Companies are one of the most critical aspects of any thriving business. No matter how well planned and executed, no business can flourish unless the people are running. It has all the necessary legal qualifications to perform the functions they are charged with it. And this is where company formation in Hong Kong takes centre stage. Companies can be registered in either the local country offices in Hong Kong or the Companies House in the British Virgin Islands – two of the most popular options for company registration in the UK.
There are many benefits to company formation Hong Kong, making it a popular choice for many entrepreneurs worldwide. One of the best known is that Hong Kong has a relatively simple set up process compared to many of the other company registration options available to foreigners. Company formation in Hong Kong even allows an individual to choose from the SICs – Single Corporations, Limited Liability Company, and Corporation. Each of these company formation options has its advantages and disadvantages, but all have been simplified for the typical entrepreneur looking to establish a Hong Kong business.
With the basic structure of company formation in Hong Kong, an entrepreneur can choose from one of three company formation options offered by the Hong Kong authorities: the limited company, the SIC, and the partnership. Each of these company formation options has its benefits, so it is best to understand them so you can make an informed decision on which company name to use. This article will discuss each option’s advantages and disadvantages and then look at how easy it is to incorporate a company in Hong Kong using one of these options.
The most common company formation Hong Kong option is the Limited Liability Company (LLC). Using this option, entrepreneurs must ensure that the company they create is not a direct competitor of another existing company and that the owners of both companies hold a general power of attorney. You should always obtain legal advice before incorporating a company in Hong Kong.
The next company formation Hong Kong option available to entrepreneurs is the SIC. This company formation option involves a simple application and limited liability setup. It is also the simplest among all company formation options available in Hong Kong. You can create a corporation with only a single director and limit shareholders to two. Besides, there are no tax requirements with this company formation option.
Lastly, entrepreneurs can register a company with the Hong Kong SIC through a share capital company secretary. A share capital company secretary will help you write your new company with the correct documents and complete any other formalities necessary for the company formation. There is a fee for each service, but it is usually worth it. As an added service, a share capital company secretary can help you obtain any other registrations or licenses, such as trade licenses.
Suppose you cannot obtain a share capital company secretary or register a company with the Companies Registry. In that case, you may still be able to incorporate your company by using a Registered Office. A registered office is simply an office building or location that is registered with the Companies Registry. The company secretary will assist you in finding an appropriate Registered Office. You will need to provide your company’s Registered Office Address, contact details, and name when submitting your application for a Registered Office.
Your company must have one or more significant controllers to operate effectively. The company secretary will help you complete the necessary documents to name one or more significant controllers for your company. Your company must also ensure that it has a nominee director for each of its directors. This person will act in place of your director should they die, retire, or quit the company. It is done to prevent any confusion about who controls the company should that director die, retire or leave.