Driving Excellence – Set Up a Private Transportation Services Business in Hong Kong
Full speed ahead with 3E Accounting’s guide on how to set up a private transportation services business in Hong Kong.
Since the 90s, public transportation has been a way of life in Hong Kong (HK). In fact, the Mass Transit Railway, or MTR, netted a profit well into the billions in 2019. Yet, despite the popularity of its public transport, private transportation is markedly on the rise. As such, a viable venture might be to set up a private transportation services business in Hong Kong.
Getting From Here to There
Hong Kong is known for many things, including having one of the most efficient public transport systems in the world. Yet, the luxury and necessity of private transportation cannot be overlooked. Statistics show that seven out of every ten cars in HK are private cars, indicating a strong demand for ownership.
Private vehicle ownership is increasing faster than HK’s population. There is a proliferation especially in the New Territories and towards the Chinese border. Many locals, as well as tourists, are showing a preference for privately arranged transportation. Airport transfers, city tours, limousine services as well as corporate or chauffeured rides are some of the in-demand services.
Due to socio-economic and environmental concerns, the government of HK imposes strict rules and regulations with regards to private transportation. The first course of action is to incorporate your business. Business registration and approvals in HK are online and hassle-free to facilitate ease in getting your business up and running. You can incorporate your company with the HK company registry.
The type of companies that can be established are:
- Sole Proprietorship or Partnership
- Private Limited Company
- Public Limited Company
- Company Limited by Shares or Guarantee
- Branch or Representative Office
The most preferred business vehicle is the Private Limited Company or PLC. This type of legal structure has a separate legal entity status, offering greater protection and limited liability to shareholders. Other necessary steps include registering for taxes on the HK Inland Revenue, setting up a corporate bank account and getting business insurance.
The Trade and Industry Department in HK regulates all business licenses. Generally, most business activities in HK do not need a license to operate. However, specific industries have more stringent regulations, and this includes the transportation business. Some of the approvals include:
- A driver’s license
- International Driver’s Permit
- First-time registration tax, based on the size and value of the vehicle
- Registered with the Transport Department
- Third-party Insurance
- Hire Car Permit for Private or Tour Service
The HK Transport Department has an online system that facilitates checking and licensing.
Get Into Gear With the Professionals
If you’re keen to set up a private transportation services business in Hong Kong, you may just need a little help. 3E Accounting is on hand to offer bespoke solutions for your every need. While you drive towards success, 3E Accounting will ensure all due processes are handled with consummate professionalism.
Contact 3E Accounting today to get the best business advice from industry professionals.