How to Incorporate a Hong Kong Company
The main aim of an HRK or an HRSC is an employer-employee relationship, which is professional. An HRK or the Human Resource Kingdom exists strictly as a business, and so there are few restrictions on its management or operations. However, when you incorporate an HRK business in Hong Kong, you’re taking on only one minor form of that corporation.
But the benefits of incorporate HK company are enormous. One of these benefits is the availability of limited liability. Limited liability means that you can only lose the money you put into the business so that your company doesn’t necessarily have to follow the rules of any international company, except for having to pay tax on its income.
You also have the benefits of a low tax rate, and this is extremely important when you are doing business in Hong Kong or anywhere else in the world. Another benefit is the availability of a local lawyer who is fully qualified and competent to help you incorporate your company. He will advise you on all the relevant issues, from the tax benefits to the purchase of shares. You will find that when you incorporate a company in Hong Kong, you will also have access to a local accountant who can help you make your financial records. Suppose you happen to be a person with no business experience. In that case, this will prove to be highly beneficial to you because an accountant can help you understand what you need to do to make your business a success while at the same time providing you with guidance on how to go about doing so.
One of the main benefits of incorporating a company is that you will have access to shares. Shares, by law, are only available to the company’s direct shareholders. When you include a company, you can become a direct shareholder of your choice. If you do not wish to be a shareholder, you can still have access to the benefits of shares, and this is usually done through the method called ‘limited liability partnership.’
An important consideration to make when you incorporate a company is the issue of issuing shares. One of the advantages of issuing shares in a limited liability partnership is that you do not have to worry about giving too much away to the shareholders. However, it is also important to remember that when you issue shares to the public, it would be possible for the price to drop drastically, so if you do not want to get hit by this factor, it is best to stick to issuing restricted shares.
However, when you incorporate a company, there are other considerations that you would need to think about, such as how you would get capital for the business, such as paying wages and salaries. In addition, in some cases, Hong Kong will not allow you to issue shares to the public without first becoming a public company, which is known as a limited liability companyor animated liability partnership.’ These are both legally distinct from corporations, and although they might sound similar, they are very different from one another. The most significant difference between them is that a corporation is not obliged to issue shares to its shareholders. A limited liability partnership cannot function without any shares being issued.
One of the things that you should remember when you incorporate HK company is that it will be vital for you to make sure that it is registered with the Secretary of State’s Office. It is part of the Corporation and Registration section of the Charitable Society Act 2021, which states that you must register your company with the relevant body within three months after forming it. Even though you can incorporate a company by offering the Articles of Association later, it will still be easier for you to obtain the services of a chartered accountant who can assist you with submitting the Articles of Association on time.
One other important thing that you need to remember when you incorporate a company is the statutory declaration page for the company. It is the page where the members will be required to write their statutory declaration about the company. In the statutory mandate, they are obliged to include information regarding the company, its objective, its original name, and its present status. Note that the aim of the company must be precise. For example, it could be listed as being for promoting social good, for the education or advancement of social welfare, for the betterment of public or private interest, the encouragement of science, or the community’s economic welfare.