Open an E-Commerce Company in Hong Kong

Examples of successful e-commerce start-ups in Hong Kong include online shops for clothing, accessories, luxury items, books or interior design items. The list of potential services and products is left to the imagination of the founder and those who are able to respond to an existing and previous unanswered need have the change of creating an important client base. For example, some online businesses can simply aggregate existing offers or coupons and other types of services and present them in an accessible manner to clients. 

 

Regardless of the types of services offered by the online platform, they should be designed to improve the online shopping experience. Shoppers can customize or even design their own products and some platforms give their users the opportunity to interact with each other.

 

The fact that Hong Kong has a reliable technology infrastructure and advanced information systems are important advantages for those interested in starting an online business. The Special Administrative Region allows for the free flow of information, unlike some situations in Mainland China. Moreover, the data privacy and the internet readiness are also important factors that are advantageous for investors. Hong Kong is also a city that attracts international talent, meaning that business owners who need qualified IT specialists can hire developers, designers and other employees in order to develop the online platform. Having a professional and dedicated team is as important for an online business as for a traditional one.

When starting an online business, investors will most likely open a private limited liability company. This is a preferred business form because it is suitable to small and medium-sized businesses and it is a separate legal entity form the founders. The shareholders are only liable up to the amount they have invested in the business. For this type of company shares are easily transferred (only between members, they are not listed to the public). If the company grows and the founders wish to make it public, they can convert the business form into a public limited liability company. 

 

Below, our team of agents who specialize in company formation in Hong Kong describe the basic steps for opening a private limited liability company:

 

 

The company can start its business activities once it obtains the Certificate of Incorporation.

 

Company registration in Hong Kong is as easy for foreign investors as for local ones. Foreign entrepreneurs can start an online business with no requirements for residency and the business can be 100% foreign owned.

 

Opening an online business can be an easy and convenient way to reach a wide range of clients, not only from Hong Kong but from the surrounding countries as well as globally. Incorporating in Hong Kong will offer a certain level of credibility, as the city is known as a business and financial center.

 

E-commerce companies are required to follow the general accounting and annual reporting rules in Hong Kong. Paying taxes is important for all companies, including online businesses, and our CPA in Hong Kong is able to answer your questions on this matter. With the help of our team, your e-commerce business will remain fully compliant with the laws in force and will make timely mandatory tax payments.