How To Start An Art Or Creative Business In Hong Kong

Starting an art or creative business in Hong Kong can feel quite daunting but it doesn't have to be. We list out some advice for those looking to start a new art business.

Key Steps

• Choose a name for your art business or studio. Make sure the name is unique and available by crosschecking against the Companies Registry e-services. You should also check for any potential trademark infringements.

  
  

• Decide on a business structure i.e. a sole proprietorship, limited company by guarantee, limited company by shares or a partnership. Each one will have their pros and cons. For a small business for your art practice and if it's just you we recommend a sole proprietorship.

  
  

• Download or fill out the relevant forms online. The forms can then either be submitted online or in person to the business registration offices on 5 Concorde Road, Kai Tak. Your business must be registered within 1 month of starting operations. You will need a Hong Kong identity card and may possibly be required to show your proof of address as well as pay a small fee.

  
  

• Consider opening a business bank account. For a sole proprietorship you can use your personal bank account but for a limited company you are legally obligated to keep your accounts separate and set up a business account. In order to set up a business bank account you will need your various company forms as well as a minimum deposit.

  
  

• You are required to participate in the Mandatory Provident Fund (MPF) Scheme. You should set up a MPF account within 60 days of commencing business. You can talk to a MPF consultant or visit your local bank who can advise you what to do and how much to contribute. At the time of writing if you have a sole proprietorship and make less then $7100 HKD a month you are not required to make any MPF contributions. However you will still need to set up a MPF account.

  
  

• Don't forget to pay tax. For a sole proprietorship you can pay take through your individual's tax return. For a company you will need to file a Profits Tax Return (and submit to a independent audit).

  
  

• If starting a limited company you may wish to consider talking to a consultant that can help set up your business and company secretary for you. Companies that can help include Zzzzip.

Conclusion

When setting up a art or creative company especially if it is just you working we recommend a Sole Proprietorship. Setting up a Sole Proprietorship is relatively easy and requires simply applying for a BR (Business Registry) Certificate, setting up your MPF account and then paying tax through your individual tax return. However a limited company or partnership is relatively more complicated and you will require additional forms as well as a audit, company secretary and address etc. However the benefits of a limited company is it allows you to grow and hire people as well as seek investment while protecting your personal assets against legal claims. Make sure to do your research and make the right choice for you.

Photograph: courtesy Eleanor McColl Studio