Company Setup in Hong Kong – Setting Up a Limited Liability Company
One of the significant benefits of company registration in Hong Kong is that you can enjoy the advantages of a local economy that is well developed. The rapid economic growth in the region has created great opportunities for the local businessmen. Now, even big multinational companies have established their hubs in the city. It provides you with a convenient place to start your own business and reap the benefits of the high standard of living in the region. If you plan to open your own company in the city, you should consider the company formation’s advantages in Hong Kong.
One of the significant benefits of company setup in Hong Kong is that you can enjoy tax benefits. The country’s tax regulations allow for exemption on import and export duties on goods purchased from foreign countries. You can use this tax advantage to import low-priced items that you want to sell on your site. If your products are priced competitively, you will attract more customers and sales. It will lead to an increase in profits, and you will eventually pay less income tax.
Companies in Hong Kong are required to obtain a registered office. It means that all of the company’s activities are conducted at its registered address. Therefore, you must submit your registered office address at the Companies House so that you can have a legal paper trail when you wish to file tax returns. Moreover, a company secretary plays a vital role in keeping your company official. Therefore, if you are considering getting a company secretary, you must look for a person who is well experienced in this area and has a reliable reputation.
When it comes to company formation in Hong Kong, you will be required to provide a nominee or director for your company. Your nominee or director should have the ability to exercise the power of appointment over him. You may choose any person whom you think will best serve your purposes for your company. You must also decide on the company name and register it at the Companies House. The company secretary is also an essential part of the whole procedure and registration.
The next thing you must do is to fill out the Memorandum and Articles of Association. It is required to comply with the Companies House requirement in terms of having a registered office. Besides, a company secretary is also required to submit the annual report and the Annual Accounts. He is responsible for advising you on raising the statutory corporation papers and forwards them to the shareholders for review. He must also forward copies of the Annual Accounts to the Board of Directors’ statutory audit committee.
A company will have to provide a list of its shareholders. The company secretary can assist you in getting this information and send a fax to them. Once they are on board, the shareholders are the ones who will be able to give the authorization for you to trade. A minimum number of shareholders is mandatory for Hong Kong companies, and they must have the consent of at least ten shareholders to enable the company to operate.
A sole proprietorship in Hong Kong is different from a private limited liability company in that there is no need for a double-entry book-entry system. Instead, a foreign company needs to register in the Companies House and become a SOHO branch member. Then, they can apply for a Registration Certificate. The following are the other formalities that you must follow for the company set up in Hong Kong:
Once all these formalities are over, you can transfer the shares’ ownership by making a payment in the prescribed manner. You may also want to obtain a nominee director if you plan to issue one share at a time. In this case, you can appoint one shareholder as the company secretary and then give one share at a time. However, if you want to issue more than one claim, you will need to register a company secretary and one shareholder.