Unlocking Business Potential: Establishing a Successful Enterprise in Hong Kong and the Greater Bay Area

1. Prologue

2. Links to the Larger Bay Area

3. Metropolis of Superiority

4. Beginning Steps

Guidelines for successfully establishing a business in Hong Kong and the Greater Bay Area

Setting up a business in the city that can tap into the resources of the Greater Bay Area is more straightforward than ever, say senior leaders from B+H Architects, a global design and consultation company, and King & Wood Mallesons, a legal firm.

From the desk of Morning Studio Editors, July 19,

Global design and consultancy company B+H Architects set up its Hong Kong branch in 2012, initially operating with a single employee for approximately half a year before beginning a gradual expansion. "B+H was already a well-known company worldwide, but it had not made its mark in Hong Kong, despite having a presence in mainland China, specifically Shanghai, since 1992. However, the firm clearly perceives Hong Kong as a location brimming with opportunities," states Stella Liao, the design director at CHIL Interior Design in Hong Kong, a hospitality studio under B+H.

Global design and consultation company B+H Architects officially established a presence in Hong Kong in 2012 to take advantage of the numerous business prospects in the city. Images: B+H Architects

B+H found it relatively straightforward to establish themselves in the city. The firm made considerable progress in the local market after their establishment in Hong Kong, largely through the city's healthcare sector, and regionally by making strides in Macau's hospitality market. Andrew Humphreys, who is the principal and director of healthcare at B+H, mentioned two key developments in the team's growth. The first was securing a contract for The Karl Lagerfeld hotel in Macau, which opened its doors in June 2023. The second was transforming the public Grantham Hospital in Hong Kong into the city's first all-inclusive cancer centre.

Linkages to the Greater Bay Area

The Greater Bay Area includes Hong Kong and Macau, which are two special administrative zones, as well as the cities of Guangzhou, Shenzhen, Zhuhai, Foshan, Huizhou, Dongguan, Zhongshan, Jiangmen, and Zhaoqing, all of which are in the Guangdong province of mainland China.

Image of the map courtesy of Brand Hong Kong

The evolution of the Greater Bay Area necessitates enhanced collaboration among Guangdong province, Hong Kong, and Macau. The goal is to utilize the unique benefits of these three regions to propel their mutual economic growth. Ultimately, the vision is to transform this area into an internationally recognized premier destination for living, working, and tourism.

B+H is currently engaged in two significant projects in the Greater Bay Area (GBA) – the Shenzhen Natural History Museum and the Shenzhen Children’s Hospital. Humphreys expresses that the potential of the GBA is extraordinary. Looking at the population growth over the past 25 to 30 years, it's almost unparalleled in history. Naturally, this rapid growth comes with both benefits and challenges. Humphreys further notes that the GBA's ability to embrace innovative thinking that breaks away from traditional methods is remarkable. B+H plans to continue its presence in the region and contribute its expertise.

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The law firm King & Wood Mallesons (KWM), a well-known entity, has solidly established its presence in Hong Kong. Born out of a 2012 merger between the Australian law firm Mallesons and Chinese firm King & Wood, KWM has a history in the city dating back to 1990 when Mallesons first set up shop there. The firm later expanded its Hong Kong office, a strategic move that eventually led to the merger. Hayden Flinn, KWM's co-chief executive for Hong Kong, attributes this decision to the significance and growth of China. He explains that it was a strategic choice based on the increasing relevance of Asia to Australia compared to the UK or the US. He recalls that at the time, their decision to establish King & Wood Mallesons was seen as a bold move in the industry.

King & Wood Mallesons, a legal practice, was founded in Hong Kong in 2012. Currently, it boasts a team of more than 550 law experts across the Greater Bay Area, with some working from their branches in Shenzhen, Zhuhai, and Guangzhou. Images: Getty

Hong Kong is undeniably at the heart of our business approach. According to Flinn, "Hong Kong is essentially the hub of our operations." Being one of the leading law firms in Hong Kong, our aim is to facilitate relations such as those between the Greater Bay Area (GBA), Japan, Southeast Asia, and the rest of the world via our Hong Kong branch. This makes the city a fundamental linking point in our network." Presently, KWM boasts more than 550 legal experts in the GBA, encompassing branches in Zhuhai, Shenzhen, and Guangzhou. Flinn further explains, "Our focus on this area has been intentional. It was a tactical choice, primarily influenced by recognizing the value that the central government attributes to the GBA, and ensuring that we align with those policy guidelines while servicing our clients in the area."

According to Liao, Humphreys, and Flinn, here are the top five reasons that make Hong Kong the perfect city for establishing a business.

Entry Point to Asia and the Globe

Hong Kong persistently serves as a passage to Asia for global businesses and consumers. The city's renown – its inclusiveness and the simplicity of transit from one location to another – remains unparalleled. The commendable efforts you put in here could potentially be successful elsewhere as well.

Andrew Humphreys, the head and director of healthcare at B+H Architects.

A blend of varied traditions

We are aware of the wealth of cultural diversity, and also that we have the capacity to combine the finest aspects of each one. Our company consists of a wide range of individuals from places like Hong Kong, mainland China, the United States, Australia, and Europe. We are reaping the advantages of all these diverse backgrounds right here in Hong Kong.

Hayden Flinn, Co-CEO of King & Wood Mallesons in Hong Kong.

Hong Kong boasts a superior workforce

As a global city, Hong Kong offers a diverse and welcoming environment for expatriates. The locals are renowned for their industriousness, diligence, and productivity – attributes that are not easily found elsewhere in the world.

Stella Liao is the design director at CHIL Interior Design, which is located in Hong Kong and is a part of B+H Architects.

An inclusive and nurturing atmosphere

The resources and assistance offered by the Hong Kong government and local agencies foster a conducive climate for businesses. The market is diverse, accommodating the small and nimble, the innovative and thrilling, as well as embracing the big, global and well-established enterprises. This contributes to a dynamic and lively business landscape.

Andrew Humphreys, the head and healthcare chief at B+H Architects.

An ideal spot for work, leisure, and residence

Hong Kong functions efficiently with its remarkable economic and social systems. English is a common language, and the education system is excellent, particularly for families with kids. Contrary to what the news headlines suggest, there's a sense of liberty here, along with a wealth of business prospects. Having resided here for the past two decades, I've found it to be an incredibly rewarding experience.

Hayden Flinn, the co-CEO of King & Wood Mallesons, is based in Hong Kong.

The Process

Initiating

StartmeupHK, a program by the government organization InvestHK, offers a simple three-step plan to assist international entrepreneurs with innovative and scalable startups to establish or grow their operations in Hong Kong.

Step

1

Choose a business structure and title

Various business structures cater to diverse business needs. These encompass:

Incorporated company – the prevalent form of business entity in Hong Kong.

Subsidiary location of a main corporation

Congressional branch

Significant to mention

In Hong Kong, businesses registered as limited companies are not allowed to share a name with any other company already in the Registrar of Companies' index. Companies Registry's e-Services Portal provides a free service to check for company name availability.

Phase 2

Establish a business

Effortlessly initiate the process of business formation. The act of setting up a limited company with the CR also involves applying for business registration simultaneously with the Inland Revenue Department's Business Registration Office (BRO). There exist two methods for submitting an incorporation application with the CR:

Utilizing the 24-hour service offered via the CR's e-Services Portal on the internet.

Hand over a physical version of the papers to the Central Registry along with the appropriate charges.

Significant to mention

Digital submissions for business establishment and registration are usually handled within an hour. On the other hand, paper-based applications can generally expect the issuance of the Incorporation Certificate and Business Registration Certificate within a four-day work period.

Phase

3

Business Registration

It's a requirement for businesses to register with the BRO no later than a month after they've begun operating. When submitting an application for the establishment of a company with the CR, it should also include an application for business registration with the BRO (this is a combined service for creating a company and registering a business). Therefore, when you're applying to form a company, remember to also present the following items to the CR:

An Announcement for the Office of Business Registration (Form IRBR1)

Refer to the current fees chart for business registration and contributions to the Wages on Insolvency Protection Fund.

Significant to mention

The one-stop service for company incorporation and business registration will provide both the Certificate of Incorporation and the business registration certificate. Typically, online applications receive these within an hour, while physical applications take about four business days. On the other hand, if you apply directly to the BRO for other types of businesses using a paper application, you can get your business registration certificate in 30 minutes if you're there in person, or within two working days if you're using the postal service.

If you're interested in finding out how to establish a business in Hong Kong, follow this link.

Narrative crafted by Morning Studio with artistic guidance from Wing Chan and Venice Ng.