Setting up a sole proprietorship in Hong Kong requires a number of steps, which are relatively easy to follow:
- Choose a Business Name: It must be appropriate according to the regulations set by the Hong Kong Companies Registry. You have to ensure it is unique and does not infringe on any local naming regulations.
- Business Registration Certificate: You have to apply for a Business Registration Certificate from the IRD. It is obligatory, and you have to renew this certificate each year. You may be able to register online via electronic service or in person in any office of the IRD.
- Documents Required: You have to provide identification regarding yourself, such as a passport for foreigners, proof of residence address, and the name and address of your business for the said registration.
- No Residency Requirement: A sole proprietorship could be registered in Hong Kong by foreigners without them obtaining residency in Hong Kong. It is contended that all local regulations regarding the operation of the business must be followed, including filing of regular tax returns and renewal of the Business Registration Certificate.
Setting up a sole proprietorship in Hong Kong is easy, and the management of the business is hassle-free. But on the downside, this form of business does not enjoy limited liability protection the owner is liable for all the debts and obligations of the business.
Professional consultation will, therefore, be beneficial in having a smooth process of registration. One IBC Hong Kong will go a long way in assisting the entrepreneur in setting up the business and ensuring necessary compliance with local laws is done.