If you wish to open a business in Hong Kong, you can choose between the two main types of business setup available there: company formation in Hong Kong or the option of using the option of a corporation. Both of these options have their own advantages and disadvantages, but it’s important to weigh your options before making a final decision. Here are some of the main pros and cons of both company formation in Hong Kong and the option of using a corporation as a starting point:
Limited Companies. Limited company formation in Hong Kong uses one account that remains open for all company affairs. The proprietor of the company is called the “company officer” and everything about his business is under his control. Limited company formation in Hong Kong does not involve the use of shares, giving the owner full control over his business. Limited company registration in Hong Kong is just under three hundred and forty-five characters long, meaning that nearly half of all characters can be used.
Corporation. Companies are generally registered in the name of the company secretary who holds the power of incorporation in Hong Kong. The company secretary can also issue warrants for the company’s shares, issue shares to shareholders and make decisions on behalf of the company. It is through the powers of the company secretary that the company secretary can “order the closing of an account”. Company formation in Hong Kong is quite simple, with most companies offering simple applications and directions for the incorporation process. To become a permanent member of the Hong Kong stock exchange, the company must have at least one office in the Central Business District (CBD), and a permanent office building if one is needed.
After you have decided to establish a business in Hong Kong, you must decide what type of company registration you wish to apply for. You can choose a Limited liability company, a Public Limited Company or a corporation, or any combination thereof. You will need to decide where you wish to register your new company, for example, you may register it at the Commercial Registration Office or at your chosen bank account. Please ask the company that you choose if they offer any assistance in deciding where to register your company. If you are registering at a bank account, you will have to provide the details of your bank account number, the routing number, account balance, and the personal Identification Number of your company. You will be required to fill in the registration fees at this stage.
Please note that a” Limited Company” designation will appear on the corporate seal and at the bottom of the company’s Articles of Association. In order to avoid confusion, you should consult with your company’s counsel and confirm that the designation and document are correct. Your lawyers and other confidus solutions can also assist you in completing your registration with the Companies Registry.
In terms of the “Matters to be declared”, on the Companies Registry list, the following should be declared: the full name of the company; its registered office; its proposed abbreviated trade name; the proposed common-law corporate status; and its proposed business model, including the management style. In addition to the above, if you wish, you can also add auditor references, if necessary. After the aforementioned documents are submitted to the Companies Registry, you will receive a notice of approval. The Companies Registry will then give you a confirmation that your registration has been approved. This all is done electronically, by fax or mail, depending on the system that your company uses.