Delivery Unlimited – Starting a Courier Services Company in Hong Kong
As far as good ideas go, starting a courier services company in Hong Kong may be the best! 3E Accounting explains how to begin your journey.
The global communication and e-commerce infrastructure have undergone rapid change. Undoubtedly, the Courier, Express and Parcel (CEP) sector plays a vital role in emerging markets. That’s why now is really an ideal time for starting a courier services company in Hong Kong.
Hong Kong (HK) has a very vibrant and thriving consumer market, built around its three economic pillars of finance, property, and logistics. Its geopolitical position makes HK a perfect centre for business, further bolstered by good governance from the authorities.
A Rapid Emerging Market
Radical changes in technology have made the e-commerce gateway readily available to everyone. Quite a few courier businesses in HK are taking advantage of this. It is one of the few businesses that do not require intensive capital investment. Returns are usually lucrative as the industry is experiencing high demand.
Before starting a courier services company in Hong Kong, put together a business plan. Consider what type of courier services business model you want to operate. You will also need to do some financial planning and source for capital investment. Having a business plan and financial statement will also make it easier to apply for loans.
You will need to register and incorporate your company with the HK company registry, which has the following legal structures:
- Sole Proprietorship or Partnership
- Private Limited Company
- Company Limited by Shares or Guarantee
- Branch Office
With regards to courier services, the private limited company is the most common and does not require initial share capital. Currently, there are no specific regulations or licensing for courier services companies except to have a registered office in HK. If you have a fleet of vehicles, these may need certain approvals. To learn more about permits and licenses, check out the HK government website on licenses.
Next is to set up a corporate bank account and register for taxes. Companies are usually subject to corporate and other relevant taxes.
Do consider office premises and inventory as you will need somewhere to operate from and store your goods. Renting might be your best option as buying and renovating premises will undoubtedly increase your investment capital.
Most importantly, invest inadequate business insurance. Risk factors and hazards are high in this industry – goods get stolen, damaged, or lost quite often. There is also the risk of injury to employees out delivering orders.
Your courier service may be the best around, but it will not do you any good if nobody has ever heard of your company. Investing in good website design and development is a must in any business that is leveraging on e-commerce.
You might also want to consider becoming a member of the Hong Kong Courier Association (HKCA). This non-profit organisation courier companies by handling negotiations in industrial disputes. Their primary aim is to build acceptable industry standards and a global network for the HK CEP market.
Parcel of Delights
Starting a courier services company in Hong Kong is a sound vertical business idea. The transition from ideation to running your business can be stress-free simply by partnering with the right professionals. 3E Accounting offers on-demand solutions for any business. From incorporation to taxation; from renting serviced offices to website design and development; you can rely on 3E Accounting to deliver the goods.
Contact 3E Accounting today for business solutions that are as flexible as they are affordable.