[shafted]

Hi, does anyone here have any experience starting or running a company in HK? Do you get any help from the government or local enterprises?

Thanks.

[KnowItAll]

There are a few small / medium enterprise funds that are available ... mostly for training etc. Talk to the folks over at InvestHK if you're in the process of starting up.

[philippe]

Originally Posted by shafted

Hi, does anyone here have any experience starting or running a company in HK? Do you get any help from the government or local enterprises?

Thanks.

I have created two companies so far in Hong Kong and I also was looking for fund as my 2nd company had a lot of IT related R&D activities.

In the days old one could get up to HK$1 Million in funds and grants.
Now you get up to HK$1 Million if you put in the same amount.

Here is the catch and I did learn that the the hard way, if you want to get a fund and even if you have a rock solid business plan (or plans) make sure that at least one of the company director is a PhD holder this is one of the many unwritten rule of HK.

In my experience funding is something hard to get in HK, a lot harder than say Europe or North America.

[Morlich]

I am also wanting to start up a company here, so any advise you can give will be appreciated. I checked business registrations before and this costs about $7,000 or so for business registration and company pack.

One problem I found is that I need a strong management team and already be be business for some time in order to be even cosidered for any funding from VCs or private investors. All I have now is me with a kick ass concept.

[philippe]

Originally Posted by Morlich

I am also wanting to start up a company here, so any advise you can give will be appreciated. I checked business registrations before and this costs about $7,000 or so for business registration and company pack.

One problem I found is that I need a strong management team and already be be business for some time in order to be even cosidered for any funding from VCs or private investors. All I have now is me with a kick ass concept.

It's only HK$20000-HK$3000 if you do it yourself.

If you want something of the shelf just shop around it's ppossible to find something under HK$6000.

Better, buy a company from somebody and you may be able to save a bit more.

[Lammarite]

I don't think you're aiming very high if you're trying to save 4k right at the beginning when you want to be making sure evrything is right and done properly so you know the company is yours, the books are set up right and you are not inheriting someone else's issues.

Morlich, if your concept really is kick ass then it wont matter if you are a one legged lesbian dwarf (not that there's anything wrong with that), investors will come. There are plenty of investors you can approach- InvestHK may be able to help with that but if they suggest a HarbourFest opportunity I'd slowly walk backwards out of the front door!

[lionrock88]

If all you have is a kick-ass concept, venture capitalists will not invest in you - unless you're already a proven entrepreneur with a track record of success and deep relationships within the venture community. Ideas are a dime a dozen and it's the execution that counts. VCs would much rather invest in 1st rate people with a 2nd rate idea than a 1st rate idea with 2nd rate people.

At your stage which is generally known as the seed stage, your venture will either be self-financed, or you'll have to look for the 3 'F's - friends, family and fools. Maybe you have some rich family friends who can act as angels and seed your idea.

If you are a tech-based startup and a HK permament resident (or one of your partners are) - you could also be eligible for a government grant. Check out the following for more info:

http://www.info.gov.hk/itc/eng/funding/arf.shtml
http://www.itf.gov.hk/eng/SERAP.asp

Good luck!

[KnowItAll]

>> All I have now is me with a kick ass concept.

I had a boss (who was at one point in the fortune 500's list of richest men in the US) who taught me a lesson ... "Small chops fall big trees". There is so much to learn in that statement when you're starting up and when you're going after the big kill.

[KnowItAll]

One thing, be VERY VERY careful about the HK government funding. There are a lot of loopholes and the rules of non-disclosure are non existant and some of the funding might involve giving up equity.

One of our friends had an awesome idea (something that has actually gone on to become a solid business) and almost lost it with these funds and committees .. the goal of the chairperson of one of the funding commitees was almost to steer my friend over to his brother-in-law's company.. go figure.

[Morlich]

Yes, unfortunately ... having a "kick ass concept that will rock the world" is no use unless you have a solid team behind it and have already been up and running for a couple of years. VCs normally stay clear at this seed stage until it is fully established.

Plus I heard that VCs will want a majority chunk and control of the company in return for their investment.

Thanks for the links, I will definately review them.

Originally Posted by lionrock88

If all you have is a kick-ass concept, venture capitalists will not invest in you - unless you're already a proven entrepreneur with a track record of success and deep relationships within the venture community. Ideas are a dime a dozen and it's the execution that counts. VCs would much rather invest in 1st rate people with a 2nd rate idea than a 1st rate idea with 2nd rate people.

At your stage which is generally known as the seed stage, your venture will either be self-financed, or you'll have to look for the 3 'F's - friends, family and fools. Maybe you have some rich family friends who can act as angels and seed your idea.

If you are a tech-based startup and a HK permament resident (or one of your partners are) - you could also be eligible for a government grant. Check out the following for more info:

http://www.info.gov.hk/itc/eng/funding/arf.shtml
http://www.itf.gov.hk/eng/SERAP.asp

Good luck!