Start a Transporting and Storage Company in Hong Kong
Start a Transporting and Storage Company in Hong KongUpdated on Thursday 01st August 2019
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Transport companies offer services that will suit the needs of their clients, whether they are related to direct delivery, temporary storage or logistics. These businesses operate their own fleet, have their dedicated storage spaces, equipped for handling different types of products (for example, frozen goods) and employ a team of drivers and client service employees.
When investors start a transporting a storage company in Hong Kong they will first draw up the business plan, define the services and make the arrangements to base the company as well as purchase the transport fleet and storage area. The headquarters can be located at the same place as the storage unit or in a different office building.
Our team of lawyers in Hong Kong can help investors open a transport and storage company. We can assist throughout all of the stages, from verifying the company name, making the document submissions and finalizing the registration with the Companies Registry.
What are the main services offered by transport and storage companies?
When investors open a company in Hong Kong, they establish the range of services they will provide to local and sometimes international clients. Examples of services offered by a transport and storage company include the following:
- • Internal and cross-border distribution: transport services that can be limited to the Special Administrative Region or extend to other areas, such as Mainland China.
- • Packing: packaging the materials, items or goods can be an important service offered by specialists who have adequate equipment.
- • Warehousing: storage solutions in dedicated spaces, such as refrigerated warehouses used for various commercial goods.
- • Logistics: reliable services that include planning the transport route, mostly for cargo shipments.
- • Relocation: offered by some companies, services related to moving personal and corporate goods from one location to another.
One of our attorneys in Hong Kong can provide investors with more details on the requirements for these businesses and the need to apply for special permits and licenses to operate certain types of cross-border transportations.
What are the steps required to open a transport and storage company?
Company formation in Hong Kong is a simple process and investors who wish to open a private limited liability company to start a transport business can follow the steps below, briefly described by our Hong Kong lawyers:
- choose a company name: we advise investors to prepare three company names and then reserve the one that is available, in order of preference.
- the structure: decide on the shareholding structure of the company, the types of shares and their allotment as well as other details.
- the documents: prepare the company’s constitutive documents, the Memorandum, and Articles of Association.
- sign the documents: once the constitutive documents are complete, they are to be signed by all of the founders in front of a notary.
- register: fill in a registration form and deposit all of the documents with the Hong Kong Company Registry.
Our team of Hong Kong lawyers can provide more details about each of these steps.
What are the conditions for these types of companies?
The types of services provided by transport and storage companies will depend on the size of the company, the number of employees as well as the types of transport it offers: whether it is solely road transport or if it also includes general transport by sea or air. Storage and removal from storage services can be offered in the same package or as separate ones.
As described above by our lawyers in Hong Kong, all companies need to be registered with the Companies Registry and start their activities once they obtain their business license. However, there are a number of other conditions applicable to companies in general.
Hong Kong is known for its favorable business environment, part of which also relies on the low taxation regime. Starting with the year of assessment 2018/2019 companies are subject to the following corporate income tax: a 8.25% tax on the first 2 million HKD on assessable profits and 16.5% on the rest of the assessable profits. Two different, reduced rates apply to unincorporated businesses. One of our tax attorneys in Hong Kong can provide investors with more details regarding the current tax regime.
The following statistics are proof of Hong Kong’s status as an attractive business destination:
- - in 2017 there were 160,229 newly registered local companies.
- - out of these new legal entities, 51,002 were incorporated using the online e-Registry.
- - in 2016, the number of newly registered companies was 144,883.
Contact our law firm in Hong Kong for detailed information about the steps required to open a transport and storage company.