By Vlad Cuc, specialist in company formation matters
The consulting industry in Hong Kong is well-developed and well represented, with companies offering diverse and qualify services that can be grouped into several sub-sectors.
Some of the world’s leading consulting firms have opened offices in Hong Kong, however, the market includes both large corporations and smaller companies that offer targeted, more niche services to companies. The city is attractive not only for companies but also for talented professionals with consulting experience, as they can find multiple employment opportunities here. Former employed consultants or experts in particular fields can open their own business in Hong Kong. They can provide services such as marketing, sales, overseas consultancy or human resources.
The Hong Kong company formation process is a simple one, which only involves a few key steps that can be easily accomplished. When opening a consulting business, entrepreneurs will need to observe the general requirements for company registration, company names as well as other key issues.
Our team of agents who specialize in company formation in Hong Kong can help interested entrepreneurs throughout the entire company registration process. With our help, individuals who have experience in management, can start their consulting business in the Special Administrative Region.
Consulting firms in Hong Kong
Hong Kong is an international business center and investors would be best seeking professional help when they decide to open a company here. Those who open a consulting business in Hong Kong have access to a large pool of clients from various business fields. This type of company is incorporated as any other legal entity in Hong Kong and its founders need to observe the business regulations in the city-state.
The Hong Kong company formation process is straightforward and with the right help for preparing and submitting the documents, your new consulting business can become fully functional in less than a week.
Our company registration agents invite you to watch a video about the consulting market in Hong Kong and the process of setting up a company in Hong Kong:
Services offered by a specialized consulting firm in Hong Kong
Consulting firms in Hong Kong can specialize in a series of key areas, essential for doing business. The typical range of services will cover the management consultancy needs of an average Hong Kong company. The consulting firm will work with experts in various fields like management, finance, risk assessment and others. The client company will thus benefit from expert advice and be able to solve any internal or external problems faced while doing business in Hong Kong.
Specialized consulting services provide solutions for issues regarding marketing, corporate strategy, operations and organizations, analysis and audits, finance and even mergers and acquisitions.
Below, we list some of the types of services that can be offered by a consulting business in Hong Kong:
- ⦁ Management: this is a field that includes general management services, such as corporate and business management and strategy.
- ⦁ Financial management: a specialized sector, it includes business valuation services, budget and accounting control, capital investment proposals and plans and others.
- ⦁ Human resources management: consultants specialized in employment and human resources matters who can provide job valuations as well as trainings.
- ⦁ Marketing management: consulting for all issues concerning the company’s marketing strategy, its marketing policies and others.
- ⦁ Overseas business consultancy: with Hong Kong being an international financial center, these experts can provide strategies for handling international business matters.
- ⦁ Legal consultancy: commonly offered by law firms in Hong Kong, lawyers can also provide consulting services.
This list of services is not an exhaustive one. Experts in various fields can set up their consulting business, for example in the field of information technology management. Regardless of the niche in which they specialize, entrepreneurs will always need to follow the same steps to open a company in Hong Kong. Unlike companies that provide services in other fields, this type of business will generally not be subject to special licensing and control.
Opening a consulting business in Hong Kong
A consulting company in Hong Kong can be incorporated as a limited liability company. Our Hong Kong company formation experts can help you set up this type of company and any other kind of legal entity. In order to open your firm you will need to choose an available business name and submit all the required documents to the Company Registry. The steps for company formation in Hong Kong, for a private limited liability company, include the following:
- Choose the company name: the company needs to be approved prior to registering the company.
- Open the company bank account: this is opened with a bank in Hong Kong and after this step the founders can deposit the share capital.
- Prepare the company documents: these include the Articles of Association, copies of the director’s identification documents, share capital proof of payment and others.
- File for registration: all of the company documents, together with the registration form, are submitted to the Hong Kong Company Registry.
- Arrange the office: all companies in Hong Kong must have a registered office and a company secretary; using a virtual office is sometimes a preferred method.
Any company incorporated in the Special Administrative Region is subject to corporate tax and the value of this tax is one of the lowest in the region, at 16.5%. Other taxes for companies can include the social security contributions, the real estate tax, and the stamp duty. There is no value added tax in Hong Kong and no withholding taxes on dividends or interest.
Working with our accountants in Hong Kong once you incorporate a consulting business will help you make sure that the company is fully compliant with the HKSAR Financial Reporting Standards. Our team can give you complete details about the simplified accounting for private companies and the requirements to have the annual financial statements audited in case of public companies.
Individual consultants in Hong Kong operating as a sole proprietorship will also need to register their business. Self-employed individuals in Hong Kong will benefit from simpler operational procedures but face significantly larger risks if the business is liquidated.
Hong Kong offers multiple advantages to consultants who wish to start their own business. the city is particularly advantageous for entrepreneurs in the consulting business because of its strategic location in the region, the fact that the city is populated by many international companies and because there is access to a talented pool of employees. Consulting businesses in Hong Kong are well-positioned to offer their services to many international companies, based in the city as well as in Mainland China. It is expected that the industry will continue to grow as the city continues its development as a top financial center.
Investors who open a company in Hong Kong benefit not only from the location and market advantages, but also from the low taxation regime as highlighted above as well as from the fact that the requirements for opening a business are not cumbersome ones.