CentreO Blog

What is a Registered Address?

A Registered address is the address of your company in the government records. Under the Company Ordinance and laws in Hong Kong, each company must have a registered address in Hong Kong. This location acts as the address for receiving the company mail from the government. This registered address must be a physical address, and cannot be a PO Box.

What can I do as I am a Startup in Hong Kong?

Renting an office in Hong Kong is very expensive. As a startup, it hesitates you to start your business. However, you need a registered address to incorporate a legal company. What can you do? No worries! Centre O is a licensed Hong Kong Trust and Corporate Service Provider (TCSP) agent and provide registered address service. Then all the government letters can be delivered to Centre O.

Can I change my Registered Address?

Certainly, you can change your Company Registered Address. All you need to do is to inform the Company Registry and Inland Revenue Department respectively within 14 days of change.

For further information, please contact us.

You may want to read: Change of Registered Office Address for Hong Kong Limited Companies

General speaking Hong Kong is under governance of China. However, there are significant differences between a Hong Kong Limited Company and a China Limited Company. Primarily due to the distinct legal, regulatory and business environments in two difference jurisdictions.

Legal System

Hong Kong operates under a common law system. The system emphasises judicial independence, protection of property rights, and adherence to precedent.

China operates under a civil law system and influenced by socialist principles and traditions. So, the legal system is based on statutes and regulations, and judicial decisions do not have the same binding authority as in common law systems.

Corporate Governance

Hong Kong Limited companies adhere to corporate governance standards that emphasize transparency, accountability, and shareholder rights. Thus, Hong Kong Companies should follow the regulations set by the Hong Kong Companies Ordinance.

China Limited companies are subject to corporate governance regulations set by the Chinese government, including the Company Law of the People’s Republic of China and other relevant regulations issued by authorities such as the State Administration for Market Regulation (SAMR).

Foreign Investment Restrictions

Hong Kong has no restrictions on foreign ownership or investment in limited companies. Then the foreign investors can establish wholly-owned subsidiaries or joint ventures without the need for a local partner.

Foreign investment in certain industries has restrictions in China. Or require the involvement of Chinese partner through joint ventures in China. Also, the Chinese government regulates foreign investment through measures. For instance, the Catalogue of Industries for Guiding Foreign Investment.

Taxation

Hong Kong has a simple and low-tax regime, with a flat corporate tax rate (currently capped at 16.5%). Furthermore, there is no tax on dividends, capital gains, or interest income earned outside of Hong Kong.

China has a more complex tax system, with corporate income tax rates ranging from 15% to 25% depending on the type of company and location. Additionally, companies operating in China may be subject to value-added tax (VAT), business tax, and other taxes.

Currency and Capital Controls

Hong Kong operates under a free-market system with a freely convertible currency (HKD) and no significant capital controls. While China imposes restrictions on currency exchange and capital flows, and the Chinese Yuan (CNY) is subject to government controls and managed exchange rates.

Market Access

Hong Kong is famous for its open and international market, providing access to global investors, financial institutions, and capital markets. And China has a large and growing domestic market. But also maintains various regulatory barriers and licensing requirements for foreign companies operating in certain sectors.

Centre O highlighted some of the key differences between Hong Kong Limited Companies and China Limited Companies. When deciding where to establish a company. You better to think deep and a few steps forwards.

For further information, please contact us.

You may want to read: Advantages and disadvantages of a Limited Company – a summary

Centre O prepared a flowchart to let you know the key steps involved in setting up an e-commerce business. No matter what business you want to start, you have to plan well before diving into anything. Also, you have to outline the key steps and the process into sequence. In order to have a clearer picture of your process and the checkpoint. Now, we at

Market Research

Conducting market research then you can identify your target market and audience. And you can find out your competitors and industry trends. And then you can determine your own product or niche market.

Business Plan

You have to define your business objectives and goals via develop a business model. For instance, dropshipping, wholesaling or private labeling. Then you have to create a budget and financial forecast.

Legal and Regulatory Compliance

Once you can identify your business market and have a plan. Then you have to register your business entity. It can be a sole proprietorship or limited company. When you company is incorporated. You have to obtain all necessary permits and licenses. Then, set up the tax ID and company business bank account.

Supplier and Inventory Management

When your company is officially set up. Then you can source suppliers or manufacturers for products. Also, establish relationships and negotiate agreement’s term and condition. And then you have to determine inventory management system. For example: in-house or dropshipping.

E-commerce Platform Selection

You have to choose your best fit e-commerce platform such as Shopify, WooCommerce or Magento etc. Then you can customize the website design and layout to differentiate your brand and product. And then setting up product categories, listings and pricing.  

Payment Gateway

Select and set up a payment gateway is very important. For example, PayPal, Stripe, Square etc. No matter which payment gateway, it involves a service fee. On the one hand, you can think of the easiness to transfer to your company bank account. On the other hand, you have to integrate secure checkout for your customers. Then ensure you are stand with compliance of The Payment Card Industry Data Security Standard.

Shipping and Fulfillment Setup

As you are e-commerce, you are not expecting customers to pick up the merchandise from you directly. Then you need to determine shipping carriers and methods. For example, international shipping companies, local couriers or post office service. Then you need to check and set the shipping rates and policies. And the rates and policies have to show on your platform. Finally, make sure the customer’s order can implement fulfillment process.

Website Optimization and SEO

No matter how good is your product, if your potential customer cannot find you easily. So, before you launch your e-shop. You have to optimize your website search engines (SEO). Or the website experience is not good. Then, you are unable to keep your customer, too. Thus, you have to create high-quality product descriptions and images to let customer clearly understand your products. Furthermore, prepare and implement content marketing strategies.

Marketing and Promotion

You can promote your product via social media. It is one of the lowest cost marketing plans. Then you can launch advertising campaign via Google Ads, Facebook Ads etc to draw more attention. Also offers time limited promotion offers, discount and the loyalty programmes definitely can be a good promotion too.

Customer Service and Support

Good customer support is always helping you to gain customers. So it is important to set up a customer service channels via live chat, email or phone. Your website should provide clear policies of returns, refunds, and exchanges. The clear policies can avoid any conflict.

Analytics and Monitoring

You can install analytics tool such as Google Analytics to track website traffic and performance. The tool also can analyze the key metrics for example conversion rate, average order value. The report can assist you know your business better and reflect the real situation of your operation. In the very beginning, it seems not too much data, but it will be very useful to make data-driven decisions to optimize your business operation.

Launch and Iterate

When everything is ready, then you can launch e-commerce website and start selling products. It is very important to maintain a good customer service. As the customer service can monitor the customer feedback and reviews. No matter it is relating to the product itself, their shopping experience. All the feedback is helping you to maintain a better image.

Depending on the specific nature of your business and industry, you may need to customize and expand upon these steps accordingly. The flowchart mentioned steps is the general overview. Additionally, seeking advice from professionals such as legal advisors, accountants, and e-commerce consultants can help ensure a smooth and successful setup process.

For the further information, please contact us.

You may want to read: THE NITTY GRITTY OF SETTING UP A BUSINESS IN HONG KONG

Digital ecosystem in China

Tapping into the vast and lucrative Chinese e-commerce market requires a strategic approach. And tailored to the unique characteristics and preferences of Chinese consumers. As China internet users are using the nation’s social media platforms such as WeChat and Douyin rather than Facebook, Instagram and Tik Tok.

How to get into China E-Market?

All entrepreneur wants a profitable return when running a business. As the uniqueness of China E-Market, you have to well-prepared in advance.

Market Research and Understanding Consumer Behaviour

No matter what business you are doing, you have to identify your target customer segments based on demographics, preferences, and purchasing behaviour. With your knowledges of your target segment, then found out their preferences. For example, China is a huge country, from North to South, East to West, they have difference cultural and habits. Your product maybe 100% perfect match one area, but totally awful for other. Furthermore, you have to know your competitors including domestic and international. As you need to know what is your opportunities between them.

Establishing an Online Presence

You are nobody to the China E-market at the moment. So, you have to let your target customers know your products. It means you have to introduce your products properly to China market via difference platforms. If your products are in China already, then you can use the dominated platforms such as Alibaba’s Tmall, JD.com, Taobao, and Pinduoduo. If you want to enter from outside, then you can try Tmall Global and JD Worldwide to entry China. Otherwise, you can try the social commerce platform like WeChat and Little Red Book for influencer marketing and community engagement.

Localization and Cultural Adaption

Even thought you are doing online business for decades, you still need to make change to adapt the new environment. For instance, you have to proper translate your website to Chinese. Also, the payment gateway needs to modify as well. Since visa, stripe or PayPal are not the popular in China. You have to connect the checkout process via WeChat Pay or Alipay instead.

Building Trust and Credibility

If you want to step in the market, you have to built a brand awareness and credibility through positive reviews, endorsements and partnerships with reputable local brands. Also, building trust is also important. But how to gain trust from the consumers? The very first step is making your products align with all the compliance and regulations. The let your customers know your goods and services are in high quality and reliable delivery. Then loyalty and trust will be established.

Marketing and Promotion

China was the first to embed live streaming using influencer and Key Opinion Leader (KOL) marketing strategies to reach your target group. Besides KOL marketing, you have to create a localized content such as clips, articles and infographics to attract your groups. China has its unique shopping events such as double-eleven Single’s Day on 11^th November and Chinese New Year, you can offer discounts and promotions to drive sales.

Logistics and Fulfillment

You have to consider how to delivery your products to your customers. The delivery must be reliable, fast and cost-effective. Imagine someone purchased a merchandise from your platform, but it takes weeks for delivery. Then, it will not be an option to the Chinese market. When we are saying logistics, it is not only talking delivery, but also the warehousing and customs clearance. Therefore, you have to decide to set up a local warehouse or utilizing fulfillment centers to streamline inventory management and reduce shipping times. If you are shipping abroad, then you have to go through every customs procedure and compliance requirements for smooth cross-border shipping and clearance.

Data Analytics and Iterative Optimization

You have to use the big data to analysis your customer data, sales trends and consumer feedback. Then you can refine marketing strategies. This is not a one-off strategy. You have to continuously iterate and adapt strategies based on to market dynamics, emerging trends, and feedback from Chinese consumers.

Legal and Regulatory Compliance

Last but not the least, you have to establish a legal entity. Or utilize cross-border e-commerce pilot zones for compliance with regulations on foreign businesses operating in China. Then you have to protect your Intellectual Property. Thus, register your trademarks and patents and prevent counterfeiting and infringement. Also, ensure compliance with China’s data protection laws and regulations, including the Cybersecurity Law and Personal Information Protection Law (PIPL).

For further information, please contact us.

You may want to read: Step by step for WFO E-Commerce Business Setup in China