Hong Kong depends heavily on imports to meet its energy demand, as the region does not provide natural oil, gas or coal resources. Investors who open a company in the energy sector in Hong Kong can concentrate on providing the import and sale of energy supply or on investing in renewable energy.
The city is focusing on prioritizing renewable energy resources. Hong Kong has a pro-investment policy and the Government allows special deductions for research and development expenditure and capital expenditure on environmentally friendly vehicles.
Investors who want to open a Hong Kong company that operates in the energy sector and need assistance can request the specialized services provided by a company formation agent.
The Energy Sector in Hong Kong
Hong Kong’s energy market is mainly import based. The Special Administrative Region does not have natural coal, gas or oil resources. Two main companies provide electric power generation in the city and these companies operate on the market based on a Scheme of Control arrangement with the Government. Five operating power stations provide for more than half of the city’s electricity needs. Hong Kong and China have an interconnected electrical grid.
The Government of Hong Kong has introduced several schemes in order to encourage the use of sustainable energy. Company formation in Hong Kong is subject to a few requirements; however, investors can open a business in a matter of days.
Company formation in Hong Kong
A common type of company used for small and medium-sized businesses operating in the energy sector in Hong Kong and in other economic sectors is the private limited liability company. There is no mandatory minimum registered capital for its incorporation and the members are only liable to the extent of their contributions to the said capital.
All new companies or branches of foreign companies are registered with the Companies Registry. Subsequent tax registration is required and companies are subject to a corporate income tax on the profits they derive from the city.
The Hong Kong Government also focuses on dealing with pollution. Companies operating in this field are required to obtain special business licenses for importing and exporting but also for environmental protection. One of our agents can give you further details on whichspecial permits and licenses you should apply for according to your business.
Like businesses in other fields, those operating in the energy sector are subject to requirements concerning licensing and control. Local regulatory agencies imposed specific rules, laws, and norms in many different fields, and this is something investors need to be aware of when setting up a company in Hong Kong. If you would like to know more about the needed steps for licensing, do not hesitate to contact our team.
For more details on investments in targeted business fields please do not hesitate to contact our company formation agents in Hong Kong.