The primary reason for establishing a new Hong Kong business after 1997 is to increase the profit potential. But how does one go about doing this? There are many factors to consider when making such a move. The following are some suggestions and pointers to assist you in building your new business after 1997.
With time, you will find yourself in a business environment that is generally volatile and confusing. Moreover, the laws may be different from those governing your home country. There are various reasons for this. One example is that the financial crisis in the US has led to many companies or individuals transferring operations outside the United States.
Another factor affecting one's business environment after 1997 is that many of the tax laws are different in both countries. In the case of a new company that is incorporated, they will have to undergo a lengthy and expensive process of obtaining a license to transact business. Also, the new laws may impose higher taxes on the small business owner than what they previously had to pay.
If you are a person who owns his or her own business, then the risk that you face may be greater. You may become the target of someone determined to make a quick buck. Because of this, one of the most important factors that you need to consider is liability insurance for your business.
A private liability insurance policy covers the business owners against both the risks and financial losses arising out of accidents or other legal actions by third parties. If an accident occurs, it will be covered by the policy. The same holds if there is an unpleasant legal action being brought against the business owner.
A recent case that illustrates the importance of liability insurance is that of the restaurant that opened on New Year's Eve. Though it was only a temporary service, the proprietor and his employees were not aware of the risks of operating as a restaurant and thus they failed to consider the importance of having insurance. Not only did they fail to cover the losses incurred by them, but they also failed to inform the authorities about their activity.