‘What do corporate service providers do?’ This is a question thrown around quite a lot in the business society.
Especially in Hong Kong where there are more than a hundred thousand companies, you may have heard of many firms telling that they have been availing services from corporate service providers.
So, what is the benefit in that? What do the companies hiring corporate service providers get better than the firms that don’t?
In this article, we look at everything that you need to know about corporate service providers; about what they are, and how they can help you.
What are Corporate Service Providers?
Corporate service providers are companies that provide their knowledge, technology, and expertise to assist other companies to operate. This could be in various sectors like incorporation, accounting, taxation, human resources, legal department and many more.
The range of services of a corporate service provider is strictly dependent on their proficiency. Some may only provide accounting, while others can give you tax services. There are some companies like 3E Accounting that take the concept into a whole new level; they help their clients with Virtual Office, Software Solutions, Work Permits and Visas, Business Trust, IT and Design, etc.
What are the Benefits of Hiring a Corporate Service Provider in Hong Kong?
They Register Your Business
Establishing and registering a company can be especially cumbersome for foreign investors in Hong Kong. There are a lot of registration constraints and rules to take care of.
When you work with a corporate service provider, they help you understand every kind of business that is available in Hong Kong. All you need to do is provide them with your requirements and necessary documents, and they will register your company for you.
They Provide Secretarial Services
Every company needs to hire a secretary in Hong Kong during the time of incorporation. Additionally, it can be expensive for startups to hire their own secretary because company secretarial is one aspect where there should be no compromise on the person’s knowledge and activeness.
The above reasons make secretarial services imperial in Hong Kong. Corporate service providers outsource their expertise, and hiring a secretary from them means you will have a lot of experience and it will be inexpensive for you as you will not have to give out employee contracts and benefits.
Terms like ‘Home Based Jobs’ and ‘Work from Home’ are becoming increasingly popular these days. After all, many companies have found that letting employees work from home helps them feel free and bolsters creativity, which leads to the improvement of the quality of work.
Anyway, companies will need infrastructures and facilities like phone call forwarding, a secure online server where employees can work and communicate, etc. to make work from home a possibility. Corporate service providers provide those facilities to their clients.
Also, in Hong Kong, having a registered address is a must to run a company. Some service providers can also have virtual registered address services in their pamphlets.
They Can Take Care of Bookkeeping and Accounting
Bookkeeping and accounting are different terms, and corporate service providers will do both for you.
Bookkeeping means simply keeping a note and record of the company’s revenue, expenses, profits, loss, etc., and accounting refers to using the bookkeeping data to find ways to increase sales.
A plus point in this aspect is that owners of Corporate service provider companies are mostly Chartered Accountants. Additionally, they can also do the annual mandatory financial audits for your company in Hong Kong.
Work Permits and Visas
Some corporate service providers assistance for Entry for Investment, and Employment visas. Also, for the people who come to Hong Kong, the service providers can assist with Permanent Residence and Dependent Visas. Remember, they have experts that can help you craft the perfect application with everything that the government wants to know from you. Thus, they will maximize your chances.
Hong Kong has one of the lowest tax rates in the world, but at the same time, the region is strict about taxes. Not filing your tax properly may bring serious consequences.
Your company and its members will have to pay various taxes like profits tax, salaries tax, property tax, stamp duty, import tax (only for tobacco, hydrocarbon oil, methyl alcohol, and alcoholic beverages), and many more.
At the same time, Hong Kong provides various incentives that help minimize the tax you pay to your government.
Corporate Service Providers make sure that you pay all your tax, but simultaneously also ensure you file minimum taxes.
Legal professionals are some of the most important team members of a corporate service provider. They help you from the moment you start registering your company; they provide you consultancy regarding certificates and documents you need, licenses, etc. Also, they will oversee legal issues that may arise from time to time like Trademark Registration, Personal Data Protection, Disputes Resolution, Wealth Management, etc.
Human Resource and Payroll Assistance
Corporate Service provider’s Human Resource Services can consist of employee handbooks, drafting of employment contracts, HR grants consulting, Human Resource Recruiting Service, Payroll Management, etc. Such service companies will make sure that you fulfil all your responsibilities towards your employees, and they are happy while working in your office.
IT Equipment and Services
The world business is run by tech, and it is not different in Hong Kong. You will need services like Website Design, Logo Design, Domain/Hosting, IT Security Testing, Cyber Risk Management, SEO, Internet Marketing, Social Media Marketing, and many more.
Furthermore, we can’t forget the software you will need for various purposes like accounting and bookkeeping, payroll, etc.
Corporate Service Providers have all the latest innovations you will need to keep running your company.
The thing is that even if Hong Kong is a great place to run a business, the competition is tough in almost every sector. So, you will need knowledgeable people working in your company. On the other hand, hiring extraordinary employees or buying the best equipment may be difficult for startups, but both of them are important for a company’s success. A corporate service provider helps in such cases, making sure you get all the resources you need at a price you can afford.