Bootstrapping Your Hong Kong Company – The Ultimate Guide
Dreaming about starting Hong Kong business, but worried about finances? In order to put your business off the ground, every person needs to have a financial investment. Why don’t you think about bootstrapping your Hong Kong company? Bootstrapping your business, really?
Bootstrapping your company means you are growing it with little or no venture capital or outside investment. In short, it says that you are relying on your savings and revenue to operate and expand.
But one thing, we want to apprise you that it’s not easy to do, but it’s rewards are really incredible. Therefore, it makes sense to take risks to enhance your business in a highly competitive business world. If you are not taking risks or thinking out of the box, then it’s like you have already assumed that you will fall irrespective of your condition and choices.
If you have thought about venturing your own business in Hong Kong, then try to give a shot to bootstrapping technique. Are you ready to achieve success with no outside assistance, then use this expression “pulling up by one’s bootstraps.”
Hong Kong Startup Ecosystem
Before embarking with the ultimate guide of bootstrapping your Hong Kong company, we firmly believe that you should have an idea about the Hong Kong startup ecosystem. The reason behind this is- By knowing all the legal jurisdictions, advantages of forming Hong Kong company, and more importantly, which companies are excelling in this environment, you will have a profound idea to start your business.
Let’s start with Hong Kong’s startup ecosystem!
Do you know that the Hong Kong startup system is thriving? In fact, the Shenzhen-Hong Kong technology cluster has been ranked as the world’s second-largest company. Well, this report was presented by the Hong Kong Trade and Development Council.
With the advent of technology and global opportunities, the number of startups in Hong Kong had grown to 16% in 2017 which was just 2000 in 2016.
Moreover, innovation and technology base camp, Science Park is home to around 13,000 technology professionals and more than 680 technology companies, while Cyberport has more than 800 community members.
Besides, Artificial intelligence, fintech, smart city, and biotechnology are one of the most robust areas for development in Hong Kong, as per the report. Other significant research focus areas including software as a service, analytics, robotics, the internet of things, augmented reality, and virtual reality is also thriving in the race.
The report also showed that out of 126 economies surveyed for the Global Innovation Index in 2018, Hong Kong ranked first in infrastructure. Due to its infrastructure facilities, Hong Kong has now ranked as14th overall with a total innovation score of 54.62 of a possible 100.
What’s more, the HKSAR government is determined to transform Hong Kong into a leading global hub in the sectors of innovation and entrepreneurship where start-ups can use the city as a lab.
How to Bootstrap Your Hong Kong Startup?
So, now you have an idea about the startup ecosystem of Hong Kong, let’s get back to our topic stating about bootstrapping Hong Kong Company.
We have incorporated our valuable lessons of bootstrapping that you can apply to your own startup.
Let’s dive in.
#1 Sell Services
No doubt that everybody comes into the competition with great ideas in order to start Hong Kong business. Therefore, you must be having a plan for starting your business. Let’s suppose you are starting a tech company and having an excellent idea for developing an app, but you don’t have any development skills. Due to this, you need a creative way of raising money to produce your idea.
Here comes the role of bootstrapping.
With the help of bootstrapping, you can easily sell your consulting or freelance services to others. However, it is not “relatively easy,” it’s possible. In order to get a good employee on your desk, you need to do proper research.
With this, you will not only able to hire the best freelancer for your company, but also getting one step closure for the success of your company. More importantly, it is stated that freelancing is on the rise. and people are more satisfied while working at home because of freedom, and good income.
#2 Select a good Co-founder
Well, several entrepreneurs form their Hong Kong company with co-founders so, if you are thinking the same while launching your business with a co-founder, make sure their skill set is complementary to yours.
We don’t mean that your business partners must have the same skills as you. In fact, it will be more helpful, if your business partners have different abilities. This way, you can handle different aspects of your business, as per your skills and experiences, and work out well in order to scale up your business.
As a matter of fact, there is a plethora of management, that one needs to work on it such as team building, product development, and managing finances.
One most important thing that you need to know before starting Hong Kong company with your co-partners is that learn how to trust each other.
Trust is a big part of a successful co-founder relationships.
And a good pair of co-founders always work well together, and each brings something unique to the table. Ultimately, this becomes really pertinent for you to know the other person and determine whether he or she is as committed as you are about growing the company and being successful.
Running a business together, it’s just like dating someone. While forming a company, you need to tie together so that you can both do each and every work more efficiently. Make sure that your business partner is someone you could stand being legally attached too.
#3 Outsource Wisely
As a matter of fact, forming a Hong Kong company is not an easy task, you need to do a great amount of work. During the early stages of your startup, you have to wear a lot of hats so that it will not affect your finances.
From product designing to HR and marketing, it starts with only you and your co-founder. However, when you are growing your business, it’s important to bootstrapping your Hong Kong company by knowing when to start outsourcing tasks.
Low Government Fees to Start Your Hong Kong Business
Understand the ways to bootstrapping your Hong Kong business? Good!
Are you ready to embark in the cut-throat competition of Hong Kong? Then you will be pleased to know that as per the recent report proposed by the Financial Secretary, Paul MP Chan. The report revealed that the business registration (BR) fees from the period of 1 April 2019 to 31 March 2020 will be waived.
Only Business Registration Levy will be charged from the business people.
The government has done this because they wants to aid local enterprises while dealing with the uncertainty and the fallout of the global economic and trade environment. More importantly, the fees payable in the regards of the branch registration and business registration certificates with the commencement date falling within the Waiver Period will be reduced by a sum of $73 and $2,000 respectively.
For more information about IRD News: Waiver of Business Registration Fees for One Year (from 1 April 2019 to 31 March 2020) check here and get more information about Hong Kong laws and fees for incorporating your business.
How can Startupr Help you?
As we all are aware of the fact that all the business owners are required to incorporate the business in Hong Kong, before executing the plan. Therefore, select one business structure as per your business needs and requirements, then register it with the government.
For registering and incorporating your business, Startupr can help you. Being TCSP licensed service provider with TCSP number “TC003638,” we will help you in assisting in enjoying and complying with all business-friendly legal structures and an open, internationally-minded atmosphere. More importantly, our unique same day system helps in finding the best and most cost-efficient ways to meet your business requirements on the same day.
Ready to form a Hong Kong company?
We offer a complete package for the incorporation of your business entity in Hong Kong starting at just $1014 USD and it holds the following services:
- $320 USD for the CR Incorporation and IRD – Business License, need to be paid to the government. However, it was $530 before.
- $105 is the Annual return fee, which is related to your company particulars as a recapitulation (nothing related to your business or profits), reported to the Companies Registry (CR), need to file annually within 42 days of the Anniversary date, even if the company structure has not been changed.
- $225 which is for the Startupr local secretary.
- Certified Copy of Documents by CPA is $125 USD (1 Set).
- Designated Representative (for Significant Controllers Registers – SCR only) at just $ 45 USD/1 Year
- DHL & Handling Fee is just $ 95 USD.
- USD 99 you need to pay for as an incorporation fee designed by Startupr.
- the Registered Address is 0 US$ (Free of Charge).
Startupr will also assist you in scheduling an appointment with the Hong Kong bank. Guidelines will be provided is $ 0 USD (free of charge). And if you are looking for more information about Incorporation in Hong Kong by Startupr, check here and gain more information.
For further information, please don’t hesitate to contact us!