When you have the choice to incorporate in one of the places among India, Dubai, or Hong Kong, what will it be?
Registering a business in India
In India, many start-up founders possess the skills of a programmer, designer, internet marketer, and many other roles who can usually work remotely. The skilled entrepreneurs may have no problem focusing on their core business which may include developing a tech product/software, pitching to prospect clients, closing deals with customers, meeting with investors, and more. But one problem that is critical is when they may struggle on the legal side of their business. That would start with legally registering a business in India. When registering a business in India, prepare the below items:
- Choosing a business name for the new company.
- Deciding on a business structure or type e.g. sole proprietorship, one-person company, partnership company, limited liability company, or private limited company.
- Obtaining the Digital Signature Certificate (DSC).
- Obtaining the Director Identification Number (DIN).
- Filling a New User Registration or eForm.
When deciding the business structure/type, first consider the number of owners/partners the business will have, whether the initial investment contributes to the choice of structure, whether the owner should bear the entire business liability, whether income tax rates are applicable to the business, whether getting fund from investors in the future is important for business service?
Incorporating in Dubai with Free Zones
There has never been a better time for going through the incorporation of a company in Dubai. Over the previous years, there have been an impressive growth in new business setup in Dubai. The most obvious reason is because Dubai is notably a free zone in UAE. In UAE, a few options for incorporation are available such as onshore or offshore companies. But the most popular type (with many foreign entrepreneurs) is the free zones. To incorporate, prepare the following items:
- Choosing your main business activity.
- Choosing a name for your new company.
- Finalizing all company formation paperwork.
- Receiving your license notification.
- Opening of a bank account.
- Processing of your visa.
The free zones type offers attractive incentives to foreign entrepreneurs/founders including 0% corporation and personal tax, 100% company ownership, 100% repatriation of capital and profits, 100% import and export tax exemption, and no currency restrictions.
Incorporating in Hong Kong
Hong Kong company incorporation may not be the simplest but most application would get approved. After incorporating a company as a foreigner, your business will start to leverage from the relative low profit tax rate which is 8.25% when the assessable portion is below HK dollar 2 million. When your business is set up in HK, it simply means you are at the hub of the business in Mainland China (i.e. a market with the largest population in the world) and the business of the South-east Asian regions (i.e. Access to international business).