Do you know that as of November 2022, there are 411 unicorns in the Asia Pacific? So, if you are planning to start a business in this region, stand out from the competition and make a mark, you have to be strategic and follow the appropriate procedures. Every entrepreneur should know about company incorporation and the importance of outsourcing incorporation to experts who provide holistic corporate secretarial services.
In this article, let us unpack company incorporation and everything you must know about it.
What is company incorporation?
First things first, what is company incorporation?
Creating a legal entity—a corporation—that is distinct from the owner’s legal identity is known as company incorporation. Doing business or engaging in trade can be established everywhere. Through incorporation as a separate entity, businesses can expand globally, establish themselves and start trading.
Be it a big enterprise or small business, company incorporation is a must for all. If you are a small business, read this article where we deep dive into incorporation for startups and SMEs.
Why is it necessary to go for company incorporation?
There are many benefits of company incorporation. Let us take a closer look at some of the main advantages of company registration:
The majority of legal entities shield you from personal accountability by being formally distinct from you. Once your company has been incorporated, the legal entity can negotiate contracts on its behalf rather than you doing so. Incorporated businesses can also hold assets, generate revenue, amass debts, file and respond to lawsuits, and declare bankruptcy. In most cases, if there is an issue with your business, no one can seize your assets.
In Hong Kong, a professional service company can help a business incorporate remotely. An E-registration with the Hong Kong Business Registry (CR) for a company structure with individuals can be completed in a minimum of one day or even an hour. The incorporation documents are delivered in hard copy a week later. Even in Malaysia, there are no restrictions on foreign ownership of shares. Foreigners can fully control all businesses in Malaysia.
Company incorporation is easy in most countries across the region, especially with the help of outsourced corporate secretarial services, plus it comes with multiple benefits. So, there is no reason to not incorporate it when launching a new business.
Local regulations for company incorporation in many markets are lengthy and complex and frequently riddled with possible problems or mistakes that might cost businesses when they’re most susceptible. Businesses often get their incorporation applications denied or have to spend a lot of money applying again.
Therefore, hiring external corporate secretarial services for company incorporation would guarantee a quick and easy process. Remember, startups fail in about 90% of cases. 10% of new businesses fail in the first year. One of the worst mistakes you can make is not asking for assistance or opting not to outsource accounting services. You are in charge of starting a new company from the ground up and must manage a multitude of tasks. You can’t complete every task by yourself. Ask for assistance where you know you need it.
To help SMEs and other businesses swiftly and successfully form their company, corporate service provider PikoHANA comes in. We have decades of experience and expertise in different markets across the region, including Hong Kong, Singapore, Malaysia, and beyond
Discover more about how PikoHANA can benefit your company right now!
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