Entrepreneurs Visa Hong Kong, applicants need to meet specific prerequisites. These include demonstrating a viable business plan, proving their capability to contribute to the local economy, and showcasing relevant experience or qualifications. 

This visa category offers benefits such as access to a vibrant business ecosystem, favorable tax policies, and exposure to a global market.

Preparing Your Business Plan

One thing is for sure: The cornerstone of success in any entrepreneurial venture lies in meticulous planning. In fact, you are aware of the old age saying that failure to plan is planning to fail. This sentiment, without a doubt, reverberates with amplified significance in the context of obtaining an entrepreneurs visa in Hong Kong.

A solid business plan serves as the compass guiding your entrepreneurial journey. In the context of the entrepreneur’s visa application, it is not just a formal requirement; it’s your narrative of potential and prosperity.

This comprehensive document reflects your vision, strategy, and action plan, demonstrating your commitment to the endeavor and showcasing its viability to immigration authorities.

Essential Components of a Comprehensive Business Plan

You will agree with us that creating a business plan that not only satisfies the visa application process but also demonstrates your readiness to flourish within Hong Kong’s competitive market requires a strategic approach. That said, here are the essential components that should form part of your business plan.

•         Market Research: You can’t afford to fly blind. The repercussions are simply phenomenal. A deep understanding of the market you intend to enter and establish your business should form the bedrock of your business plan.

You need to analyze market trends, assess competitors, identify your target audience, and comprehend local consumer behavior. By doing so, you not only establish your expertise but also reveal the unique value your business brings to Hong Kong’s dynamic marketplace.

•         Operational Strategies: You need to clearly detail how your business will operate on a day to day basis. Towards this end, clearly outline the production processes, supply chain logistics, and hiring plans. This demonstrates not only your foresight but also your preparedness to take on the challenges of running a business within Hong Kong’s fast paced environment.
•         Financial Projections: It is a fact that detailed financial projections provide a clear picture of the potential returns on investment. You need to include revenue forecasts, expenses breakdowns, and breakeven analysis.

Ensure that you tailor your business to resonate with Hong Kong’s distinctive business landscape. Your business plan is a manifesto of your vision and as such should be meticulously written.

Eligibility Criteria and Requirements for an Entrepreneurs Visa Hong Kong

The eligibility criteria and requirements for obtaining an Entrepreneurs Visa in Hong Kong are designed to foster investment and contribute to the city’s dynamic business landscape. As an applicant, you’ll need to meet specific immigration criteria outlined by the Hong Kong Special Administrative Region (HKSAR) immigration department. 

Primarily, this scheme targets applicants who are ready to invest in and operate a genuine business within the city. A required company registration, relevant to your proposed venture, is a pivotal step to showcase your commitment to contributing to the local economy. 

Your ability to demonstrate a viable business plan, proof of investment, and the potential to generate local employment holds significant weight in the application process. 

Moreover, your application should align with the applicable government policies and adhere to the prescribed document requirements. If you’re an overseas applicant, ensuring that your proposal is relevant to Hong Kong’s business environment enhances your prospects. 

Successful applicants are issued with a document card, valid for a year, signaling the beginning of a promising journey in the city’s entrepreneurial landscape. Extensions can be considered based on your sustained investment, contributing to the city’s vibrant ecosystem over the years.

Application Process Step by Step

For you to obtain an entrepreneurs visa Hong Kong, you need to adhere to a number of procedures and be conversant with the application process. Here is what you need to navigate the application process successfully.

1.     Eligibility Check and Preparation

Before you even think of applying for entrepreneurs visa Hong Kong, you need to conduct a thorough eligibility assessment. The onus is on you to review the requirements and ensure that you possess the necessary qualifications, experience, and documents.

We are alluding to the business background information, academic certificates, and financial records. By so doing, you set the stage for a strong application.

2.     Choosing the Right Business Entity

It is paramount that you select the appropriate business structure. When doing so, consider factors such as operational flexibility, taxation, and liability. Options range from sole proprietorships to limited companies.

Ultimately, your choice will influence legal responsibilities, potential partnerships, and overall business operations. It is incredibly important that you align your chosen structure with your business goals and aspirations.

3.     Submitting the Application

You need to gather the required forms, and supporting documents, and familiarize yourself with the fees. To prevent any delays, double check to ensure the accuracy and completeness of the information on the application form. Most importantly, ensure that you submit the form on time.

4.     Incorporating your Business

As your application progresses, move forward with the process of establishing your business in the heart of Hong Kong. Register your company with the appropriate regulatory bodies, diligently ensuring adherence to the requisite legal and regulatory standards. 

By fulfilling these obligations, you cement your presence and dedication to conducting operations seamlessly within the city, in alignment with the investment-based immigration criteria outlined by the Hong Kong Special Administrative Region (HKSAR) immigration department.

5.     Interview and Approval

In certain instances, applications might entail an interview to further evaluate your eligibility. It’s imperative to diligently prepare by thoroughly examining your business plan, comprehending the market landscape, and effectively articulating your visionary objectives. 

Subsequent to attaining approval, your entrepreneur’s visa functions as an entryway to the bustling business environment of Hong Kong. Each stage of the application process serves as a pivotal building block, propelling you closer to the accomplishment of securing an entrepreneur’s visa within Hong Kong. 

By adhering to the stipulated procedures, you underscore your unwavering commitment to your entrepreneurial ambitions and affirm your readiness to contribute constructively to the city’s thriving business ecosystem as outlined by the Hong Kong Special Administrative Region (HKSAR) immigration department.

Post-Approval Steps

After your application for the Hong Kong Entrepreneurs Visa is successfully approved and you receive the visa, a new phase of your journey commences. Your initial step involves coordinating your move to Hong Kong, arranging office space, and building connections within the local business community. 

It’s essential to network with industry professionals and leaders, capitalizing on Hong Kong’s standing as a global business hub to cultivate partnerships and collaborative ventures. As an applicant who has gained investment-based immigration, the employment and investment conditions will apply as per the Hong Kong Special Administrative Region (HKSAR) government’s requirements. 

During your stay, you can also explore the option to apply for visas for your dependents, ensuring that your family can join you throughout your business journey.

Maintaining Compliance and Renewal

Adhering to visa regulations is a pivotal factor in sustaining your ongoing success within Hong Kong. It’s crucial that your business abides by tax obligations, employment laws, and mandatory reporting mandates. As your visa’s expiration draws near, proactively initiate the renewal procedure well in advance. 

By doing so, you secure uninterrupted access to the benefits accorded by your Entrepreneurs Visa Hong Kong. This approach ensures the seamless continuation of your stay in accordance with the investment-based immigration guidelines set forth by the Hong Kong Special Administrative Region (HKSAR) immigration department.

Benefits of Entrepreneurs Visa Hong Kong

The Hong Kong Entrepreneurs Visa offers a plethora of compelling benefits to applicants looking to embark on a journey of business prosperity. This investment-based immigration pathway not only grants entry but also paves the way for an extended stay in the city. Successful applicants can establish and operate their own companies, contributing to Hong Kong’s vibrant economy. 

The visa serves as proof of the government’s endorsement of your entrepreneurial endeavors and reinforces your commitment to being an integral part of the local business landscape. With a valid visa, you’re not only empowered to engage in employment but can also apply for dependent visas for family members, creating an inclusive environment for personal and professional growth.

Entrepreneurs visa Hong Kong

The flexibility of this visa scheme aligns with the Hong Kong Special Administrative Region (HKSAR) immigration department’s criteria, and extensions can be issued based on your sustained investment and contributions. Holding this document opens doors to a multitude of opportunities, ensuring your stay in Hong Kong for years to come.

As we wrap up, we must reiterate that navigating the entrepreneurs visa in Hong Kong is a journey laden with potential and promise. By understanding the visa requirements, preparing a robust business plan, and following the application process diligently, you can unlock the doors to a thriving business venture in one of the world’s most dynamic cities.

As you embark on this exciting path, seize every opportunity that comes your way and position yourself for success in the global marketplace. At MBiA, we pride ourselves in helping entrepreneurs from all walks of life obtain entrepreneurs visa in Hong Kong hassle-free and within the shortest time possible.

We understand the application process, the legal requirements, and can promise you fast and efficient entrepreneurs visa approval. What’s more? When you enlist our services, you can use your time in streamlining other aspects of your business.

Contact us today and let us help you scale up your business aspirations. After all, Hong Kong’s Entrepreneurs Visa isn’t just a visa; it’s a ticket to realizing your entrepreneurial dreams on an international stage.

The post Seizing Opportunities: Navigating Entrepreneurs Visa Hong Kong appeared first on MyBusiness in Asia.

Networking for Your Entity or Business through Events

When you run a business outside of your own country, you might feel isolated and lack the information to carry on. Therefore, you can join networking events to connect with all kinds of companies and people to find potential business opportunities.

There are different types of events, from small to big and casual to professional. You can always choose one based on its theme and business industry.
There are also many benefits to joining networking events, but the following are some of the most important:

• Increased business opportunities;
• Increased publicity of your company;
• Market insights;
• New connections with people who have different backgrounds, and;
• Connections in person so you can receive quick feedback and a new perspective.

Furthermore, networking can be a source of growth both professionally and personally. As a businessperson, you can brush up on skills when presenting your company/products. Meanwhile, as an individual, you can meet new people and create friendships.

Understand the Chambers of Commerce, their Events, Memberships and Goals

The most effective way to extend your network is to join a Chamber of Commerce. They can be based on your nationality, where your investment capital comes from, or a new market you would like to enter.

A Chamber of Commerce is a group of businesses that work together for their mutual interests. Each Chamber of Commerce will elect its own board of directors or executive council and decide which goals to pursue. It may influence pro-business policies by lobbying legislators.

Chambers also organize regular events and seminars and bring opportunities for their members to connect with others and develop more local knowledge.

As a downside, membership fees can be expensive. In addition, there is a chance that the atmosphere of the chamber will not suit you. Also, some chambers have specific conditions of membership. For example, the Japanese Chamber of Commerce asks all member companies to have capital from Japan. Alternatively, if there is no funding from Japan, the company is asked to present a work permit for a Japanese employee.

Indeed, some Chambers of Commerce require to have a proper link to the country they are representing. Therefore, it is important to do some research before you commit to being a member. You can always check each chamber’s website and LinkedIn page for their activities and updates.

Aim for Events organized by Private Organizations

Alternatively, you can look up events organized by private organizations to grow your business network. They usually do so based on specific topics and bring guest speakers to share deeper knowledge before networking.

Therefore, it would be easy for you to select events based on your interests and business category. However, it is worth remembering that these events might require an entrance fee and your personal information. Moreover, you might need to frequently check the event information from LinkedIn or their own website since these events can be more spontaneous and irregular.

Last Advice before Jumping in your Next Event

To sum up, there are many advantages to attending networking events, such as fostering a sense of community, meeting new people, and finding new perspectives. You can easily find suitable events online which will maximize your business opportunities.

At first, you might feel shy and nervous to speak to strangers. But the more you get out of your comfort zone by doing so, the more you will develop your networking skills. It might help you to keep in mind that everyone at networking events feels the same self-consciousness and has the same motivation, which is to extend their business connections.

If you appreciate our content, you will also appreciate our other articles:

• Trends and View of the Startup Environment in Hong Kong
• Understand how the ONE Pass and how to apply for this special Pass in Singapore.
• Apply for an EP in Singapore and understand the new COMPASS framework.
• Learn everything about the Stamp Duty for shares and calculator in Singapore
• Making Sense of the Dividends Taxation and Regulations in Singapore

The post How to Extend your Business Network with Events appeared first on MyBusiness in Asia.