Whatever type of business you intend on running, you need to declare the nature of your business to the Companies Registry when incorporating. Some people spend a lot of time and effort creating a long and detailed description of their nature of business when in fact a simple definition will suffice.
At the incorporation level, nature of business is not that important in that the Companies Registry will not check up on the same as Hong Kong companies are authorized to operate any legal business whatever their business definition. However, when you go to open a bank account, the bank will ask you for more detail as they want to understand the operations of your business. As such a descriptive yet simple business nature based on the following two main points should suffice:
1. What does the company do?
Trading, holding, investment, manufacturing, consulting, etc.; and
2. In which sector does the company operate?
Garment, food, IT, transportation, etc.
So, based on the above questions the nature of business could be trading of luxury shoes, IT consulting, investment in art pieces, etc. for example.
Meanwhile, you should also note the following,
- the definition of your business (or nature of business) will appear on the Business Registration Certificate; and
- the length of the nature (including punctuation, symbols, and spaces) cannot exceed 30 characters for a Chinese business description and nature and 60 characters for an English business description and nature.
As with many things, less can be more when you choose your business nature. While you don’t need to spend a lot of time hashing out your business nature, you can consider adding some description in order to give banks an idea of what it is the company does.
Already chosen your business nature and ready to incorporate?Or feel free to contact us. The iNCUBEE | LCCS Team will be pleased to answer you.