Many bosses choose to register a Hong Kong company, some for market expansion, brand building, import and export trade, and some for self-employment to realize the dream of Hong Kong identity. Regardless of the goal, many people tend to opt for low-cost registration services when looking for cost-effectiveness.
However, there are a wide variety of agencies on the market, and the quality of service and price vary widely. People often go after low prices or even free services, but often there is a higher price behind such "discounts".
Keep in mind that no company is going to trade at a loss. If an affiliate is unable to profit from the service, they may seek compensation elsewhere. Today, let's unveil the new routines and traps that may be encountered when registering a Hong Kong company to avoid being "cut leeks"!
Routine 1: Register a Hong Kong company to "open an account" trap
Some agencies claim that "registering a Hong Kong company will send an account opening" and promise that 100% of the accounts will be successfully opened. But the truth is that these so-called bank accounts are not traditional bank accounts in Hong Kong, but digital banks. Customers often mistakenly think that they can get a local bank account in Hong Kong, but this is not the case.
It is worth noting that with the implementation of the CRS policy, well-known banks in Hong Kong, such as HSBC and Hang Seng, have raised the threshold for opening an account, requiring customers to have affiliated companies at home and abroad and provide relevant proof. Therefore, don't be deceived by the gimmick of "package account opening", choose formal channels to ensure the authenticity and reliability of account opening.
Routine 2: The "hidden" cost after registering a Hong Kong company
Be wary of agencies that only offer registration services! They often ignore the company's follow-up maintenance, such as corporate bank account opening, annual review, accounting, audit and tax declaration and other key services. If you choose such an institution, you may face a double waste of time and money, and you will need to pay extra to transfer the secretary's annual review later.
What's worse is that some agents ignore the client's tax situation and do not assist in filing the tax return after charging the registration fee, resulting in the company's tax anomaly and facing the risk of fines. Therefore, it is advisable to choose a professional secretarial company that provides one-stop services at the beginning to ensure smooth and compliant company operations.
Routine 3: Registering a Hong Kong company at a low price hides risks
Some intermediaries offer ultra-low prices to entice you to register a Hong Kong company, but there may be many risks behind it. In addition to government fees, additional costs such as a local address, secretarial services, and electronic water tags are also required to register a company. You may ask, how can the quality of service be guaranteed at such a low price?
For example, many low-cost agencies often do not include the service of hanging electronic water signs at first glance. Electronic water signage is a clear requirement of the Hong Kong Company Law and is used to display company information in LED form at the registered address. Failure to hang as required may result in a fine of up to HK$10,000.
The customer found out that he needed to pay an additional water license fee after signing up, and he was in a dilemma. In order to avoid fines and reputational damage, it had to be handled. Therefore, when choosing a registration service, it is important to consider the comprehensiveness and post-cost of the service to ensure that your rights and interests are protected.
Fourth, low-cost agents may not have a secretary license
To register a company in Hong Kong, it is crucial to choose a licensed secretary company. A licensed secretarial company has a secretarial license, which is a necessary condition for the provision of registration and other services. Operating without a license is illegal, and choosing an unlicensed agent will bring legal risks to your company.
To ensure that the company is operating legally, it is important to verify that your agency service provider holds a secretarial license. Once an unlicensed secretarial company is found, please immediately replace it with a licensed service company to avoid the risk of hindering the company's later operation and even facing the risk of being forcibly deregistered by the Hong Kong government. Choose carefully to ensure the steady development of the company.
Routine 5: Registering a Hong Kong company with a virtual address is risky
When choosing a low-cost agent to register a Hong Kong company, be wary of the virtual address services they may offer. After investigating, we found that there are many hidden dangers in these addresses: they may be virtual addresses, card slot addresses, or they may be used in cooperation with other secretarial companies. More worryingly, these addresses may lack professional secretarial staff to handle government letters, phone calls, and departmental visits.
If there is a problem with the address of the secretary company or is blacklisted by the bank, your company may be denied an account by the bank. At that time, you may need to change your secretarial address in order to open a bank account, which will undoubtedly cost you more time and money. Therefore, when choosing an agent to register a company, it is important to pay attention to its professionalism, service awareness and whether it holds a secretarial license. Don't be fooled by the low price and choose a formal agency to ensure that your company registration is smooth and legally operated.
Jingbang International can not only help you register Hong Kong companies, but also register overseas companies, but also solve corporate tax issues in all walks of life, and currently has thousands of delivery cases.