Company formation in Hong Kong has become quite popular over the past few years. It is hardly surprising when you consider the growing number of people wanting to open their own business in the world’s fast-growing economic hub. Besides, a corporation can be established for any purpose, including running a business in Hong Kong and receiving tax exemption benefits. It is what most people are after when they decide to develop a company in the Chinese territories. However, you should be aware that Hong Kong company formation is not as simple as it might sound because several requirements must be fulfilled. There are also some limitations when forming a company in Hong Kong.
There are two basic options for company formation in Hong Kong: its registry and the Hong Kong company formation services. The latter involves submitting the company’s name, capital, and paid-up share of stock into the Companies Registry. The company name and its worth will stay with the original shareholders until the said shares are transferred on expiry or when the company becomes bankrupt.
Companies can also be established via the Hong Kong companies registry, which requires a minimum number of shareholders. Again, the registered company must have at least five hundred shareholders. This minimum number of shareholders is an essential requirement in Hong Kong company formation services. If there are too few shareholders, then the company will not function correctly and not expand its operations. On the other hand, if the number of shareholders is too many, the company will suffer from numerous problems, including financial issues. Therefore,
For a new company to become active in the market, it needs to register it with the Companies Registry. The Companies Registry also acts as the company’s registered office. It means that all its official documents, such as the Memorandum and Articles of Association, must be filed at the Registered Office. This office is located at the Commercial Building, or General Office Building, as the registered office.
Upon establishing a business in Hong Kong, you must provide the Companies Registry with information about your company. It includes your company’s name, address, the nature of your business, and the name of your director or secretary.
Then the next step is to submit your application for a business registration certificate. It includes preparing the payment forms, application forms, and statutory declaration. You must make sure that all the requirements of the Registration scheme are met.
Next, you will receive a business registration certificate. From here, you will be able to know whether your company is active or not. If your company is not dynamic, you will have to pay a registration fee, and your shareholders will lose their right to vote for the company through an annual general meeting. Moreover, if you decide to expand and hire additional employees, you will have to pay the appropriate registration fee again.
After this, you will receive a business number. Business numbers are required for all official communication. These numbers are generally printed on the bottom of the letterhead and invoices. A company secretary or the company secretary’s assistant will issue these numbers to your customers. Therefore, having a registered office address and a business number is a mandatory requirement for all Hong Kong company formation services applications.