By Vlad Cuc, specialist in company formation matters
The sole proprietorship in Hong Kong
A sole trader in Hong Kong, also known as a sole proprietorship is suitable for small scale businesses that are usually run by one business owner and have little or no business liabilities. This type of business structure is only recommendable in certain cases because a sole proprietorship does not offer protection for personal assets.
One advantage of the sole trader in Hong Kong is the fact that the company registration procedure is very simple and fast. For more options regarding business structures, our company formation representatives in Hong Kong are ready to offer you detailed descriptions for each type.
The main characteristics of the sole trader are summarized by our experts in this video:
The particularities of a sole trader
A sole trader in Hong Kong and its owner are regarded as one and the same, thus, the biggest particularity of this business form is that the owner is fully liable for all the debts and liabilities of the sole trader.
As any other type of company in Hong Kong, a sole trader must be registered and must observe the taxation principles. Tax returns must also be filed on an annual basis. Foreign investors who are interested in opening a sole trader in Hong Kong should seek the services of a Hong Kong company formation firm that can register the business on their behalf. Otherwise, foreigners who want to register the sole proprietorship in their name must apply for an investment visa after registering the sole proprietorship.
There are certain criteria that need to be fulfilled for obtaining the investment visa. If you prefer to hire a company registration agents in Hong Kong that can help you, our experts can handle the company registration procedures in Hong Kong.
Registering a sole trader
A sole trader in Hong Kong is very easy to incorporate. The only step is to register the business at the Business Registration Office belonging to the Inland Revenue Department. A Business Registration Certificate is issued and this certificate must be obtained within one month after commencing the business.
The business owner must also select a name for the sole trader. The documents needed for registration are a Hong Kong identity card for resident owners and a copy of the passport or identity card for non-residents. Some types of businesses will also require a special business licence. The entrepreneur can apply for the necessary licenses after obtaining the Business Registration Certificate.
Our company registration consultants in Hong Kong can also help you open a bank account for our sole trader. If you want to open a Hong Kong company, please contact our company formation specialists in Hong Kong, we can help you start your business.