How to Set Up a Limited Company in Hong Kong
There are numerous advantages of how to set up a limited company in Hong Kong. The most obvious is that it simplifies the procedures involved in the registration of a company. The limited company process in Hong Kong can be completed in less than one month, depending on the number of parties involved and the complexity of the issues involved. Besides, there are other advantages of how to set up a limited company in Hong Kong.
How to set up a limited company in Hong Kong? Another advantage of setting up a limited company in Hong Kong is the absence of any mandatory minimum share requirement. Besides, the existing cash resources are easy to increase, even after the resignation, bankruptcy, or death of a director or shareholder. The company formation in Hong Kong also provides several options for protecting the company profits tax, including an International Business Corporation (IBC), a nominee director, and a Limited Liability Partnership (LLP).
Achieve Financial Independence. Another advantage of setting up a limited company in Hong Kong is enjoying all the benefits of being a private company without worrying about paying the high share capital or the high corporation tax. Once you have established a company, you have the option to obtain an unlimited non-executive directors’ agreement and vote the shares one member, Tenant, or General public. It effectively reduces the cost of tax for many business ventures, thus achieving financial independence.
Open a Business Registration. Companies usually need to get a business registration in Hong Kong before trading or doing company business. The new business registration gives the advantage of public record and the right to bear the same name and the right to be represented by the SIC or a nominee director. One disadvantage of using a business registration in Hong Kong instead of a private limited company is that the company needs to pay the SIC fees thatare not very affordable. Therefore, most business registration in Hong Kong uses the new company formation agents’ services to save costs.
Form a Sole Trader. Forming a sole trader is not difficult, but it requires the use of some business formation agents. Using one of these agents’ services allows the introduction of a sole trader, which has the advantages of reduced costs, tax benefits and is not obliged to set up a permanent office. However, the disadvantage of using a sole trader is the absence of voting rights and the use of a trading agreement. It makes the company formation process in Hong Kong a long and complicated one.
Use the Private Companies and Limited Liability Companies. Some companies are run by individuals instead of by companies. Such private companies can be set up in Hong Kong under its private companies’ law laws. However, it is advisable to use the company formation procedures applicable to public companies.
Register a Company Number. A company number is aprimary key to the ownership of any business in Hong Kong. Once this key is obtained, all others are merely for the company officials to manage. Hence, once a company is registered in Hong Kong, it will have one shareholder, the whole company’s owner. He or she is the only one who can give orders to the company, and he or she also has the power to bind the company to perform its duties.
You were registering a Company Name. The next step is to choose a name for your company. The type of company name that you select should conform to the kind of business that you have. The choice of your company’s name should be made according to the industry where your business forms part. You can use the Companies Registry to pick a suitable name for your company.
How to set up a limited company in Hong Kong