18/10/2011

Hong Kong authorities are to radically simplify the territory's business incorporation procedures, in a bid to make sure it remains competitive with rivals such as Singapore.

The territory's financial administrators are aiming to bring the length of the process in which a business can be fully incorporated down to just one day. This will bring it down from the week it currently takes - at the very minimum - for a company to be set up in the city and for the post-registration formalities to get underway.

A spokesman from GuideMeHongKong.com, the business proliferation site, welcomed the news of the procedural changes, stating that it will give foreign companies a simple route to relocation in the territory.

"With Hong Kong's vibrant economy and proximity to Mainland China, the city is already amongst the favorites for foreign companies," the spokesman said. "With reduced company incorporation time, foreign entrepreneurs would not think twice about setting up a business in the city."

While Hong Kong is currently a very lucrative place for foreign businesses to set up, it loses out to Singapore when it comes of ease of incorporation. The process will now be entirely computerised, with registration and name approval processed on the same day, providing that the mandatory support paperwork is in place.