Common Mistakes People Make When Registering a Business in Hong Kong
by Sumona Business 17 December 2021
The right legal setup is essential if you want to start a new business in Hong Kong. Unfortunately, many people make mistakes when they register business hong kong, which can be expensive and difficult to fix. But if you avoid these common mistakes, your business will be more successful, and you’ll have a better chance of avoiding costly legal options. Here are the most common errors people make when registering their business in Hong Kong.
1. You register a trading name that’s similar to your business
If you want to protect your brand, trademark, or service name in Hong Kong, you need to register it with the Hong Kong Trade Mark Office. Trademarks can be valuable assets, offering the protection of a trademark and the ability to stop others from using the name of your business. However, the rules are complex, and it’s essential to handle this correctly.
To register a user name, you need to check that it doesn’t infringe on another person’s registered trademark. If the names are similar, you’ll need to change your brand name before registering. You can also register a brand name if you already have an existing business.
2. You forget to your company’s details in documents or applications
When you apply for a license or business registration, it’s crucial to include your company’s name and address. If you forget, you have to start the process again. Also, if a business is registered under an incorrect name or address, it can be tough to change.
3. You register a business in your name
Particularly when registering a new business, you need to have an official name registered under your corporate name. It’s very easy to make this mistake, and it can be very costly. If your company is already registered with the Companies Registry, you must use this name to register your business.
Your personal name is only used for on-the-spot registrations. This can be helpful if you have a business that you need to set up quickly, but you should keep in mind that it may be more complicated to register your company later.
4. You use a confusing business name for your company
A company name must be distinctive, memorable, and easy to find. Your business name must not be deceptive or misleading, or it could be taken off the Companies Register. You need to consider using a business name similar to your company’s brand.
You should avoid using generic names or personal details. For example, calling your company “Jane’s Consultancy” could be confusing because you might be confused with another Jane.
5. You register an incorrect postal address for your business
When you register a business, you need to give a physical address in Hong Kong where you can be contacted. You can provide the physical address of your business or personal address. You need to make sure that you keep your contact information up-to-date.
If you give an incorrect postal address, it’s more difficult to transfer your business registration to a new location. You’ll need to start the process again, which can be expensive.
Avoid these mistakes if you want your business in Hong Kong to be a success
Avoiding these common errors will make your business registration process much easier. If you follow the correct steps when registering a business in Hong Kong, you’ll avoid wasting time and money. You’ll also have a better chance of avoiding unscrupulous or illegal actions by competitors.