Going it Alone

Many expats come to Hong Kong with a host of fresh business ideas; others discover an entrepreneurial streak once they’ve settled in. In fact, small businesses, also known as small to medium enterprises (SMEs), make up about 46 percent of the private sector workforce in Hong Kong. So, if you do have a great business idea, how do you turn it into a real-life proposition?

Firstly, depending on the nature of your business, you will need to establish whether or not you require special licences or permits to conduct your business. The Department of Trade and Industry can help with this through their Business Licence Information Service.

Then decide whether you want to be a sole-proprietor, a partnership or a limited company. To register as a sole proprietor is surprisingly easy: visit the Business Registration office at the Inland Revenue Department building, fill in the forms and pay the fee. You will receive a business registration certificate, which needs to be displayed in your place of business.

Business registration costs HK$2,250 a year, and you do need to renew it annually. It’s also a good idea to hire an accountant who understands small businesses and tax, and ensure you notify the IRD of any changes to your contact details.

Useful websites

ird.gov.hk startitup.hk investhk.gov.hk