Expanding your business internationally can be exciting for those looking for adventure in other markets. However, the adventure ends soon after the reality of running a business takes over the daily routine. Even the most well-planned business proposal can be foiled by unforeseen problems that show up after you have moved into a new market.
Expansion into the Hong Kong market can also be problematic for those not aware of the pitfalls many business owners face when taking on these types of ventures. Problems related to finding suitable office space to navigating zoning laws can create havoc for even the most seasoned entrepreneur. Beyond planning, before expanding to Hong Kong, business interests should know a few things about its business landscape.
For more information regarding expanding to Hong Kong, please read the following.
The worst thing you can do is take a “hope for the best attitude” when expanding to Hong Kong as office space can be extremely expensive, especially in the more prestigious areas. If seeking traditional leasing options, make sure you understand local zoning laws and other tricky details related to the city’s infrastructure, as this information might help you in choosing a location that is primed for business.
To avoid spending an inordinate amount of overhead, check out alternative office solutions plans. For young professionals, Hong Kong co-working plans can provide you with most of your office space needs while allowing you to forge out a professional image in this highly competitive market. For those who are not working alone, you might find the virtual office an equally affordable plan. Both plans provide entrepreneurs with a professional business address and phone number, public and private office space, receptionists and 24-hour access to the building, in addition to a number of other amenities. If you are not really committed to staying in the city long-term, the leases are flexible enough to accommodate your needs.
Before expanding, professionals should review laws regarding establishing a business in Hong Kong. While Hong Kong belongs to China, the two have different laws governing business. Check out registering your business with the two agencies that are in charge of keeping track of companies in the region. The Companies Registry (CR) and the Business Registration Office (BRO) are probably the first places you want to visit to register your business.
Hong Kong is one of the freest markets in the world. While providing tax advantages for locally incorporated businesses, the region is also a major financial centre in the world market. Many of the industries that make up this market include banks, insurance companies, fund managers, venture capitalist companies, and financial intermediaries.
Businesses are taxed based on earnings made only in Hong Kong, not on profits made outside the region. Because Hong Kong is also a place for offshore companies, there are tax-free incentives available to those expanding to this market. In addition, Hong Kong has favourable treaties with a few countries that might be advantageous to those expanding to the region. Research both the laws and incentives to find ways to save money and avoid traps that can be an obstacle to your business’s growth.
Effort Before Expansion
Most of your effort will be focused on preparing for your move to this vibrant location. By checking out the major factors that impact your expansion efforts, you clear the way for you to get down to business upon arriving and you reduce any snags along the way. Hong Kong is a beautiful city with a lot of diversions, but the trip could be a nightmare without proper heads up.