The process your business as a limited company is called company formation. Every limited company is entitled to its rights, responsibilities, and liabilities. Companies and their owners are separated concerning finances, assets, and liabilities. Having a limited company will help the owner to lower his financial responsibility. Owning a business in Hong Kong or China is a great move since you will gain a lot of benefits. Since many foreigners from all over the world have learnt about these advantages, they have decided to start businesses here. Here are some of the factors that you need to consider when you are starting a company in Hong Kong and China. Learn more about company formation, go here www.myasiaexplorer.com.
It is important to decide on the type of company you intend to start. Once you decide to set up a business in Hong Kong you are assured of a variety of options. WFOE and Hong Kong companies can only be used by business located in the mainland. Unique advantages and disadvantages face every business type. It is important to look at all the available options before you decide on the type of business venture you want to take up. Find out for further details right here myasiaexplorer.com.
Another important factor is the location. Just like every other country, China has places that are known to be good business locations. You will face different pros and cons depending on the city you settle for. It is advisable to look into the treatment that every city receives from the local government. Having a business in Hong Kong may be a better decision. The process of setting up businesses in Hong Kong is known to be less tedious.
Another important feature to consider is the taxation rates. The government of China has allowed every city to have its taxation rates. It is advisable to be well aware of the tax rates of different cities. One of the advantages of setting up your business in China is that it has many cities that provide low individual tax and corporate tax rates. Before setting up a business in China, you need to have a corporate bank account. You have to decide between setting up an account in a local or international bank.
You need to make sure that you comply with the law of the country. When doing business in China, it is important to make sure that your business is in line with the set laws. You may at times need an interpreter to help you read new laws since they are mostly published in Chinese. When setting up a business where you are advised to have local experts or lawyers to help you with the details. Take a look at this link https://en.wikipedia.org/wiki/Company_formation for more information.