Want to set up a company in Hong Kong? As a globally recognized hub for international trade and finance, Hong Kong is a fantastic economic zone for premium commerce and service provision.
It boasts an established government, advanced infrastructure, a thriving capital market, highly educated skilled labor forces, and a favorable tax system. Hong Kong serves as an exceptional platform and a perfect gateway for entrepreneurs and enterprises to trade, invoice, recruit, and transfer funds in and out of Asian economies with minimal capital investments from investors.
While no permanent residency is required to register a Hong Kong company, physical presence is needed to open a local company bank account.
Here, we’ll guide small to medium-sized companies through company registration in Hong Kong and deal with bank accounts, taxes, and ongoing compliances.
When managing global expansions in Hong Kong, identify the formation and structure of your core needs. Then, understand the rules and regulations of your targeted country of operations. It is crucial to evaluate the advantages and disadvantages of your preferred business entity based on your company objectives.
Before finalizing a decision, answer the following questions.
Since the Hong Kong jurisdiction law discourages the use of bureaucratic procedures, Limited Liability Companies (LLC) can now be registered online and strictly follow this streamlined chain of systems.
Every company in Hong Kong is segregated into different types. Let’s examine each of them in-depth:
Being the most common legal entity in Hong Kong, this company setup is considered private if its articles of organization impose minimal constraints on its operations.
A board of directors and firm secretary must be hired by the private limited business. However, their nationality and residency do not impact the establishment of your private limited business.
Ideally for non-governmental organizations. As a result of the firm’s articles of association, a limit is implemented on the distribution of the company’s surplus to shareholders.
In a company limited by guarantee, the concept of share capital is absent. The members’ liability is limited to the extent of their contributions. Company directors are required to take ownership of their ethical and legal obligations.
When a company is not privately held, it is open to the public. In other words, their articles of incorporation have no restrictions. This comes in 2 forms: A publicly traded company or a private company.
In comparison to a private corporation, a public limited company is subject to additional regulations and reporting requirements under the Companies Ordinance. In order to be listed, a private firm must first become a public corporation.
A sole proprietorship is where a single individual bears all legal and financial responsibilities for their own company. Being a sole proprietor may seem the least complicated, but it bears a high risk.
Firstly, you do not have any protection over your possessions and there are no limits to your personal liabilities as a business owner. As for the usual skepticism from investors over sole proprietorships, it hinders your ability to generate cash flow and perform company expansions.
A partnership firm consists of both limited partners and general partners. Even if your general partners have been relocated outside of Hong Kong, no requirements are needed to fill any local management positions.
While general partners have unlimited responsibility for the company’s obligations, the limited partner is only liable for the amount he contributed to the company’s formation.
Hence, general partners have a significant say in the company’s direction and are named as beneficiaries of its will. In contrast, limited partners, have little to no voting rights in proportion to their contributions.
2 or more individuals who share the same vision for a collective professional advancement may opt for a partnership business structure. This Hong Kong company registration is quick and easy.
Every member in a general partnership is personally accountable for company obligations and jointly shares accountability for the collective partnership’s actions. Establishing a general partnership in Hong Kong is simple as there are no mandatory registration procedures or other regulations.