It’s time to create your own business. JLL Hong Kong gives us some tips about finding your first commercial space successfully.
Your startup in Hong Kong is going well, profits are on the up and you’ve made the decision to find your first commercial space. This is a truly invigorating time for newcomers to the commercial market. But as a first timer to office leasing, the chances are you will not know how intricately the market operates, or even where to start. Finding initial office space can seem like an overwhelming and worrying task.
Before you do anything, make sure you are in a position to commit to a contractual agreement
Yet whilst there are legitimate reasons to be cautious, the process can be quite easy, as long as you follow a few basic steps. In addition, it is helpful to understand key terminology used in commercial office leasing.
Key things to remember
Before you do anything, make sure you are in a position to commit to a contractual agreement. Can you afford commercial rent? Ask yourself what budget you can truly manage. Don’t try to do it all yourself, seek advice and assistance from recognised JLL Property Hong Kong . Do your research, and never rush into anything.
Reach out to your network
For small firms, sharing an office with another similar sized company can help reduce rental costs. It can also aid your business by opening networking opportunities when sharing a space with others in the start-up business world. Mutually beneficial, you can also help each other out with your industry skillset, for example technical questions can be shared with another office of programmers resulting in quicker solutions.
If you are sharing space with another company, you must be respectful and flexible. If the company you are renting from needs to grow, they may have to ask you to find new space somewhere else. Always remember that they are doing you a favour and opening their doors to you. Be careful to get advice and read up on the Tenancy Agreement on whether you are allowed to sublet your desired space. You don’t want to fall foul of the Landlord.
To avoid this scenario, you can begin your office search in partnership with another company from the start.
Know the types of company
You need to know which of these describes your business before you rent when looking for Hong Kong commercial property space
A Limited Company is the most commonly-used company type. This is a company which is incorporated in Hong Kong, which means that the owner can take advantage of all the tax benefits and concessions available to any fully incorporated business
Branch Office of Parent Company: If a company incorporated outside Hong Kong establishes a place of business in Hong Kong, it must register with the Companies Registry as a ‘Registered Non-Hong Kong Company’ within one month of establishment.
Representative Offices cannot engage in profit-making activities and can only fulfill limited functions. They are useful if a company wishes to explore the Hong Kong market before making a larger investment.
You need to register your business with the Business Registration Office of the Inland Revenue Department. You must register within one month of starting business.
All these steps are complex for a start-up business, so it can be wise to ask a firm, like JLL Property, to leverage their commercial office leasing experience to help find your perfect first office lease.