How to set up a company in Hong Kong? The basic requirements for company formation in Hong Kong are that the company must be registered under the Companies Registry, under the Central Business Improvement Commission (CBI), and the Hong Kong Company Registry. The company must also be under the Management and Control Department of the Government of Hong Kong. The company secretary must be a non-executive director of the company. There is no need for a nominee director for the directors’ meeting. It makes the entire process of how to set up a company in Hong Kong very simple.
How to set up a company in HK? The benefits of company formation in Hong Kong are also many. A limited liability company is an excellent choice if you wish to protect your investment, and you have unlimited liability. It allows you to make costly claims against the directors should anything happen to the business such as bankruptcy or liquidation proceedings.
The formation of a limited liability company has other benefits. The first benefit is that it provides a shield from personal bankruptcy when your cash flow slows. Another significant advantage is that the limited liability company allows you to access your company’s assets even after you have ceased to carry on any of your activities and have fully paid your debts. It means that the benefits of new horizons are at your fingertips.
Many people who wish to establish a business in Hong Kong do not understand the benefits of company formation. They do not know that this small step can significantly affect their company’s future profitability in general. The main advantage of this is that companies with very little profit are charged a higher tax rate under the current tax system.
The company formation process itself is quite straight forward, although there are of course details which you must consider. You will need to decide whether you want to incorporate your company as an open limited company or a closed one. Both have different implications for setting up a company in Hong Kong and, therefore, on how to charge your company’s prices.
In a closed company, your company’s shareholders will be listed on the company’s register. It means that they will be able to make further profits out of your company’s assets by selling them. It is a good option if you are willing to sell your company’s help because you will get more for it. However, your company’s name cannot be registered until the register is closed and all shareholders have been paid. It means that you cannot use your company’s reputation as its domain name until the record is closed.
An open company, on the other hand, does not require any registration. The only things required of it are that its directors meet certain conditions such as being Hong Kong residents and paying the annual corporate tax. Your company’s name, however, cannot be used until the company is registered. It means that you will not be able to use your company’s reputation if your company is not registered. If you want your company to be written, you will have to take the following steps:
These are the main steps in how to set up a company in Hong Kong. There are other important issues to be considered when setting up your company in Hong Kong, including the type of company you want to set up and what your company’s name should be. Consult the law books to set up a company in Hong Kong and choose the best options for your business. Make sure that you understand the rules and regulations well before proceeding with the process.